The “Encumbrance” means the charges or obligations produced with a specific property, whereby it is kept as a security for any legal liability of its owner which has not been discharged as on date. The encumbrance certificate includes all the transactions (financial & others) related to a specific property for a time period as required.
The encumbrance certificate is required in property dealings as a proof of free title/ownership. When purchasing a flat, land or house, it is essential to concur that the land or property does not have any legal dues. A probable home buyer needs to ensure that the property he / she plan to buy has a clear and viable title. The encumbrance certificate confirms that the property is not mortgaged and contains no legal charges. The encumbrance certificate for property is provided by the relevant sub registrar office where the deed has been recorded.
The encumbrance certificate is important for buying property as well as for applying Home loan or Loan against Property. Government Authorities and Financial Institution like banks etc. request 13 years of encumbrance. You can get 30 years encumbrance certificate to be checked out.