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Friday 24 October 2014

ROLE OF ENCUMBRANCE CERTIFICATE IN PROPERTY DEALINGS

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Public in general oftentimes use encumbrance certificates in property transactions as a result of the only real proof to ascertain free and marketable title of the vendor. They’re beneath the impression that the encumbrance certificate would disclose all the prices created on a property. But, it isn't so. there's additionally several styles of encumbrances, that is in a position to not be reflected inside the encumbrance certificate. Applying for encumbrance certificate is to be submitted at the territorial Sub-Registrar's work beneath whose jurisdiction the property falls. The prescribed kind for obtaining an encumbrance certificate is kind No.22. 
 
In order to induce an accurate and valid certificate, it is important that the soul ought to clearly mention inside the appliance the quantity that the encumbrance certificate is required, careful description of the property, its measurements, boundaries, and additionally the one that's applying. The encumbrance year commences from April 1st of a calendar and closes on March thirty 1st of following yr. Any fraction of the encumbrance year attracts fee for the entire year. The fee prescribed is for single property and per individual kind. 

Form No.15 or 16
The encumbrance certificate is issued either in sort No. 15 or 16. If the property does not have any encumbrance throughout the particular quantity that encumbrance certificate is needed, then encumbrance certificate in sort No.16 are issued i.e., Certificate of nix Encumbrance ar issued. If the property has any encumbrance registered throughout the particular quantity that encumbrance certificate is needed, then encumbrance certificate in type No.15 are issued. The certificate in sort No.15 discloses the documents registered in respect of the property, the parties to the deed, nature of encumbrance, amounts secured or transacted inside identical deed, registered type of the document, book no., volume no., and date.

The encumbrance certificate issued continuously is inside the language throughout that indexes are prepared specifically Registrar or Sub-Registrar's work. If the indexes are not in English and additionally the soul wants certificate to be prepared in English, then the request of the soul are complied with to the extent possible. In province, currently processed encumbrance certificates are issued.


There is a provision for review of the records of the property maintained inside the workplace of the Sub-registrar by the soul himself/herself. simply just in case the soul prefers to not exercise this authority and simply submits application for issue of encumbrance certificate for a particular quantity, the department would be issue the encumbrance certificate with due diligence and care. However, there is a rider clause inside the processed encumbrance certificate to state that the department shall not take responsibility for mistakes, if any, inside the encumbrance certificate. 

Limitation
Though an encumbrance certificates discloses all registered encumbrances on a particular property throughout AN quantity, its sure limitations. The Encumbrances disclosed inside the certificate are for the quantity that certificate is issued and encumbrance created throughout the quantity previous this era or throughout the later amount is not reflected inside the certificate. The encumbrance certificate is issued in respect of the property as careful inside the shape and not as per the registered documents of the property. Thus, if the define of the property painted inside the appliance does not match with the little print of the property as shown inside the registered documents, then details of such documents are not reflected inside the encumbrance certificate.

The encumbrance certificate discloses the encumbrances created by documents that are registered in AN passing specific work. in numerous words, it is the extract of the property register maintained inside the Sub- Registrar's work and additionally the document that may not registered and where beneath any charge is made does not get reflected inside the encumbrance certificate. Further, there ar a unit sure documents that registration is not obligatory but registration is optional. These documents embrace legal document documents, document creating lease for a quantity of not surpassing one year, any decree or order of a court, or award. Since these transactions are not compulsorily registered prepared, they're doing not notice any mention in encumbrance certificate. 

Agricultural Land
Agricultural lands are generally familial. The amendment of possession is recorded in revenue records, mutation register of village panchayath.Such changes of possession are not registered. per se encumbrance certificates do not mirror verity possession of the agricultural land. R.T.C, Mutation extracts give complete details of change of possession, details of possession, conversion of agricultural land to non-agricultural functions. Therefore, it's higher to insist and trust RTC and mutation extracts simply just in case of agricultural lands in addition to the encumbrance certificate. 

It is unendingly smart to urge encumbrance certificates for a minimum quantity of forty 3 years and to verify whether or not or not the encumbrance certificate is issued for the complete quantity of your demand and whether or not or not it contains the boundaries and additionally the measurements of the property, signature of registering authority and additionally the work stamp aside from revealing the names and additionally the signature of the persons who have searched and verified the records of the property. It’s in addition smart for the potential client of property to look at the property head to head and to verify and make sure that the initial title documents are on the market with the vendor. in addition to the present, some further safeguards like paper notification, looking in territorial courts for any unfinished cases might in addition be undertaken to protect the interests of the purchaser

It is prompt that for tracing the clear and marketable title of the property, the purchasers mustn't within the main trust the encumbrance certificate issued by the Registrar or Sub-Registrar's workplace, but ought to examine all totally different relevant documents, like title deeds, latest khata certificate, khata extract, and tax paid receipts.

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