Tenure & Ownership
What is a Lien on Property?
A claim against the property, not against the person. Which is why a mortgage from 2003 that was never formally released can stop your sale in 2026.
The short answer
A lien is a CHARGE over property, securing a debt.
A bank's mortgage. An unpaid tax. A court's attachment. A contractor's claim.
It attaches to the PROPERTY, not to the person — which means it binds whoever owns it next.
Including you.
The kinds of lien and charge you'll meet
| Type | How it arises |
|---|---|
| Mortgage | The commonest by far. A bank lends against the property and registers a charge. Released on repayment — if anyone remembers to do it. |
| Tax lien | Unpaid property tax, or income tax dues. The state's claim attaches to the property. |
| Court attachment | A decree-holder attaches the property in execution. A judgment against the owner can reach the property. |
| Society dues | Unpaid maintenance can become a charge in favour of the society. |
| Contractor / mechanic's lien | A claim for unpaid work done on the property. |
| Equitable mortgage | Created by deposit of title deeds. Often unregistered — which makes it harder to find, and no less binding. |
It follows the property. Not the person.
You buy a flat. The seller had a loan against it, which they did not disclose and did not clear.
The bank's charge is on the FLAT. Not on the seller.
The seller has your money and is unreachable. The bank has a registered charge over the property you now own, and it can enforce it.
You may have to pay their loan to keep your home.
This is precisely, exactly, what the encumbrance certificate exists to prevent — and it is why 30 years, not 13.
The lien that was never released — and it is astonishingly common
Here is how it happens, and it is nobody's villainy:
1. An owner takes a home loan in 2003. The bank registers a charge.
2. They repay it, in full, in 2011. The bank returns the documents. Everyone is happy.
3. Nobody formally releases the charge at the sub-registrar or on CERSAI. It is paperwork, and it seemed to have been dealt with.
4. The charge sits on the public record for fifteen years.
5. In 2026 they try to sell — and the buyer's encumbrance certificate shows a live mortgage.
6. The buyer's lawyer stops. The buyer's bank stops.
7. The seller must now find a bank they left in 2011, where the branch manager has changed four times, and get a release for a loan that was cleared fifteen years ago.
This takes months. It kills sales. And it is entirely avoidable.
If you have EVER repaid a home loan: get a fresh encumbrance certificate and check the mortgage is actually gone from it. The bank will have told you they released it. Sometimes the paperwork sat on a desk. The EC is the public record, and it is the only way to actually know. A few hundred rupees.
And remember: RBI requires the lender to return your original documents and release the charge within 30 DAYS of full repayment — or pay you ₹5,000 for every day of delay. That rule exists precisely because this happened so often.
How to find liens — and how not to
- ENCUMBRANCE CERTIFICATE — 30 YEARS. Not 13. Thirty. This is the primary search, and it is the one that matters.
- CERSAI search. The central registry of security interests. It catches charges the sub-registrar's record may not.
- Ask for the loan closure letter and NOC, if there was ever a loan.
- Property tax receipts — five years. Arrears follow the property.
- Society no-dues certificate.
- Litigation search. A court attachment will not always appear on an EC.
- Ask your lawyer about EQUITABLE MORTGAGE — created by deposit of title deeds, frequently unregistered, and therefore the hardest to find. If the seller cannot produce the original title deeds, ask where they are. The answer may be: with a bank.
“May I see the ORIGINAL title deeds?”
An equitable mortgage is created simply by depositing the original title deeds with a lender. It often does not appear on the encumbrance certificate, because it was never registered.
But the lender has the originals.
So if the seller can only show you photocopies, and cannot explain where the originals are — you may have just found an undisclosed mortgage.
It is one question. Ask it.
Frequently asked questions
What is a lien on property?
A charge or claim upon the property securing a debt — a bank's mortgage, unpaid tax, a court attachment, unpaid society dues. It attaches to the PROPERTY, not to the person, which means it binds whoever owns it next. Including you.
Does a lien pass to the new owner?
Yes — that is the whole point of it. If you buy a flat with an undisclosed bank charge, the charge is on the FLAT, not on the seller. The seller has your money and is unreachable; the bank has a registered charge over the property you now own, and can enforce it. You may have to pay their loan to keep your home.
Why does an old repaid mortgage still show on the encumbrance certificate?
Because nobody formally released it. The loan was repaid, the bank returned the documents, and the charge was never removed at the sub-registrar or on CERSAI. It then sits on the public record for years — and stops the sale when the next buyer's lawyer finds it. If you have ever repaid a home loan, get a fresh EC and check the mortgage is actually gone.
What is an equitable mortgage, and why is it hard to find?
A mortgage created simply by depositing the original title deeds with a lender. It is often unregistered, so it may not appear on the encumbrance certificate at all. But the lender holds the originals — which is why the single best question is: 'May I see the ORIGINAL title deeds?' If the seller can only show photocopies and cannot explain where the originals are, you may have just found an undisclosed mortgage.
How do I check for liens on a property?
A 30-year encumbrance certificate — not 13, thirty. A CERSAI search, which catches charges the sub-registrar's record may miss. The loan closure letter and NOC if there was ever a loan. Five years of property tax receipts. A society no-dues certificate. A litigation search, since court attachments don't always appear on an EC. And ask to see the original title deeds.