An encumbrance certificate is an essential document that has been used as a shred of evidence for the free proprietorship of the property. This document is needed when someone is interested in buying or part changes of the property. If someone wanted to take the loan for the home or want a loan against property, they needed this document, as this document is made to play an important role.
Importance of Encumbrance certificate
- When you want to buy some property, you have to make a significant investment necessary for buyers as they want to check out the encumbrances, which show that the property may transfer with the ownership of the property.
- If you give an encumbrance certificate to the buyer as if you have, then it shows the surety that a particular property does not have any financial or nonfinancial accountability.
- And if you don’t have one, you should choose the option of a bank loan for ec.
- As the document is also embellished during the time of loan against property or during the applications of some home loans, it is essential for the buyer that he must secure the document not only to get the legal title of the property but also to check that if the buyer is eligible for the loan or not.
- If you want to withdraw the PF for the purchase of property, you also need an encumbrance certificate. If you don’t have the certificate, you can easily apply for a bank loan for ec.