When buying or dealing with a property, it’s crucial to verify whether there’s an existing loan or mortgage on it. A property with an outstanding loan can lead to legal complications, so conducting due diligence is essential. In this blog, we’ll guide you through the steps to check if a property has an active loan and how to ensure a smooth transaction.
Check the ENCUMBRANCE CERTIFICATE (EC). Loan details reflect in the Encumbrance certificate of the property
For example: I have taken a home loan from Corporation Bank, I have encircled the bank details in my below encumbrance certificate (EC).
NOTE:
- Loan details are reflected in EC only if the MODT is registered in registrar’s office.
- Some banks and private lenders don’t register the MODT and they collect the title document from borrower, title document includes Registered Deed.
To check the loan on the property:
- 1st check the EC
- 2nd ask the property owner to show the Registered Deed.
Need Professional Assistance?
At PGN Property Management, we specialize in property verification, due diligence, and legal documentation. Whether you’re buying, selling, or investing in property, our team can help you ensure a smooth and hassle-free process.
Contact Us:
Email: pgnproperties@gmail.com
WhatsApp: +91-97424 79020