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Is encumbrance certificate sufficient to ensure property title?
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The encumbrance certificate contains all the transactions registered relating to a particular property for a period (as required), writes C.H. Gopinatha Rao
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— Photo: Ch. Vijaya Bhaskar
Useful: An encumbrance certificate will help arrive at proper entitlement of the property.
Encumbrance is a legal term for anything that affects or limits the title of a property, such as mortgages, leases, easements, and liens. In regards to property transaction encumbrance certificate is a document issued by the Registrar’s office. The encumbrance certificate contains all the transactions registered relating to a particular property for a period (as required). It is advisable to get encumbrance certificate before effecting any transactions. This will als
o help in arriving at proper entitlement of the property.
The non-testamentary documents relating to immovable properties are registered under BOOK 1 and preserved permanently which only will reflect in the encumbrance certificate. The documents registered under BOOK 1 include the deeds of sale, gift, settlement, partition, release, mortgage, rectification, consent, exchange discharge, security cancellation, mortgage assignment and agreements of lease and sale. It also includes any documents for consideration or supplemental documents to the documents executed for consideration with the description of immovable property. Book No 2: records reasons for refusal to register the documents. Book No. 3: Register of Wills and authorities to adopt. Book No 4: Miscellaneous Register. Book No 5: Register of deposit of Wills.
Unregistered mortgages
The encumbrance certificate issued by the Registrar’s office will not reveal some items which include unregistered mortgages, arrears in taxes to be paid to statutory authorities, status of tenancy, suits pending before the court acquisition proceedings. The Registrar is not liable to be sued, for any claim or demand for reason of anything done or not done in good faith in his official capacity.
The EC will not reveal documents that are executed but not registered within the time allowed by the Registration Act. The effect of registration is only to make the title absolute and unquestionable. A document may not be valid as long as it remains unregistered if no transaction has taken place during the period for which the application is made for EC.
Any order of attachment by the court will be communicated to the Registering officer within the local limits of whose jurisdiction the whole or any part of the immovable property is situated and the same will be reflected in the encumbrance certificate. Anybody can apply for encumbrance certificate except in case of Will. In case of Will, the legatee can apply after the demise of the testator with the death certificate and the document can be obtained only by the parties to the dead.
Documents pending registration but already presented in the Registrar’s office (due to deficient stamp duty paid and pending for decision ) will not be reflected in the Encumbrance certificate.
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Property Plus
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