Documentation is one of the most important aspects of home buying.
While the Title Deed, Commencement Certificate, and Sale Agreement take the lead, a document that is equally important is the No Objection Certificate.
Popularly known as NOC in home buying, this document is more important for a real estate developer than a buyer.
However, it is imperative to know all you can about the NOC as it indicates that the property is free from all legal hassles.
Investing in a new project
Before beginning the construction of a project, a developer is expected to take NOC from as many as 19 departments. These include water, electricity, fire, environment, and airport authorities, among several others. Post these clearances is when the developer can start the construction work.
This is, essentially, why real estate sector has been fighting for single-window clearance as taking approvals from these many departments results in project delays.
The developer has issued a Commencement Certificate only once all the requisite approvals are in place. While this document is enough for taking the home loan, it is advisable for homebuyers to obtain the copies of all NOCs from the builder.
Investing in a resale project
Whenever there is a transfer of property, a buyer must take the NOC from the society to ensure that there are no dues on the property by the seller. This certificate will also help you in your induction as a member of the Residents Welfare Association.
Home loan considerations
In case you have opted for a home loan you must obtain a NOC from your bank in certain circumstances.
When you are closing the loan or transferring it to another bank, you must take a NOC from the bank. In this case, this document states that you have paid all the remaining dues.
Now that you know about different types of NOCs, let’s look at how to check the authenticity of this document.
- Make sure that the builder/seller is giving you a personalised NOC with your name and address
- The NOC should also contain the details about the pending amount to the seller
- Taking legal advice is always recommended
I have received a letter asking me to pick up nicely from Yes Bank or send someone else to pic it up . This letter appears fake,but it mentions my credentials correctly.What should I do??
Dear Anu, please get the letter checked/verified by a lawyer.
How can take NOC if it is Apartment & from whom we take.