A Detailed Information on No Objection Certificate (NOC)

Thu, 05/18/2023 - 06:15

Author: JLL


As real estate demands huge investment, its purchase involves a perplexed documentation process which is crucial to safeguard your investment by owning the property legally. Therefore, each document that you submit or obtain from the developer or society holds equal importance. One such essential document is the No Objection Certificate, popularly known as the NOC which is issued by the government authorities to the developer. But have you ever wondered what NOC is and why it is so important? Let’s discuss this further in detail.

What is the NOC?

No objection certificate is another legal document that is issued by the government authorities stating that the property is free of objections and that you can now legally proceed with the construction or sale of the property without facing any legal hassles. The NOC can also be produced in court of law in case of legal document required to prove your ownership on the property. Further, this significant document plays an important role in property transfer, sale of the property and even during removal of liens on the property.

No Objection Certificate from the Society or the Developer

It is imperative that you obtain a No Objection Certificate (NOC) from the developer or society. The NOC is issued from different authorities at different times in different cases that holds different meanings and value. For the relevant society association, NOC acts as evidence to accept your membership in the society whereas for banks and financial institution, it is required to sanction your home loan and for developers, it is required to construct and market the property. Furthermore, NOC is also required in case of sale or transfer of the property where society is the authority to issue NOC certificate stating that the seller has no outstanding debts on the property at the time of sale. In the event of a lien on your property, the banks or lending organisations have the right to sell it to recoup their losses and make a claim on it.

RERA Certificate of No Objection

According to Section 15 of the RERA, a developer requires a No Objection Certificate before transferring the legal rights to the third party. Here, the third party could be the society who will be responsible to maintain the property after developer. Hence, in order to transfer the legal rights on paper, NOC with the prior written approval of two-thirds of the allottees involved in the project is a must to obtain for developer. Following the NOC granted by the allocators, the RERA authority will issue a similar certificate.

No objection certificate for property use

If you are a landlord renting out a building/premise on the lease, then you must issue a NOC stating that you are willingly renting out the premises to a company. On the other hand, a company should also ensure that they have obtained NOC from the landlord before moving into the new space and registering it as a registered office.

Here are the important details that the NOC letter should include:

  • Name of the landlord
  • Name of the tenant, i.e., company
  • Address of the property
  • Date and place
  • Signature of the landlord and contact details

Does a housing society have to issue a no objection certificate in order to sell apartments?

According to the housing byelaws released by the Maharashtra state cooperatives department in 2014, no NOC is necessary for selling a flat. As stated in Bye-Law No. 38 of the cooperative housing society rules, a society's no objection certificate is not required on sale and purchase of apartments. However, during purchase of a property, you must obtain no objection letter from the housing society stating that the seller has no outstanding debts on the property at the time of sale. Furthermore, a housing organisation must issue NOC certificate to sublet a flat following Bye-Law No. 43, which must be processed within 30 days.

Moreover, during the purchase of a property, the bank may request you to get a no objection certificate from the society. Therefore, in order to obtain this legal document from the society, you must request the secretary of the society in writing to issue a no objection letter. The NOC letter must include the following information: address, salutation, body information, and a signature.

Now that you have all the required information, don’t let anyone mislead you. For more information on documents, you can Homebuying Process and Legal Checklist to ensure you have obtained all the required documents from the respective authorities.