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Category: ENCUMBRANCE CERTIFICATE

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ENCUMBRANCE CERTIFICATE

What Should You Do If the Encumbrance Certificate (EC) Shows a Previous Owner’s Loan?

Encumbrance Certificate (EC)
Encumbrance Certificate (EC)

If you have recently purchased a property and noticed that the Encumbrance Certificate (EC) shows a loan under the previous owner’s name, it is natural to feel concerned. So, is this an issue? Who is responsible for clearing that loan – you or the previous owner?

This concern can be resolved by understanding how home loan registration works and how to correctly read the EC.

WHY IT IS IMPORTANT TO VERIFY FINANCIAL ENCUMBRANCE

One of the most important steps in buying property is ensuring that the title is clear of any financial obligations. The EC helps confirm this by listing all registered transactions related to the property, including loans, discharges, and sales.

BASICS OF HOME LOAN REGISTRATION

When a home loan is involved, two key documents may be registered at the sub-registrar’s office:

  • Deposit of Title Deed (DTD)

This document is registered when a home loan is sanctioned. It gives the lender (usually a bank) a legal right over the property until the loan is fully repaid.

  • Reconveyance Deed (also known as Discharge Deed)

This is the document that proves the loan has been paid in full, and the bank’s claim over the property is removed. It must also be registered at the sub-registrar’s office.

Note: The person who avails the home loan and registers the DTD must also repay the loan and register the Reconveyance Deed. This process completes the loan cycle and clears the property of any lender claims.

REAL-LIFE CASE STUDY: UNDERSTANDING THROUGH AN ACTUAL TRANSACTION

To make this clearer, let’s look at a real transaction step by step

Step 1: Initial Purchase and Loan Registration

In July 2020, Mr. Divyansh purchased a 2BHK flat and registered the Sale Deed. Refer to the EC showing the Sale Deed transaction

On the same day, Mr.Divyansh also registered a Deposit of Title Deed (DTD) with the State Bank of India (SBI), meaning he availed a home loan. Refer EC showing DTD registration with SBI

Step 2: Loan Repayment and Closure

In March 2025, Mr.Divyansh repaid the entire home loan and collected a Reconveyance Deed from SBI. He then registered the Reconveyance Deed at the sub-registrar’s office, officially closing the loan. Refer to the EC showing Reconveyance Deed registration

Step 3: Property Sold to New Buyers

In April 2025, Mr.Divyansh sold the property to Mrs.Babita and Mr.Hemant. Refer to the EC showing the Sale Deed to Babita and Hemant.

Step 4: New Loan by the Buyers (Unregistered)

To finance the purchase, Mrs.Babita and Mr.Hemant took a home loan from HDFC Bank. However, this loan was not registered with the sub-registrar. Instead bank simply collected the original property documents as security.

Note: If the loan had been registered in the sub-registrar office, a new DTD between the new buyers and HDFC would have appeared in the EC.

KEY INSIGHT FROM THIS CASE

  • Mr.Divyansh took the loan, registered the DTD, repaid it, and registered the Reconveyance Deed.
  • When he sold the property, the EC clearly showed that the earlier loan was closed
  • Thus, the new buyers (Babita and Hemant) did not inherit any liability related to the previous owner’s loan.

Note: If the Reconveyance Deed has not been registered, it would indicate that the bank still had a claim on the property – a serious issue for the new owners.

CONCLUSION: WHAT YOU MUST CHECK BEFORE BUYING

Before purchasing a property:

  • Always verify the EC to check for any existing DTD
  • Ensure the previous owner has cleared the loan by registering the Reconveyance Deed

This protects you from complications and ensures the property is free from any lender claims.

Need Help Verifying the Latest Encumbrance Certificate (EC)?

For assistance in obtaining and reviewing the most recent EC extract, write to us:

  • Email: pgnproperties@gmail.com
  • WhatsApp / Call: +91-97424 79020
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ENCUMBRANCE CERTIFICATE

Why does my Encumbrance Certificate (EC) show a different date than my property registration date?

Many property owners are often confused when they notice that the date in the Encumbrance Certificate (EC) does not match the registration date of their property. This discrepancy arises because the EC reflects the date of execution of the deed, not the date of registration.

