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Know about no-objection certificate for property transfer and various types of NOCs

What is a no-objection certificate (NOC) and why is it important?

No-objection certificates or NOCs are legal documents that one may require to carry out a large number of tasks. The importance of NOCs is, however, extremely crucial when it comes to property transactions. Builders need a large number of NOCs to start a housing project; sellers also need NOCs to offload their property; homebuyers may also need certain NOCs to carry out property purchases.  This is why having a clear understanding about this highly important document is a must for anyone involved in a property sale or purchase.

 

What is a no objection certificate?

A no objection certificate or NOC is a legal document that can be issued by any individual, authority, organisation, or institution, specifying that there is no objection to the details stated in the document.

 

Why is an NOC important?

Besides establishing that there is no objection, an NOC can also be produced in a court of law and can be used to prove your innocence, if you happen to be caught up in a legal tangle. For example, obtaining an NOC from your bank or lending institution, once the home loan is repaid, will enable you to collect all the legal documents of the property without any hassle. An NOC will also help in getting a lien on property removed. A lien on property means that the banks or lending institutions have a legal claim on your property and the right to sell the property until you pay off your debts.

Importance of NOC in property transactions

A no objection certificate is a crucial document used in various property transactions such as property transfer and sale of property.

Types of NOCs required for real estate transactions

Also know all about release deed

 

No objection certificate: Quick facts

Issued by Any individual, authority, organisation, or institution
Purpose To state that the party issuing the document has no objection to the details specified in the document
Applications or types of NOC
  • Property Transfer
  • Building construction
  • Renting out a property
  • Closure of loan account
Legal validity It can be produced in court of law

 

No objection certificate from legal heirs for transfer of property in India

In India, there are laws governing the process of property transfer to the legal heirs to a property after the death of the original owner. Such distribution of assets is governed by the laws of succession.

Legal heirs must know the procedure involved to obtain ownership of a property after the death of a person in whose name it is registered. While in the presence of a will, the process is easy. Legal heirs can also challenge a will if the property was inherited instead of self-acquired. However, in the absence of a will, the succession law comes into play. A no objection certificate (which is NOC full form) from other legal heirs, along with an affidavit, is one of the documents that will be required for the transfer of a property. If one has paid any consideration, in kind or cash, to any heir or claimant for acquiring their share, then it must be mentioned in the transfer papers. Further, one needs to register the release deed for the transfer of share.

 

 

Is NOC from sister to brother required for father property? 

With the implementation of Hindu Succession Act, 1956, a woman in a family has been allowed to claim her share in a property equally unless there is a will executed by the father for the division of the property. As per a recent amendment, women born before the year 2005 have the right to claim the property. However, there are still many cases where women do not claim a share in their father’s property. In such cases, a no objection certificate becomes essential when her share needs to be entitled to one of the family members, through the process of division of assets. The transfer of property can be done by signing a no objection certificate for property transfer. The other way is through executing a relinquishment deed.

Thus, if a legal heir wishes to give up his or her claim in the share of a property, the person has to provide a NOC certificate in favour of family members who are the other legal heirs mentioning the same in the document. The children of this person will not have the right to make a claim over the said property in future.

An NOC from a sibling will be required in cases such as mortgaging a parental property with the bank or transferring the property. An NOC from other legal heirs will also be required when taking a loan against the property. The document will prove that there are no pending legal claims or objections from the property owner or legal heirs.  

Further, if a property owner dies, the legal heirs must submit an NOC to collect the property documents and request the bank to hand over the title documents.

All about relinquishment deed

 

NOC from beneficiaries for transfer of property in India

A property owner who is planning to transfer ownership to someone else must obtain an NOC from the beneficiaries of the property. Upon the demise of a property owner, the beneficiaries will inherit the property or they have a say in what happens to the property. For transferring ownership of the property, an NOC from the beneficiaries is required that states they have no objection to the transfer of ownership. 

How to obtain NOC from legal heirs or beneficiaries:

 

No objection certificate for transfer of land (immovable asset)

Getting a no objection certificate or NOC for property transfer and land registration has become an important procedure, as this allows the government to keep a check on the growth of illegal colonies. For the transfer of land or development of a colony, getting NOCs from the department concerned is mandatory.

