How to Check if a Property Is Mortgaged: CERSAI Search, Bank Letters and Society Liens
To check whether a property is mortgaged, run four searches, not one: an encumbrance certificate for registered mortgages, a CERSAI asset-based search (Rs 10 plus GST) for bank and NBFC charges including those created by deposit of title deeds, the MCA index of charges if the seller is a company, and the society's records for a lien. Then insist on seeing every original title deed.
Key takeaways
- The encumbrance certificate misses the commonest home-loan security: a mortgage created by depositing title deeds with the bank, which needs no registration.
- CERSAI fills much of that gap. Banks and financial institutions must file security interests there within 30 days, and since the 2016 amendments a lender cannot enforce under SARFAESI without that filing.
- CERSAI has blind spots: charges from before its 2011 launch, private lenders, some co-operative banks and NBFCs that file late or badly, and entries made against a different property description.
- For a company or LLP seller, the MCA's free "View Index of Charges" lists every registered charge still shown as open.
- The one check no register can replace: the originals. If the seller has only photocopies, assume a lender has the rest until proved otherwise.
Why the encumbrance certificate is not enough
An encumbrance certificate lists registered transactions on a property for the period you ask for, including registered mortgage deeds. Our guide to what an encumbrance certificate shows covers how to get one and read it. The problem is what it cannot show. Under section 58(f) of the Transfer of Property Act, a mortgage by deposit of title deeds is created simply by handing the deeds to the lender with intent to create security, and the law settles that it needs no registration. Section 59 requires other mortgages above Rs 100 to be by registered deed, but most home loans and many loans against property use the deposit route, so the EC can come back clean on a flat that is fully mortgaged.
If you are unsure how a mortgage differs from other kinds of charge, see hypothecation vs mortgage.
The CERSAI asset-based search
CERSAI, the Central Registry of Securitisation Asset Reconstruction and Security Interest of India, was set up under the SARFAESI Act, 2002 and began operations in 2011. It exists to stop one property being pledged to several lenders.
Why lenders file
Banks and financial institutions must register a security interest with CERSAI within 30 days of creating it. The 2016 amendments to SARFAESI added two strong incentives. Under section 26D, a secured creditor can enforce its security under the Act only if the interest is registered. Under section 26E, once registered, its debt ranks ahead of other debts and of government revenues, taxes and cesses. Competing registered charges rank in the order they were filed.
How to run the search
- On the CERSAI portal, open Public Search and choose Asset Based Search.
- Pick "Immovable" as the asset category and residential, commercial or other as the type.
- Enter what you have: survey or plot number, flat number, floor, building or tower, project or society name, street, locality, city, district, state and pin code.
- Pay the Rs 10 search fee plus GST online and download the report, which shows any security interest recorded against that description.
Lenders key in descriptions in different ways, so a single search can miss a charge filed as "Flat 1203, Tower B" when you typed "B-1203". Run variations: with and without tower names, the survey number alone, the society's old and new names.
What CERSAI will not show
- Older charges. A mortgage created before CERSAI went live may never have been filed.
- Lenders outside the system. A private individual or a moneylender who took the deeds as security is not a SARFAESI lender and will not appear.
- Late, wrong or missing filings. Smaller co-operative banks and some NBFCs are the usual offenders. A charge filed against the wrong identifier exists in law but will not surface in your search.
Beyond CERSAI: state notices of deposit
Some states make deposit-of-title-deed mortgages visible at the sub-registrar's office. Under section 89B of the Registration Act as applied in Maharashtra, a borrower who mortgages property by deposit of title deeds must file a notice of intimation with the registering officer within 30 days, giving the lender's name, the date and amount, and the documents deposited; failure is punishable under section 89C. Madhya Pradesh and Gujarat have similar requirements. In those states, ask the sub-registrar's office, or your lawyer, to search for such notices against the property.
When the seller is a company: the MCA charge register
If you are buying from a company or LLP, look up the seller on the Ministry of Corporate Affairs portal. The "View Index of Charges" service is free, needs no login, and lists each registered charge with the lender, amount and date, and whether it has been satisfied.
Read "open" charges carefully. An open charge may mean the loan is still running, or only that the company never filed the satisfaction form after repaying. Either way, ask for the lender's letter. A charge described as covering "all immovable properties" of the company can include the one you are buying even if it is not named.
