An encumbrance certificate (EC) is an official document required when handling land and property transactions in Tamil Nadu. The EC is evidence that a particular property is clear and free from any legal or financial liabilities. It safeguards the buyers from the violation of determined laws and regulations.
In Tamil Nadu, EC is referred to as the villangam certificate, a vital part of the property transaction process. This article explains what an encumbrance certificate is, its significance and its validity. Understanding this concept helps you when dealing with property transactions.
Overview of Encumbrance Certificate
An encumbrance certificate for a land or property confirms the property ownership status, including sales and transfers. It helps identify whether the land is encumbered with any potential financial obligations, such as claims, loans, or double registration.
It is issued by the sub-registrar of the property jurisdiction. This is a crucial document to certify that the property has clear titles and the absence of encumbrances, thereby safeguarding the buyer’s interests.
Importance of Encumbrance Certificate
EC plays a vital role in every property transaction in Tamil Nadu. Here are the major significances involved in it:
Free From Legal Claims: It is essential to ensure that there are no legal complications or controversies surrounding the land you are buying. In order to identify that, you need an encumbrance certificate for that property.
Loan Approval: When you are taking out a loan from banks or financial institutions, they expect all crucial documents to be verified. Among them, EC is the most required document for successful loan sanction.
During Buying & Selling: Whether you are buying or selling a property, the prospective buyers require an EC to confirm the legal ownership. It is the simple and easy method to enable a smooth and trouble-free property transaction process.
Prevent Fraudulent Activity: When it comes to property transactions, there are many loopholes for fraudulent activity. By verifying an encumbrance certificate, purchasers can do registration with peace of mind.
Legal Approvals: In some cases, EC is often required by government agencies when you apply for legal approvals like land conversion, property development, or building.
Encumbrance Certificate: How to Get in Chennai
Offline Process:
Obtaining an encumbrance certificate offline in Chennai involves these simple steps. Take these actions:
Visit the Sub-Registrar Office: Visit the sub-registrar office in which region of Chennai your property is located.
Submit the Application: Fill out the application form for an encumbrance certificate with appropriate details. Ensure you attach the mentioned paperwork relevant to the property, such as address proof, the specifics of the property, and title documents.
Pay Fees: Pay a processing fee for the application. You can pay either directly or using the payment gateways they support.
Verification Process: After submission, a verification process of the documents will begin. An appropriate authority verifies the submitted papers to ensure the details are correct.
Issuance: Once a thorough examination is complete, the encumbrance certificate for your property will be granted within 15 to 30 days. It will clear a detailed list of transactions involving the land or property.
Online Process:
If you want to apply for the EC online in Chennai, make use of the TNREGINET platform. Here are the lists you need to follow:
- Create your user account in TNREGINET. Fill in the required information, such as address, username, password, identity number (driving licence, PAN, or Aadhaar), and others.
- Once you have logged in successfully, search and apply the EC under the section of E-Services.
- Enter your property details, such as address (including sub-registrar office, zone, and district), survey specifics, home specifics, start and finish date of the EC, and other relevant facts.
- Once the details are entered, you will be navigated to the payment section. Use the mentioned payment gateways to process your application fee.
- Once the payment has been done successfully, make a note of the transaction ID, bank reference, and CIN.
What Are the Documents Required for an Encumbrance Certificate?
Some of the important documents required while applying for an encumbrance certificate in Chennai, are:
Title Deed or Sale Deed: This is a crucial document that indicates who owns the property and also includes location, borders, size, and approximate value.
Address Proof: Submit the government-approved proof as evidence, such as a voter ID, Aadhar card, passport, and any other valid proof.
Tax Receipts: Property tax receipts act as proof for paying regular taxes. They must be verified by authority.
Power of Attorney: If a property or land is registered on behalf of someone, this document is necessary. When there are no third parties involved, this paperwork is not required.
Encumbrance Certificate Vs. Non-Encumbrance Certificate
Encumbrance Certificate: The encumbrance certificate contains significant information about inheritance patterns, land leases, mortgage-related details, sales, and purchases. As a buyer or purchaser, it is essential to verify this information to confirm that a property is free from any legal liabilities. This certification is issued on Form 15, and it may take 15 to 30 days to arrive.
Non-Encumbrance Certificate: The non-encumbrance certificate, on the other hand, acts as proof that no one is able to claim the ownership of a property and that no property is mortgaged. This certificate takes nearly 20 to 30 days to receive.
Final Thoughts
An encumbrance certificate is an official document that is primarily useful for non-agricultural properties. It is the first paperwork to be verified when checking for any property or land to buy. The steps to apply for an EC may vary for both online and offline processes. People can follow their convenient steps to acquire an EC. The legal formalities for applying for an EC may vary for every region, so you can check with your region’s sub-registrar office.