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.
When you apply for an Encumbrance Certificate, you will be asked to mention the period for which you need the data.
If there are no charges set on the property during the mentioned period, a “Nil Encumbrance Certificate” will be given. This means that no moneylender has placed a lien on the property throughout that time period.