Legal Guide

What is the Need for Obtaining a No Objection Certificate From the Landlord?

by Mansi Gehrana · 3 min read

No objection certificate from the landlord

Introduction

  • An organization, institute, or individual may provide a No Objection Certificate from the landlord as proof that they have no objections to the information included in the document. 
  • It can be used to override any party’s opposition in a variety of situations, including employment, trade, litigation, immigration, and many others. 
  • In a court of law, this legal document may be utilized either for or against. 
  • No Objection Certificates typically include the bare minimum of information about the parties involved and are addressed to all parties. No objection certificate from the landlord is required in the case of a commercial lease. 

What is a Commercial Lease?

When the property in question is allegedly utilized for official or business purposes, a commercial lease is necessary. Technically speaking, commercial property is real estate that is bought and sold only for its capacity to generate income from non-residential sources, such as offices.

In contrast to a residential lease, which typically lasts 11 months on average, a commercial lease is typically made for a lengthier period of time and costs several times more than a residential lease. It may also last five years (though it may also last a shorter time).

What are the Obligations of the Tenant & Landlord in the case of a Commercial Lease?

  • Tenants’ Obligations
  1. Rent- The tenant’s primary and most evident duty is to pay the rent. This entails paying rent on time and in the manner specified by the landlord (cash, check, electronic money transfer, etc.).
  2. Security Deposit– This is frequently referred to as a “bond,” and the landlord will typically need it before the tenant moves into the property for the first time. The landlord is in possession of the bond as security against a tenant’s default.
  3. Payment of Maintenance & Insurance – In many commercial leases, the tenant is responsible for routine maintenance in order to maintain the property in the same condition as when the lease began (except for fair wear and tear).

The lease will outline the required insurance coverage. These could be distinct from whatever insurance requirements the tenant may have for their company.

  • Landlord’s Obligations
  1. Access to property– The landlord’s first and most obvious duty is to give the tenant unhindered access to the property so that they can use it as the lease specifies, without restriction. This access is given by obtaining the No objection certificate from the landlord.
  2. Compliance with laws– There are many laws, rules, and regulations that may apply to a property depending on its type and location. It can be the landlord’s duty as the property owner to see to it that these are followed.
  3. Maintenance– The lease should specify who is in charge of making the different property-related payments. As was already said, the tenant may be responsible for paying most (or perhaps all) of the expenses. Such things as rates, land tax, body corporate fees, power, water, telephone, and internet access may be among them.

However, it is common for some or all of the outgoings to be made payable to the landlord, in which case the landlord is in charge of processing the payment, and the renter is responsible for making restitution.

What is a No objection certificate from the landlord?

When a Tenant (often for a corporation), who has leased property from the landlord, intends to utilize the premises or a portion of it as a registered office, the landlord must provide a No Objection Certificate (NOC).

Importance of No objection certificate from landlord

When a tenant or renter who has taken a property on lease from the landlord wishes to utilize the premises or a portion of it for an office, a residence, or other uses, the landlord’s No objection certificate becomes necessary. This kind of letter may be used in many different contexts, such as employment, commerce, litigation, immigration, and many others, to override any objections raised by the party with interest in the process.

A No objection certificate from the landlord must be issued before a company can establish its registered office in rented space. In essence, it declares that the landlord providing the No objection certificate has happily rented the property to the firm and has no problems with it being utilized (or a portion of it) as the company’s registered office.

What are the important elements to be included in a No Objection Certificate from a Landlord?

There are important elements to be included in a No objection certificate from the landlord. These are discussed below- 

  1. Name of the Landlord– As the landlord is the main party to the No objection certificate from a landlord, therefore, the whole details of the landlord should be incorporated in the No objection certificate from the landlord
  2. Company details– The name & details of the company in whose favor the land is being leased out has to be carved out in the No objection certificate from the landlord. 
  3. Property Address– The exact address of the leased property is the subject matter of the No objection certificate from the landlord, which  needs to be specifically specified. 
  4. Date & Place– The other main components of the No objection certificate from the landlord are the date & venue when & where the said document is being executed.
  5. Signature of the landlord– The main purpose of the No objection certificate from the landlord is that he signifies his consent to the leasing of the property as provided in the Commercial Lease Agreement. 

So, these are the important elements required to be incorporated in the No objection certificate from the landlord. 

Conclusion

There is no denying that renting out commercial or retail property is a wise financial move. However, in order to interact closely with tenants, a lessor must have the essential skills. Signing a gift deed in blood relations is altogether a different aspect from a commercial lease which does not require the obtaining of the No objection certificate from the landlord. While a commercial lease requires the assent of the landlord hence entering into a No objection certificate becomes paramount. Consult a lawyer online to get the No objection certificate from the landlord. 

No objection certificate is a legal document that will ensure that the holder will not encounter any legal issues in the future. To know more about the process of obtaining a No objection certificate from the landlord, consult a real estate lawyer here.

Mansi Gehrana

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Mansi Gehrana

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