Encumbrance Certificate in Karnataka – Uses, Application Process and Fees Applicable

While purchasing a property, buyers need to be aware of legal complications (if any) entangled with the corresponding property.

Individuals willing to buy a property in Karnataka, and wondering from where they can dig out this data, should get hold of an Encumbrance Certificate.

Karnataka Encumbrance Certificate features all essential information about a property, which helps eliminate chances of property-related troubles that might arise in the future.

However, before embarking on this journey, learn about the certificate and its various aspects.

So, let’s start!

An Encumbrance Certificate stands for a legal document that affirms the property in question does not have any legal and monetary liabilities (e.g. outstanding or mortgaged loan). This certificate is evidence or record, which declares that the property can be sold as a free title and buyers can secure ownership without any legal trouble.

If an individual avails a loan by pledging/mortgaging a property, lenders/ financial institutions attach a ‘Lien’ or charge to a property. Financial institutions make this move to make sure that the borrower does not sell his/her property without clearing the due or paying the mortgage in full.

It is here that the importance of the EC certificate comes into the limelight. An encumbrance certificate records the details of all such transactions related to a property.

Property buyers of Karnataka must know the usage of the Karnataka EC certificate for the below-mentioned reasons.

To Prove Ownership

Karnataka Encumbrance Certificate is an essential document that helps individuals to prove ownership title. If you are willing to purchase a property or land in any part of Karnataka, make sure that property or land has a free title.

If you find out a charge on an Encumbrance Certificate, you must correct it before buying that particular property or land. This certificate allows you to find out the existence of any owner(s) who might claim ownership of the property later on a legal ground.

To Apply for Loans

The necessity of a Karnataka Encumbrance Certificate arises when an individual applies for a loan against property. Individuals willing to avail a loan with their property as collateral in Karnataka must furnish this document to banks and financial institutions.

Wondering why? Encumbrance Certificate confirms that a property does not concern any legal complications, which helps lenders sanction loans without any worry.

For Updating Property Tax Record

In case any property or land tax remains for over three years, EC Certificate is submitted under the Panchayat or Village officer to update land or property tax records.

For Mutation of Property

After purchasing a property in Karnataka, individuals must record the property ownership or transfer of title in the revenue records of the local municipal corporation through mutation. An Encumbrance Certificate helps individuals complete this task.

From the above-mentioned section, individuals can get a comprehensive idea about the importance and usage of the Karnataka Encumbrance Certificate. Further, individuals can better utilise this certificate if they know the information/details available in it and its relevance.

Apart from this, Karnataka Encumbrance Certificate is also required for making any withdrawal for a property purchase or house construction.

A Karnataka Encumbrance Certificate records the following information -

• Name of the property owner
• All transactions and documents (recorded by the register) related to a property
• Transaction details and date, book number, volume number, document number, name of the parties involved in the transition
• Description of property as stated in the Sales Deed
• Details about mortgage (if an individual purchases the property or land on loan)

Note: Encumbrance Certificate can be obtained for a specific period. Therefore, only transactions taking place within this period will get consideration.

Thus, with detailed knowledge of a Karnataka Encumbrance Certificate, we can move on to the process of obtaining offline or online EC in Karnataka.

Individuals willing to obtain a Karnataka Encumbrance Certificate can get it via an online or offline medium. Both these processes are discussed separately.

Those considering the digital route can apply for EC online in Karnataka at the official website of Kaveri Online Services.

The Department of Stamps and Registration, Karnataka, introduced this website, where citizens can book an appointment for document and marriage registration. Additionally, the portal enables individuals of Karnataka to search for Encumbrance Certificate online, list of transactions associated with a property or registered copies.

Thereafter, they can go ahead with the following steps to get an EC online in Karnataka -

• Step-1: Login with your existing credentials or click on ‘Register as New User’ to create an account.
• Step-2: After creating an account, login and select ‘Online EC’ from the ‘Services’ column and select property registration duration. Additionally, enter other property-related details.
• Step-3: Click on ‘Send OTP to view Document’. Enter the OTP received on your registered mobile number in the relevant box and click on ‘View Document’.
• Step-4: Next, you can view or download Karnataka Encumbrance Certificate by clicking on ‘Check to Apply for digitally signed EC’.
• Step-5: Click on ‘View Document.’ A PDF will open, and you can click on the ‘Proceed’ button at the end of the file to download it. Complete this process by paying necessary fees.

After successfully paying for the certificate, a payment receipt will be generated. Here, individuals have to click on ‘Refresh Payment Status’.

Finally, EC online application will be submitted and saved under the ‘Pending/Saved Application’ for required processing.

Note: The Encumbrance Certificate is not a digitally signed copy. However, individuals can request a signed copy from the corresponding authorities.

From the above-mentioned guide, individuals can quickly obtain/download EC online in Karnataka. Alternatively, those who are willing to get EC offline can follow the section discussed below.

Here is a step-by-step guide to obtaining a Karnataka Encumbrance Certificate via offline mode -

Step-1: Apply for EC in Karnataka by collecting Form 22.

Step-2: Fill in the form with correct details and attach attested copy address proof, property details, and title details, among others. 

Step-3: Next, pay the applicable fees as per the requested period of encumbrance. 

Concerned officers will inspect the indexes for details upon completion of this process. After that, you will get an Encumbrance Certificate (with information of transactions within this specified period). In case of no transactions, authorities will issue a Nil Encumbrance Certificate.

Apart from knowing the Karnataka Encumbrance Certificate obtaining process, individuals must learn about the applicable fees of availing the certificate. Read along!

Follow the steps mentioned below to track the status of EC application in Karnataka,

• Step-1: Visit the official website of Kaveri Online Services.
• Step-2: Login with your credentials and choose ‘Online EC Application’ from the ‘Service Type’ section.
• Step-3: If the Karnataka Encumbrance Certificate is accessible online, you will be able to download it in PDF format.

The above-mentioned piece thoroughly discusses the process of obtaining the Karnataka Encumbrance Certificate. Read the process (both online and offline) carefully and apply as per your convenience before purchasing any property or land in Karnataka.