An encumbrance certificate is an official record, issued by the relevant sub-registrar's office, showing registered transactions against a property over a specified period — including sales, mortgages and certain other legal claims.
A clean encumbrance certificate, showing no pending mortgages or unresolved legal claims, is generally a positive indicator during due diligence, though it should be reviewed alongside other documents rather than relied on in isolation.
Buyers typically request this certificate covering a specific historical period, and it is a routine part of due diligence in most property transactions.
