Encumbrance Certificate: Understanding the common terms in Telangana
For any property, using its Encumbrance Certificate (EC) is the easiest way to find if the property has any loans, or mortgages, and has a free title.
Each line or row in an EC is the summary of all property transactions. In each row of the EC, there are some short forms that are always found. These terms are often repeated in real estate. Let’s have a quick look at the meaning of each term.
Before we proceed, if you want to know in-depth what an Encumbrance Certificate is, check out: Encumbrance Certificate (EC) in Telangana: A Detailed Guide
Executant (EX)
Executant is usually the owner/seller of the property who is now doing something with the property. The Executant is the person who has the rights to the property and hence can execute it. For example, if someone is selling a particular property, the seller would be the Executant.
Claimant (CL)
Claimant is usually the buyer of the property. They are now laying a claim to the property. For example, if someone is buying a property, then they are the claimant to the property.
Mortgagor (MR)
Mortgagor is the owner of the specific property who is taking a loan against the property. The Mortgagor takes a loan from the bank (or other financial institutions) and keeps the property as collateral. If the loan is not repaid on time and is defaulted, the rights to the specific property are given up by the Mortgagor.
Mortgagee (ME)
Mortgagee is usually a bank (or other financial institution) that grants a loan to the property owner. The bank (mortgagee) takes the property documents and reserves the right to take over the property if the borrower (mortgagor) is unable to repay the loan as per the mentioned terms.
Releasor (RR) & Releasee (RE)
Releasor and Releasee are terms found when there is a release deed. A release deed is used when someone wants to clear their rights to a property and hand it over to another party.
Example: during a mortgage, once the borrower has completed the loan repayment, he is entitled to receive the property back. Here the bank or lender will release the claim to the property, and hand it over to the borrower. In this case, the bank is the releasor and the person getting their property back is the releasee
Example: let’s say a family wants to transfer the property rights to one person only. Then all the family members can create a release deed. The family members would be the releasors in this case, and the person receiving the party would be the releasee.
Donor (DR) & Donee (DE)
Donor & Donee terms are found whenever there is a donation from one party to another. The person or party giving the property is the Donor. The recipient of the property is the Donee.
Lessor (LR)
Whenever a property is leased out, a lease agreement is drafted and executed. The landlord or property owner is called the Lessor in this case.
Lessee (LE)
During the leasing of a property, the tenant is called the Lessee of the property.
First Party (FP) & Second Party (SP)
It’s very rare to see these terms on an EC since most property transactions don't happen by exchange. FP and SP are general terms in legal language meaning First Party (FP) and Second Party (SP). You are likely to find these terms when an exchange of properties has taken place.
Principal (PL)
There are cases where the power to do property transactions is granted to a Power of Attorney. The original owner granting the power is called the Principal.
Attorney (AY)
In situations where someone is being granted the Power of Attorney of a property, the party who is receiving the power is called the Attorney.
These are the most commonly found terms in a Telangana Encumbrance Certificate.
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For Telangana documents, use the Landeed app to download Telagana EC (Encumbrance Certificate) online, order a Certified Copy of the Sale Deed, get Market Value, and List of Prohibited Lands, and download the Pattadhar Passbook.
