When researching property due diligence in India, you'll often see advice to "get an Encumbrance Certificate." But what exactly is it, and what are its limitations?
What is an Encumbrance Certificate (EC)?
An Encumbrance Certificate is a document that shows recorded transactions (especially loans and liens) against a property for a specific period. It's issued by the Sub-Registrar's office.
Shows: Registered mortgages, liens, sale deeds, gift deeds, and other registered transactions.
The Reality in Haryana
Unlike some southern states (like Karnataka or Tamil Nadu) where EC is easily available online, Haryana's encumbrance certificate process is:
- More manual and paper-based
- Available from the Sub-Registrar's office
- Not always online
- May require in-person visits
What EC Shows
✓ Registered mortgages (especially bank loans with registered documents) ✓ Sale and purchase transactions ✓ Lease registrations ✓ Court attachments (if registered) ✓ Liens and charges
What EC Doesn't Show
✗ Unregistered agreements or loans ✗ Private lending without registration ✗ Pending court cases ✗ Revenue court orders (separate system) ✗ Fraudulent duplicate registrations in different jurisdictions
Alternatives for Encumbrance Check
Since EC has limitations, we recommend a multi-source approach:
1. Check Jamabandi
Revenue records often note encumbrances ("rahn" entries) when land is mortgaged.
2. Sub-Registrar Search
Request a property-wise search at the Sub-Registrar's office for all registered transactions.
3. Bank NOC
If the property was previously mortgaged, ask the seller for a No Objection Certificate from the bank.
4. Legal Search
A comprehensive title search by a lawyer covers encumbrance as part of the due diligence.
5. CERSAI Search
For certain types of security interests, the Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI) maintains records.
Practical Advice for NRIs
Given the complexity:
- Don't rely solely on EC — It's one piece of the puzzle
- Cross-reference multiple sources — Jamabandi + Sub-Registrar + Physical inquiry
- Ask pointed questions — "Is there any loan against this property?"
- Get professional help — Title verification services or lawyers
Worried about hidden encumbrances? ScanMyProp checks for loan signals as part of our verification.