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What is meant by a Nil Encumbrance Certificate?

PGN Property, Real Estate & Documentation Consultant with 21+ years of experience

Answered on December 22,2022

Nil-Encumbrance certificate is issued by sub-registrar office for a property that has not registered any transaction of deed or mortgage for a period the applicant sought to obtain EC.

Nil Encumbrance certificate is issued in FORM 16.

For Example:

The below property was registered on 10–02–2003, we encircled the date in below sale deed

https://qph.fs.quoracdn.net/main-qimg-01b981fe794aa3c23e346b8890c8bcf5

Since the property registered on 10–02–2003, there is no transaction of deed or mortgage registered in respect of this scheduled property

So when we apply for encumbrance certificate for above sale deed, sub-registrar office issue FORM 16 Nil Encumbrance certificate for the period of 2004 to current date (as there was no transaction taken place between 2004 to current date)

The FORM 16 Nil Encumbrance certificate looks like below image, we encircled the time duration in below image

https://qph.fs.quoracdn.net/main-qimg-7b5a9c8c4f2c99d0cfd628380faf8acf

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Amit
Answered on December 06,2019

If no deeds of transactions are registered in respect of a property nil encumbrance certificate is issued in Form No.16. If Certificate is issued in this form, it means that there are no registered transactions / liabilities on the property for a given period of time unregistered transactions are not included in this certificate.

What is meant by a Nil Encumbrance Certificate?

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