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Understanding Encumbrance Certificate in Tamil Nadu

Understanding Encumbrance Certificate in Tamil Nadu

So, you have made up your mind to invest in real estate and have started hunting for the right property. Now you have also found the right property for your needs and want to proceed with the registration of the same after negotiating with the seller. But what are the important documents that are required for registering a property in Tamil Nadu? It depends on the type of property. But the basic documents required are:

1. Sale Deed or Conveyance Deed

This is the primary document that establishes the ownership of the property and contains details such as the property's location, size, boundaries, and sale price.

2. Property Tax Receipts

These receipts prove that the property taxes have been paid up to date.

3. Building Approval Plan

This document is required for properties that have been constructed or modified and certifies that the construction is legal and has been approved by the local authorities. Such a document is not required if you are purchasing a plot. It is required in case you are purchasing a flat or an independent house or in the event you are going in for some construction in your plot.

4. Power of Attorney

This document is required if the property is being registered on behalf of someone else. Again, this is not a mandatory document if there is no third party involved.

It is important to note that the exact documents required may vary depending on the type of property and the location of the property in Tamil Nadu.

Out of all of the above, one of the most important documents is the encumbrance certificate also known as EC. EC is mandatory for all property transactions and certifies that the property is free any legal or financial liabilities such as mortgages, loans, or pending litigation.

It is issued by the Sub-Registrar's office and is an important document for property transactions. The certificate contains details of all transactions related to the property, including mortgages, loans, and leases. It is important to note that an EC is issued only for a specific period.

What are the challenges in case an encumbrance certificate is not available for a property ion Tamil Nadu? As the best real estate company in Chennai and the seller of plots in Chennai, Wisdom Properties brings deep know-how to the domain. If you are looking for DTCP approved plots in Oragadam or plots in Guduvanchery, we are the best company to approach.

There are many challenges if an encumbrance certificate is not available. Some of them are:

  1. Without an encumbrance certificate, there is a risk that the property may be involved in legal disputes, which can lead to lengthy court battles and financial losses for the buyer.
  2. Banks and financial institutions require an encumbrance certificate as proof of clear title before granting loans against the property. Without this certificate, it may be difficult to obtain loans or mortgages for the buyer.
  3. From a seller perspective, buyers are often hesitant to purchase a property without an encumbrance certificate, as it indicates that the property may have legal or financial liabilities. This can make it difficult to sell the property and may result in a lower selling price.
  4. The absence of an encumbrance certificate can also lead to delays in property registration, as the authorities may require additional documentation or verification before registering the property.

About Wisdom Properties

Wisdom Properties is a company managed by real estate veterans Mr.Mohan and Mr.Magesh and is the best real estate company in Chennai. They have been closely associated with the growth of Chennai city and its suburbs and Wisdom Properties as a company has set the benchmarks in development.

Any property sold by Wisdom Properties is free from any sort of encumbrance, has clear title deeds and offers excellent appreciation. Thousands of people have benefited because of this. Further, since the title deeds are clear and the company has an excellent reputation, it is easy to obtain loans from leading financial institutions as well.

If you are looking for villas for sale in Maraimalai Nagar, properties for sale in Maraimalai Nagar, gated community plots for sale in Guduvanchery, DTCP Approved plots for sale in Oragadam or anything else, get in touch with us.


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