Noc for sale of flat
anandmavani
(Querist) 04 March 2015
This query is : Resolved
Hello
I purchased a flat in Kharghar, Navi Mumbai whilst the building was under construction and received the possession in Dec 2014. At the same time I also managed to sell the property to a buyer. The buyers bank ICICI requires a builders NOC as the society has still not been formed. The builder is not providing this NOC and says that they have never done this and are not willing to take the risk. Where do we stand with this?
As per law NOC in state of Maharastra has been dismissed as a required document.
Please advise
Anand
P. Venu
(Expert) 04 March 2015
What do you mean by ":As per law NOC in state of Maharastra has been dismissed as a required document."?
anandmavani
(Querist) 04 March 2015
http://articles.economictimes.indiatimes.com/2012-10-01/news/34198213_1_flat-owners-flat-owners-mofa
according to this article.
Devajyoti Barman
(Expert) 04 March 2015
I find no problem if the builder gives NOC. Since society is nor formed the Bank wishes to be sure about legal complications. Convince the builder.
anandmavani
(Querist) 04 March 2015
It has been over 2 months now and he is not willing to issue the NOC even after we offering the so called 'Transfer Fee'
Even after the government passing the law how come a major stream bank wants NOC? The registration papers basically has all information and the registration papers means that all payment to the builder is being made by the initial buyer 'me'
Where do I stand with this? Anyone who knows a solution to this?
Devajyoti Barman
(Expert) 04 March 2015
Then going to consumer forum remains the only solution.
anandmavani
(Querist) 04 March 2015
Really going through Gov body! I hope there is some alternative.
Guest
(Expert) 04 March 2015
What type of law you have referred the Government having passed? The link merely speaks about the political statement of the CM without any reference of any law or ministerial order issued so far. Politicians normally prefer to make statement without getting the relevant law amended.
So, better act upon the advice of Shri Devajyoti Barman to seek justice through the forum.
Rajendra K Goyal
(Expert) 04 March 2015
The purchaser can explore the possibility of taking loan from some other Bank. If builder is not issuing NOC moving to consumer forum is the way left.
ajay sethi
(Expert) 04 March 2015
issue legal notice to builder to furnish NOC as you need it to sell your flat . if builder fails to do so then move consumer forum
R.K Nanda
(Expert) 04 March 2015
agree with experts.
Dr J C Vashista
(Expert) 05 March 2015
I agree with the expert advise of Mr. Ajay Sethi
anandmavani
(Querist) 05 March 2015
Okie I will get my lawyer to issue a legal notice and that does not work will go to the consumer forum
thank you
Anirudh
(Expert) 05 March 2015
Nobody can compel the builder to issue the NOC, even by approaching the consumer forum. Even assuming that the matter is entertained by the consumer forum, please do not think that the consumer forum would give you the desired relief very quickly.
The bank is clearly in the wrong in insisting for NOC.
At best the buyer can explore the possibility of switching to some other bank, which will not insist on any such NOC for granting the loan.
anandmavani
(Querist) 05 March 2015
Anirudh, that is what I thought as well as nothing moves quick when forum's and government bodies get involved...have no faith in them what so ever.
Will try and tell the buyer to see if they can convince the bank to move along without the need for NOC or try and get another bank to support them.
Is there a bank which would not require NOC as a compulsory document?
Guest
(Expert) 05 March 2015
Rightly observed by Shri Anirudh.
About the bank that would not require NOC, you have to make your own efforts to check with the banks of your city.
Hemant Agarwal
(Expert) 06 March 2015
INTROSPECT ON THIS:
1. Banks have no legal jurisdiction to demand "NOC" from "anybody" (means Builder, Society .... ), SUBJECT to availability of clear Title-Ownership documents of the property, in Originals, which are the "Final & Conclusive" documents, as far as the Law is concerned.. NOC is a knee-jerk idiotic requirement which emanates from the empty-minds, by the policy makers of such Financial Institutions.
2. "At the most", the Seller may submit an "Affidavit" and/or an "Indemnity Bond", in favor of the Bank, relating to any issues for his possession & ownership of the property. Further to carry on "at the most", the Seller may submit a "title-search report", by a approved and registered Advocate, for proving the veracity of the Title-Ownership and Possession of property of/by the Seller.
3. As it is in a "Title-Ownership" property, (under the Transfer of Property Act) the builder /society has no "rights whatsoever" to give any NOC, for a property which does belong to them in which-so-ever manner. This in turn would amounts to Criminal Misrepresentation, Intimidating & Extortion.
4. The Original Title-Ownership documents (duly Stamp duty paid Registered document) is the "SOLE" document, which can be used, in the event of any legal dispute.
5. NOC by Builder /Society, is lawfully infructuous in the event of any legal dispute, and bears no Liability, whatsoever on the NOC giver (Builder /Society)
6. Lawfully the Builder /Society are not bound to issue any NOC to anybody .AND. neither ANY legal action can be initiated against the Builder /Society for the NOC issue, in Court of Law.
Keep Smiling .... Hemant Agarwal
READ ARTICLES ON: http://hemantagarwal21.blogspot.in/?view=sidebar
P. Venu
(Expert) 06 March 2015
I fully agree with the views of the learned expert Shri Hemant Agarwal.
The fact of the matter is we are addicted to law without its morality. No administrator is willing to be a responsible decision maker; they believe that the so-called NOCs, undertakings etc. etc. from another person a magic wand which would indemnify them against the responsibility involved in intelligent and objective decision making.
T. Kalaiselvan, Advocate 
(Expert) 07 March 2015
Agreed with the views of experts. Whatsoever, you may ask the buyer to switch over the bank for loan or you switch the buyer for another who does not have any such problem.