UNDERSTANDING THE DIFFERENCE

When a property transaction takes place, two key dates are involved:

  1. Date of Execution – The date on which the deed is signed and executed by the parties involved.
  2. Date of Registration – The date on which the executed deed is officially registered with the relevant authorities.

SHARING A REAL SCENARIO WITH SUPPORTING IMAGES

  • A deed was executed on 02–12–2024. This is the date when the parties signed the document. Highlighted the execution date in below image
  • When submitting the application for registration, we were required to select the date of execution, which in this case was 02–12–2024. Highlighted the selected execution date below
  • The deed was then registered on 04–02–2025. Highlighted the registration date from the Registered Deed below
  • After registration, when we downloaded the EC, the date reflected in the EC was 02–12–2024, which is the execution date, not the registration date. Highlighted the execution date in below EC

COMMON MISCONCEPTION:

Many people assume that the EC should display the registration date, but in reality, it records the date of execution. This is because the execution date signifies when the agreement between the parties was finalized, whereas registration is a legal process that occurs later.

Understanding this distinction can help avoid confusion when reviewing your Encumbrance Certificate. If you ever need to verify the registration date, you should refer to the registered deed rather than the EC.

Thank You for Reading!

We hope this article helped clarify the difference between the execution date and registration date in the Encumbrance Certificate (EC). For consultation, contact us!

📞 Contact & WhatsApp: +91-9742479020

📧 Email: pgnproperties@gmail.com

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ENCUMBRANCE CERTIFICATE

What is Form 16 Encumbrance Certificate (EC) and How to Obtain It?

Form 16 Encumbrance Certificate (EC)

A Form 16 Encumbrance Certificate (EC), commonly referred to as a Nil Encumbrance Certificate, is an official document issued by the Sub-Registrar’s Office. This certificate confirms that no registered transactions—such as sale deeds, mortgages, liens, or legal disputes—have occurred on the property during the specified period for which the certificate is requested.

PURPOSE OF FORM 16 EC

The Form 16 EC is crucial during property transactions, as it provides a clear history showing that the property is free from any encumbrances or liabilities. It is often required when:

  • Applying for a home loan
  • Selling or purchasing property
  • Verifying legal ownership and title clearance

HOW TO OBTAIN FORM 16 ENCUMBRANCE CERTIFICATE

To obtain a Form 16 EC:

  • Application Submission: Submit your application online through Kaveri Online Services. You can access the portal at https://kaveri.karnataka.gov.in/landing-page.
  • Required Details: Provide relevant property details, ownership particulars, and the period for which the certificate is required.
  • Fee: The approximate cost is ₹150.
  • Processing Time: In most cases, the certificate is issued within 5 working days.

SAMPLE FORMAT

Form 16 EC typically looks like the example shown below:

OUR ASSISTANCE

We offer end-to-end assistance in obtaining your Form 16 / Nil Encumbrance Certificate (EC) swiftly and hassle-free.

To avail of our service, please contact us via:

  • Email: pgnproperties@gmail.com
  • WhatsApp: +91 97424 79020
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ENCUMBRANCE CERTIFICATE

What is Nil Encumbrance Certificate (EC) ?

Nil Encumbrance Certificate (EC) is an official document issued by the Sub-Registrar’s Office, confirming that there have been no registered transactions—such as sale, mortgage, lease, or gift—on a specific property for the period requested by the applicant.

This certificate is issued in Form 16 and serves as crucial evidence of a property’s clear title during that period.

Example:

Consider a property that was registered on 10-02-2003. Since that date, there have been no further registered transactions or mortgages related to this property. We hoghlgited the date in below sale deed

When we applied for an Encumbrance Certificate (EC) for the period from 2004 to the present, the Sub-Registrar’s Office issued a Form 16 Nil Encumbrance Certificate, confirming that no transactions have occurred during the specified timeframe.

The FORM 16 Nil Encumbrance certificate looks like image below, We encircled the time duration in image below

What is Form 16?

Form 16 is the official format used to issue a Nil Encumbrance Certificate. It explicitly mentions that there are no encumbrances on the property for the specified period. This form is essential when verifying the title of a property, particularly in cases involving property purchase, loan applications, or legal verifications.

Need Assistance?

