This article has been written by Oishika Banerji of Amity Law School, Kolkata. This article discusses the No Objection Certificate, a legal document that consists of information on property and is generally issued by a government or authorised institutes for the purpose of transfer of property.
It has been published by Rachit Garg.
Table of Contents
When you claim you have no objection to anything, you’re saying you’re not upset or annoyed by it. For example, I’m not opposed to banks generating money or I no longer have any reservations about you seeing her. The No Objection Certificate (NOC) legally validates this saying. One of the documents required for the transfer of a property is a no-objection certificate from other legal heirs, as well as an affidavit. If any heir or claimant has received any consideration, in-kind or cash, for acquiring their share, it must be noted in the transfer paperwork. After the death of the person in whose name the property is registered, legal heirs must understand the method for obtaining ownership of the property. The procedure is simple in the presence of a will. If the property was inherited rather than self-acquired, legal heirs can also contest the will. In the absence of a will, however, the rule of succession takes effect. If a legal heir desires to relinquish his or her claim to a property portion, he or she must present a NOC in favour of family members who are also legal heirs, stating the same in the document. This article provides a discussion on NOC.
A NOC is a document that states certain information about a property and is issued by government bodies, local governments, banks, and even individuals. In real estate deals, a NOC serves as confirmation that the NOC-provider would not face any legal issues if the transaction goes through. Obtaining a NOC for property transfer and land registration has become a crucial practice, as it allows the government to monitor the spread of illegal colonies. Obtaining NOCs from the relevant departments is required for the transfer of land or the development of a colony.
NOCs, or no-objection certificates, are legal documents that may be required to complete a variety of duties. When it comes to property transfers, however, the relevance of NOCs is crucial. Builders require a huge number of NOCs to begin a housing project, sellers require NOCs to sell their property and homebuyers may require certain NOCs to complete their acquisitions. This is why anybody participating in a property sale or purchase must have a thorough understanding of this significant document.
A letter of authorization (NOC) is a document that allows a person or a corporation to proceed with the purchase or building of a property. Applicants must get a No Objection Certificate (NOC) from the proper government authorities before constructing an apartment, a bungalow, or any other structure. A No Objection Certificate (NOC) is a must-have document that will put the property in jeopardy if it is not obtained. Various No Objection Certificates from different authorities are necessary for property transactions of varied types.
Under Section 21 of the Registration Act of 1908, a NOC from the authority is required for the transfer of immovable property or land. The procedure for transferring land or property involves submitting an application for a land transfer NOC, along with the required papers and costs, to the appropriate Circle Office. The deputy commissioner will issue the NOC certificate. After receiving the NOC for land, the applicant can proceed with property registration and mutation.
Section 21 of the Registration Act, 1908 lays down the provision for the description of property and maps or plans. The provision does not expressly mention the term ‘No Objection Certificate’ but it provides the need for a non-testamentary document consisting of the following ingredients during the time of registration of immovable property:
Land or property transfer refers to changes in ownership, and anytime someone buys a piece of land/immovable property, he or she must obtain authorization and register the transaction with the appropriate authority in order to ensure that he or she has legal ownership title. To transfer land or property, a NOC for the transfer of immovable property must be obtained from the authority, as required by Section 21 of the Registration Act 1908.
Obtaining a Certificate from the Circle Officer and submitting the application to the Deputy Commissioner’s Office is a part of the procedure. The NOC will be issued by the Deputy Commissioner. After receiving the NOC, the Applicant can proceed for Registration and then for Land Mutation.
The four step procedure to get a No Objection Certificate has been detailed hereunder:
Prepare the NOC draft in word format, a sample of which has been provided below.
Buy Rs. 100 non-judicial e-stamp papers from a co-operative bank, court, or sub-registrar office near you. Following are the details required to buy a non-judicial e-stamp paper;
Print the filled draft on non-judicial e-stamp paper.
