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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.

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

QUESTIONS

Q:- What precaution should I take before purchase of a DC converted site? Is it advisable to purchase such a site?

Q:- The Khata of property which we own is still in the name of my father who has died five years ago. At present the property is jointly owned by my mother, me and my sister as per the Will made by my father. Tax paid receipts is issued in the name of my father. Their property is in Bangalore. Please advise the procedure for transfer of Khata in our names.  Can the Khata be in any one of our names?

Q:- About 6 years back I purchased a site from my neighbour with GPA reg., actually this is an agricultural land and he informed that he will convert it and make full registration within 2-3 years. However till date he could not do it and unfortunately last night he died of heart attack. I would like to know what will happen to my purchase of site through GPA Reg. Is it valid? (It has been reg. at sub reg. office) Can we claim the site?

Q:- I am planning to buy a site near electronic city. The layout is on agricultural land and the middle man has converted it into a layout. Now since the registration is not happening, he is asking to buy this land as an agricultural land. Can we go ahead with this offer? Please give us the implications of it.

Q:- Certain hidden facts like pending cases, prior agreements, and government notification of the property cannot be traced easily by verification of the documents. How can these hidden factors be uncovered and what should a purchaser do to protect himself against these factors? Also, your articles are very informative for a lay-person like me. Thank you very much.