Understanding Encumbrance Certificate (EC) in Karnataka
Understanding Encumbrance Certificate (EC) in Karnataka

Know All About Encumbrance Certificate in Karnataka: What it is, What it is Useful For, Procedure to Obtain, and Validity

When dealing with property and land transactions in Karnataka, one of the most important property documents is the Encumbrance Certificate (EC).

The EC is an important document in the property-transaction process, acting as evidence that the property in question is free from any legal or financial liabilities. In this blog post, we will delve into what an Encumbrance Certificate is, its significance, the process to obtain it, and its validity.

What is an Encumbrance Certificate?

A Property encumbrance Certificate is a document issued by the Sub-Registrar's office in Karnataka, which verifies that a particular property has a free title and is free from any monetary and legal liabilities. It is a declaration that the property is not mortgaged and has a clear title. Each encumbrance certificate record contains information around transaction especially when buying or selling a property, as it ensures the property's credibility.

Why do you need an Encumbrance Certificate?

Proof of Property Title

The EC serves as proof that the property title is clear, confirming that there are no pending legal disputes or mortgages against it.

Loan Approval

Banks and financial institutions often require an EC before sanctioning a loan against property.

Property Transactions

It is a mandatory document for buying or selling property, as it assures the buyer of the property's legitimacy.

Government Subsidies and Benefits

For availing certain government subsidies and benefits related to property, an EC is necessary.

Breaking Down the Encumbrance Certificate

The EC contains the following details for a property

Transaction History

Lists all transactions related to the property for the requested period.

Property Description

Detailed description of the property including location, size, and type.

Description

Party Details for each transaction

The encumbrance certificate also contains the party's personal details like the name of the party and family member details

Encumbrance Details

Information on any home loan, monetary dues/uncleared debts or legal complications associated with the property.

Period of Certificate

The specific time frame for which the EC is issued.

Transaction/Sale Deed Details

The details of the sale deeds associated with a transaction are visible on the ec. The sub registrar office, book number, document number and year of registration is visible for each entry.

Using the document number, book number, sro office details and document registration year, you can perform various actions such as view document from the Kaveri online services web portal.

Procedure to Obtain an Encumbrance Certificate in Karnataka

The process to obtain an EC certificate in Karnataka can be done both offline and online. Let’s explore these procedures:

Get an an encumbrance certificate at the SRO Office

Application Form

Visit the Sub Registrar (sro office) where the property is registered and fill out the Form 22 application, stating the reason for the EC request. You can locate sub registrar offices on Google Maps.

Document Submission

Along with the application form, submit a copy of your property details, address, and a period for which the EC is required.

Fees

Pay the required nominal fee for processing the EC.

Processing Time:

The processing time can vary, but usually, it can take up to 10-15 working days to receive the EC.

Final EC will be sign and stamped as shown below

Encumbrance Certificate Form

Getting an encumbrance certificate through the Kaveri online service

Kaveri Online Portal:

Visit the Kaveri Online Website, the digital platform provided by the Karnataka government.

Registration

Register and login to the portal with your mobile number as only registered users can access these services

Application

Select ‘Encumbrance Certificate’ and fill in the necessary details such as property address, period of the EC, etc.

Preview

You will see a preview of the encumbrance certificate application online

Application Submission and Payment

Pay the application fee, and submit the online ec application. You will need to esign the application using your aadhar card. Review the automatically generated application form also known as form 22 as shown below.

Application Approval

The sub registrar office will process and approve the application, you can download the certified ec certificate from the website. This usually takes 3-5 working days

Download online EC

View and download the encumbrance certificate online through the kaveri online portal

Get ECs instantly on the Landeed App

The Landeed app provides instant access to ECs. We have built an efficient autocomplete based search, allowing you to search faster and more accurately as opposed to Kaveri where each detail has to be selected from a dropdown. With these changes and technical optimizations we have made EC searches up to 50% faster on our platform. You can also search it on your browser directly here

Our next focus is to provide analytics and insights on each of the encumbrance certificates allowing you to understand at a glance any loans, or issues with the certificate as well as one click access to all the linked sale deeds in the encumbrance certificate. This will allow lawyers and property buyers to review and understand the encumbrance certificate faster and more accurately for any property's due diligence.

Other Services on Kaveri Portal

The Kaveri online services portal is also useful for other services like downloading the certified copy of sale deed and property registration. Its a one stop shop for property registration data and transactions associated with the sro office.

The government plans to launch other services like marriage registration. There are services like registration fee calculator and stamp duty payment also available on the portal. Guest users can also find the nearest SRO on this portal. You can read more about this in our detailed article here -

However do note that the portal does not give you access to revenue department documents such as RTC, Mutation records and Akarband which provide additional information like owner details

Types of Encumbrance Certificates

Form 15

Form 15 is the ideal encumbrance certificate that is typically valid for a specific requested period.  When applying, you can request an EC for a particular duration (e.g., last 10 or 15 years).

On the Kaveri Online portal, form 15 ECs are available only from Jan 2003 to the current date. This is usually sufficient for most properties. However, for property transactions, it is advisable to obtain the EC for up to 50 years especially for older properties.

Many of these properties may have unpaid dues or title transfer issues.

Form 17

Form 17 is the form returned for ECs that are searched by party name. These are generally less accurate compared to Form 15 ECs because the party might be involved in transactions around different properties (not just one property).

In the example we have searched an EC by the name "Ravi"

Since this search is less accurate - these kind of ECs may not be accepted for transactions such as loans, litigations and other aspects.

This is useful in the case we want to search specific transactions based on the name of the party, or do due diligence based on personal details before the transaction happens

NIL Encumbrance Certificate or Form 16

Often while searching for an EC, you may get an empty Encumbrance Certificate record or a NIL Encumbrance certificate. In most cases this happens due to an incorrect search data however in some cases when there is no transaction on a property between 2003 and now - it will show a clean EC. This means that in this property registration duration, no transactions have happened and the encumbrance certificate has a clear and marketable title. This is rare in most cases and one should verify the information and retry the search.

You can usually identify a NIL EC as Form 16 - You will see this number clearly written in the EC as shown below.

Common Issues and Solutions When Obtaining an EC from Kaveri online service

Issues

  1. Missing Transactions: Sometimes, not all transactions related to the property are recorded.
  2. Time-Consuming Process: The process can be lengthy, especially if done offline.
  3. Errors in the Certificate: There might be clerical and data entry errors in the EC.

Solutions

  1. Ensure Complete Records: Regularly update and verify property records.
  2. Online Application: Utilize the online application process for quicker results and a preview of the encumbrance certificate.
  3. Verification and Corrections: Thoroughly verify the EC and request corrections if needed.

Conclusion

An Encumbrance Certificate is one of the most important documents for property transactions. It provides assurance that the property is free from any legal complications, aiding in smoother and more secure property dealings like selling a property, getting a home loan. By understanding its importance, the procedure to obtain it, and ensuring its accuracy, property buyers and sellers can navigate the real estate landscape in Karnataka with greater confidence and security.

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