Whenever we buy any property, the most important question which comes to our mind is the absolute ownership of that property. To make yourself satisfied in the transaction, we need the documentation of the home or the property we are buying. In this article, we will discuss the no-objection certificate for selling property.
- A document that gives us this satisfaction is an objection certificate for selling property. The sole purpose of the no objection certificate for selling property is to give us the belief that the property is free from legal disputes.
- However, in the cases of Gift deeds, mortgages, sales, etc no objection certificate for selling is needed before the transaction of any consideration.
What is a No objection certificate for selling a property?
- No Objection Certificate for selling property just means any evidence, certificate, or proof that gives documentation that the property is under the transaction and is free of any legal contract, mortgage, lease, debt, or any other condition.
- A no-objection certificate for selling property is also called a NOC. We often hear this word in day-to-day life when there is any transaction of property.
- The most important function of the no objection certificate for selling property is to establish the fact that there is no objection to making a transaction of that property. The property is free from any legal or other disputes.
- It can also be taken as evidence in a court of law to prove that there was no objection at the time of purchasing the property. In various states, it has been made mandatory in India, but there are still a few states which have made it at the option of the buyer then a no objection certificate for selling property comes into existence.
- A no objection certificate for selling property from the banks usually is given on the properties which were earlier on the loan or mortgage but now have been cleared, and the ownership is rightful with the person having the no objection certificate for selling that property.
- In cases where the banks or the mortgagee claims the property, then the no objection certificate for selling property by the seller comes into existence as documentation of proof and innocence of the buyer in court.
How to get a No objection certificate for selling a property?
In order to get a no-objection certificate for selling a property, you must follow the below-mentioned points-
- A letter or an application with regards to the same should be written to the appropriate authority from where the no objection certificate for selling property has to be taken.
- The details and the reasons why such a certificate is needed by the applicant have to be mentioned in the aforementioned application for a no-objection certificate for selling property.
- There are different types of no objection certificates for selling property that should be taken into consideration, such as no objection certificates for selling property from Builders, Banks, Societies, Developers, last owners, Administration or Municipality, etc.
Where can the No objection certificate for selling property be used?
The no objection certificate for selling the property is sometimes used at the option of the buyer to be on the safer side, but mostly there are only a few transactions in which the no objection certificate for selling a property is required, which we will discuss here.
- No Objection Certificate for selling property by collector – in India, there are few states in which the no objection certificate for selling a property is required, which should be duly signed by an administrative officer of a collector rank.
- This is to prove that the property is free of any loan depth mortgage or lease and can be transferred to the person who has an interest in it. However, not every state follows this guideline.
- No objection certificate for selling property by the court – as per the Indian succession act 1925, it is mentioned under section 307 that any property cannot be put on a lease mortgage extemporal for more than five years without the permission of the administration.
- The administration has the authority to inspect the property which is being transferred. Then only a no objection certificate for selling properties should be issued by the court from the administrator.
- No objection certificate for selling property in case of a builder or developer- in the cases of a builder or developer, the no objection certificate for selling properties is required as it is often observed that these builders or developers take loans by mortgaging the property to make a construction over it so to prove that the loan or the debt is clear a NOC is provided for the same.
- A NOC should be given from either the general public claiming or the developer who built it before you got it. A NOC is important to guarantee that no expenses are owed by the merchant when the property is discarded.
- This record is a verification that you will be acknowledged as a part of. If a property exchange incorporates credit from a bank, a NOC should be introduced, and the bank won’t give a NOC to society for the exchange of a loft.
What is the importance of a No objection certificate for selling property such as Flats in housing society?
In the case of selling a flat that is in the housing society, then the seller has to require a no-dues certificate from the registrar of the society. But for the residents to register their complaint in the registered office, they had to produce a no objection certificate of the selling property.
However, in the Maharashtra cooperative department, no NOC is required while selling flats or apartments. Make sure before buying any property; the seller gives you a no-objection certificate for selling the property; also, getting legal advice is always a better option.
The no objection certificate for selling property, as we discussed, is evidence or a document to prove that the property which is being transferred is free from any legal dispute or is not in any legal contract. We obtain that the transaction suggesting mortgages, sales, exchanges, gift deeds, etc, requires NOC. This same NOC is an acronym for no objection certificate for selling property.