It is very important to obtain an Encumbrance Certificate (EC) before purchasing a new property for checking the genuineness of the ownership documents of the Seller. This will help in avoiding any kind of fraud or litigations in the future.
An encumbrance certificate helps in knowing and tracing the history of a property. It tells us who was the original allottee / owner of the property and how it was transferred to the subsequent buyers over a period of time before reaching the current owner. A search report is generally made by an advocate, who issues the same after visiting the office of Sub registrar and inspecting the relevant property documents.
The report provides details of any existing mortgage, litigation, condition or claim, which is likely to affect the title of the property buyer adversely. If the buyer wants to take a housing loan, the title of the property should be clear, marketable and free from defects. Further, there should not be any kind of dispute or litigation pending in respect of the property.
Every document affecting an immovable property ( such as a Sale Deed, Conveyance Deed, Gift Deed, Partition Deed, Agreement to Sell, Partition Deed, Mortgage Deed, Power of Attorney, Relinquishment Deed etc. as provided in Section 17) has to be compulsorily registered, so that any person who wants to deal with such property can find out information about any encumbrances, legal obligations, rights and ownership of such property; and such registration of the document acts as constructive notice to a person who subsequently acquires the property or any interest in it.
Every document so registered has to be copied in the appropriate Book and its particulars including the name of parties to the document, the address / description of the property, the nature of transaction and the consideration have to be entered in the statutory Indexes.
When a person wants to ascertain whether any transactions has taken place in relation to an immovable property or wants to get the details of any such transaction, he can apply for an Encumbrance Certificate or a Nil Encumbrance Certificate. The certificate is issued by the Registration Office showing the results.
The Encumbrance Certificate (EC) is not a document of title or document affecting title to a property, but only a list of the acts and encumbrances affecting an immovable property made on the basis of the documents registered and entered in the Books maintained in the Sub Registrar Office.
The genuineness of the Ownership Documents of the Seller can be also checked by verifying the same with the Certified Copies obtained from the Sub Registrar Office.
We provide Title Search / Verification Report, Property Due Diligence services and Non Encumbrance Certificate in respect of properties situated in Delhi.
For any assistance, you may contact us at +91-8800418408.
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