What is No Objection Certificate(NOC) in Real Estate

what is noc certificate

Introduction

A No Objection Certificate (NOC) is a crucial legal document in the real estate industry that signifies consent from relevant authorities or stakeholders, confirming there are no objections to proceeding with a particular property transaction. Whether you’re buying, selling, or constructing a property, obtaining an NOC ensures transparency, legal compliance, and smooth execution of the process. In this blog, we’ll explore what is NOC certificate entails, its significance in real estate, and how it safeguards the interests of all parties involved. Understanding this document can help you avoid potential legal complications and make informed property decisions.

What is NOC Certificate in Real Estate?

Official documents known as No Objection Certificates, or NOCs, are required to complete several duties. The value of a No objection certificate or NOC for property transfer is essential for real estate transactions. Homebuyers may need particular NOCs to finalize the purchase, just as sellers may need them to sell their property. For this reason, anyone involved in selling or purchasing real estate must have a comprehensive knowledge of the NOC for property transfer. Any person, institution, author, or organization may issue an NOC, which certifies that there is no objection to the information contained in the document.

NOC from the Beneficiary for Transfer of Property in India

Legal heirs or beneficiaries must be aware of the steps necessary to acquire ownership of the property following the passing of the property owner. The procedure is simple when a will is present. Legal heirs also contest the will if the property was inherited as opposed to self-acquired. However, the succession law is used in the absence of a will. One of the documents needed for the transfer of a property is an NOC from the legal heirs, along with an affidavit.NOC in real estate must state whether any consideration was given to an heir or claim in exchange for their share, whether in cash or kind. To transfer shares, the release deed must also be registered.

Thanks to the Hindu Succession Act of 1956, women can now equally claim their share of property, unless the father has already created a will outlining the property’s division. A new change makes the property available to women born before 2005. It is still common for women to neglect to ask for a portion of their father’s wealth. If her portion of the assets must be distributed to a family member in these circumstances, a NOC is required. To transfer property, a NOC must be signed. Completing a relinquishment deed is the alternative method.

NOC for Property Transfer

A document known as a “no objection certificate” for a property transfer is issued by banks, government agencies, or private citizens and contains specific information on the property. An NOC is used in real estate transactions to ensure that the NOC provider won’t encounter any legal issues should the transaction proceed.

Because it allows the government to regulate the growth of unapproved colonies, obtaining a NOC is now an essential step in the land registration and property transfer procedure. Land transfers and colony development require obtaining NOCs from the appropriate authority.

Step Wise Process for Obtaining NOC for Property Transfer

Drafting NOC for Property Transfer- Create a Word document with the NOC draft.

Stamp Paper- Applicants must pay Rs100 to obtain a non-judicial e-stamp document from the sub-registrar’s office, court, or cooperative bank close to them. For that, you need to prepare the following documents:

  • Name of Applicant
  • Document Description(Affidavit)
  • First Party Name
  • Second Party Name
  • Acquired By:(applicant’s name)
  • The cost of the e-stamp paper is 100, and the additional vendor processing fee is Rs10 for a total of Rs110
  • Applicant Contact Number
  • Printing

Printing- Printing the document on paper with a non-judicial e-stamp is required to finish the procedure.

Notary- Present the necessary paperwork to the notary public, including the printing of NOC and identifying documents like passports and Aadhar cards. Once a notary public has approved the NOC, the NOC certificate must Before being sealed and recorded in the notary book, it must be signed. The notary will cost you around Rs50.

Documents for NOC for Property Transfer

  • The property buyer and seller’s photo identity proof and photographs
  • Statement of consideration for the flat value of the apportionment of land and the flat area
  • Latest income statement.
  • Citizenship, as evidenced by a passport or voter identification
  • Land patta
  • Affidavit of the buyer and seller or the person holding the power of attorney
  • Copy of a power of attorney (when the seller is an Attorney Holder).
  • Pattadar is to present the affidavit in support of the POA Holder
  • Co-partner NOC in the case of a flat
  • The PAN/TAN Card
  • For flats, GMDA/ GMC/ Municipality/ Town Committee receipt /Occupancy certificate.

Need for a NOC

Getting a NOC (No Objection Certificate) from your bank or lending organization is crucial when it comes to paying off your house loan. NOCs have legal value and can be used as proof in court, but they can also make gathering all the legal records about your property easier. NOCs can help get a property lien removed. A lien on a property indicates that banks or other lending organizations have legal control over the property and the ability to sell it until the debts are paid off, which makes this significant.

NOC Format for Property Transfer

States may use slightly different NOC formats for property transfers. For the transfer of property, the following is an example of a “NOC format, or NOC for property transfer format,” from legal heirs:

Declaration

I am __________, an Indian resident/ NRI, am the spouse/ son/ daughter of _________, aged_________.

Currently living at _________________, do hereby solemnly acknowledge and declare the following:

That __________, the deceased, held _____ shares in (the company’s name), registered under Folio No. _____ and Share Certificate No (s). _____ bearing the Unique Nos. __________ to _____ .

That (shareholder’s name), who passed away on __________.

That I am the deceased’s legitimate heir. I am the deceased’s (what relation) __________.

I don’t want to assert any ownership rights over the aforementioned securities that the deceased owned. I hereby agree to waive any claims I may have regarding the aforementioned securities, both now and in the future.

I hereby declare that I have absolutely no objections to transferring the aforementioned securities in the applicant’s name.

I’m signing this declaration to hand it to the appropriate Company officials.

I hereby attest that the information provided above is accurate to the best of my knowledge.

Signature: __________

Date: ______________

Each legal heir must sign the declaration in the NOC for the property transfer format described above and provide the necessary identification documentation. The declaration must be signed by a notary or oath commissioner and written on non-judicial stamp paper.

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Conclusion

Your assertion that there are no objections to anything in any official or judicial procedure is legally certified by the “No Objection Certificate (NOC)”. The transfer of property requires two crucial documents: an affidavit and a NOC from other lawful heirs. Just as sellers may require special NOCs to sell their property, homebuyers may require them to finalize their purchases. This makes it necessary for everyone involved in the buying or selling of real estate to fully comprehend this important contract.

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