An encumbrance certificate is a legally issued paper or document that certifies that a property is free of all financial and legal obligations. Aside from that, it displays the property’s condition and the total number and details of its previous owners. It also contains information on previous ownership transfers and all of the property’s mortgage obligations. The encumbrance certificate cannot be obtained for properties for which the mortgage has not been completed.
Buying a home is stressful, and purchasers frequently become confused by the various legal documents. The most prevalent misunderstanding is the difference between EC, CC, and OC. Refer to the following to understand the critical differences between the 3:
- Encumbrance Certificate (EC): A legal document stating that a property is free of financial or legal liabilities.
- Completion Certificate (CC): A legal document that is produced once the building has been completed according to the building plan and other requirements.
- Occupancy Certificate (OC): A legal document stating that the structure is now safe to enter. After receiving the CC, it is issued.