We provide professional support in obtaining Encumbrance Certificates (EC) for your properties. To avail of our service, please contact us:

  • Email: pgnproperties@gmail.com
  • WhatsApp: +91 97424 79020
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ENCUMBRANCE CERTIFICATE

How do I get Encumbrance Certificate (EC) prior to 2004?

Property registered on or after 1/04/2004, the registration data stored digitally. ECs are available for download online. They must be acquired as soon as 2–3 working days.

For property registered on or before 31/03/2004, the registration data must be manually retrieved at the sub-registrar office. Manual EC may be acquired in 5–7 working days.

The below sale deed was registered on 10–02–2003 in Krishnarajapura Sub-registrar office. We encircled the date and sub-registrar office below

For property registered before 31/03/2004, EC application should file in the same sub-registrar office where the property was registered so we filed EC application in Krishnarajapura sub-registrar office

We received manual FORM 15 EC from 2003 to 2004 and digital FORM 16 EC from 2004 to current date (Dec 2020)

Manual FORM15 EC from 2003 to 2004. Refer to below image

Digital FORM 16 EC from 2004 to current date. Refer to below image

We provide assistance to obtain EC. To opt for our service, please write to us pgnproperties@gmail.com or WhatsApp to +91-97424 79020.

Thank you for reading…

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ENCUMBRANCE CERTIFICATE

How to Check Apartment Flat Ownership in Bangalore Online?

Verifying property ownership is a crucial step before purchasing an apartment in Bangalore. One of the most reliable ways to check ownership details is by extracting an Encumbrance Certificate (EC). This document records property transactions and helps confirm if a property is free from legal or financial liabilities.

Extracting an Encumbrance Certificate (EC)

To verify ownership, follow these steps:

  1. Review the Registered Sale Deed
    The registered sale deed contains essential details such as the date of registration, seller’s name, buyer’s name, and the property schedule. Below is an example:
  • Date of Registration – This indicates when the property was legally transferred.
  • Seller’s Name – Confirms the original owner who sold the property.
  • Buyer’s Name – Ensures the rightful ownership of the current owner.
  • Registration Number – A unique identifier for the sale transaction.

In the below image, we encircled the date of registration, seller name and buyer name

Below is another page of sale deed with registration number encircled

Below is the property schedule in sale deed

2. Cross-check Details in the Encumbrance Certificate (EC)

Once the sale deed is verified, extract an Encumbrance Certificate from the Sub-Registrar Office (SRO) or online via the Kaveri Online Services portal.

Key details in the EC:

  • Column 3: Date of Registration – This should match the date in the sale deed. For example, if the sale deed is registered on March 20, 2021, the same date should reflect in the EC.
  • Column 5: Seller’s Name – The name of the previous owner, e.g., VIKEE, should appear exactly as in the sale deed.
  • Column 6: Buyer’s Name – The new owner’s name, e.g., ANAND, must match the sale deed.
  • Column 9: Registration Number – The unique five-digit registration number should be identical in both documents.

How to Apply for an Encumbrance Certificate in Karnataka?

You can apply for an Encumbrance Certificate (EC) Online in Kaveri Online Services portal

Need Assistance?

We provide professional assistance in extracting the Encumbrance Certificate (EC). To avail of our service, contact us:

📧 Email: pgnproperties@gmail.com
📱 WhatsApp: +91-9742479020

Thank you for reading!

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ENCUMBRANCE CERTIFICATE

What is the meaning of Market Value and consideration Value in Encumbrance certificate (EC)?

The Market value is the government value of the property, also known as guidance value or circle value

Market Value is the minimum amount for which a property can be registered in a particular locality. This guarantees a minimum stamp duty payable to government. The market value of property is fixed by the Department of Stamp & registration in your locality

Note: We can sell or buy a property less than market value but we cannot pay the stamp duty to government less than market value of property

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In the below EC, we encircled the market value of property in black color circle. We encircled the consideration in blue circle, (Consideration is the actual sale value of a property)

We provide assistance to extract FORM 15 EC for legal verification. To opt for our service, please write to us pgnproperties@gmail.com or Whatsapp to + 91 – 97424 79020.

