Whether you want to build a spacious home for your family or diversify your investment portfolio, buying a plot of land in a major metro city like Chennai would be an excellent decision. Before making this investment, however, you must conduct thorough due diligence, in order to steer clear of any legal and financial issues. Among other things, you must check the plot’s Encumbrance Certificate or EC online, to make sure that the property is legally clear and free from disputes. When it comes to real estate transactions, Encumbrance Certificate plays a huge role in protecting buyers from future complications.
What is an Encumbrance Certificate?
An Encumbrance Certificate, commonly referred to as an EC, is an important legal document issued by the government that verifies the property's ownership and financial status. It serves as evidence that the property is free from any monetary or legal liabilities that could create complications for a buyer in the future.
Before buying a plot in Chennai, you would want to make sure that:
By providing a clear record of transactions related to the property, the EC allows you to make sure that the plot has a clean title and can be purchased without the risk of hidden liabilities or legal complications.
Types of Encumbrance Certificates in Tamil Nadu
Encumbrance Certificates are classified into two types in Tamil Nadu, based on whether there are any registered transactions during the specified period.
- Form 15: This form is issued when registered transactions exist on the relevant plot of land during the requested period. Form 15 features details of all registered property dealings, like:
Each entry in Form 15 tends to include:
This type of EC would help you gain a better understanding of the ownership history and financial obligations associated with the plot.
2. Form 16: This form is issued when no registered transactions are found on the plot during the requested search period. Form 16 confirms that, according to the registration records for the specified period, there are no registered encumbrances or claims against the property. In other words, it indicates that no mortgages, loans, sales, leases, or other legal liabilities have been officially recorded during that timeframe. If there are no encumbrances for the period of time listed in the report, a Nil EC shall be issued. However, you must note that the EC might not reflect unregistered agreements, pending inheritance disputes, or government land acquisition notices. Hence, it is better to go for additional property verification.
How to Check the Encumbrance Certificate Online?
If you are planning to buy a plot of land in Chennai, you must know how to check EC online. The digital process on the official TNREGINET portal is highly efficient if you follow these steps:
An Encumbrance Certificate (EC) is among the most important documents required by financial institutions while evaluating home loan applications. Banks use this certificate to verify whether the property has any existing mortgages, unpaid loans, or other registered financial obligations that could affect its ownership status. Obtaining and reviewing the EC at an early stage of the property purchase process would help you identify potential concerns and make informed decisions.
Author bio: Being a real estate developer, the author has vast knowledge of the real estate industry. With her knowledge, she helps people with their real estate-related concerns and queries through her blog.
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