What is Encumbrance Certificate?
The encumbrance certificate is a mandatory document used in property transactions as an
evident of free title/ownership. And encumbrance certificate (EC) ensures that there is
a complete ownership of the property without any monetary or legal liability.
What is Encumbrance certificate in property buying?
The encumbrance certificate is a mandatory document used in property transactions as an
evidence of free/ownership. When buying a house, flat or plot, it is important to verify
that the property does not have any monetary or legal dues. And encumbrance certificate
(EC) ensures that there is a complete ownerships the property without any monetary or
legal liability. The EC for property can be obtained from the sub-registrar’s office
where the particular property has been registered.
Importance of an EC
The encumbrance certificate is important for those applying for a home loan or obtaining
a loan against property or when one wants to sell or buy a Property. “Encumbrance” means
that the liabilities created on a particular property, whereby it is held as a security
for any debt of its owner, which has not been discharged as on date. An encumbrance
certificate contains all the transactions registered relating to a particular property
for a certain period (as required). These details also const any claims or encumbrance
on the property.
Government authorities and financial institutions like banks usually demand 10-15 years
of encumbrance. However, you can also ask for up to 30 years encumbrance certificate to
be checked. If you still have doubts, you can take Possession Certificate of the
ownership of the particular land, which is available from the village office.
What is Form no.15 & 16?
The encumbrance certificate is issued in Form No. 15 and 16. If the property does not
have any encumbrance during the said period, Form 16 will be issued i.e., certificate of
Nil Encumbrance. If the property has any encumbrance registered during the said period,
then form No. 15 will be issued. The certificate in form 15 reveals the documents
registered with respect to the property, nature of the encumbrance such as gift,
partition, lease and mortgage, the parties involved, the registered number of the
document and other details in a date-wise manner.
Note that, if you are asking an EC for a particular period, you will get the details only
for that period and not more. The details will be given from the entries available in
the register available with sub-registrar.
How to obtain an EC?
First and foremost, download the form 22. Affix with Rs 2 non-judicial stamp and address
to the Tahsildar, giving an attested copy of your residential address and the purpose
for which the certificate is required.
Provide the details of ownership such as correct survey number and place where the
property is situated. It is very important that the period and full description of the
property are mentioned clearly in the application.
The requisite fee needs to be paid. The fee is to be paid according to the period for
encumbrance. The encumbrance year commences from April 1st of a calendar and close on
March 31st, of the next year. The EC is also usually provide in the regional language.
An English translation may be obtained by paying an additional fee.
The application should be submitted to the jurisdicational sub-registrar’s office, under
which the property is registered.
Time Duration?
‘The time taken to obtain an EC is usually 15-30 working days.
‘While an EC may give the details of the encumbrance on a property, there are certain
documents that are exempt from being registered at the sub-registrar's office. As such,
these will not appear in the EC. Hence, it is advised that the buyer obtains both the EC
and possession certificate as a proof of complete ownership of the property.
TAX
A tax (from the Latin word taxo) is a mandatory financial charge or some other type of
levy imposed upon taxpayer (an individual or other legal entity) by a governmental
organization in order to fund various public expenditures. A failure to pay, along with
evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or
indirect taxes and may be paid in money or as its labour equivalent.
Land Tax
Land tax is one of several charges you may be required to pay when you buy property. But
just what exactly is it, and who has to pay it?
Unlike stamp duty, which is a one-off charge, land tax is levied every year you own a
property by your state or territory government, except in the Northern Territory
Broadly, it’s a tax charged on any land you own or co-own above a certain value threshold
(which again depends on your state). This includes vacant land you've bought to build on
or the land on which the house or unit you've bought is already built
Land tax is levied at the end of either the financial or calendar year depending on your
state
How is land tax calculated?
The amount of land tax you pay is determined by the unimproved value of all liable
property you own. ‘Unimproved value’ of land is its market value under normal sales
conditions, assuming no structural improvements have been made.
You may have to pay anything for a few hundred dollars up to several thousand dollars in
land tax. Check your state or territory's revenue office to find out more information.
Land tax clearance certificate
Your conveyancer or solicitor may suggest you apply for a land tax clearance certificate
before you purchase a property. This is because land tax may still be owed by the
previous owner before you take possession. Applying for a clearance certificate can
protect you against paying the seller's unpaid land tax. Your conveyancer should be able
to do this on your behalf.