A NOC, in addition to showing that there are no objections, can also be submitted in a court of law and be used to prove your innocence if you find yourself in a legal labyrinth. Obtaining a NOC from your bank or lending institution, for example, once your home loan has been settled, will allow you to collect all of the property’s legal documentation without difficulty. A NOC can also aid in the removal of a lien on the property. A lien on your property means that the banks or lending institutions have a legal claim on it and the right to sell it until your obligations are paid off.
A No Objection Certificate can be issued for various purposes. Mentioned below are some of the general purposes for which one might be asked to issue or obtain a NOC.
A NOC for property transfer helps in the following:
There are a few aspects that must be discussed and addressed in the letter, according to the widely used NOC format. Individuals must remember that a NOC must be written on the issuing organisation’s official letterhead. While understanding the essential components of a NOC is crucial, learning how to write one efficiently is also required. The following are some things to think about when creating a No Objection Certificate:
You do not need to seek a NOC from the society to donate a property provided you have all the necessary paperwork to verify ownership.
No, a NOC is only valid for six months after it is issued.
You can simply indicate that you are willing to rent/sell your land and then go on to describe the property in detail.
When a corporation leases a property for the purpose of utilizing it as a registered office, the landlord must provide a NOC letter. When registering for company registration, the NOC certificate must be given to the Registrar of Companies.
A No Objection Certificate (NOC) is a legal document issued by a mortgage lender or bank to a customer stating that the customer owes the lender no money. A NOC, also known as a “No Dues Certificate,” can be acquired from the lender once the loan has been fully paid off. A NOC also relinquishes the lender’s rights to the collateral.
Many of us do not bother to get the NOC after totally paying off an outstanding loan due to ignorance. Few people realize that now that CIBIL is in effect, their credit score will almost always be used when they apply for a new loan. And if the closure of a previous loan has not been updated on CIBIL (due to your previous lender’s failure to send the information to CIBIL), your credit score will suffer. Then, and only then, does a NOC come to one’s rescue, as it is the only document that can prove that a previous loan has been returned.
Even though all lenders are required to deliver the NOC to the customer via registered mail after the loan has been paid off, it is possible that the customer will not receive it due to delayed dispatch or a change of address. The absence of this simple document can result in a slew of complex issues. For example, obtaining the NOC with the essential property facts is critical in the case of a house loan. It should include the house address, the customer’s name, and the loan account number.
If you have a mortgage and your home is registered, you must submit a copy of your NOC to the registrar of properties to have the lien of hypothecation struck off; otherwise, the lender will remain the owner of the house and you will be unable to sell it. In addition, any unintentional losses and subsequent insurance claims will be paid to the lender rather than you. The lender will simply return the title deeds in the event of non-registered properties.
There are a few aspects that must be discussed and addressed in the letter, according to the widely used NOC format. Individuals must remember that a NOC must be written on the issuing organisation’s official letterhead. The elements of a NOC letter include:
A few NOC formats have been provided hereunder. These are general formats that are adopted but are subjected to the circumstances they are made in. Keeping the same in mind clauses are either added or eliminated from the certificate.
TO WHOM IT MAY CONCERN:
This is to certify that [NAME HERE], resident of [ADDRESS HERE], is the owner of [PROPERTY NAME HERE], situated at [ADDRESS HERE], with Property Identification Number [NUMBER HERE] and containing an area of 25,746 square metres.
Certified further is that [NAME OF ORGANISATION] interposes no objection to the NAME OF ORGANISATION HERE of the said property.
ISSUED this 18th day of September, 2020, as requested by [NAME HERE] in support of his/her application for [APPROVAL NAME PROCESS HERE].
Now let us look at a sample format of a NOC from an owner for leasing out his/her premises:
TO WHOMSOEVER IT MAY CONCERN
I/We, _________, son/daughter of ________ do hereby state that,
Date: _________ Signature _____________
Place: ________ (Owner).
Here is the NOC Format for GST:
I, ______ (Name of the Owner), r/o _________ (Address) here by solemnly confirm and affirm that:
1. I am legally in possession of and the owner of the property bearing address __________.
2. That I have permitted M/s ________ (name of the tenant) represented by _______ for using the aforementioned property for _______ (residential/business/commercial) purpose.
