A home buying process involves lots of property transactions. Whether it is a sale deed or registration paper, occupancy certificates or other legal documents, each of the paper plays important role in determining your ownership to the property. A No Objection Certificate (NOC) is one such document which is very important for a home buyer. Different property transactions involve several types of NOCs which a home buyer must carefully keep with them for the lifetime. It has to be taken from different sources like a builder, RERA, local authority, banks, RBI etc.
So let’s understand about these NOCs in detail:
NOC from Realtor/Builder
An important NOC which is necessary for a home buyer is from the developer or realtor from whom you buy the property. It means that the unit is free from any kind of legal hassle and debt. It also ensures that the builder now has no right on the unit and the owner can use it the way they want.
NOC from Financial Institutions
If you have taken a loan to purchase a property, then you have to repay the money in the form of EMI. Once it is complete, the bank or the financial institution closes the loan account. But to get a confirmation on it, you need to take NOC from the Bank. This proves your ownership of the property.
NOC from Lesse/Lessor
NOC from the lessee or lessor is a mutual agreement between the two persons-one who is the landlord and others who are opting for the property. It plays a crucial role in the property transaction so that no sale or mortgage of the property takes place without any of the two permissions.
NOC from Real Estate Regulatory Authority (RERA)
According to section 15 of RERA act, if a builder or a realtor wants to transfer the rights or liabilities of the project to a third party, then they need consent from two-third allottees of the society. After that RERA issues NOC to the builder.
NOC from RBI in case of Foreign Transaction
As per the FEMA regulation 2000, in case of any NRI property transaction on the immovable property whether in India or outside requires prior consent from Reserve Bank of India (RBI) in order to initiate transfer or leasing.
NOC from Collector
If you are initiating a property transfer or leasing on a government or administration land like MMRDA, CODCO etc. then in that case you need to take prior consent or NOC from the collector in order to avoid any legal hassle.
NOC from High Court
Section 307 of Indian Succession Act of 1925 says that an administrator cannot dispose-off or give his land on lease for long term without prior NOC or consent from the High Court of the state.