The task of buying your dream house will be probably the single hardest thing you will do in your life. The documents both legal and formal are massive and can give any novice a severe headache. The need to get a lawyer is probably the best decision you will make if you plan on buying a property.
In most of the online websites which are directed to people planning on procuring a property talks about how clearance certificate, builders certificate, change of ownership certificate but very few speak Encumbrance certificate.
The certificate we are going to talk about in this blog is one of the essential papers you will need while closing a deal. The document called encumbrance certificate states whether the property in question has any financial or legal liabilities on it. In many cases, we found that the seller already took a loan using the property as a tangible asset. Such transactions get mentioned on the mentioned certificate. The document is quite essential if you plan on buying a house after getting a home loan. The report contains all the necessary pieces of information involving any transactions on the property and helps the bank to point out any liabilities of the property. Generally, banks ask for Encumbrance certificate dated back to ten to fifteen years. We radically advise all our readers to get the Encumbrance certificate from your seller while applying for the home loan to fasten the process.
Limitation of the document: However, there are some limitations to the certificate; the document in question keeps a record of all formally registered transactions and does not keep track of purchases not registered, thus creating a loophole. For example, when a property gets passed from one person to another through will or inheritance, the transactions do not get mentioned on the certificate.
How to acquire? People who have acquired property through inheritance can quickly get their hands on an Encumbrance certificate by applying for the document once they register their property legally. The sub-registrar office is the place where a homeowner goes to register his property lawfully and get a certificate quickly. There are few states in India, where one can apply for the document online and get a digital certificate within a few days delivered to their home. After applying for the document, people from authorized bodies inspect the property documents of the last fifteen years, and once they don’t find any faults or liabilities, they issue the certificate to the concerned within thirty days.
Read the Top construction blog India for more knowledge.