🔍 Introduction: Don’t Sign Anything Without This One Document
You’ve found a site in Whitefield or a flat in JP Nagar.
The seller hands you the sale deed, tax receipts, and even the Khata.
Everything looks great — on paper.
But have you checked the Encumbrance Certificate?
It’s one of the most ignored yet critical documents in property transactions.
An EC isn’t just another form — it can reveal hidden loans, court cases, or legal claims on the property.
Without it, even a “clean-looking” property can come with serious baggage.
In this blog, we’ll explain :
- What the Encumbrance Certificate is
- Why it’s essential for every buyer
- How to apply for it
- What to look for when reading it
- A real court case where ignoring EC cost the buyer everything
🧾 What Is an Encumbrance Certificate?
An Encumbrance Certificate (EC) is an official record issued by the Sub-Registrar’s Office that shows the legal history of a property.
It tells you whether the property is free from any legal or monetary liability — like:
- Loans/mortgages
- Court attachments
- Sale agreements
- Partition deeds
- Gift deeds
- Sale deeds
In simple terms, the EC tells you who has a legal or financial interest in the property.
🧠 Why Is It Called “Encumbrance”?
“Encumbrance” is a legal term for any burden or claim on a property.
This includes:
- Home loans not yet repaid
- Legal disputes
- Government notices
- Claims from previous co-owners or heirs
The EC shows all these entries if they were registered with the Sub-Registrar.
If the EC is clean, it means the property has no registered liabilities.
🏦 Why Banks Always Ask for EC Before Giving a Loan
No bank will approve a home loan without first checking the EC.
Why?
Because it’s the only document that proves the property isn’t already mortgaged or disputed.
If the EC shows a loan already existing on the same property, no fresh loan can be sanctioned — until the previous mortgage is cleared.
📚 Real Case Law: Buyer Loses Flat Due to Missing EC Check
In the case of T.N. Venkatesh v. Smt. G. Padmavathi (Karnataka High Court, 2016), a buyer purchased an apartment in Vijayanagar.
The seller handed over the sale deed, Khata, and tax receipts — but did not mention that a loan from a private lender was still pending.
The buyer didn’t check the EC.
After registration, the lender sent a legal notice claiming mortgage default, and the flat was seized.
The High Court ruled in favour of the lender because the mortgage was registered, and the buyer had not done proper due diligence by checking the EC.
This case proves that without checking the EC, your sale deed is not enough.
📝 How to Apply for an Encumbrance Certificate
You can apply online via the Kaveri Online Services Portal or go directly to the Sub-Registrar’s Office where the property is located.
To apply:
- You need the property details: Survey number, site number, or apartment flat number
- Application is usually filed in Form 22
- You can request the EC for any duration (most people ask for the last 12 to 15 years)
- Fees are nominal — based on number of years searched
The EC will be issued in 2–10 working days, depending on the office.
🧐 How to Read the Encumbrance Certificate
An EC may look like a boring sheet of columns — but it hides key details.
Look for:
- Document number (e.g., Sale Deed No. 1423/2017)
- Date of registration
- Parties involved (Seller/Buyer, Lender/Borrower)
- Nature of transaction (Sale, Mortgage, Gift, Partition)
- Property description
If you see any mortgage, court attachment, or Power of Attorney, it means the property is not fully free from encumbrance.
Also, remember:
- If the EC says “No Transactions Found,” it doesn’t always mean clean. It could be that transactions were never registered.
- Always cross-check EC with the original sale deed and mutation/Khata records.
❗ Common Mistakes to Avoid
Many buyers make the following dangerous errors:
- Asking for EC only for 5 years — instead of 12–15 years
- Accepting printouts from brokers instead of official EC from the SRO
- Not matching the seller’s name with previous transactions
- Ignoring EC when buying from family or known parties
Even if you trust the seller, you must trust the documents more.
📌 What Is Form 15 vs Form 16 EC?
When you receive your Encumbrance Certificate, it will be either:
- Form 15 – Contains list of registered transactions (encumbrances found)
- Form 16 – Certificate of Nil Encumbrance (no transactions registered)
Even Form 16 needs to be verified — it means no document has been registered, but doesn’t guarantee no claim exists.
🛑 EC Is Not a Guarantee of Clean Title
This is very important.
The EC will only show registered encumbrances.
If someone has taken a loan from a private lender or a bank but not registered the mortgage, it won’t show up.
Similarly, unregistered sale agreements or pending partition suits will not appear on EC.
So, while EC is essential, it must be combined with:
- Sale deed verification
- Mutation record
- Legal opinion
- Court case search
🧾 Recap: Why Every Buyer Needs the EC
If you skip the EC, you might:
- Buy a property with an existing loan
- Buy a share of property involved in family dispute
- End up in legal trouble years later during resale
An EC is your window into the legal past of the property.
Don’t let anyone tell you it’s just a “formality.”
📞 Conclusion: EC Is the Backbone of Any Safe Property Deal
The EC may seem like just another piece of paper — but it can save you lakhs in legal disputes and heartbreak.
We’ve seen too many Bengaluru buyers lose their peace of mind because they didn’t take a simple step of requesting and reviewing the EC.
Before signing a sale deed, always ask for:
- EC (Form 15 or Form 16) for at least 15 years
- Verified copies directly from the Sub-Registrar
- A property law professional to review it
📧 Email: ranjinijayaram@rjpropertylaw.com
🌐 Website: www.rjpropertylaw.com
📱 Call/WhatsApp: 8088417193
We verify ECs, check for encumbrances, and issue legal opinions to protect your property investments in Bengaluru and beyond.