How to check mortgage status of property?

Two ways to check the mortgage status of property

1. Encumbrance Certificate
2. Title documents

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1. Encumbrance Certificate:

The encumbrance certificate is shortly called EC. It is the most important document to validate the title of a property.

Encumbrance Certificate records the history of transactions that the property has gone through, including the transaction of mortgage

For your better understanding, let me share my experience,

On 12–11–2021, I took Rs. 40,00,000 loan from State Bank of India to buy 1200 square feet of land in Bangalore.

The lender and borrower (bank and me) have registered the mortgage in sub-registrar office, the registration detail is recorded in my encumbrance certificate.

In my below encumbrance certificate, bank detail is shown in column 6

On 17–02–2023, I paid my loan and registered the discharge deed in sub-registrar office.

The below encumbrance certificate is extracted after the registration of discharge deed, bank details shown in column 5 in EC

As of today, there is no mortgage lien on my property as my mortgage is paid and registered the discharge deed.

Note:

• If the mortgage is still on, the bank name shown in column 6 of encumbrance certificate
• If the mortgage is paid and registered the discharge deed, the bank name shown in column 5 of an encumbrance certificate

2. Title document:

Title document is a property document through which property owner transfers property ownership rights to buyer

• The title document includes
• Parent deed
• Sale deed
• Property tax receipt
• Khata

Few private lenders and banks may not register the loan in sub-registrar office. Instead, they just collect title documents from borrower and return them once the loan is paid.

So, If the loan details are not recorded in EC, you should demand the seller to show the original title documents.

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