It is a Certificate issued by the Sub-Registrar in whose jurisdiction the property is registered and has the details regarding the charges created on the property.
It is issued in Form No.15 and Form No.16, disclosing the transactions conducted and entered in the register on the schedule property. It is a search document. It is required to be produced to the prospective buyers at the time of sale.
Encumbrance is a charge created on a property. In case a property is purchased with borrowed money or is offered as a security for a loan, a Charge is created in the form of an encumbrance. The property is then mortgaged as a security. Certificate discloses the encumbrance status of the property.
It is issued for a particular period and does not cover any period prior to or following the period mentioned. It is an extract of the register maintained by the sub-registrar, which in turn is based on the documents registered with the registrar. In case a particular document is not registered with the registrar, it won’t be captured in the encumbrance certificate.
Some charges not recorded with sub-registrar
Equitable mortgage details: This is a mortgage by deposit of title deeds where the borrower deposits the original documents pertaining to the property with the bank and does not get it registered at the registrar’s office. Testamentary documents: These documents are not required to be registered with the registrar.
Leases: Any lease for a period of less than one year does not need to be registered. In any transaction of sale or purchase of property, a ‘no encumbrance certificate’ is a very important document. It is also issued for the purpose of mortgaging a property for a loan. It certifies that the property is not already mortgaged.
In order to obtain this certificate,
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