NOC is a popular acronym for a No Objection Certificate. It is a statement of permission given to a person or a company to go ahead with the construction or purchase of a property. NOC is must have a document without which the concerned property is bound by legal hardships.
The No Objection Certificate must be availed by as many as 19 departments in a few Indian states. Suppose you do not have an NOC from the Electricity department of your state, you are not entitled to receive electricity to your property at all.
This certificate from a few departments is subjective to location and use while a few NOC’s are absolutely necessary. For instance, if your property is near an Airport or a Railway station, it will present you with a liability to avail an NOC from the respective departments.
A No Objection Certificate from Water, Electricity, and fire departments are the most common and essential certificates in addition to the No Objection Certificates from the local authority and society. You also have to get this certificate from the builder if you’re purchasing a flat in an apartment.
If a property has an elevator, a No Objective Certificate must be availed for the same too. By now, it may be clear that an NOC is issued by the government in the best interests of the society. The document is a proof that your property is safe from natural or expectable dangers.
NOC For Bank Loan / Mortgage
A No Objection Certificate must be availed from the bank or a financial institute in the following cases:
- Closure of a loan
- Loan transfer from one bank to another
- Transfer or sale of the mortgaged property
- When you may have to transfer the mortgage to another person or add a co applicant to the mortgage.
NOC From A Builder
When buying a flat or an apartment, an NOC from the builder is required in a few but all Indian states. Most apartments have a cooperative society to ensure no ensure easy and conflict free living.
The buyer must ensure the NOC issued to him by the builder is legally acceptable with the following checklist:
Authenticity of the No Objection Certificate:
A few builders are known to issue the NOC in a white paper or have them signed by a front desk official. Checking for the authenticity of the NOC is as important as the NOC itself.
Name & Address:
Small builders are known to play it safe by issuing a white label certificate which can be issued to every buyer. Having a personalized No Objection Certificate with the name and address ensures the best interests of the buyer.
Nature of transaction:
Some transactions get complex when there is a landowner’s share involved. It is advisable for the buyer to understand the terms and conditions of the sale before making a purchase decision.
‘A NOC must expressly have details about the amount due to the seller. It should also have details about VAT, Service tax and the transfer fees. This will clear most doubts/disputes should there be any in the future.
Buying a property will always remain an exciting time considering the many emotions involved. Being aware of the legal and technical process and seeking expert help when needed sure saves time, money and regret.