sameer (owner) 17 May 2011

Bank not accepting society NOC format

Hi i am selling my flat in pune,

i have received 25% amount from the buyer and we have done the agreement to sale and new buyer has paid the stamp duty and registration fees...but sale deed is remaining.

I have given all the documents and a NOC(noc to sale the flat) from society to the buyer for obtaining BANK loan.
Bank has also sanctioned the loan for the buyer.

But now the bank is not issuing the DD for sale deed and bank is asking for another MORTGAGE NOC from society. this mortgage NOC states that the new buyer is already the owner of the flat and member of society. and buyer is mortgaing the said flat to bank for obtaining loan.

Now society has the OBJECTION for this NOC and society says that unless the sale deed copy is recieved society cannot make new buyer the member of society. So society also has the valid point.

So in this case is there any danger to me(seller of flat)...because im still the member of society as complete sale deed is not done and how can bank MORTGAGE my flat. Is this the general procedure every bank does for giving the loan for RESALE flat...and how can these flaws be tackled and how can we further proceed to complete the flat selling process.

your help will be highly appriciated....Thanks

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3 Replies

pervez (adviser) 17 May 2011

Dear, The objection of the society is reasonable.. Unless the sale deed is there in favour of buyer, he will not be the valid owner.. ... better to enquire from other banks regardig their procedure, as this would not have been the first case of it's kind... After ascertaining the position, make a representation through local advocate... Bank can not put arbitrary conditions at a later date...

regards

V. VASUDEVAN (LEGAL COUNSEL) 19 May 2011

The problem cited by you has be come a common issue especially with the banks dictating terms on the societies and even insisting what and how the society should issue a NOC. Again such flimsy issues are raised after the initial principal sanction. Please meet the senior most authoirties of the bank or raise it with RBI for a uniformity in resolving such issues. I have successfully resoved similar issues with interaction with the buyer/seller and the bank senior officials and I am sure this issua can be resolved.

Vasudevan

Atul (SE) 04 January 2012

Dear Sir/Madam,

I have initiated the process of purchasing a resale flat in Balewadi, Pune. "Agreement to sale" has been done and I have paid my contribution of the total consideration. It's all white money transaction. I have got home loan sanctioned from SBI as well as ICICI. The society is not issuing NOC in bank format. They say that conveyance deed is not done so society can not issue NOC in "bank format" as it has a mortgage clause in it.

Here is the summary of the discussion with society -

[1]Society is refusing to acknowledge the purchaser till he becomes a member and therefore willing to issue a standard NOC stating that they have no problem in owner selling the said flat.

[2]Whereas the Bank wants to ensure that the said flat is issued to current owner and owner only, there are no other liabilities on that.

[3]Bank will be informed if another NOC is sought for loan by the same party and also that they would be made nominees once the transaction is completed.

[4]We have approached other banks and all of them have similar requests.

[5]The societies stand is that since the land is not conveyanced, they cannot issue any such letter. Either the builder issues or Society issues letter(s) which will satisfy bank's need.

[6]Builder is not issuing NOC saying that society is already formed and registered. Also, share certificates have been distributed. Therefore, only society has transfer powers.

It has been 1.5 month since I have been chasing society,builder and bank but in vain.

Please advise on how to get NOC/any workaround for this.