An NOC should be obtained from the authority for the transfer of immovable property or land, under Section 21 of the Registration Act, 1908. For the transfer of land or a property, the procedure involves submitting an application for NOC of land, along with the required documents and specified fees to the respective Circle Office. The NOC certificate will be issued by the deputy commissioner. After the NOC for land is issued, the applicant can then go for registration and mutation of the property.

How to obtain NOC for immovable asset:

Documents required

 

How to apply for a no objection certificate?

The procedures for obtaining an NOC may vary depending on the state in which the property is located. Typically, the procedure involves getting a certificate from the Circle Officer and sending the application to the Deputy Commissioner’s Office. The Deputy Commissioner will issue the NOC certificate. On receiving the certificate, the applicant can go for registration and land mutation procedure.

Step 1: Identification of issuing authority

Depending on the type of property being transferred, the relevant authority will issue the NOC for property transfer. For example, in case of transfer of an apartment, the issuing authority could be the housing society, the municipal corporation or the revenue department.

Step 2: Drafting NOC application

After the issuing authority has been identified, an application for NOC should be drafted as per the prescribed format. The applicant should ensure to include the relevant details in the application.

Step 3: Arranging supporting documents

The documents for NOC for property transfer will vary based on the type of property. Some documents include:

Step 4: Payment of applicable fee

A fee may be applicable when applying for an NOC from the issuing authority and the amount may depend on the property type, the issuing authority, etc.

Step 5: Guidelines for property transfer

There may be specific guidelines and regulations for property transfers as defined by the local authorities, which may vary from state to state and city to city. It is important to be aware of such guidelines when applying for an NOC.

Step 6: Issuance of no objection certificate

The issuing authority will verify the application and documents and issue the NOC for property transfer.

 

Who issues no objection certificate?

Authority issuing NOC Role
Municipal Council or Corporation Ensuring compliance with local building codes and regulations
Department of Town Planning Ensure compliance with urban planning regulations
Metropolitan Development Authority Responsible for enforcing regulations for metropolitan areas
Regional Development Authority Ensures compliance with regional development plans
Urban or Housing Development Authority Responsible for implementing housing policies
Land Development Authority Land-related issues and responsible for issuing NOCs
Housing Board Responsible for introducing housing schemes and issues NOCs
Respective Administration Board Ensures compliance with administrative requirements and issues NOCs

 

What are the challenges when obtaining NOCs?

 

What does an NOC for property include?

 

NOC format samples

Now let us look at a sample format of an NOC from an owner for leasing out his/her premises:

 

TO WHOMSOEVER IT MAY CONCERN

 

I/We, _________, son/daughter of ________ do hereby state that,

 

 

 

Date: _________         Signature _____________

Place: ________       (Owner)

 

Likewise, even a person selling a vehicle to another party in a different state, must also get an NOC from the Regional Transportation Officer (RTO) first, before it can be registered or used elsewhere. Nowadays, one can also obtain this type of no-objection certificate (NOC) certificate online, from the ‘Parivahan Sewa’ website under the Ministry of Road Transport and Highways.

In short, remember that an NOC is a vital procedure for house registration or immigration, building construction or just about anything that has to do with any transaction. One should be aware of the NOC certificate format, the details it contains and the procedure for obtaining the same.

See also: What is an Occupancy Certificate?

Format of NOC from legal heirs for property transfer

Given below is a sample format of no objection certificate (NOC) format from family members or legal heirs for property transfer:

Declaration

I, __________, son/daughter/spouse of _________ aged ___, an Indian Inhabitant / NRI

presently residing at __________________, do hereby solemnly affirm and declare as under:

  1. That __________, the deceased, was holding _____ shares in (the name of the company) covered under Folio No. _______ and Share Certificate No(s). ___________, bearing Distinctive Nos. ________ to __________.
  2. That (name of the shareholder), the deceased expired on __________.
  3. That I am a legal heir of the said deceased. I am the (in what relation) of the deceased.
  4. I do not desire to make any claim of title of the said securities held by the deceased. I hereby agree to renounce all my rights existing as well as they may accrue to me in future in respect of the aforesaid securities.
  5. I declare that I have no objection whatsoever in transmitting the said securities in the name of the applicant, _________.

I am executing this declaration to be submitted to the concerned authorities of the Company.

I hereby state that whatever is stated herein above are true to the best of my knowledge.

