How and where to procure the same?
The Encumbrance Certificate should be procured from the registration office where you intend to buy the property. Check with the locals where the registration office is and if you have worries on the certificate meet the registrar. You need to make an application and depending on the registration office, you should receive the same either on the same day or the next day.
A small fee needs to be paid
You need to pay a small fee after which your application will be processed and the Encumbrance Certificate issued.
Check all the details
Please make sure you check all the details carefully. Sometimes, you may have it issued in the local language and may need help. Seek expert opinion if you do not understand anything in the document.
What details are available?
You need to specify a period of the encumbrance certificate. For example, home loan companies may ask for a 20-year period encumbrance certificate. This will give them a clear idea if there have been disputes in the past with regards to the property and whether the title has been clear. All the details that are specified in the Encumbrance Certificate are drawn from the register at the registrar's office and are basically from the documents that are registered with the registrar.
Drawbacks of the Encumbrance Certificate
While it is important to check the document, please note that there are certain drawbacks in the sense, that some crucial details may not be mentioned in the EC, as they are not required under the Registration Act, 1908. Some of these include:
1) Mortgage Details
Under a mortgage the title deed and other original documents are deposited with the bank and hence it does not get registered at the registrar's office.
If the lease is for less than one year it will now show in the EC.
3) Testamentary documents
These documents need not be registered with the registrar.