Chitta
Chitta is an extract from Patta register that gives ownership details of land that belong
to a person or persons. The specific information that Patta/Chitta extract contains
include Village, Taluk, District, Land Owner's name with Father’s name, Patta number,
Survey Number with sub-division details. It is a set of records of patta.
Chitta is Revenue Document which is maintained by Village Administrative Office of
Tamilnadu. Village accounts number is 10.
Which documents having DETAILS of all patta holders name survey number extend. When we
want to verify the patta is original. We must need of chitta.
In a property transaction, adangal document plays an important role in establishing a
clear property title to the seller. Adangal is maintained by the concerned Village
Administrative officer (VAO) and can be obtained by making an application. In this
article, we look at the procedure for obtaining adangal in detail.
What is Adangal?
Adangal is a type of land record that is maintained by Village Administrate Officer.
Adangal is also known as Village account No.2 and is written each year by the Village
Administrate Officer. The documents contains the following detail:
1. Patta lands
2. Assessed wastelands
3. Poramboke land
Details of Adangal
Adangal contains various important details like the Survey Number of the property,
extent, assessment and land classification which is taken from A register. Further, the
name of the landowner is also mentioned in the adangal with reference to the Chitta
document. Finally, the document contains details of trees, wells, lands reserved for
Scheduled Caste/Scheduled Tribes, assignment made with or without conditions. The
details in adangal should be drawn up every year and the figures (extend and assessment)
classification wise should tally with those noted in ‘A’ Register.
DTCP AND CMDA
Procedure for DTCP approval: The DTCP or CMDA approvals come with the clear explicit
advantage of owning land that must be utilized for the purposes as defined by the
planning authority; in other worlds it is the case of getting approval from DTCP or CMDA
for the right to build lawfully and legally.
What is meant by DTCP approval?
DTCP means Directorate of Town & Country Planning, except in Chennai metropolitan area
where CMDA is approving the layout of housing, institutional & industrial beyond 1
hectare extends all other places in tamilnadu DTCP is the authority to approve such
developments.
What is CMDA approval?
CMDA-Chennai Metropolitan Development Authority. DTCP-Director of town and Country
Planning. Panchayat - Local village panchayat approved. 1. CMDA approved plots means the
layout of plot is approved by CMDA. The CMDA has entrusted powers to the local bodies
within the Chennai Metropolitan Area to issue planning permission for ordinary buildings
and buildings under normally permissible categories of industrial, residential,
institutional and commercial use zones, sub-divisions and small layouts.
The Directorate of Town and Country Planning (DTCP) is responsible for carrying out
developmental activities and to exercise control on the town planning for Chennai, its
suburb and all the districts that come under its jurisdiction.
The DTCP or CMDA approvals come with the clear explicitly advantage of owning land that
must be utilized for the purposes as defined by the planning authority; in other words
it is the case of vetting approval from DTCP or CMDA for the right to build lawfully and
legally.
LOAN APPLICATION AND BACK DOC ISSUES
The approval is at the sole discretion of the loan sanctioning officer whose decision is
based on the criteria specified by the bank/financial institution. The entire process
can take between 48 hours and about two weeks.
Banks are subject to many forms of risk, of which credit and market risk are perhaps the
most important. Credit risk involved the risk that a counter party to a contractual
obligation, be it a mortgage, loan or swap agreement, will default on the promised
payments.
It is unsecured loan taken by individuals from a bank or a non-banking financial company
(NBFC) to meet their personal needs. It is provide on the basis of key criteria such as
income level.
Although personal loan usually have no tax benefits, but if you take one for home
renovations/down payment, you may be eligible for I-T deduction under section 24.
However this tax benefits is limited to only the interest, not the principle amount.
Also, to claim deduction you will have to furnish proper receipts.
A low/no documentation loan allows potential borrower to apply for a mortgage while ..
lenders who were feeling pressure to issue loans with more favourable terms... that may
be more difficult.
GOVERNMENT CERTIFICATE
Land holding certificate is a proof of ownership of a land. When a person is holding this
certificate, he has the right to transfer the possession to other parties. The Sub
Registrar Officer issues this document to the owner of the registered land as proof of
ownership with no mortgage on it.
