NOC for Property Transfer

No-objection certificates (NOCs) are important documents required for various purposes. In real estate transactions, they play a crucial role, as they are necessary for buyers and sellers. Understanding the significance of NOC for property transfer is crucial for anyone involved in buying or selling a property. 

The NOC for property transfer is a certificate issued by any person organisation, institution or authority, which verifies that there are no objections to the information presented in the document.

What is a NOC for Property Transfer?

A No Objection Certificate is a letter that is used for various purposes, including property transfer. It is a document that indicates that the concerned party has no objection to a specific activity. 

When it comes to the transfer of property, a NOC helps in removing any lien from the property, improving the credit score, getting another loan, selling the property or getting insurance claims.

Importance of NOCs in Real Estate Transactions

Apart from certifying that there are no objections, NOCs hold legal significance and can be used as evidence in court to prove one’s innocence in legal matters. Obtaining a NOC from your bank or lending institution after settling your home loan can make the process of collecting all the legal documentation related to your property hassle-free. 

Additionally, NOCs can be helpful in removing a lien on a property. A lien on a property indicates that banks or lending institutions have legal rights over the property and the authority to sell it until the debts are paid off.

NOC for Transferring Property in India

When someone passes away and leaves behind the property, their legal heirs must follow specific steps to obtain ownership of the property. If there is a will, the process is simple. But if there is no will, succession law is applied. 

Legal heirs must provide certain documents for the property transfer, including a NOC for property transfer from other legal heirs, an affidavit and a release deed. This document is required to transfer property shares and state whether any consideration was given to an heir or claimant in exchange for their share.

Women can now claim their share of property equally under the Hindu Succession Act of 1956. However, they may need to provide a NOC for property transfer if they want to allocate their share to a family member. A NOC can also be used to renounce a legal heir’s claim to a property share, which means their children cannot claim it in the future.

How Can a Property Be Transferred?

A property can be transferred through a legal process known as conveyancing. The transfer involves a change in the ownership of the property from one person or entity to another. The process usually involves the preparation and signing of a sale agreement, payment of stamp duty, registration of the property transfer with the local land registry or sub-registrar office and more.

There are various modes of transfer of property, some of which are:

Sale Deed: When a property is sold by the owner to a buyer, the transfer takes place through a Sale Deed. The Sale Deed is a legal document that transfers ownership rights from the seller to the buyer.

Gift Deed: A Gift Deed is used when a property is gifted to someone, such as a family member or a friend. The transfer of property takes place without any monetary consideration.

Will: A Will is a legal document that outlines how a person’s property will be distributed after their death. The transfer of property takes place according to the instructions given in the Will.

Relinquishment Deed: A Relinquishment Deed is used when a person voluntarily gives up their ownership rights to a property in favor of another person, typically a family member.

Partition Deed: A Partition Deed is used when co-owners of a property wish to divide the property among themselves. The transfer of property takes place through the Partition Deed.

Inheritance: When a person passes away without leaving a Will, the property is transferred to their legal heirs through the process of inheritance.

Lease: A lease is a mode of transfer where the owner of the property (lessor) grants the right to use and occupy the property to another person (lessee) for a specified period, subject to the terms and conditions agreed upon by both parties. 

Mortgage: A mortgage is a legal agreement between a borrower and a lender to provide financing for the purchase of a property. In this arrangement, the lender provides a loan to the borrower for the purchase of the property, and the borrower agrees to repay the loan over a specified period of time with interest.

NOC for Property Transfer

A NOC is a document that specifies information about a property and is issued by government organisations, banks or individuals. In real estate, a NOC is necessary to ensure that the property transfer will not cause any legal difficulties for the NOC provider. Obtaining a NOC is a critical step in the property transfer and land registration process, as it helps control the growth of unauthorised colonies.

According to the Registration Act of 1908, a NOC for property transfer must be obtained from the relevant authority before transferring immovable property or land. The process involves submitting an application for a NOC for land to the relevant Circle Office, along with the necessary paperwork and fees. After receiving the NOC, the applicant can proceed with property registration and mutation.

Step-wise Guide to Obtaining a NOC for Property Transfer

If you want to transfer property, you must get a NOC or No Objection Certificate. Here are the steps you need to follow to obtain one.

Step 1: Drafting

Create a Word document with the NOC draft, which should include all the relevant details like the property buyer and seller’s identity proof and photographs, income statement, citizenship proof and more.

Step 2: Stamp Paper

To get non-judicial e-stamp documents, pay Rs 100 at the sub-registrar office, court or cooperative bank closest to you. Provide the following information: Name of the applicant, Document description (Affidavit), First-party name (applicant’s name), Second-party name: NA, Acquired by: (applicant’s name), Applicant’s contact number. The cost of the e-stamp paper is Rs 100 and additional vendor processing fees of Rs 10, for a total of Rs 110.

Step 3: Printing

Print the completed draft on paper with a non-judicial e-stamp.

Step 4: Notary

Take the necessary paperwork to the notary public, including the printed NOC for property transfer and identity documents like the passport and Aadhaar card. Once the notary approves the NOC, sign the NOC certificate before it can be sealed and entered into the notary book. The notary will cost about Rs. 50.

Documents for NOC for Property Transfer

When requesting a NOC for property transfer, make sure you have the following documents:

• 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
• PAN/TAN Card
• For flats, GMDA/GMC/Municipality/Town Committee receipt/Occupancy certificate.

What does a NOC contain?

A NOC for property transfer format contains the basic details of the parties involved and is addressed to whomsoever it concerns. Section 21 of the Registration Act of 1908 allows for a non-testamentary document with a property description, existing and former occupancies and property plans or maps for registration purposes.

Use of a NOC in relation to the transfer of property

A NOC for property transfer can be obtained for various purposes, including education/training, visa or immigration, banking and remodelling or reconstruction of a property. An employer may also issue a NOC to allow his/her employee to work with a different department, take different shifts or change the parameters of their contract.

Conclusion

Obtaining a No Objection Certificate is an important step in transferring property ownership in India. The NOC serves as a document that verifies that the transfer of ownership is being carried out with the consent of all parties involved and that there are no pending legal issues or claims on the property. 

The process for obtaining a NOC involves drafting the certificate, obtaining non-judicial e-stamp documents, printing the draft on the stamp paper and getting the NOC certified by a notary public. 

Additionally, certain documents must be provided when applying for a NOC for property transfer, such as identity proof, citizenship proof and property-related documents. It is important to note that a NOC can be used for various purposes beyond property transfer, including for education, banking and immigration. Obtaining a NOC for property transfer can help remove liens from a property, improve credit score, enable the selling of the property and facilitate insurance claims.