Full Form of EC, Importance, Types, Apply Offline and Online

EC is the acronym for "encumbrance certificate."

What is an Encumbrance Certificate (EC)?

An encumbrance certificate (EC) is an important document. It is needed as evidence that claims the property in question is of free title and possession. In other words, the encumbrance certificate is a document that acts as evidence to suggest that there are no dues and that the title to the property is clear. Moreover, it also indicates that the property is marketable with no obligations.

While purchasing or selling a property, applying for a home loan, or even taking a loan against it, the EC is a vital document that confirms the property is free of any liabilities, either legal or economic.

It is crucial to get an encumbrance certificate at the time of buying any property, as it also contains details of the transactions done on the specific property.

Importance of the EC

Let us look at some of the significances of the encumbrance certificate (EC), which are:

• Firstly, the encumbrance certificate (EC) is vital when requesting a home loan from any bank. It is also a necessary piece of documentation that is needed if you want to buy or even sell a property.
• Secondly, it acts as evidence that your property is free from any legal or economic liabilities.
• Lastly, the certificate contains details about all the past transactions of the property at the time of purchasing the property.

In conclusion, an encumbrance certificate is a necessity before buying any property or availing of a home loan. Before buying any property, ensure that the property in question has a clear title, and with the help of the encumbrance certificate, you won’t have to worry about any legal or financial liabilities.

Moreover, if you notice any charge on the certificate, ensure to rectify it before making a purchase. It will also help you find out whether there is or are any owners who can claim the property in question legally. 

Even if you are thinking of or planning on buying a property with the help of a loan, make sure you have the EC as it is a required document to submit to your lender. 

Types of Encumbrance Certificates

There are two types of ECs:

When one applies for an EC, they will need to specify for which period they need the information. If no charges are placed on the property during the requested period, then a Nil-Encumbrance Certificate is issued. This, in other words, means that no lender has placed any lien on the property in the specified period.

How to Apply for an EC Offline

To apply for the EC offline, you need to do the following:

• Visit the sub-registrar’s office under the respective jurisdiction.
• Gather Form 22 (of EC).
• Fill out the form with all of your personal and property information.
• Submit the form with a stamp paper of INR 2 and the specified documents, along with the purpose of the application.
• Pay the fee.
• After the submission of your application, an inspection will take place to verify the authenticity of the details.
• Once the verification is done, the department will issue an EC in Form 15 along with the transaction details. In the event there’s a nil-encumbrance certificate, Form 16 will be issued.

How to Apply for an Encumbrance Certificate (EC) Online

Although encumbrance certificates are available online for most states, certain states, such as Karnataka, switched back to the offline process due to technical issues.

Let us take a look at how you can apply for your EC online:

• Firstly, you need to go to your state’s official "IGRS website" website. Once you are on the website, you can apply for the EC. 
• It is important to enter all the required fields on the form. Remember to save and update it as well.
• Once you have entered the details, enter the period for which you want the EC and click on "calculate fee."
• Once you have paid the application fee, you will be directed to the acknowledgement page. You can view the acknowledgement and take a printout.
• Then, an inspector from the land records department will conduct an inspection to verify all of the information about the property during the specified time period.
• Lastly, once the inspection is complete, an encumbrance certificate will be issued, which will list all the transactions in the period specified. If there are no transactions in the period specified, then a Nil-Encumbrance Certificate is issued.

On another note, if you are not able to apply online for the certificate, it is best to visit the respective sub-registrar’s office. 

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