Make Sure You Obtain these Nocs before Buying a Flat
May 09, 2019 Home Trading Steps
Housing societies are widely preferred in big cities, not because of the amenities provided but also because of the lack of space for individual housing. The Tier II cities are not far behind. The housing societies are gaining popularity there as well because of the facilities provided. Safety and security are the most important facility provided by housing societies. In independent housing, people pay a lot of money for safety.
To provide many amenities, the builder of the housing societies needs permission to carry them out. From the water to electricity, the builder will need NOCs from government agencies to keep going without any hurdle or objection. Make sure your builder holds all the NOCs from the dedicated bodies to make sure there will not be any conflict between the builder and the government agencies regarding the absence of NOCs.
To provide many amenities, the builder of the housing societies needs permission to carry them out. From the water to electricity, the builder will need NOCs from government agencies to keep going without any hurdle or objection. Make sure your builder holds all the NOCs from the dedicated bodies to make sure there will not be any conflict between the builder and the government agencies regarding the absence of NOCs.
For under- construction properties
In case of properties that are under construction, the builders are supposed to obtain the NOC from the banks or the loan lenders. This is done to make sure that the builders do not challenge the sale in future. It has become an important document lately since there are many cases where the builder has gone insolvent and are unable to carry on the construction. The banks are now dragging them to court to recover their money. In case there is any dispute between the lender and the builder, then this document guards your interest.
Resident’s welfare association
It is mandatory by law that every housing society has a resident’s welfare association. From a legal point of view, these bodies hold great power in sale and purchase of the property. As a buyer, you will also need NOCs from these bodies for both buying and selling. For buying, the RWA needs to issue a NOC saying they do not object the transfer of the property. If you are taking a home loan, the banks will ask you to produce the NOC document from the RWA to process the loan approval.
Buying and selling
The NOCs play an essential part in the secondary market, that is, the buying and the sale of the property. If you are selling a property where you are still servicing the loan of the property, the banks will have to issue a NOC stating that all the dues have been cleared. In such a case, the seller can either settle the outstanding loan amount with the money they are receiving from the sale, or they can transfer the loan to the buyer.
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