What is non encumbrance certificate?

A Non-Encumbrance Certificate is a legal document that ensures that a property is free from every legal and monetary liability. It allows you to sell the specific property with a clear title and transfer the ownership without any litigation. It includes all the legal and financial transactions for a certain period that has been made regarding a specific property. Now that you know about the non encumbrance certificate meaning, let’s read about its importance.

• You are required to submit the Non-Encumbrance certificate to banks and financial institutions to obtain home loans as it ensures that the property is free from legal liabilities.

• No encumbrance certificate is evidence of ownership title, so it is necessary for transferring property.

• In case the land/property tax isn’t paid for more than 3 years, then the non-encumbrance certificate is required to be furnished with Village Officer/ Panchayat to update the land tax records.

• It is a necessary document in case you want to withdraw PF for house construction or property purchase.

Now that you know what is non encumbrance certificate and its importance, let’s read about its content

This Non-encumbrance certificate includes details, such as the details of the property owner, property details, transactions related to that particular property, mortgage details, details regarding gift settlement, release deed details, etc.

I hope now you know about the non encumbrance meaning clearly.

I would extend my gratitude towards Asmita, and Jayati Maam for explaining the non-encumbrance meaning so nicely. As I am a newbie investor in real estate, I know that when making an investment in real estate, it's crucial to make sure the property is free of any outstanding debts. You must obtain a non-encumbrance certificate from the Sub-office Registrar of your city in order to confirm this and have a clear title to your property.

Before offering a home loan for the property or a loan for the acquisition of the property, the bank will require the buyer for a non-encumbrance certificate. This paperwork will be required by the next buyer if you sell this property in the future.

The encumbrance certificate includes a list of all the transactions involving a certain piece of property over a given time frame. You can request older information as well. A non-encumbrance certificate typically includes 12 years of the property history.

When there are no liens on the property in question, Form 16—also known as a NIL Encumbrance Certificate—is given. The homeowner has free ownership to it, and no fees will be assessed against it for a certain period of time. Any financial institution in the nation will be willing to offer a new loan to a property like that.

I completely agree with Asmita that a non-encumbrance certificate is issued by the sub-registrar. However, I’d like to mention a step-by-step process by which one can obtain the non-encumbrance certificate;

To request a non-encumbrance certificate from your city's tehsildar office, you must complete a stipulated form.

• The application form needs to have a non-judicial stamp applied to it for Rs 2.

• The form must be submitted with an application explaining your need for the certificate and an authenticated copy of your address.

• You must make sure the property's information is accurate in every way. The survey number, the location, and other information fall under this category.

• The authorities may charge you differently depending on how long you want the non-encumbrance certificate. The certificate is issued in your native tongue, and you must pay extra fees if you like English to be used instead.

• The certificate is valid from April 1 of the starting year through March 31 of the ending year.

• The Sub-Office Registrar must receive the application.

• The non-encumbrance certificate will be delivered to you in 20–30 days.

I would like to conclude my answer here about the non-encumbrance meaning. I hope this helps:)

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Hi Buddy,

When I acquired my house, I was looking forward to receiving a non

encumberance 

certificate. Which is one of the many paperwork that home purchasers will need to complete their transaction.

Along with the occupancy and completion certificates, it is one of the most crucial documents in the real estate sector for obtaining a loan from a financial institution.

I have gone through Jayati’s answer and I am really elated with her answer and the details that she provided regarding the content, importance, and meaning of non encumbrance certificate.

Non-EC fees vary by state and are set based on the size of the property and the duration of the certificate. Applicants will be required to pay an application fee and a service fee ranging from Rs. 1 to Rs. 200 in some states, according to my knowledge. In Delhi, the charge is Rs. 200, however, it varies based on the area.

The encumbrance certificate for the property is issued by the sub-registrar under whose jurisdiction the unit is located. Essentially, this is the office where the current and prior owners registered the property at the time of purchase.

An encumbrance certificate can be obtained for a term of 12 to 30 years.

After knowing the EC certificate meaning, I would like to say that aside from ensuring that the seller provides the EC, the buyer must conduct due diligence and conduct personal checks to guarantee that the property is clear of encumbrances. 

While documentary verification serves as a safeguard, land-related fraud, particularly in rural regions, is all too widespread. Unfortunately, because these transactions do not fall under the scope of the Real Estate Regulatory Authority, such buyers are unable to move the RERA.

I hope my answer about the non

encumberance

certificate would help you:)

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