An Encumbrance Certificate (EC) is an important document used as a proof of free-title/ownership of a property. The document is required when buying or selling a property or when apply for home loan or loan against property to verify that the concerned property is free of any monetary or legal liabilities.
A encumbrance certificate is useful to review the legality of the title. It is important while purchasing or selling a property as it proves ownership, mortgage liability, property schedule, deed type, history of the registered transaction, registration date, allotment number, and ownership. If a property doesn’t have an encumbrance certificate made, it does not have a marketing title, and thus it cannot be sold.
