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:
- Check the Encumbrance Certificate (EC) for any registered mortgage liens.
- 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!