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What is meant by Encumbrance Certificate and what is meant by a Nil Encumbrance Certificate?

- by Ramesh, Yeswantapur

Encumbrance Certificate is a record showing registered transactions pertaining to a property. If mortgage, sale or any other deeds in respect of a property are registered, encumbrance certificate is issued Form No. 15. If no deeds of transactions are registered in respect of a property nil encumbrance certificate is issued in Form No. 16.  The Certificate in Form No.16 is the proof that there are no registered transactions which are taken place in respect of this particular property during the period under consideration. However, unregistered transactions do not find a place in the Encumbrance Certificate.


These are all the legal questions answered by Advocate S.Selvakumar in various magazines, in various occasion including realestate reporter monthly.


Q:- There are two houses in a compound. I am staying in the house which is behind my cousin's. To reach the road we have been using the passage that runs through my cousin's property for more than 25 years. He sold his property to another person without our knowledge and the new owner is obstructing our passage to the road. There is no other alternative route to the road. What shall we do?

Q:- Certain hidden facts like pending cases, prior agreements, government notification of the property cannot be traced easily by verification of the documents. How can these hidden factors be uncov┬Čered, and what should a purchaser do to protect himself against these factors?

Q:- What is the procedure for Khata transfer and the actual cost to transfer the Khata. How do we know that the Khata transfer certificate is original?

Q:- I am not able to understand the difference between Khata Certificate and Khata Extract. Would you please enlighten me on this?  Could you also brief me about the importance of Encumbrance Certificate?

Q:- My son wants to purchase a plot near Horamavu, but on verification of CDP map, the plot was found to be in green belt area. I have been advised that non-agriculturist is not eligible to purchase agricultural lands. The present owner assures me that the problem can be solved by registering the land in Sq, fts. Instead of guntas. My father is a farmer. Many such transactions have taken place. Can my son purchase this land and construct a house. There are also chances of land being notified by BDA, in that case what are the consequences?