Official guidance, Tamil Nadu land law
Circular No. 24011/C1/2020
The Head of the Tamil Nadu Registration Department issued Circular No. 24011/C1/2020 on 8 October 2020, directing registration officers not to reject later property documents solely because an encumbrance certificate shows an expired sale agreement, mortgage, deposit of title deeds or lease. The circular sets conditions for accepting later documents, including declarations, checks for court proceedings and no objection certificates where required.
What the circular governs
Circular No. 24011/C1/2020, dated 8 October 2020, was issued by the Head of the Tamil Nadu Registration Department to all Deputy Inspectors General of Registration, District Registrars and Sub Registrars. It addresses cases where later property documents are refused because the encumbrance certificate contains an earlier sale agreement, mortgage, deposit of title deeds or lease.
The circular explains that these transactions may create contractual rights, security interests or leasehold interests, but do not by themselves transfer full ownership. Registration officers should therefore examine whether the earlier entry actually prevents the owner from presenting a later document.
Encumbrance certificate review
Circular No. 24011/C1/2020 retains the requirement under the earlier departmental circular dated 8 November 2013 that a person presenting a document should produce an encumbrance certificate obtained within the preceding 10 days. The registration officer must check that the person executing the document is the latest purchaser or rights holder shown in that certificate.
The review is intended to prevent forged documents and impersonation. An earlier entry that does not affect the executant's ownership should not automatically result in a check slip, refusal order or rejection of a later document.
Conditions for later registration
Registration officers are instructed to apply the following procedures:
- For an expired sale agreement, the document now presented must state that the agreement period has expired. A separate affidavit must also be filed concerning expiry of the relevant period and the absence of a pending case, or expiry of the three year period for filing proceedings under the Specific Relief Act, 1963.
- The officer must verify the stated time periods and confirm that the proposed purchaser under the agreement has not filed a supported stay application claiming that a court case was brought to enforce the agreement.
- If a mortgage or deposit of title deeds remains in the encumbrance certificate, the later document may be accepted when accompanied by a no objection certificate from the concerned bank or mortgagee.
- If a registered lease has expired, the owner may present a sale deed or another later document.
- If the lease is still running, documents other than a power of attorney require a no objection certificate from the lessee.
- A power of attorney may be accepted during an active lease if it records that the lease remains in force and states that later documents must be registered only after obtaining the lessee's no objection certificate.
Who may be affected
Circular No. 24011/C1/2020 is relevant to owners, buyers, lenders, lessees and professionals dealing with property where an encumbrance certificate contains one of these earlier entries. Acceptance depends on the type and status of that entry and compliance with the stated supporting document requirements.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Can a Sub Registrar reject my sale deed only because an old sale agreement appears in the encumbrance certificate?
Not solely for that reason. Later registration may proceed if the agreement period and relevant period for court action have expired, the required statements and affidavit are filed, and there is no supported stay application based on a case to enforce the agreement.
What is required if a mortgage still appears in the encumbrance certificate?
The later document may be accepted when it is presented with a no objection certificate from the concerned bank or mortgagee.
Can an owner register a sale when an earlier lease appears in the encumbrance certificate?
If the lease period has expired, the later document may be accepted. If the lease remains active, documents other than a qualifying power of attorney must be accompanied by a no objection certificate from the lessee.
How recent must the encumbrance certificate be when presenting a document?
The circular refers to the existing departmental requirement that the encumbrance certificate must have been obtained within the 10 days preceding presentation of the document.