3. I have no objection if M/s _________ (name of the tenant) apply for obtaining GST registration for the aforementioned property.
Verification at ______ (mention place)n on ________ (date) that the aforesaid statement is true and accurate to the best of my knowledge.
To Whomsoever It May Concern
This letter is in reference to Mr/Ms/Mrs. _______________________ who has been a
sincere employee/student at __________________________ in the capacity of
______________________/ of course _________________________. He/She has
consistently shown academic/professional expertise since the day of joining/start of
He/she is hereby allowed participation for the full duration of course/ training at ______________________.
Contact for any inquiries.
[Signature][Name of Supervisor/ Head of Department][Designation][Organisation Address][Contact Number]
To Whomsoever It May Concern
This is to certify that Mr/Ms/Mrs. _______________________ has been relieved of his duties and responsibilities as a ______________________ at ____________________________ on his request. We are grateful for services and wish him luck for his future endeavours.
Contact for any inquiries.
[Signature][Name of Supervisor][Designation][Organisation Address][Contact Number]
Name of the Bank
Name of the Branch
Subject: Letter to Bank for NOC
I Name an Account holder at this bank with Account Number 1230xxx request you to issue no objection certificate against my particulars. I request you to proceed with the same as earliest as possible as the document needs to be submitted at my new office to begin the process of salary transactions.
The common types of NOC’s that are used in India are provided hereunder:
It’s just as important to follow the proper procedures when applying for a home loan as it is to complete the essential home loan closing formalities. That is, if you have a home loan you must receive the NOC when the loan account is closed. The NOC for a house loan is a legal document that certifies that the borrower has paid all of his or her home loan EMIs as well as any other outstanding loan obligations.
In India, obtaining a No Objection Certificate from several agencies and government departments is required when building a house, an apartment complex, or any other project.
Certain types of buildings require a NOC from the fire department, according to the Development Control Regulations and the National Building Code, 2016. High-rise structures, for example, are structures that are 15 meters above ground level or have more than three floors. Before beginning construction, they must get a certificate of approval from the Director of the Fire Department.
The chief fire officer issues the No Objection Certificate once the building plan has been reviewed and approved by the sanctioning authority for construction.
Developers typically obtain funds for their projects by mortgaging them as a guarantee from banks and private financial institutions. In such instances, it is critical to request a No Objection Certificate from the developer. Once the NOC is received, the bank is unable to question the property transaction for a specific mortgaged project.
In a few states, receiving the collector’s NOC prior to transferring the property is required. It applies in situations where corporations and development bodies lease their land to others. According to the lease documents, the lessor must notify the collector of any property transfers or mortgages and get a No Objection Certificate.
According to Section 307 of the Indian Succession Act of 1925, an administrator may not mortgage, sell, or swap any immovable property without the court’s authorization. Furthermore, the administrator is only allowed to lease these assets for a maximum of five years. A No Objection Certificate from any urban development authority or other pertinent authorities shall not be provided if a building breaches any of the construction rules. After stringent, transparent, and fair inspections, the authorities are anticipated to grant a NOC.
A developer or promoter must get prior written consent from two-thirds of the allottees before transferring or assigning rights and liabilities relating to real estate project, to a third party, according to Section 15 of the RERA. The RERA authorities will issue a comparable certificate if the allottees have granted the NOC.
When a tenant, generally a company, signs a lease agreement and plans to use the property as a registered office, the landlord must provide a No Objection Certificate (NOC). Before establishing the office, the company needs to first secure the NOC.
Landlords must provide a NOC declaring that they are happily renting out the premises to the company and that they have no objections to the company using the premises or a portion of them.
The format of the NOC letter should include information such as:
A No Objection Certificate is one of the most important legal documents to have when selling or buying a property. A NOC is granted to confirm that a structure does not infringe an organisation’s, agency’s, or institute’s terms and conditions. This article aimed towards highlighting very relevant aspects associated with NOC so as to provide a guideline for its readers.
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