Solemnly affirmed at ________ )          Photograph

On this ____ day of ______ 20__ )      (Signature of the Legal heir)

Deponent

Identified by me                                        Before Me

Advocate                                                   S.E.O./ Oaths Commissioner/Notary

The declaration, as given in the above format of no objection certificate for property transfer, must be executed by each legal heir individually along with necessary identity proof. The declaration must be executed on non- judicial stamp paper and duly attested by S.E.O. or Oaths Commissioner or Notary.

NOC from landlord format

I, ______(landlord) S/o/W/o ________ the owner of the property located at ____________(property address), do hereby declare that I have rented the said property to _________ (name of the person/business/company) for the purpose of office premises for eleven months from the period starting from ____ (date). Further, the tenancy of the said property shall be eleven months and which shall be extended subject to the mutual consent of both parties.

I have no objection and provide my consent to _____________ (name of the person/business/company) to use premises for office purposes. I hereby declare that I have given this no-objection certificate with my free consent.

(Owner’s name)

Address: __________,

Date: ___________

Place: __________

 

NOC application format

Given above is a sample format of no objection certificate (NOC) application to landlord for using the property for office purposes

Society NOC application format for property tax name change

Bhavesh Sharma

Secretary of Nirvana Towers, Nizampet, Hyderabad

Subject: Request for NOC to change the name in property tax receipt bills

Dear Bhavesh,

I am Meenal Sinha, owner of flat number 392 of Nirvana Towers. I purchased this flat in July 2022. The previous owner of the property is Mr. Naveen Sharma.

I wish to inform you that I want to change the name in the property tax bill and utility bills (water, electricity, etc.). I require a no objection certificate (NOC) for the same.

Please find attached the relevant documents, including the agreement copy and identity proof (PAN).

I would request you to kindly issue an NOC for the above-mentioned reasons so that I can get the details changed as soon as possible. I shall be highly obliged for the kind gesture of yours.

Thank you.

Yours faithfully

(Signature)

Meenal Sinha

Flat- 392, Nirvana Towers

NOC from society for sale of flat format

Given above is a sample format of no objection certificate (NOC) application to the housing society for changing property tax name from existing owner to new owner

Mr Pradeep Jha

Secretary of Palm Greens,

80, Sector 90, Phase 2, Noida

Date:

Subject: Request for an NOC to sell my flat

Dear Sir,

I am RK Gupta, the owner of flat number 250, writing this letter to inform you that I intend to sell my flat to Mr S Kumar and I request you to provide an NOC for the same. I have paid the maintenance charges and cleared all other pending dues. Please find attached the documents, including a copy of bill payment and a copy of the agreement.

Thank you.

Yours sincerely,

(Signature)

Your RK Gupta

Contact number 

 

Society Secretary for NOC letter format for mortgage loan

Given above is a sample format of no objection certificate (NOC) application to the housing society for selling a flat

Dipesh Sahu

Secretary of Leisure Villa, Block – D

Sector – 4, Cuttack, Odisha

Subject: Request for NOC for a Mortgage loan.

Dear Dipesh,

I am Amit Kumar, owner of flat number 505. I want a mortgage loan from the ICICI bank of ABC area for some construction work on the property. The bank has requested for an NOC from the property owner.

Kindly issue me an NOC for the same so that I can forward it to the bank at the earliest.

I have paid all the pending dues, including the maintenance charges and electricity bill. I have enclosed the following documents along with this letter:

– Bills payment (electricity, maintenance, etc.)

– Agreement

– Bank loan approval letter

Thank You

Yours faithfully

(Signature)

Amit Kumar

Flat 505, Leisure Villa

See also: What is an encumbrance certificate?

 

What is no objection certificate (NOC) from bank?

The way you follow the due procedures when applying for a home loan, it is also equally necessary to complete the necessary home loan closure formalities. That is, if you have availed of a home loan, you must obtain the NOC on the closure of the loan account. The NOC for home loan is a legal document, which states that the borrower has paid all the home loan EMIs and settled other outstanding loan dues.

In the case of a home loan, it is essential to obtain the no objection certificate with the complete property details, including house address, the indivdiual’s name, and the loan account number.

How to apply for a no objection certificate?

You are required to write a letter to the bank requesting an NOC and return the original documents submitted to the bank before securing a loan. Most banks and lending institutions send the NOC document to the borrower’s registered address.

Loans where you need a NOC letter

An no objection certificate is required when applying for different loans, such as:

NOC and its impact on credit score

Borrowers must realise the importance of obtaining an NOC after paying off an outstanding loan. In case the previous lender fails to send the information to CIBIL about the closure of a previous loan, the individual’s credit score will be impacted. An NOC proves to be vital document as it serves as a proof if a previous loan has been returned.

