Taking 2 scenarios here,
1. Flat owner has taken a loan from X bank and the society had previously given NOC for loan to the owner and recorded the bank's charge on the flat
Q: If the owner wants to sell his flat and approaches the society for an NOC for the same, should the society issue NOC, since there is already X banks charge on the flat?
Q: Can society insist on getting an NOC/letter from X bank to allow the owner to sell his flat and the society to issue an NOC for the same, subject to whatever conditions dictated by the bank?
Q: In case society should give the NOC, what would be the legal format for the same keeping in mind the liability of the society in giving such NOC?
2. Owner wants to sell his flat and the seller is taking a loan from X bank. X bank wants society NOC in banks format and wants society to record their charge on the property.
Q: Can society refuse to give such NOC since the sale deed has not yet taken place. (Buyer is not a member of the society, so society as such has no obligation to issue NOC in buyers name)
Q: Can society put a clause that banks charge will be recorded subject to bank sending it the copy of loan agreement. (It is possible that after giving the NOC, the loan never gets processed or the deal gets cancelled, in that case how can society record the charge until it knows for sure that the loan was disbursed)
Q: What safeguards must society adopt in giving such NOCs keeping in mind the liability of the society in giving such NOC?
Request experts on housing society matters to clarify