Buying a residential apartment or real estate is a significant financial decision. Before the transfer of property is deemed legal, you may need to apply for several permits and documents. Some can be obtained from the seller, and government authorities can verify others before you go through with the purchase. These are very important when it comes to securing funding for the property or even registering it in your name. The NOC for property transfer is one such document. Let us take a closer look at what it is and how it can help.
What is a NOC?
NOC is an abbreviation for No Objection Certificate. Regarding property transfer, NOC may refer to any of several different types of No Objection Certificates, each issued for a different purpose. Before we take a look at the different types of NOC, let us understand what it means and why it is issued.
As the name suggests, a NOC means that the issuer has No Objections to the transaction or the activity mentioned in the certificate. This guarantees that the issuer has no knowledge of any legal impediments to the transfer or transaction. A number of different people or entities issue NOCs. For example, if you had secured financing or a home loan to buy a property and have now paid off the loan, you will need a NOC from the bank to prove that your debt has been paid. This becomes important for the subsequent sale of your property. Similarly, various other instances may require a NOC for property transfer.
Here are some of the important NOCs you may need for property transfer.
- NOC from Circle Office - The expansion of unauthorised colonies and building without proper permits is a menace that has become a major concern for the government. Under the Registration Act of 1908, it is imperative to submit a NOC from the Deputy Commissioner of the local Circle Office or the District Collector before land or immovable property is transferred. The seller must apply for and receive this certificate before registration or mutation of the property.
- NOC from Legal Heirs - With the implementation of the Hindu Succession Act of 1956, male and female heirs can claim their share of property in the absence of a will. This means any property sale will require the NOC of all the heirs to be considered legal. As a homebuyer, you must verify the NOC from all the heirs if you are buying a pre-owned property. If you are buying a residential apartment, you will need to get a copy of the NOC from the heirs of the land acquired by the developer.
- NOC from Banks - In the case of a pre-owned property that was bought by the original owner with funding from the bank, you will need a NOC from the lending institution to ensure that the debt has been paid off. Only this will give the seller the authority to transfer the property to you. The bank NOC is also required when you release a mortgage by paying off the loan.
- Society NOCs - In the case of buying a property in a housing society, it becomes necessary to obtain a NOC from the society to change the name of the owner in the property tax and utility bills. Societies may also be required to issue NOCs prior to the resale of units.
- RERA NOC - According to Section 15 of the RERA Act, a developer can transfer the rights and liabilities to a third party only if he/she obtains a NOC from two-thirds of the allottees of the project. If this is obtained, the RERA authority will also issue a NOC.
How to obtain NOC?
Here is how you can apply for a NOC -
- Use a standard NOC template and prepare a draft with all the requisite details.
- Buy a non-judicial e-stamp paper of Rs 100 denomination from a nearby court or a sub-registrar office.
- The draft NOC prepared now must be typed or printed on the e-stamp paper.
- This now needs to be notarised by the notary public officer. All relevant authorities may need to sign in the presence of the notary.
- The process of obtaining NOC from banks, District Collectors, and individuals may differ. Therefore, it is a good idea to check with the issuing authority beforehand and collect all relevant documents for verification before they issue the NOC.
Factors determining NOC
Obtaining a No Objection Certificate (NOC) for property transfer in India involves various factors that determine its issuance. These factors are crucial in ensuring a smooth and legal transfer of immovable property. Let's explore the key elements of obtaining a NOC for property transfer in India.
- Ownership Verification: One of the primary factors is establishing ownership of the property. The applicant must provide relevant documents, such as a sale deed, title deed, and possession certificate, to prove their legal property ownership. The authorities thoroughly examine these documents to validate the ownership and ensure a legitimate transfer.
- Clearance of Dues: Clearing outstanding dues is another vital aspect. The applicant must demonstrate that all taxes, utility bills, and other financial obligations related to the property have been paid in full. This step ensures that the property transfer does not burden the new owner with any pending liabilities.
- Home Loan Consent: If the property was purchased through a home loan, obtaining consent from the lending institution becomes crucial. The applicant needs to secure a No Objection Certificate from the lender, indicating their agreement to the transfer. This step ensures that the lender's interests are protected and any outstanding loan can be appropriately managed during the property transfer.
- Application Process: Applying for a NOC for property transfer has become more convenient with the advent of online applications. Applicants can now submit their requests and required documents through online portals. This digital transformation has streamlined the process, making it more efficient, reducing paperwork, and saving time and effort for both applicants and authorities.
- Legal Compliance: The property transfer must comply with all legal requirements and regulations. The authorities assess whether the transfer adheres to the applicable laws, including land use restrictions, zoning regulations, and environmental clearances, if necessary. Compliance with these legal aspects is crucial for obtaining the NOC.
How can Blox help?
We at Blox make the homebuying journey a smooth and hassle-free one. Our tech-powered platform is consumer-centric and brings you the very best of RERA-registered properties from verified builders. Apart from this, our relationship managers act as guides when it comes to home buying.
You can seek the help of the Blox Relationship Manager to understand the various NOCs you may require and identify the issuing authority. Apart from helping you identify the project that meets your requirements, the RM will also help you contact the developer when you need to verify documents, permits, and plans.