Misplacing the NOC

If one has a mortgage and the home is registered, the individual should submit a copy of the NOC to the registrar of properties. It is required to get the lien of hypothecation removed. Failure to do so will mean that the lending institution continues to be the property owner. Selling the property will not be possible in such a case. Moreover, the insurance claims due to unintentional losses are paid to the lender. In the case of non-registered properties, the lender will simply return the title deeds.

If you received the NOC from the bank and have misplaced it, here’s what you should do.

What is a sibling NOC for a home loan?

Usually, banks require the borrower of a home loan to provide an NOC from the builder or society. When applying for a home loan, an NOC document must be obtained from the sibling (brother/sister) in case the property is a parental property. For example, the NOC letter from a sister to brother will states that the former has no problem mortgaging the property with the lender.

Why is NOC sibling required for home loan?

An NOC letter from a sibling is required to prove they have no objection towards mortgaging the said property with the bank or lender by the applicant. This is applicable for loans in case the property is registered by the parental name or jointly owned by parents and if one of the children is applying for a loan.

 

No Objection Certificate from mortgagee

In real estate, developers generally secure finances from banks and private financial institutions for completing the projects by mortgaging as a guarantee. In such cases, it is mandatory to get a no objection certificate from the developer. Getting the NOC is necessary as it ensure the lien on your property is removed. If there is a lien on property, the lending institution or the bank has a legal claim on the property and can sell it until the loan is completely paid. The lending institution cannot question the property transaction for a particular mortgaged project if the NOC has been obtained.

 

No objection certificate for building construction

In India, when constructing a house, an apartment complex or any structure, it is necessary to obtain a no objection certificate from various authorities and government departments.

As per the Development Control Regulations and the National Building Code, 2016, certain categories of buildings require an NOC from the fire services department. For example, buildings that are 15 metres above the ground level or having more than three storeys, are considered high-rise structures. They require a certificate of approval from the Director of Fire Force, before starting the construction work.

After the building plan is reviewed and approved by the sanctioning authority for construction, the chief fire officer issues the no objection certificate (NOC).

 

No objection certificate for conversion of leasehold to freehold properties

In India, there is a proper legal procedure that must be followed for converting a leasehold property to a freehold property. This includes obtaining the NOC document from the relevant authority. The conversion process may vary based on the location or state where the property is situated. Before proceeding, one should check with the authority concerned, such as land authority (e.g. DDA), municipal authority (e.g. MCD), etc. about the documents required.

 

No objection certificate from the collector

In some states, obtaining a no-objection certificate from the collector is mandatory before transferring a property. This is applicable when development authorities and corporations lease their land to other entities. As per the lease documents, the lessor should inform the collector of the property transfer or mortgage and get the NOC.

 

No objection certificate under RERA

Under RERA, developers must obtain an NOC before transferring or assigning their rights and liabilities in a real estate project. This ensures transparency in the transfer process and protects the interests of the homebuyers while ensuring timely project completion.

According to Section 15 of the RERA, for transferring or assigning rights and liabilities related to a real estate project to a third party, a developer or promoter must obtain prior written consent from two-thirds of the allottees. Once the allottees grant the NOC, a similar certificate will be issued by the RERA authority.

How to obtain NOC under RERA?

 

No objection certificate for renting a property

When a tenant, usually a company, takes a property on lease and intends to use the premises as a registered office, then, getting a No Objection Certificate (NOC) from the landlord becomes necessary. The company must obtain the NOC before setting up the office.

Landlords must issue an NOC stating that they are willingly renting out the premises to the company and have no objection to the use of the premises or a part of it by the company.

The NOC letter format should contain details, such as:

 

No objection certificate of court by administrator

As per Section 307 of the Indian Succession Act, 1925, an administrator cannot mortgage or transfer any immovable property by either sale or exchange without seeking prior permission from the court. The administrator cannot lease such properties for over five years. If a structure violates construction bylaws, a no objection certificate (NOC) will not be issued from any urban developmental authority or other concerned authorities. The authorities issue no objection certificate after stringent, transparent and fair inspections.

