An encumbrance certificate is a record of the registered transactions touching a property over a chosen period. To remove an entry you do not amend the certificate; you clear the underlying transaction and register the document that ends it, so that a fresh search no longer shows it. For a loan, that means repaying, obtaining the bank's no-dues certificate and a registered release; for a court attachment, it means an order lifting the attachment; for a wrong entry, it means proving the error to the registering office or the authority and having the record corrected. The sequence matters before a resale, because a buyer's advocate will search the register and find whatever is still standing. Read the certificate together with the deed file, because an entry that looks like a mortgage is sometimes a court attachment that only an order can lift.
Before you start
- A current encumbrance certificate for the property, usually taken for the full period of ownership.
- The deed or loan documents that created the entry, so the exact instrument to be closed is identified.
- For a loan, the bank's latest statement of account and the original documents held by the bank.
- For an attachment, the court order sought or obtained to lift it.
- The registration particulars of the charge, so the release is registered at the same office.
What the certificate shows
- Mortgage or charge: a loan secured on the property, registered as a mortgage deed.
- Lien or hypothecation: a security interest noted against the property or the documents.
- Attachment: an order of a court or authority freezing dealings, entered in the register.
- Statutory charge: a charge arising by operation of law, such as for unpaid dues that attach to the property.
- Sale agreement, lease or decree: instruments that affect title even though they are not loans.
Steps
- Read the entry and fix its type. Whether the entry is a mortgage, a lien, an attachment or a charge decides which office and which document close it. Do not assume every entry is a loan.
- For a live loan, repay and close it. Obtain the bank's no-dues certificate and the return of the original title documents, and confirm the account is shown as closed.
- Take the release deed from the bank. The lender executes a release deed or deed of discharge. It must be stamped as the state schedule prescribes and executed by a person authorised to bind the bank.
- Register the release. Present the release for registration at the sub-registry where the mortgage was registered. Under Section 17 of the Registration Act 1908 a release extinguishing a mortgage charge is registrable, and until it is registered the entry stands on the record.
- For a court attachment, obtain the order first. An attachment falls only when the court lifts it, so pursue the order; then file or register it so the office takes the entry off.
- For a wrong entry, apply for correction. Where the entry relates to another property or to a loan already repaid, apply to the registering office with the deed, the release and an affidavit of the error. If the office refuses, the correction may have to be pursued before the authority the Act provides.
- Re-take the certificate. Obtain a fresh encumbrance certificate for the same period to confirm the entry has gone, and keep it with the file.
Documents to keep
- The no-dues certificate and the closed account statement.
- The registered release deed and its certified copy.
- The fresh encumbrance certificate showing the property clear.
- For a mortgage right, the knowledge that under Section 60 of the Transfer of Property Act 1882 the mortgagor is entitled, on redemption, to have the mortgage discharged.
What goes wrong
- Release executed but not registered. The bank signs, the borrower relaxes, and the entry survives for the next buyer to find.
- No-dues from the wrong account. A statement for one loan is produced when two were charged on the property.
- Assuming a paid loan clears itself. Payment does not remove a registered entry; only a registered release does.
- Ignoring an attachment. Some buyers sell around an attachment instead of obtaining the order to raise it, and the sale is challenged.
- Trusting an old certificate. A certificate taken years earlier does not show entries registered since, so always take a fresh one before a sale.
Common questions
How long does the entry stay after repayment?
The entry stays until a release is registered. The time the office then takes to reflect it depends on the office, so always re-take the certificate to confirm. Our banking and finance desk coordinates the no-dues and release paperwork with lenders.
Can a pending loan be removed without repaying?
No. A live mortgage can be cleared only by repayment and release, or by a transfer of the loan to a buyer's name with the lender's consent. A charge is not deleted on request.
What if the entry is a mistake?
If the entry does not relate to your property, or the loan was already closed, apply to the registering office with proof, and register or file the document that shows the error. The office does not edit the register without a basis. The property registration formats we publish include release and confirmation clauses.
Should the release be registered at the same office as the mortgage?
Best practice is yes, at the office that registered the mortgage, so the release is recorded against the same property in the same register. Our property registration team attends the registration on the client's behalf.