What Are The Types Of No Objection Certificate In Property Transactions
A No Objection Certificate is a document issued by certain authority to endorse that while constructing or forming a new development, none of the terms and conditions are violated by any entity. In countries like India, when planning for constructing houses, apartment complexes, commercial complexes, institutional buildings etc lots of approvals from local authorities have to be obtained. A place with all approvals in place shall only be considered as legitimate property and it might not invite trouble to the owner in later stages. It is advised to check all the No Objection Certificates are in place before taking possession of any kind of Residential property in Delhi NCR.
- No Objection Certificate from Developer or Society: This is the most important certificate to make sure that there is no dues monetarily while selling or purchasing the property from the builder against the property.
- RERA NOC: If the developer is transferring his rights and legal responsibility to a third party due to some reasons, Section 15 of RERA requires NOC from 2/3rd portion of allottees agreeing for the same. Builders also require separate NOC to be obtained from RERA before handing over the property.
- No Objection Certificate from Bank : This is required to get the property in individual name if some loan has been availed against the property from particular bank. Only after clearing the loans from the bank in the name of the particular property this certificate will be provided.
- NOC from Mortgage Company: In process of completing the project on time and to over go the financial problems, the developers tend to mortgage the property. Before taking possession this document shall be demanded so that no financial liability of developer shall be passed to buyer.
- NOC from Local Authorities / Collector: In some Indian states it is imperative to get NOC from the district collector while transferring the property in other person name. If the property belongs to corporation or authorities, this document will be part of the lease hold or transfer.
- NOC for Foreign Investors No objections should be obtained from RBI for transfer of funds to India if the investor is foreigner.
- NOC from Legal Heir: NOC from Legal Heir of the Property is one of the most required documents to avoid court cases in later stage.
- Common NOCs: Few common clearances like Fire and Safety, Sewage elimination, Power allotments should be checked before pursing purchase of any property.