Noc fromsociety in mumbai


I intend to buy flat in a society in mumbai. For availing bank loan NOC from Society is required. Though Society isprepared to issue NOC but it is not in the bank format. Particularly they are removing the following two clauses from such NOC: 

"We hereby assure you that the said flat, as well as the said building and the land appurtenant thereto are not subject to any encumbrance, charge or liability of any kind whatsoever and that the entire property is free and marketable .

 

We further confirm that we have a clear, legal and marketable title to the said property and every part thereof, and that all taxes and dues in respect thereof have been paid upto date."

 

Without above loan amout will not be disbursed. Kly advice

 
Reply   
 
CEO

Sir,

With ref. to your first query viz.:

""We hereby assure you that the said flat, as well as the said building and the land appurtenant thereto are not subject to any encumbrance, charge or liability of any kind whatsoever and that the entire property is free and marketable "

The Society is correct in removing this clause as it is not  aware whether the flat is subject to any charge or liability, hence can not give certificate in the matter.

With ref. to second query viz.:

"We further confirm that we have a clear, legal and marketable title to the said property and every part thereof, and that all taxes and dues in respect thereof have been paid upto date."

It is the Society's pregogative whether or not to give this clearance when it is not demanding any loan from the Bankers. The Society may or may not have created any charge on its property and it may not like to disclose it to any third unrelated party.

Good Luck,

Kishor Mehta

 
Reply   
 



The removal of the said clauses for giving NOC by the society is their right. The society cannot stand guarantee for such liabilities.  The NOC will be as per the registration with the society and not beyond that. The bank panel advocate is responsible for the legal opinion on such issues and not society.

 
Reply   
 
Lawyer

I have similar opinion as advised by the experts, the society cannot issue such a certificate except the fact that there is no (society) dues against the flat.

What is the basis or document for issuance of NOC by the Society to intending purchaser? The bank is wrong, incorrect and asking undue certificate from borrower,  challenge it.

 
Reply   
 

Mr. tnp,

I am also facing excatly the same problem as faced by you. Further, what happened i your case??

I understand that society has its limitations,but, even banks are not ready to accept any ommision in their format. We are getting screwed in between this. All original docs are with me (Seller) i have foreclosed my loan .

In view of the same, can i challenge society??, as this is the common NOC format from almost every bank.

Can anyone help?? we are depserately in need for a solution.

 

Rgds,

Sanket

 
Reply   
 

Hello to all Dignitories in this Forum.

 your views/ feedback on my above query would prove highly helpful for us.

 
Reply   
 
CEO

Sir/s, One can understand your predicament, however a Society can not be forced in any manner to give an undertaking beyond its legal reach. How can the society be sure whether the flat is under any charge or liability? It is not sensible for the Bank to demand this guarantee from the society. Further the Bank has no right to demand the clear, legal and marketable title to the entire property/building, which has not been proposed to be pledged to the Bank anyway, that is an internal matter of the society and it can not be forced to divulge this to any third part. Good Luck, Kishor Mehta
 
Reply   
 

LEAVE A REPLY


    

Your are not logged in . Please login to post replies

Click here to Login / Register  



 

Search Forum:








×

  LAWyersclubindia Menu