Encumbrance Certificate - Explained (Hindi) - YouTube

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Namaskar, my name is Mukul

And you are welcome to the Asset Yogi

Where we unlock the knowledge of real estate and finance

Whenever you go to buy or sell any property

Then you must make sure that

Its encumbrance certificate is available

This is an important document in which you will know the exact owner

as per government records

What are the transactions in the past 15 to 20 years or 25 to 30 years?

Whatever records are available and you will know

If there is any third party claim or charge on that property

So in this video, I will start with a real-life example

What does the encumbrance certificate look like?

I will show you its property report

What type of claim and charges could be there?

What type of details are there in the encumbrance certificate?

What are the limitations of an encumbrance certificate?

What type of information you don't get by encumbrance certificate?

So watch the video from the start till the end

So that you will not miss any important points

Let's go straight towards my computer screen

Whenever you go to buy or sell any property

Then encumbrance certificate becomes a quite important document

And assume you want to take a loan from the bank

You want to take a home loan

Or if you want to take a loan against property

Then also the bank demands an encumbrance certificate from you

So what is an encumbrance certificate?

You can see this certificate of encumbrance for example

This is the actual property certificate

Which has a total of 7 pages

And I have taken a copy of the front page

So what does encumbrance show you

If there are any third party claims

on any property

It shows them.

How can we know these claims and what are the elements?

and what is the information in the encumbrance certificate?

We will understand this.

An encumbrance certificate acts as proof of being the owner

You will know who is the final owner of that property

After that, you get its transaction history

If you get the history of the last 30 years then it is a very good thing

You should take an encumbrance certificate of a minimum of 10 to 12 years

So when you get this transaction history then you get the chain of title

And how the title flowed

Who are the past owners in the last 15 to 20 years? You will know that.

After that, you will know if there are any encumbrances on that property

What are encumbrances? Encumbrances as I said

are third party claims

These claims can be of any type.

It can be a mortgage, it can be a lease claim

I have made a detailed video about this

So please watch my video on encumbrances

What type of third-party claim can be there?

If the title of the property is clear in the encumbrance certificate. You will know that too

And if there are any claims on that property

Let's say there is a mortgage or a loan was great or there is any long term lease

You will know that.

You will know all these claims by encumbrance certificate

In this way, you can be saved by any fraud or litigation

Assume there is a third party claim

A case is going on in court

If it is already mortgage then you will know that

And maybe the owner hasn't declared that.

So you don't buy any disputed property,

that's why the encumbrance certificate is very important

How can you get this encumbrance certificate?

The first is it is available online in many states

In many states it is computerized

So you can get it online from there and in the remaining states

You can get it from Tehsildar at the sub-registrar office

You can demand that.

After paying the applicable fee, you can get this

And you have to go to the sub-registrar office for the certified copy

You will not get a certified copy online

You will get this certified copy

in 15 to 30 days of application

Whenever you give an application in the sub-registrar office

So now we will see the actual example

This certificate of encumbrance is given in the regional language

The information is written in Tamil

I will show you its property report in English

As you can see

This is the property report of the same property

So you can see,

the size is given here. The size of the property is given here

This property is from which survey number, we will know that.

What is the value of the last transaction when the owners bought it?

After that, what was the date of the transaction?

When was the registration done?

After that, what is the classification of the land?

If it is commercial land then a commercial is written here.

What was the guideline value in which the registration was done?

I have made a detailed video on what is guideline value

So please watch that video of mine.

What is the difference between guideline value and market value?

You will know on what value the registration is done

Other than this, what information is here in the encumbrance certificate?

This is given that

You are seeing all this

These all are the past owners

And how are these transactions done? You get to know that here

And you can see that

These reports are from 1987 till now

So you got the reports of the last 3 years

In this encumbrance certificate

Even though you get very much information from the encumbrance certificate

But it has some limitations too

We will see what are they?

The first is only that information which is available in the registrar office is available

in the encumbrance certificate. This means if a document is registered

in sub-registrar office, only then this information will be reflected in this

But some documents are not registered as per the registration act

One is equitable mortgage paper

There are some types of loans whose registration is not necessary

If you have taken a bank loan then maybe that information is not available

Other than that, if there is a will or power of attorney

which is not registered. It is not compulsory to get them registered

So that information is also not available

Other than this, the short leases

A lease which is less than one year

Its registration is also not compulsory

So that information is also not reflected

Other than this, if there is an oral tenancy

If the property is given on rent for some time by oral agreement. It can't be reflected

If there are any tax liabilities

Property tax is not paid

Or any other type of maintenance dues are not paid

so that information is not reflected in this

So encumbrance certificate is an important document

Through which you can know who is the actual owner by the government record

Or if there is any third-party claim on that.

But then also it has some limitations

You cannot get 100% information from that. So for that, you must search

a thorough title. Either you can do it by yourself or

You can take help from a lawyer or an advocate

All the relevant documents of the seller

You should check all of them.

You must make sure that

its title is crystal clear.

And there are no third-party claims on that property

Otherwise, you may purchase a disputed property

And can become a victim of fraud and litigation

I think after watching this video you've got an idea

of what an encumbrance certificate is and what is its importance

And how can you take an encumbrance certificate

And it has some limitations too. We also discussed them.

So whenever you go to buy or sell any property

Then you must ensure the availability of its encumbrance certificate

I hope you liked this video. Then like and share the video.

If you have suggestions then please comment below.

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Till then keep learning, keep earning, and be happy as always