Type of NOCs in property transactions

It is mandatory that the builder provides all related NOCs before handing over the property and any delay or absence can be a recorded as a violation.

NoC from Society/Builder
NoCs from society/builders (where societies are not formed) should be obtained by unit buyer to ensure that all the dues of the society by the seller is paid off and that there is no mortgage over the unit. The NoC also ensures that the society is not able to refuse induction of the purchaser as a member. In case the unit is being purchased via loan obtained from a bank or financial institution, the NoC from builder/society is also required by such banks or financial institutions to ensure that the society does not allow transfer of the unit/corresponding share without the no-dues or no-objection of the bank/financial institution.

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NoC from mortgagee
NoC is required to be obtained from the bank/financial institution having a mortgage over the project wherever the builder has mortgaged the project/property for raising finances. This ensures that the sale cannot be challenged by bank/financial institution having mortgage over the project.

NoC from Collector
Under Maharashtra Land Revenue Code, 1966 prior permission of the Collector is necessary for transfer of any property on collector lands. NoC from industrial corporation such as MIDC, GIDC and Development Authorities such as MMRDA, CIDCO (from transfer, sale, mortgage etc.):  Generally such corporations and development authorities provide lands to parties on a leasehold basis. Mostly, the lease documents contain a term that NoCs of the lessor should have obtained prior to any transfers of the lands including mortgages. Certain development authorities such as MMRDA require NoC to be obtained even prior to transfer of any unit in the building constructed on the land leased by them.

NoC from Lessors/Lessees
NoCs or consent may be required to be obtained from lessor or lessee for a transaction contemplated by either party depending on the draft of the lease document. For instance, a lessee may bind the lessor that no sale or mortgage of the property should be done without the prior consent of the lessee and vice versa.

NoC from Charity Commissioner
Depending upon the state laws, permission may be required from the appropriate authorities prior to transfer of any property belonging to a charitable trust. For instance, in Maharashtra, under Section 36 of the Maharashtra Public Trusts Act, 1950 prior permission of Charity Commissioner is required for transfer or long term lease of immovable property belonging to a charitable trust, states Sivaprakasam.

NoC under RERA
Under Section 15 of the RERA, the promoter requires prior written consent of the 2/3rd allottees for transfer/assignment of rights and liabilities in the project to a third party. Thereafter, consent of the Real Estate Regulatory Authority is also required to be obtained.

Consent of High Court by administrator: Under Section 307 of the Indian Succession Act, 1925, an administrator may not dispose of a property or give the same on a long-term lease without the prior permission of the Court by which the letters of administration were granted.

RBI permission for foreigners: Under Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000, foreign nationals of non-Indian origin resident out of India can acquire/transfer immobile property in India, on lease beyond five years and can acquire immovable property in India by way of inheritance from a resident. All other acquisitions/ transfers will require the prior permission of Reserve Bank of India.

Source: Type of NOCs in property transactions

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