What does the No Dues Certificate cover?
The No Dues certificate states that there are no outstanding dues on the property concerned. It thus protects the property buyer from paying for any dues that have not been paid by the seller and also enables the municipal authorities to maintain updated property records in the city.
As such, it covers the following charges-
- Property or House tax
- Water supply and sewerage charges
- Electricity bill
- Development charges
This certificate, which is issued for property buyers in Mumbai, is different from the No Dues Certificate issued by banks to home loan borrowers after they have repaid their debt.
How is the No Dues Certificate different from the Non-Encumbrance Certificate?
When the civic authorities grant the No Dues Certificate which states that there are no outstanding charges on the property, they do not verify the chain of titles of that property. In other words, the civic authorities only check the latest title documents to enter information in their No Dues Certificate MIS; they do not verify if the seller is indeed the rightful owner of that property. As a result, it is still useful for the buyer to obtain a Non-Encumbrance certificate while buying the property.
How to Obtain it?
In Mumbai, you can apply for a No Dues Certificate online, by registering yourself on the Maharashtra Right to Services portal- 'Aaple Sarkar'.
- After registering on the portal log into your account and click on 'Department: Maharashtra Housing and Area Development Authority' in the dashboard on the left.
- Click on 'No Dues Certificate' and then select 'Proceed.'
- Enter your name, mobile number, identification number and email id.
- Upload the following documents-
- Receipts of all the dues paid to the relevant authority (MHADA) in the case of Mumbai in the previously and in the current month.
- Receipt of stamp duty payment in case the property was trasnferred to you.
- Click on 'Save.'
- Pay the requisite fees.
Image by VD Photography on Unsplash
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