NOC or No Objection Certificates is one of the most vital documents at the time of property transactions while taking the possession of a property in India. Even a single missing NOC may put you in legal trouble.
In a property transaction, where crores and lakhs of money are concerned, the process of a legal transfer of the property is difficult as well as challenging. From the power of attorney and sales deed to joint-development agreement, you have to take care of everything.
Though each document has its own weight, still No Objection Certificates (NOC) has its own importance, makes it one of the most significant legal documents in a property transaction. A number of No Objection Certificates are required from different authorities.
Thus, here is a list of No Objection Certificates (NOC) that you may require at the time of making a property transaction.
No Objection Certificate (NOC) from Builder or Society
It is imperative to get a No Objection Certificate from your society in which your apartment or flat is or from the builder you are buying the piece of property. It ensures that there is no due to the land and property by the seller at the time of selling the property. NOC is also proof that the society association will not refuse your induction as a member.
No Objection Certificate is also required at the time when you are doing the property transaction by taking the home loan from a bank or any other financial institution. This is the process to ensure that the society will not transfer the apartment or flat without a No Objection Certificate from the bank.
No Objection Certificate from Mortgagee
In most of the cases, the builders and real estate developers take finances from banks as well as from private financial institutions for timely completion of the project by mortgaging it as a guarantee. In such cases, you need to request for No Objection Certificates from the builder. This ensures that the bank or financial institute cannot question the property transaction for that specific mortgaged project.
NOC under the RERA Act
According to Section 15 of RERA, in case the real estate developer is transferring his rights and liabilities to the third party, then he needs to get No Objection Certificate from approx. 2/3rd allottees in the project. After that, the NOC from the RERA authority is also required by the promoter.
No Objection Certificate (NOC) from Collector
In many states of India, there is required to get No Objection Certificate (NOC) from the Collector prior to transfer the property in India. It is a case when development authorities or corporations provide their lands on leasehold. It is involved in the lease documents that the lessor will have to inform and obtain NOC from the collector if he or she is transferring or mortgaging the land and property.
NOC letter of Court by Administrator
According to Section 307 of the Indian Succession Act, 1925, an administrator may not mortgage, gift, charge or transfer by sale or exchange any immovable property without earlier permission by the court. Additionally, the administrator may not lease such assets for more than 5 years.
NOC for Foreigners or RBI Permission
Under the Reserve Bank of India (RBI) regulations and Foreign Exchange Management Act (FEMA), any foreign national, who is of non-Indian origin, dwelling in a different country can acquire or transfer any immovable property, or acquire a property through inheritance from any known resident. However, all such acquisitions and transfers need prior permission from FEMA and RBI.