Buying a Property? Never Pay an Advance Before Checking the EC
Thousands of property buyers in Tamil Nadu lose their earnings in property purchase not through luck but by failure to cross check this one vital part. Yes! They paid their advance before ensuring the Encumbrance Certificate of the property was clear. EC shows a complete record of transaction history of the property. It also indicates whether the land has a pending bank loan, mortgage, stay order or any pending legal suit etc. Failure to do so would only hand over someone’s debt onto you to repay. This write up discusses why the EC is important and how to check your EC before you pay the advance money.
What does EC display about the property?
EC-Encumbrance Certificate is an official document the Registration Department in Tamil Nadu issues. It mentions the list of all registered transactions on a property within a specified period-these include deeds like sale deed, mortgage deed bank loan, gift deed and attachments by court order etc. A clean EC indicates that there is no legal or financial liability on the property.
An EC having no transactions displays as Form 16 (Nil EC) and a registered property with transaction display on EC form shows as Form 15-where you will have to check for details on every entry.
You can verify your property’s EC instantly using our Land Villangam Check service.
Risks if you pay advance before checking EC.
Existing bank loan on the property
Many sellers have taken loan on their property and fail to mention it to their prospective buyer. EC will detect the loan instantly. You will be stuck in a legal battle for recuperating your money when you come to know about it only after parting with the money. Thus, ensure you check the EC for all sale agreement or deal before signing any document or making any payment. You can verify EC’s status using our EC/Patta Check Status service.
Property under court attachment or dispute
The court can attach a property. The EC form will mention this. A court attachment makes the property invalid on sale, though you might have made the payment.
Also you cannot register a Sale Deed of an attached property at sub registrar office, unless the seller clears it.
Use our Legal Advice on Property Dispute services, should you have such problem already at hand and you would have already paid the advance.
Property sold to more than one buyer
Dishonest sellers sell a piece of land to as many buyers as they can, collected advances after making the EC check not relevant for buyer as the information can be used only to check sale deed history of a particular land. The EC will indicate the names of all previous buyers too, ensuring you will not be cheated this way. Hence you should always check for at least 13 years-most banks require it for loan purpose-for 30 years on a property EC form.
How to get and check EC before you Pay Advance in TN?
Step 1: Visit tnreginet.gov.in
Go to the above official website of Registration Department of Tamil Nadu. Under ‘Services,’ select ‘Encumbrance Certificate’ and under this, choose ‘View EC’.
Step 2: Fill up the Property Details
Enter your District, SRO office, survey or document number, and select the desired period for EC check – a 13 year check for all property purchase is a minimum required and 30 year required by banks for loan purposes on the property. You can always apply for physical EC through our Apply EC/Patta Check Status service.
Step 3: Read the Result Carefully
If form 16 (Nil EC) is produced, it simply means that the particular property is free of any loans or pending litigation for the time span you opted for. On the contrary, form 15 means that a transaction has already taken place for the property, and it requires thorough verification of every transaction noted. Keep an eye out for ongoing loans against the property and check it meticulously before making any transaction, should something like this appear consult our Legal Advice on Property Dispute team.
Ensure Patta is checked as well!
EC alone is not sufficient. You also need to verify Patta of the property; here names are compared with those in records, if seller’s name doesn’t match, then there is something suspicious. Use our Online Patta Missing and Correction service if Patta also needs correction.
What to Check on the EC forms before you Pay Advance for property purchase?
| What to Check | Red Flag |
|---|---|
| Active loan, bank mortgage | Do not pay the advance; seller has to obtain a loan closure certificate first. |
| Court attachment/lis pendens | The sale is void; get urgent legal guidance |
| Older sale registered when current sale deed registration is not done before and after this earlier registration | Risk of ownership Dispute. Verify from Lawyer |
| Mismatch of names in Patta and Sale Deed | EC names must match with the ID provided. |
| Nil EC form 16 | All clear, safe to go ahead. |
Frequent Asked Questions:
Q1: What is an EC for a property?
An EC is an official record detailing the complete history of any registered transactions, like sales, mortgages, legal actions, court rulings, etc., made over a specified period for a particular property.
Q2: Why should I get an EC check done before any property down payment in Tamil Nadu?
To protect yourself against potential risks, such as undeclared loans, court judgments, and fraud, where the seller might not disclose all legal or financial burdens attached to the property.
Q3: What is a Form 16 (Nil EC)?
Form 16 indicates that the property is entirely free from any registered transactions or liens during the time span selected for the search, meaning it is a clean property.
Q4: What if the EC reveals an active bank loan on the property?
In such a case, you should not make any advance payment. Inform the seller and insist that they clear the outstanding loan and produce a loan closure certificate before you proceed further.
Q5: Should I also check the Patta of the property along with the EC?
Yes, verifying both the EC and the Patta is essential. The Patta confirms ownership details, while the EC reveals all financial and legal encumbrances on the property. Any discrepancies between the two could be a sign of a problem.
Conclusion:
An EC check for your property before paying any money to anyone or any agent will save you lot of trouble, worry and mental stress that otherwise comes with trying to solve legal complications of a faulty purchase. Just 10 mins with the EC check and the cost would be so nominal when compared to the lakhs you would save. Always get EC done first; no matter who the seller is, trust what is documented.
Need expert verification for EC, Patta and Villangam for your property purchase in Tamil Nadu?
Oneline Services offers complete property verification, contact us, or call us at 8610875785.