Thank you for reading…

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ENCUMBRANCE CERTIFICATE

Documents Required to Apply for an Encumbrance Certificate (EC) in Karnataka

An Encumbrance Certificate (EC) is an essential document that verifies whether a property has any liabilities or claims. To apply for an EC in Karnataka, you primarily need a copy of the property deed.

Required Documents

A copy of any of the Deed, such as

  • Sale Deed
  • Gift Deed
  • Partition Deed
  • Release Deed

Key Information Needed from the Deed

While applying for an EC, the following details from the deed are required:

  • Seller’s or Buyer’s Name
  • Property Schedule, including:
  • Flat number (if applicable)
  • Apartment name (if applicable)
  • Hobli, Taluk, and Village name

For a step-by-step guide on obtaining a digitally signed Encumbrance Certificate (EC) in Karnataka, refer to our detailed blog post: How to Download an Encumbrance Certificate on Kaveri Online Services.

Need Assistance? Contact Us

For any queries or assistance in obtaining an Encumbrance Certificate, reach out to us:

📞 Phone: +91-9742479020

📧 Email: pgnproperties@gmail.com

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ENCUMBRANCE CERTIFICATE

How to Check if a Property Has an Existing Loan

Verify the Encumbrance Certificate (EC)

If you are planning to buy a property, it is crucial to verify whether it has any existing loans or mortgage liens. One of the most reliable ways to do this is by checking the Encumbrance Certificate (EC).

Real-Life Example

For instance, I took a mortgage loan from Bank of Baroda to purchase a 3BHK flat in Bangalore. As part of the loan process, the bank registered a Memorandum of Deposit of Title Deed (MODT) at the sub-registrar office. Below is an image of the registered MODT:

The mortgage lien (MODT details) is also reflected in my Encumbrance Certificate (EC). You can see this highlighted in the following image:

Key Points to Note

  • Loan details appear in the EC only if the MODT is registered at the sub-registrar office.
  • Some banks and private lenders do not register the MODT. Instead, they simply collect the original title documents (such as the registered sale deed) from the borrower as collateral.
  • Therefore, to check if a property has an existing loan, follow these steps:
  1. Check the Encumbrance Certificate (EC) for any registered mortgage liens.
  2. Verify if the seller holds the original title documents. If they don’t, the property may have an unregistered loan.

Need Help?

We provide end-to-end assistance in obtaining FORM 15 EC to verify mortgage liens on properties.

📩 Contact us:

Email: pgnproperties@gmail.com

WhatsApp: +91-9742479020

Thank you for reading!

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ENCUMBRANCE CERTIFICATE

How do I validate if a property is registered or not?

To validate the property registration, check the transaction details in ENCUMBRANCE CERTIFICATE (EC)

The registered sale deed looks like below image. In the below image, we encircled the date of registration, seller name and buyer name

https://qphs.fs.quoracdn.net/main-qimg-8f66c0cc76dcbc19233c308b01b9dfce-pjlq

Below is another page of sale deed with registration number encircled

https://qphs.fs.quoracdn.net/main-qimg-15bf4554b8ffcd53bc066b19f551b2e3-pjlq

Below is the property schedule in sale deed

https://qphs.fs.quoracdn.net/main-qimg-c3feff45b5a049635f93831c6cccddee-pjlq

We extracted the encumbrance certificate online on Kaveri Online Services to cross-check whether the property is registered. In the below encumbrance certificate (EC),

Column 3 represents the date of registration, the above sale deed was registered on 20th March 2021, same date is reflected in below EC

Column 5 represents the seller’s name, In the above sale deed, the seller name is Mr VIKEE, same name is reflected in EC

Column 6 represents the buyer’s name, in the above sale deed, the buyer’s name is Mr ANAND, same name reflects in below EC

Column 9 represents the registration number, the registration number in above sale deed matches to below EC.

https://qphs.fs.quoracdn.net/main-qimg-eb5732813832c697f4d9901f2f14ad43-pjlq

It means the property is registered. If the property is not registered, data will not reflect in EC.

In Karnataka, apply encumbrance certificate online on Kaveri Online services. The application cost less than Rs. 250

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We assist in extracting encumbrance certificates with or without sale deed. To opt for our service please write to us pgnproperties@gmail.com or Whatsapp to + 9 1 – 97424 79020.

Thank you for reading….