Have you asked the seller about the encumbrance certificate for the property you plan to buy? When you invest in real estate, it is important to ascertain that the property you plan to buy does not have any pending monetary dues. To ensure this and have a clear property title, you must obtain a non-encumbrance certificate from the office of the Sub-Registrar of your city.
Why you should have non-encumbrance certificate
The bank will ask the buyer for a non-encumbrance certificate before granting a home loan for the property or issuing loan for the property purchase. If you sell this property in future, the new buyer will also demand this document.
What does encumbrance certificate specify?:
The encumbrance certificate lists all the transactions related to a particular property over a specified period of time. A non-encumbrance certificate generally lists 12 years of the property history; you may ask for older details, too.
How to get a non-encumbrance certificate?:
Here is a step-by-step process to get the encumbrance certificate:
- You have to fill a prescribed form to apply for a non-encumbrance certificate from your city's tehsildar office.
- A non-judicial stamp of Rs 2 has to be affixed on the application form.
- An attested copy of your address, along with an application stating why you require the certificate, has to be submitted with the form.
- You have to ensure all the details of the property are accurate. These include the survey number, the location, and other such particulars.
- Depending on the period for which you want the non-encumbrance certificate, the authority may charge you differently. The certificate is issued in your regional language, and if you want the language to be English, you have to pay additional charges.
- The certificate is issued from the period starting April 1 of the starting year to March 31 of the ending year. For instance, if you apply for a certificate on April 15, 2016, for a duration of 20 years, the certificate will have a timeline from April 1, 1996 to March 31, 2016.
- The application has to be submitted to the Sub-Registrar's Office.
- You will receive the non-encumbrance certificate within 20-30 days.