While buying a dream property is a simple yet time taking procedure, a lot of transactions are also involved at various stage of the whole process. From the signing of sale deed to receiving encumbrance certificate, registration papers etc. each document is very important and it’s always advisable to be careful about them.
However, among all the documents involved in Property transactions, a No Objection Certificate is a key document, which has its own importance. A NOC is that document that proves your ownership on the property. It declares that your property is free from all the debts. It is generally obtained when you completely repay your loan or any other property related transfers.
Take a look at different types of No Objection Certificates involved in property transactions:
NOC from Real Estate Developer
It is an important document which you must take from the developer or the building owner. This tells that the apartment or the property you own is free to sell and is not involved in any legal hurdles.
Also, the developer will not issue this NOC till the time you will not end your property loan taken from the bank.
NOC from State Real Estate Authority
Real Estate Authority or RERA was established by the central Government in 2016 to safeguard home buyers rights. So, if we go by the act, an important part i.e. section 15 of the act says that if a developer hand over his project to any other developer, then they need a NOC from the two-third of the allottees of the project. After this, the developer has to take NOC from the RERA authority too.
NOC from Collector
If you want to transfer your property to someone else, then it is important to get NOC from the collector. This happens when a developer or any other corporate offer their lands on leasehold. In such cases, the lessor has to receive a NOC from the collector office. However, it is not mandatory in all the states.
NOC in case NRI Property Transaction
If you are an NRI and want to transfer any property of yours to someone else in India or want to take over a property on your name from a person residing in India, then in both the case you need No Objection Certificates as directed under RBI norms and Foreign Exchange Management Act (FEMA).
NOC from Banks or Financial institutions
It is mandatory for both builders as well as home buyer. Many builders often take loan from banks or financial institutions to develop their project. So, once the project gets complete and the whole amount is repaid, they need to take NOC from the lending institution to remove the mortgage tag from the property.
Just like above, a home buyer who takes loan from banks needs to ask for NOC so as to claim ownership on the property.