Different types of NOCs in property transactions

Different types of NOCs in property transactions

NOCs or no objection certificate plays a very crucial role in case of property transactions. Buyer’s hard earned money can get wasted if the documentation process is not error-free. There are several types of NOCs required for property transactions. Let’s take a look –

Builder’s NOC

When you buy flats in Kolkata other cities, this is the first NOC you should obtain from the builders or society. This NOC clarifies that there are no dues from your side.

Bank’s NOC

When you take a loan to buy a property, the society or builder transfers the property to you only after you show them the NOC obtained from the bank.

RERA directed NOC

If the builder transfers his responsibility to someone else, then he is required to obtain a NOC from the majority of allottees. After that, he needs to get a NOC from RERA as well.

Foreigner’s NOC

Person of non-Indian origin or citizen needs NOC from FEMA and RBI for a property transaction. They can buy a property in India or transfer a property from or to other countries with the help of this NOC.

Mortgagee’s NOC

If your builder has mortgaged the under construction project under the bank from which he took a loan, then you have every right to demand a NOC from him.

Collector’s NOC

In case of building a property on a land leased from a Government authority like Development Corporation (MMRDA, GIDC, MIDC, CIDCO), a collector’s NOC is needed. However, it is applicable to few states only.

Charity commissioner’s NOC

If the property belongs to a charitable trust then, a NOC from the charity commissioner is required. It is again applicable in few states.

NOC of court by the administrator

Indian Succession Act was passed in 1925. Under section 307, it is stated that the administrator can not sell or mortgage a property without the permission of the court.

Lease related NOC

When taking or giving a property on a lease, NOC is required from both the sides to ensure that they both agree on the clauses stated in the lease documents.

Property transaction is a tiring job and involves many risk factors. Knowledge of kinds of NOC enables you to get a clear picture of when and under what circumstances you need to obtain NOC from designated authorities.

   

 

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