For Long term investment, many professional investors believe that property and real estates are the most secure choice. With the 100% guarantee of return comes the complexity of paper works and law-abiding.
There are several papers you should check and collect before investing in real estate. All documents should be original. Failure in this may lead to fraud and future loss. Some of the most important documents are:
- Title document
- Chain of Title doc
- Encumbrance Certificate
- Completion certificate & occupancy certificate
- Allotment Letter and Possession letter
- Mortgaged doc and loan statement
- Property Tax receipt – Up to date
- Utility Bills -Up to date
- Car Park Allotment letter
- NOC from RWA (residence welfare association)
All the above-mentioned documents are legally important for the prevention of fraud and malpractices. But the most important of all of them is the Encumbrance Certificate or EC.
What is the Encumbrance Certificate or EC?
The dictionary meaning of Encumbrance is the ‘seriousness of the burden in a given situation.’
In legal terms, Encumbrance means the burden. Encumbrance Certificate shows that the property is free from all the 3rd party claims. In simple words, it shows whether the property or the land is free from financial or tendency burden. This certificate also gives a brief of the transaction history.
Elements of Encumbrance Certificate:
Encumbrance Certificate is a 7-page document. It contains all the information from the name of past owners of that property to the transaction of change in the ownership. The element of the Encumbrance Certificate:
- Transaction history
- Chain of Title
- Check Encumbrance
- Avoid fraudulently
One can collect the Encumbrance Certificate from the sub-registrar office. Earlier it was a lengthy process that may take up to a month or two. But now it is a game of a couple of clicks. One can do the registration of his Encumbrance Certificate directly by going through the official Tamil Nadu website – tnreginet.gov.in One will receive the certificate in 15 to 30 days in the sub-registrar office.
How to Apply for TN EC Online?
Different states have different portals for viewing or downloading their EC. In some states it is compulsory and in some, it is not. The complex procedure was made simple by the initiative taken for digital registration.
The following should be stored in mind while filling the registration form:
Step 1: Search for the official Tamil Nadu page on google or directly click here.
Step 2: In the navigation bar, hover the E-services section
Step 3: Hover on the Encumbrance Certificate
Step 4: Click on view Encumbrance Certificate
Step 5: You will get the form.
Step 6: Fill in all the information like zone, district, sub-registrar office, EC start and end date.
Step 7: Verify the captcha.
Step 8: After filling the form, you will get two option
- and search
Step 9: Click on search option
Step 10: You will come to a new page, where you will get the option to download the Certificate
Step 11: Click on click here to download.
Check your download folder and open the pdf.
It is one of the most important documents when it comes to purchasing or selling property, still, it has many limitations.
Professional and lawyers are always advisable to check all the details in the Encumbrance certificate because some terms may be used which is difficult to understand for ordinary people. For confirmation, a professional should be hired, it will ensure a cent per cent risk-free deal.
Limitations of Encumbrance Certificate:
Even though it is such a significant document, it contains numerous flaws that we cannot and should not be overlooked.
- The encumbrance certificate will only disclose information that is recognized or are documented or whose records are accessible with or is registered with the sub-registrar office.
- Property in change equity shares or any intangible assets is not necessary to record in the registrar or in the tahasil office
- The details of Power of attorney or will are not available in the sub-registrar office.
- It is not mandatory to inform the registrar office about the Lease for less than a year.
- Oral Tenancy and the record of other non-written tenancy is not recorded in the sub-registrar office.
- Tax and maintenance due like water bill, electricity nill, etc are not mentioned in the encumbrance certificate.
- In family property, many a time due to some loopholes in the system, the problem arises for the future ownership of the lands. It takes several decades or years to solve cases like this.
Yes we get a wide range of information