(Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore)
Public in general frequently use encumbrance certificates in property transactions because the sole proof to establish free and marketable title of the seller. They’re underneath the impression that the encumbrance certificate would disclose all the costs created on a property. But, it's not therefore. There is also many kinds of encumbrances, which is able to not be mirrored within the encumbrance certificate. Applying for encumbrance certificate is to be submitted at the territorial Sub-Registrar's workplace underneath whose jurisdiction the property falls.The prescribed form for getting an encumbrance certificate is Form No.22.
In order to induce a correct and valid certificate, it's important that the applicant should clearly mention within the application the amount that the encumbrance certificate is needed, careful description of the property, its measurements,boundaries,and also the one that is applying. The encumbrance year commences from April first of a calendar and closes on March thirty first of following calendar year. Any fraction of the encumbrance year attracts fee for the complete year.The fee prescribed is for single property and per individual form.
Form No.15 or 16
The encumbrance certificate is issued either in Form No. 15 or 16. If the property doesn't have any encumbrance throughout the actual amount that encumbrance certificate is wanted, then encumbrance certificate in Form No.16 are issued i.e., Certificate of nil Encumbrance are issued. If the property has any encumbrance registered throughout the actual amount that encumbrance certificate is wanted, then encumbrance certificate in Form No.15 are issued. The certificate in Form No.15 discloses the documents registered in respect of the property,the parties to the deed, nature of encumbrance, amounts secured or transacted within the same deed, registered variety of the document, book no., volume no., and date.
The encumbrance certificate issued always is within the language during which indexes area unit ready specifically Registrar or Sub-Registrar's workplace. If the indexes aren't in English and also the soul needs certificate to be ready in English, then the request of the soul are complied with to the extent doable. In province, now processed encumbrance certificates area unit issued.
There is a provision for review of the records of the property maintained within the office of the Sub-registrar by the soul himself/herself. Just in case the soul prefers to not exercise this authority and just submits application for issue of encumbrance certificate for a selected amount, the department would be issue the encumbrance certificate with due diligence and care. However, there's a rider clause within the processed encumbrance certificate to state that the department shall not take responsibility for mistakes, if any, within the encumbrance certificate.
Though an encumbrance certificates discloses all registered encumbrances on a selected property throughout an amount, its bound limitations.The Encumbrances disclosed within the certificate area unit for the amount that certificate is issued and encumbrance created throughout the amount previous this era or throughout the later period isn't mirrored within the certificate. The encumbrance certificate is issued in respect of the property as careful within the form and not as per the registered documents of the property. Thus, if the outline of the property represented within the application doesn't match with the small print of the property as shown within the registered documents, then details of such documents aren't mirrored within the encumbrance certificate.
The encumbrance certificate discloses the encumbrances created by documents that area unit registered in an exceedingly explicit workplace. In different words, it's the extract of the property register maintained within the Sub- Registrar's workplace and also the document that isn't registered and wherever underneath any charge is formed doesn't get mirrored within the encumbrance certificate. Further, there are a unit bound documents that registration isn't obligatory however registration is nonmandatory. These documents embrace official documents, document making lease for a amount of not surpassing one year, any decree or order of a court, or award. Since these transactions aren't mandatorily registered ready, they are doing not notice any mention in encumbrance certificate.
Agricultural lands area unit typically familial. The change of possession is recorded in revenue records, mutation register of village panchayath.Such changes of possession aren't registered. Intrinsically encumbrance certificates don't mirror verity possession of the agricultural land. R.T.C, Mutation extracts provide complete details of amendment of possession, details of possession, conversion of agricultural land to non-agricultural functions. Therefore, it's higher to insist and trust RTC and mutation extracts just in case of agricultural lands additionally to the encumbrance certificate.
It is continuously sensible to get encumbrance certificates for a minimum amount of forty three years and to verify whether or not the encumbrance certificate is issued for the entire amount of your demand and whether or not it contains the boundaries and also the measurements of the property, signature of registering authority and also the workplace stamp except for revealing the names and also the signature of the persons who have searched and verified the records of the property.It’s additionally sensible for the prospective purchaser of property to examine the property in person and to verify and ensure that the initial title documents area unit on the market with the seller.Additionally to the current, some extra safeguards like paper notification,looking out in jurisdictional courts for any pending cases may additionally be undertaken to shield the interests of the vendee.
It is suggested that for tracing the clear and marketable title of the property, the purchasers mustn't in the main trust the encumbrance certificate issued by the Registrar or Sub-Registrar's office, however should examine all different relevant documents, like title deeds, latest khata certificate, khata extract, and tax paid receipts.