A Comprehensive Guide to the NOC for Property Sale – Format, Importance, and Key Considerations

A No Objection Certificate, famously known by its acronym, NOC, is a legal document issued by an individual/organisation to state that they have no objection whatsoever to the covenants mentioned in the certificate. Since it is a legal document, it guarantees that any transactions between two or more parties are officially documented and made official to avoid future situations in which a person or organisation declines to abide by the terms they previously agreed upon.

Right from NOC for property sale format to its importance and key parameters to remember, we have touched upon everything thusly. 

Where is an NOC required? 

Here are a few common scenarios where an NOC is required. 

• NOC for Purchase/ Sale of Property 

When a property is sold, the seller must formally agree to the sale and certify that they have no objections to the new owner utilising the property for the purposes specified in the NOC. The format of this NOC will be discussed at length in the following lines. 

• NOC for Transfer of Property Ownership 

Obtaining an NOC from the office of the authority that authorises this transfer of immovable property is necessary to follow suit. This is as per Section 21 of the Registration Act of 1908. 

• NOC for Developers who transfer the real estate project liabilities to another organisation 

According to the Real Estate Regulatory Authority (RERA), an NOC is required when the developers wish to transfer their real estate project liabilities to a third party. Additionally, at least two-thirds of the participants must have given their written consent to the developer. This written approval has to be in the form of a duly signed NOC.

• NOC for Transfer of Property Ownership from Legal Heirs 

This can be understood by looking at situations where women are unwilling to claim their share in their parent's property; the same must be emphatically stated by the woman as an NOC.

• NOC for loan closure 

Numerous loans, such as those for a car, house, business, personal use, loan against gold, loan against property, and loan against shares, require NOCs. It is a genuinely satisfying, gratifying, and incredibly happy moment when you realise that this is your final instalment and that you no longer need to pay instalments for your home. For the same, the loan payer must obtain an NOC from the bank attesting that they have paid back the loan in full and have no outstanding debts. Name, loan information, the property address (in this example, the home), and the date the loan was formally concluded must all be mentioned. Also, ensure you receive any important official documents you submitted back in the event of loan closure.

• NOC for leasing/ renting of a property 

This NOC emphatically mentions that the landowner willingly agrees to rent their property to the tenant. Additionally, the owner specifies the uses and goals for which the parcel may be put to any purpose for a stated amount of time.

Tips for preparing an NOC

Here are a few tips to be followed when drafting an NOC. 

1. Keep it crisp, concise and on point. 
2. Steer clear of archaic terminology and complex jargon. Stick to simple language and a simple tone of language wherever possible. 
3. Ensure all essential information is included in the letter's body using a checklist of all pertinent details.  
4. As a rule of thumb, always address it with a 'To Whomsoever It May Concern". 

NOC for Property Sale Format 

Considering the abovementioned tips, here is a NOC for property sale format on the same lines. While this one is specifically for property sale, the same can be modified to suit the requirement for which it is being prepared:

• Name of the Owner/ Organisation
• Postal Address
• E-mail
• Phone Number 

No Objection Certificate

To Whomsoever It May Concern 

This is to certify that __________ (Name of the Property Owner), resident of __________ (Address of the Property Owner), is the owner of __________ (Name of the Property), located at __________ (Complete Address of the Property) bearing the Property Identification Number __________ (Number) and covers an area of __________ (area of the property as per legal documents) in square metres/ acres/ hectares. 

Further, I/ We have given permission to the __________ (Name of the Person/Organisation to whom the ownership is being transferred) to use the above-mentioned property for __________ purposes of (business, construction) purposes. It is hereby stated that I interpose no objection whatsoever to the property used for (business construction) purposes. 

Issued on __________ (DD/MM/YYYY) as requested by __________ (Name of the Individual/ Organisation who requested the NOC) in support of their application request. 

• Name (In Caps):
• Signature:
• Place:
• Date: 

Conclusion

No Objection Certificate is an imperative document which has multiple use cases. It is needed in everyday scenarios such as renting, taking loans, and purchasing/selling a property. Considering the use cases, one must familiarise themselves with the same routinely. Mentioned above is a suggestive NOC for property sale format. Remember, it can easily be modified and adjusted as per the use case. We hope it helps you!