 

NOC from housing society for property sale

An NOC from a housing society may be issued if any of its members plans to sell or transfer ownership of the property, make alterations or renovations, obtain a loan against the property. The document validates that the member has complied with all society rules and regulations and has settled any outstanding dues or obligations. The need to obtain an NOC from a housing society to sell a property depends on the regulations and bylaws of the society. 

To obtain this NOC from housing society, one must share supporting documents such as:

 

NOC from builder for sale of flat

If the property owner plans to sell a flat in a housing society, they should obtain no objection certificate (NOC) from the builder or apartment association stating that flat has no maintenance or any other due payment. The NOC document serves as a proof that the individual has the right to sell the property and has cleared all the dues to the builder. The NOC from the builder for sale of flat should have key details such as:

The NOC does not have to be written on a stamp paper but one should get it witnessed and notarised. 

 

NOC for property tax name change

To authorise the property tax name change from the existing property owner to the new owner, an NOC has to be issued by the housing society. The NOC document should include details of the society, property details, details of the existing owner and the new owner, and the authorisation of the transfer of property tax name.

Click to know what one should do if a housing society refuses to give NOC to a seller.

 

Is no objection certificate required from a cooperative housing society to sell flats?

In India, an NOC from a cooperative housing society is required for selling a flat. The document is required to prove that the society has no objection to the transfer of ownership and that the seller does not have any outstanding dues and that there is no pending legal issue.

Getting the NOC from a housing society is mandatory, whether it is a registered or an unregistered society. In the case of an unregistered society, the NOC must be obtained from the members of the society.

Thus, property owners must check with their housing society before proceeding with any property transfer.

No NOC needed from housing society to sell/rent flats in Mumbai

In 2022, the Maharashtra Housing Minister, Jitendra Awhad, said that a flat owner is not required to obtain any NOC or no objection certificate from a housing society to sell or rent a flat. He said that housing societies would not issue an NOC if a person wanted to sell his flat to someone from the minority community. He also added that the cooperatives department has clarified that no objection certificate is not required, and residents can register their complaints with the deputy registrar. However, a property owner is required to obtain a no dues pending certificate from the housing society if he plans to sell the property.

See also: Deemed conveyance meaning

As per the housing byelaws issued by the state cooperatives department in Maharashtra in 2014, no NOC is required for letting out or selling a flat. No objection certificate from a society is not necessary for the sale and purchase of flats as mentioned in Bye law no. 38 of the cooperative housing society rules. Also, as per Bye law no. 43, NOC certificate is required from a housing society to sub-let a flat. Further, as per the byelaws, if an individual requires an NOC, it should be issued within 30 days.

A no objection certificate from society may be required by the bank during the purchase of a property. The government may ask for NOCs as part of legal documentation. To obtain a NOC from the society, you must write a letter requesting the society owner or secretary to issue the no objection letter. The society NOC letter format is similar to any other request letter. It should include the address, salutation, body of the letter information such as your address and purpose of the issuance of NOC, and signature.

See also: Partnership deed must be stamped as required by Indian Stamps Act

 

Should NOC be notarised?

In case of NOC for property transfer, each of the legal heirs is required to sign the declaration in the NOC for property transfer and provide relevant identification documents. The declaration should be signed by a notary or an oath commissioner and written on a non-judicial stamp paper.

 

Housing.com News Viewpoint

The NOC is one of the crucial documents when engaging in different property transactions. Thus, it is important to understand the proper procedure of NOC application. Moreover, one should be aware of the relevant authority that would issue the certificate. You can approach a legal expert who can guide to draft the NOC application.

 

FAQs

Is it necessary to get an NOC from society for a gift deed for property?

If you have all the relevant documents to prove the ownership of a property, you do not need to get an NOC from the society to gift a property.

Is an NOC valid for life?

No, once you obtain an NOC, it is valid for only six months.

How do I write an NOC for land?

You can simply state your willingness to let out/sell your land and then go on to mention all the details of the property.

Is NOC certificate needed for all types of property transfers?

A no objection certificate is necessary in case of all types of property transfers.

Is NOC legally binding?

No objection certificates are legal documents and can be produced in a court of law.

Should NOC be on a stamp paper?

A no objection certificate (NOC) is required to be stated on a stamp paper. However, NOCs can be produced in a court of law, which is why it is important get them witnessed and notarised.

Is NOC from siblings required for gift deed?

The legal owner of a property, which is self-acquired, is allowed to gift the property to anyone. The donee, the person who receives the gift, is not required to get any NOC from his family members for the transfer of property.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com
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