Vinayak Realtech

RERA (Real Estate Regulatory Authority) has noted that almost 55% of homeowners face legal issues after investing in real estate. If you are an aspiring homebuyer, this data might shock you. How can you get rid of this fear? You have to go through all the papers related to the property to ensure that the legalities are 100%. In this, the non-encumbrance certificate (NEC) plays a significant role. Wondering what it is? Let us break down this for you so that you can invest your money in the right place.

Let’s start with addressing the main agenda.

What is a Non-Encumbrance Certificate?

A non-encumbrance certificate (NEC) is an official document that verifies that the property has no mortgage, debt, or registered deeds in its name. Hence, you will not be liable to pay any amount for the property to any authority after possessing it.

Here one might ask, what are the benefits of this certificate? Is it all about the after-payments? Let’s have a look at that.

What are the benefits of NEC?

A non-encumbrance certificate is issued from the sub-registrar’s office or the area’s tehsildar. NEC includes important information such as the property owner’s name, sale deed information, previous transactions, and past owners. Thus, it works as an important legal proof of the property. However, is it the only benefit?

No, here are a few more benefits of NEC-

1. Ownership Verification:

Have you ever heard of faking property ownership? It is one of the most common scams in the real estate market, and NEC helps to avoid it. NEC verifies the name of the owner and increases the transparency level.

2. Easier Home Loan:

Often banks take a lot of time for background verification. They want to ensure whether the property has any liability or not. NEC helps with that. It ensures that the property has no financial liability and you get the loan easily.

3. Doubles the Property Value:

If you are trying to sell your property, NEC is an absolute must for you. It validates your ownership, legalities, and financial transparency. Therefore, potential home buyers get interested.

A non-encumbrance certificate validates the legality and boosts the confidence level of a buyer. As a result, the whole transaction gets easier.

How to Bag a Non-Encumbrance Certificate?

 Are you planning to sell your house? Then, this section is for you. If you haven’t paid tax for straight 3 years, you will be required to produce a non-encumbrance certificate. Plus, if you want to withdraw your PF, or want to sell your property, or apply for a loan against your property; you will require this paper. However, how?

Here are the steps you must follow:

Step 1# Visit the sub-registrar office

Strep 2# Arrange and fill up the form 22 with accurate information

Step 4# Submit the purpose of the application along with the form and more of it.

Once you submit the form you are done. You have to wait for a period. An inspector will visit your property. After that, an encumbrance certificate on Form 15 or a non-encumbrance certificate on Form 16 in case of zero encumbrances will be issued in your name.

In addition, if you want the certificate faster, you will be required to pay higher fees.

If you live in West Bengal, you can get it online. Here are the steps you must follow:

• Visit the official website and click on the Stamps and Registration tab
• Now select and click on ‘Application Form for Encumbrance Certificate’.
• Get form 22 and fill it out with the right details
• Attach every required document
• Pay the charge and submit

Just like the offline mode, you have to wait for a bit. After the verification, you will receive your certificate. For a smooth process ensure that you are submitting authentic and all the required documents.

What are the Documents you need to get a NEC?

Many times, some of the sellers struggle to get this certificate. Do you know why? It is because they don’t submit documents accurately. This leads to cancellation. Here are the documents you need-

• Sale deed
• Address proof
• Property details
• Identification proof
• Previous encumbrance certificate (if applicable)

While emphasizing non-encumbrance certificates many people get confused between non-encumbrance certificates and encumbrance certificates. Well, both are pretty different.

What is an Encumbrance Certificate (EC)?

An encumbrance certificate is an official document that states the financial liabilities of a property (if any). An encumbrance certificate is not only different non-encumbrance certificate but also different in other aspects like format.

Do you want to know about it? Let’s head to the next section.

Difference between an encumbrance certificate and a non-encumbrance certificate:

Some common FAQs: Non-Encumbrance Certificate

Can I check my encumbrance certificate status online?

If you have applied online for an encumbrance certificate, you can always check the status. For this, visit the site and click on ‘EC Status’.

Why do I need a non-encumbrance certificate?

Whether you are a buyer or seller a non-encumbrance certificate is crucial for you. It states the ownership and ensures that it is free from any due or liabilities. Hence, if you are selling it, you will be able to gain the trust of your customers. On the other hand, if you are a buyer, it gives you the required mental peace.

Can I get a home loan using a non-encumbrance certificate?

Yes, you can. You can’t get a loan against your property without a non-encumbrance certificate. However, only this certificate is not enough. Have a conversation with your bank to know the full details.

How many years of non-encumbrance certificate is mandatory to get a home loan?

Well, that depends on your lender. Typically, most of the lenders ask for a certificate showing a timeframe of 12 years. However, some of them can ask for a certificate covering 30 years. It helps to show the full history of the property and ensure 100% transparency.

what is the fee for a non-encumbrance certificate in West Bengal?

It starts with 100 rupees. However, with increasing period it will increase. Instance, if you want a non-encumbrance certificate for 30 years, it will cost you more than 12 years.

Wrapping Up: Non-Encumbrance Certificate

Understanding and acquiring a non-encumbrance certificate is necessary if you own a property or planning to own it. It helps to prevent any legal issues regarding ownership and finance. Plus, ensure a smooth deal.

You can get it online or offline. At Vinayak Realtech, we always emphasize a non-encumbrance certificate for a clear and safe deal. Connect with us for more details and a hassle-free real estate investment.