The documents that settle it
Originals
Ask to inspect the complete chain of original title deeds, not certified copies. A missing original with a vague explanation is the single strongest sign that a lender holds it. If a genuine loss is claimed, expect a police report and a newspaper notice; our guide to a public notice before buying explains how to run one yourself.
The lender's letter
If the seller admits a loan, ask for a letter on the lender's letterhead stating the outstanding amount as of a date, the list of original documents it holds, and its willingness to release them and issue a no-objection certificate on payment. The mechanics of paying that lender off during the sale belong to our guide on selling property with a home loan.
Society records
In a co-operative society, a bank lending on a flat usually obtains the society's no-objection letter and has its lien noted in the society's records and on the share certificate. Ask the society secretary in writing whether any lien or charge is recorded against the flat, and check the share certificate itself for a lien endorsement.
What each check covers
| Check | Finds | Misses | Cost |
|---|---|---|---|
| Encumbrance certificate | Registered mortgage deeds and other registered transactions | Mortgages by deposit of title deeds; unregistered charges | State fee; varies |
| CERSAI asset-based search | Security interests filed by banks and financial institutions, including equitable mortgages | Pre-2011 charges; private lenders; late or mis-described filings | Rs 10 plus GST per search |
| Notice of intimation search (s.89B) | Deposit-of-deed mortgages in states that require filing | States without the rule; unfiled notices | Sub-registrar's search fee |
| MCA index of charges | Charges registered by a company or LLP seller | Anything for individual sellers | Free |
| Society records and share certificate | Liens noted by the society at a lender's request | Loans the society was never told about | Usually free |
| Original title deeds | Any lender holding documents, whatever the register says | Nothing, if the full chain is produced | Free |
Worked example
You are buying a Rs 90 lakh resale flat in a society. The seller gives you certified copies of the last two sale deeds, saying the originals are "with family".
- The EC for 30 years is clean.
- You run three CERSAI searches (flat number with tower, without tower, survey number alone). Cost: 3 x Rs 10 = Rs 30, plus GST. The second search returns a security interest filed by a housing finance company in 2021.
- You ask for the lender's letter. It shows Rs 38 lakh outstanding and lists both original deeds.
For Rs 30 plus GST you found a Rs 38 lakh charge the EC never showed. The deal can proceed on a bank-to-bank payoff: Rs 38 lakh of your Rs 90 lakh goes to the seller's lender, which releases the originals to you. The seller receives Rs 52 lakh (Rs 90 lakh less Rs 38 lakh), before any other adjustments.
Where buyers still get caught
- Trusting a single search. Each register has blind spots; the value comes from running them together.
- Loans taken after your searches. Repeat the CERSAI search and ask for fresh confirmation just before you pay the balance.
- Informal loans. A moneylender holding the deeds leaves no trace in any register. Only the originals will tell you.
- Court attachments and tax claims. These are not mortgages at all; check court records separately using our guide to court cases on a property.
After a loan is repaid, the release should show up in CERSAI as satisfied; the steps are in sibling guide home loan closure checklist.
Frequently asked questions
Will an encumbrance certificate show a home loan on the flat?
Often not. Most home loans are secured by deposit of title deeds under section 58(f) of the Transfer of Property Act, which needs no registration, so no entry reaches the encumbrance certificate. The EC shows registered mortgage deeds only. That is why you add a CERSAI search and ask to see all the original deeds.
How much does a CERSAI property search cost?
An asset-based search costs Rs 10 plus GST, paid online on the CERSAI portal. Because lenders describe properties differently, run several searches using variations of the flat number, building name and survey number. At Rs 10 each plus GST, several searches still cost less than any other check you will run.
Can a property be mortgaged but not show on CERSAI?
Yes. Charges created before CERSAI began in 2011, loans from private lenders who are not covered by SARFAESI, and filings that were late or made against a different description may not appear. A clean CERSAI result lowers the risk but does not remove it. The original title deeds are the final check.
How do I check loans on a property owned by a company?
Search the company or LLP on the Ministry of Corporate Affairs portal and open View Index of Charges. It is free and lists each registered charge with the lender, amount, date and status. An open charge may be unpaid or simply never marked satisfied, so ask for the lender's letter either way.
What should I ask the seller's bank for?
A letter on the lender's letterhead giving the outstanding amount as of a stated date, listing the original documents it holds, and confirming it will release them and issue a no-objection certificate on full payment. Pay the lender directly from your side of the transaction rather than trusting the seller to close the loan.
Found a charge on a flat you like? Realty Hunting can help you judge whether the deal still works.
