Encumbrance and completion certificates in Delhi
Two certificates answer different questions. An encumbrance certificate shows whether the property has loans or legal claims against it. A completion or occupancy certificate shows that the building matches its sanctioned plan. Ask for both, plus the sanctioned plan and the registered sale deed: 4 papers in all.
· By Raghav Chopra, founder, in South Delhi real estate since 2010
What does each certificate prove?
An encumbrance, or non-encumbrance, certificate lists the registered transactions on a property over a period, such as mortgages, sales and charges. It tells you whether the seller can pass clear title.
A completion certificate, or an occupancy certificate, is issued by the building authority after it checks that the building was built as sanctioned. It tells you the structure is lawful.
Where do you get them in Delhi?
The sub-registrar's office, under the Revenue Department, handles non-encumbrance certificates. The municipal body's building department issues completion and occupancy certificates for the buildings it sanctions.
Your lawyer applies for them, or checks the copies the seller hands over against the issuing office's records.
What if a builder floor has no completion certificate?
Treat it as a red flag, not a formality. The building may differ from the sanctioned plan, and a bank may refuse a loan, a buyer may walk away and the authority may act against unauthorised construction.
Ask the seller to explain why it is missing. Raghav Chopra runs the completion certificate as one of the five checks before a property reaches you.
Do banks require them?
Banks usually ask for the title documents, the sanctioned plan and the completion or occupancy certificate, and they run their own legal check on encumbrances. A property that cannot produce them often cannot be financed.
Asking early saves you from finding out after you have paid a token.
Certificates, who issues them and what a gap means
| Certificate | Issued by | What it proves | Red flag if missing |
|---|---|---|---|
| Encumbrance (non-encumbrance) certificate | Sub-registrar, Revenue Department | No registered mortgage or charge in the period | A hidden loan or claim may exist |
| Completion or occupancy certificate | Municipal body's building department | The building matches the sanctioned plan | Unauthorised construction; loan and resale problems |
| Sanctioned plan | Municipal body | What was approved to be built | You cannot compare the building with the approval |
| Registered sale deed | Sub-registrar | The seller's title | No proof the seller can sell |
Which office issues which certificate depends on the area. Your lawyer confirms for the exact property.
Frequently asked questions
What is an encumbrance certificate?
It is an official record of the registered transactions on a property for a stated period, showing any mortgage, sale or charge. A clean certificate means no registered liability in that period. It does not cover unregistered claims, so your lawyer also checks the chain of deeds.
Is a completion certificate the same as an occupancy certificate?
They serve a similar purpose: confirming the building was constructed as sanctioned and is fit to occupy. Which one the authority issues depends on the rules in force when the building was sanctioned. Ask what the authority issued, and have your lawyer confirm it is genuine.
Can I buy a builder floor without a completion certificate?
You can, but you carry the risk of unauthorised construction, a refused loan and a harder resale. Raghav Chopra treats a missing certificate as a reason to stop and ask questions, and shows a property as verified only after he has seen the document.
How far back should an encumbrance check go?
Ask your lawyer, but a longer period gives more comfort. Many buyers ask for the full chain of title and an encumbrance check covering the period of the earlier deeds. Raghav Chopra's checks cover the title chain, not just the recent years.
This is general information, not legal or tax advice. Confirm with your CA or lawyer before acting.
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