The official record that confirms a property is free from loans, disputes, or legal claims.
Definition of Encumbrance Certificate
An Encumbrance Certificate, often called an EC, is a government-issued document that records every registered financial or ownership transaction related to a property. It lists all mortgages, sales, transfers, and releases made over a chosen time period, usually the past thirteen to thirty years. This record proves that the property is not under any loan, lien, or pending claim.
A clean EC gives buyers and lenders the confidence that the asset’s title is legally sound and transferable.
Why It Matters
Protecting ownership through clarity
- Confirms the property has no unpaid loans, mortgages, or third-party claims
- Establishes ownership authenticity before registration or resale
- Builds trust for banks processing home loans or refinancing
- Prevents buyers from inheriting someone else’s financial or legal issues
Without this certificate, buyers are essentially investing blind. The EC is the first real checkpoint in separating a clean property from one burdened with debt or disputes.
How It Works
How an Encumbrance Certificate is created
- Issued by the Sub Registrar Office based on registered transactions
- Covers a specific time period, usually the past thirteen to thirty years
- Lists every mortgage, sale, or release connected to the property
- Confirms if ownership transfers were legally recorded
A clean Encumbrance Certificate shows no outstanding debt or claim.
How Brickfi Uses This
Verification through official records
Brickfi obtains the Encumbrance Certificate as part of the Brick360 Report during Due Diligence. Each certificate is reviewed to verify ownership chain and detect any financial charge on the property.
This ensures buyers receive a verified asset, free from encumbrances and ownership disputes.
Buyer Action
Steps to verify a clean property record
- Request the Encumbrance Certificate for the last thirty years
- Review entries for loans, transfers, or unusual transactions
- Match the details with the title deed and sale documents
- Use Brickfi’s verified report for cross checking before registration
Related Terms
Title Deed | Due Diligence | Verification | Brick360 Report
Key Takeaway
An Encumbrance Certificate safeguards your investment by revealing a property’s true financial and legal history. It ensures the title you’re buying is free of past burdens and fit for future ownership.
Where Brickfi Comes In
Brickfi verifies Encumbrance Certificates straight from government databases and registrar archives. By turning bureaucratic paperwork into transparent, ready-to-read proof, Brickfi helps buyers make decisions based on facts, not assumptions.
