Know about the details of
encumbrance certificate
An Encumbrance Certificate is a document issued by the
Registration Authorities which is an important document relating to title and
its investigation vis-à-vis immovable properties. Encumbrance Certificates are
issued either in Form No.15 or Form No.16.
The Encumbrance Certificate in Form No.15 records and
reflects all the transactions occurred in respect of an immovable property be it
a sale, lease, mortgage, gift, partition, release, etc., which have been
registered before the registration authorities and recorded in Book - I
maintained by the Registration Authorities for any particular period for which
the encumbrance certificate is sought for. An Encumbrance Certificate in Form
No.15 plays an vital role in investigation of title since certain transactions
reflected therein especially parent deeds and documents which are not in the
possession of the present owners, may be applied for and obtained in the form of
certified copies from the registration authorities which would help in the
understanding of the tracing and flow of title in relation to any particular
immovable property. An Encumbrance Certificate in Form No.16 is issued by the
registration authorities only when no transactions have occurred in respect of
an immovable property for the period pertaining to which the encumbrance
certificate is applied. Apart from the transactions generally recorded in an
Encumbrance Certificate, there are certain other transactions relating to
immovable properties and other matters which will not find a place in an
encumbrance certificate mainly because, such documents are not compulsorily
registrable under the Registration Act, 1908.
The documents of this nature and other matters are listed
below for easy reference to the reader. The transactions and matters, which will
not appear in an EC, are mentioned below:
Oral Tenancy / Litigation in Courts (Lispendens)
Tax liabilities / Unregistered mortgage by deposit of title
deeds
Prior Unregistered Agreements / Oral Partition / Family
Arrangement
Oral gift under Mohammedan Law
Unregistered Will / Rights and Interests held through
Partnership Firms, Association of Persons, Societies including Co-operative
Societies, Companies etc.
Unregistered Agreements, M.O.U's, General Power of Attorney/
Rights of Third Parties not directly recorded in documents
Orders and Decrees of Courts, Statutory and Tax Authorities
Rights through possession, Part Performance and Equitable Title under Section
53-A of the Transfer of Property Act 1882.
Courtesy: Property Plus, The Hindu
http://www.hindu.com/pp/2007/04/15/stories/2007041500070400.htm
