How is an encumbrance certificate different from a property title search?

An encumbrance certificate (EC) and a property title search are two distinct processes that serve different purposes in the context of property transactions. Here are the key differences between them:

1. Purpose:
Encumbrance Certificate (EC): The primary purpose of an EC is to provide information about registered transactions and encumbrances on a property during a specified period. It helps verify ownership, assess encumbrances, and confirm the property's legal status.
Property Title Search: A property title search is conducted to ascertain the ownership rights and history of a property. It involves examining various documents and records to establish a clear and marketable title to the property. It helps determine if there are any legal issues or disputes that could affect the property's ownership.

2. Scope of Information:
Encumbrance Certificate (EC): An EC provides details of registered transactions, encumbrances (such as mortgages or charges), and legal claims on a property during the specified period covered by the certificate. It reveals the financial and legal obligations associated with the property.
Property Title Search: A property title search involves a comprehensive examination of various documents, including sale deeds, conveyance deeds, lease agreements, encumbrance certificates, and other relevant records. It provides a broader picture of the property's ownership history, any legal disputes, pending litigation, or claims that may affect the property's title.

3. Time Period Covered:
Encumbrance Certificate (EC): The EC covers a specific period, typically ranging from the previous 12 to 30 years. It reflects transactions and encumbrances registered within that timeframe.
Property Title Search: A property title search aims to trace the entire history of ownership and encumbrances on the property from its inception to the present day. It goes beyond the specific time period covered by an encumbrance certificate.

4. Obtaining the Information:
Encumbrance Certificate (EC): An EC is obtained from the subregistrar's office or the concerned authority responsible for property registration. It can be obtained by submitting the necessary application and fee.
Property Title Search: A property title search requires conducting a thorough investigation, including visits to relevant government offices, land records departments, and consultation with legal experts. It may involve engaging the services of a professional title search agency or a lawyer with expertise in property law.

In summary, while an encumbrance certificate focuses on registered transactions and encumbrances within a specific period, a property title search provides a broader examination of the property's ownership history and legal status. Both processes are important in property transactions to ensure clarity of title and to identify any potential risks or issues associated with the property.