NOCs to Check With the Developer before Buying the Property
Feb 07, 2019 Legal Guidance
The sparse availability of space in both the Tier I and Tier II cities are crushing the dreams of owning independent houses. The buyers are forced to look for flats or group housing concepts to buy a house. The concept of group housing or a gated community might not sound flattering, but it comes with the advantages that the independent housing will not able to provide.
NOCs make a huge part on the construction of a project and even after the construction is complete. The developer is supposed to have several NOCs from the government during the different phases of the construction. For example for electricity, the developer will need to have the NOC from the electricity department. If not, then the developer will require having their private source of electricity which will hike up the electricity bill for the buyer. The same goes for water supply NOC. The developer will also need to have a NOC after the completion of the construction.
If you have made up your mind to invest in the housing society properties, then there are some NOCs that you should make sure that the developer possesses them. We list them all here:
NOCs make a huge part on the construction of a project and even after the construction is complete. The developer is supposed to have several NOCs from the government during the different phases of the construction. For example for electricity, the developer will need to have the NOC from the electricity department. If not, then the developer will require having their private source of electricity which will hike up the electricity bill for the buyer. The same goes for water supply NOC. The developer will also need to have a NOC after the completion of the construction.
If you have made up your mind to invest in the housing society properties, then there are some NOCs that you should make sure that the developer possesses them. We list them all here:
For under construction properties
The NOCs must be acquired from the banks or any other financial institutes which is financing the projects. This is done to make sure that the developer will not be able to challenge the sale in future. This is also required by the banks so that if in future, the project gets derailed, they have grounds to get their money back. This document also helps the buyer to safeguard their interest in future.
Resident’s welfare association
It is a mandatory law to form the resident’s welfare association. These bodies enjoy great power in terms of sales of the property. If you are buying the property or transferring it, then you will need the NOC from the resident’s welfare association. While buying a property, the bank will demand the NOC from the RWA to process the application.
Secondary market
If you are buying a property from a seller who is still paying the EMI for the flat, then the bank or the financial institution that is funding the seller will have to issue the NOC that the seller has cleared all the past dues.
NOCs are an important part of the sale and purchase of the property. Make sure you get a copy of the same before you make the purchase. Sometimes legal terms can difficult for the common man to understand. In such a case, there is no harm in hiring a lawyer who can help you understand the legal document.
NOCs are an important part of the sale and purchase of the property. Make sure you get a copy of the same before you make the purchase. Sometimes legal terms can difficult for the common man to understand. In such a case, there is no harm in hiring a lawyer who can help you understand the legal document.
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