Encumbrance Certificate
Sanji-Paul Arvind F
(Querist) 10 December 2010
This query is : Resolved
Dear Sirs,
What is Encumbrance Certificate and is it necessary for an Encumbrance Certificate to file a partition suit.
Regards,
Sanjay Paul
A V Vishal
(Expert) 10 December 2010
Encumbrance refers to a charge created on a property. In case a property is purchased with borrowed money or if it is offered as a security for some loan, then a charge is created in the form of an encumbrance. The property is mortgaged as a security for any debt or obligation.
In any transaction of sale or purchase of property, a 'no encumbrance certificate' is a very important document. This certificate is also issued for the purpose of mortgaging a property while seeking a loan. The certificate certifies that the property in question is not already mortgaged. If it is already mortgaged, the liability for the outstanding loan may also devolve on the new owner.
The certificate discloses the encumbrance status of a particular property. The certificate is issued for a particular period of time and does not cover any period prior to or following the period mentioned. The certificate is an extract of the register maintained by the sub-registrar's office, which in turn is based on the documents registered with the registrar's office.
In case a particular document is not registered with the office of the registrar, it won't be captured in the encumbrance certificate. These include:
Creation of equitable mortgage: This is mortgage by deposit of title deeds where the borrower deposits the original documents pertaining to the property with the bank and does not get it registered at the registrar's office.
Testamentary documents: These need not be registered with the registrar.
Kirti Kar Tripathi
(Expert) 10 December 2010
i also agree with Mr. Vishal. he has well explained.
Sri Vijayan.A
(Expert) 12 December 2010
All the documents registered with the registrar office are entered 4 types of book.
if u go thru the Regn Act, u may come to know about these books.
The details about the doc's entered in the Book-I, shall be reflected in the EC
The details are Execution date, reg'n date, executant, claimant, doc. no.,short description of property, etc.
malipeddi jaggarao
(Expert) 13 December 2010
well explained. Encumbernce certificate is an evidence relating to flow of title with exceptions explained above.