PATTAYAM
it is first and original record about the ownership of a property. All properties are we
ownered by the government. After completing the survey of land, every piece of land
owned by a person is allotted with a survey number…for the transaction of any property
it should have the pattayam.
The property legally becomes the buyer’s only after the process of mutation is done,
Definition of Mutation/Pokkuvaravu. When a property is sold or transferred from one
person to another, there needs to be a change in the title ownership as well. This
process of transferring the ownership is called mutation
Mutation
Mutation is the change of title ownership from one person to another when the property is
sold or transferred. By mutating a property, the new owner gets the property recorded on
his name in the land revenue department and the government is able to charge property
tax from the rightful owner.
Property deeds are used to convey real property from a grantor (seller) to a grantee
(buyer). This article will define what deeds are, what needs to be included in a deed to
make it legally operative, and the different types of deeds that are used in the
transfer of real property.
A Certificate of Compliance is issued to the registered owners when all the positive
obligations imposed under the General and Special Conditions of the land grant/sale
documents have been complied with to the satisfaction of the Director of Lands.
Normally, any application received to the issue of the Certificate could be processed in
parallel with the processing of the issue of the Occupation Permit by the Buildings
Department, where applicable.
Land grabbing
Land grabbing is the contentious issue of large-scale land acquisitions: the buying or
leasing of large pieces of land by domestic and transnational companies, governments and
individuals.
Why do land grabs happen?
Land grabs occur when investors do not consult local people before buying up the land
they live on and do not provide them with fair compensation. Land grabs usually happen
in secrecy, and often involve of poor families, sometimes violently. Land grabs involve
human rights violations, and flout the principle of free, prior and informed consent
The issue surrounding land acquisitions, and land grabs and the global land rush are
complex. But one thing is simple: the rights of local communities should always be
respected and investments should never lead to more hunger and poverty.
FAMILY PORPERTY ISSUES
It may be based on Property Classification. Properties are classified as either
residential, non-residential, farmland, linear or machinery & equipment.
Property, in the abstract, is what belongs to or with something, whether as an attribute
or as a component of said thing. In the context of this article, it is one or more
components (rather than attributes), whether physical or incorporeal, of a person’s
estate; or so belongings to, as in being owned by, a person or jointly a group of people
or a legal entity like a corporation or even a society.
There are two types of Property.
In legal terms, all property will be classified as either personal property or real
property. This distinction between types of property comes from English common law, but
our modern laws continue to distinguish between the two.
Personal property is movable property, It’s anything that can be subject to ownership,
except land. Real property is immovable property - it's land and anything attached to
the land.
Personal property includes possessions, of really any kind, as long as those possession
are movable and owned by someone. Personal property isn’t affixed to or associated with
land. these moveable items are sometimes known as chattels. The law regarding chattels
includes those laws covering possession, gifts, lost property, abandoned property and
stolen property.
The key difference between personal property and real property is that real property is
fixed permanently to one location. This includes land and anything that is built on the
land. It also includes anything that's growing on the land or that exists under the face
of the land
Personal property is generally considered property that is movable, as opposed to real
property or real estate. ... In civil law systems, personal property is often called
movable property or movables -any property that can be moved from one location to
another.
CONSULT TOP PROPERTY LAWYERS, ATTORNEYS & LEGAL ADVISORS
Typical problems a property lawyer can resolve include illegal possession ancestral
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real estate disputes under RERA act. Use J13 Associates to consult a top rated property
lawyer in India to file or defend a partition suit, title dispute and for due diligence
of your property’s documents.
What is property law?
Property Disputes Laws come min play when the title of ownership of an immovable property
(such as land or an apartment) as challenged or is ambiguous
Who are affected by property law?
If you are the owner of a property under challenge be third persons. If your property has
been illegally encroached upon.
If you are being denied your share in an ancestral property, joint property or
inheritance.
If your relative/siblings have taken Illegal possession of your properly or have
encroached on your property share.
If you have a collaboration deal of your property with a builder and he is not giving you
the rightful possession of your property.
Why do you need a property lawyer?
A Property Dispute lawyer will be able to apply for an injunction which will protect your
use of the properly till the dispute is decided.
A Property Dispute Lawyer will help you conduct a title search and draw up the required
paper work to ensure that your title over a property is clear.
A Properly Dispute Lawyer can represent you in case where the title to a property is
under challenge.
Why hire a property lawyer through Landlords?
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