What Does EC in Property Mean and How to Apply: A Step-by-Step Guide

Introduction

If you’re stepping into the world of real estate in Bangalore, you might have come across the terms “EC” and “CC” related to property. These two abbreviations stand for ‘Encumbrance Certificate’ and ‘Completion Certificate,’ respectively. In this blog, we’re going to demystify what EC and CC mean, with a focus on how to get an EC for your property in Bangalore.

What is EC (Encumbrance Certificate)?

EC is short for Encumbrance Certificate, a crucial document related to property transactions. In simple terms, an encumbrance is any charge or liability on a property, like a mortgage, a pending loan, or any legal dispute. The Encumbrance Certificate is proof that a particular property is free from any such financial or legal liability during a specified period.

Here’s why an EC is essential:

Property Ownership: It confirms that the property’s ownership is clear and free from disputes, allowing you to legally buy, sell, or mortgage it.

Property History: An EC provides a history of transactions, showing the property’s previous owners and any transfers or transactions that may have occurred.

What is CC (Completion Certificate)?

On the other hand, CC stands for Completion Certificate. This certificate is issued by the local municipal authority or the relevant governing body. It serves as confirmation that the construction of a building on a property has been completed as per the approved plan and is in compliance with the applicable building codes and regulations.

Here’s why a CC is crucial:

Legal Compliance: It ensures that the construction of the property adheres to all local building codes and regulations, ensuring structural safety and environmental compliance.

Occupancy: A CC is often required to obtain an Occupancy Certificate (OC), which is necessary for moving into or renting out a property legally.

Now that you understand what EC and CC are let’s explore the steps to obtain an EC for your property in Bangalore:

How to Get an EC for Property in Bangalore

Visit the Sub-Registrar Office: The process of obtaining an EC in Bangalore begins at the Sub-Registrar Office where the property is registered. You need to visit the office in person.

Application Form: Collect the application form for the Encumbrance Certificate. You can typically find these forms at the office or sometimes online on the official government websites.

Fill Out the Form: Carefully fill out the application form with accurate details of the property, including its address and the period for which you need the EC.

Provide Required Documents: Along with the application form, you will need to provide supporting documents such as the property’s sale deed, proof of possession, and any other relevant documents.

Pay the Fees: Pay the prescribed fee for obtaining the EC. The fee structure can vary based on the property’s value and the duration for which you’re seeking the certificate.

Application Submission: Submit the completed application form and documents, along with the fee, to the Sub-Registrar Office. Keep a copy of your acknowledgment receipt for reference.

Verification and Issuance: The Sub-Registrar Office will verify the details provided in your application. If everything is in order, they will issue the Encumbrance Certificate for the specified period.

Collection: Return to the office on the designated date to collect your Encumbrance Certificate.

Significance of EC – 

Now that we got to know what is EC in property documents, we will now try to understand its significance in property documents 

The property’s legal and financial ties, like if the owner has taken out a loan against it, would be represented by the encumbrance certificate. If the property is the subject of a lawsuit, that fact must be indicated on the EC Certificate. In Hindi, the encumbrance certificate is known as Bhar-Mukt Praman. 

Buyers should look for any encumbrances that may be transferred to them along with the property ownership because buying a home is such a substantial investment. A buyer can be confident that there are no financial or non-financial liabilities, such as liens, outstanding debts, or leases, on a property by obtaining an “Encumbrance Certificate” for it. 

Documentation is also necessary when applying for a mortgage loan or a loan secured by real estate. It should be acquired by purchasers in order to guarantee the validity of the property title and guarantee loan approval. 

If the relevant property or land tax hasn’t been paid in more than three years, the certificate is sent to the village or panchayat officer so they can amend the land tax records. 

Also Read: What is title deed in property?

When will you need EC?

After discussing what is EC in property and its significance, curious to know when you’ll find yourself in need of an EC in the property! Let’s find out:

1. EC for purchase: A non-encumbrance certificate is necessary when purchasing a home to demonstrate that you are dealing with the correct party and that the property is free and clear of all liens. 
2. Encumbrance certificate for loans: Before approving your application for a home loan to buy a home, banks frequently require an encumbrance certificate. 
3. EC for the elimination of PF: Your employer will request the EC if you utilize your provident fund to put a down payment on a home. 
4. EC for property mutation: After purchasing a property, the owner must use property mutation to officially document the ownership transfer. 
5. EC for the sale of a flat: In order to show the documentation to the buyer when selling a house, the seller must apply for it and get it from the government’s files. 

How to apply for EC offline?

Below are the steps through which you can apply for EC offline-

Visit the sub-registrar’s office where the property’s registration was made. 

Fill up Form 22 and deliver it with a non-judicial stamp to the sub-registrar’s office. 

Make sure the form has the full residential address, the location of the property, a description of the property, the property survey number, and the precise dimensions and boundaries of the land. Include copies of all relevant paperwork, such as the Sale Deed. 

Please be aware that this service will cost a modest amount of money. 

It typically takes 15 to 30 days from the date of application to acquire an EC, provided that all of the procedures indicated above are correctly performed. However, depending on the length of time needed, it might change. 

Summary

Obtaining an EC is a vital step in property transactions as it helps you ensure the property’s legal and financial status. It’s a document that provides peace of mind and confidence when dealing with real estate in Bangalore.

So, if you’re navigating the property market in Bangalore, don’t forget to check for these certificates—they can make all the difference in your real estate journey.