Noc from bank for registering a house

Originally posted by : Karn Kumar
	Hello Dear Experts, I have purchased a house in a residential society and there I am going for registry, while the Builder is having the hold of registration and asking for the NOC from the Bank as I availed the LOAN on the house that is around 10% of total cost.   I would like to know, is there is requirement  of NOC from bank if the load amount is 10% of the total cost where Bank's loan amount is very less. Does Bank hold s the main copy of registry until the load amount fully paid even its only 8-10%? Thanks & Regards, Karn

What do you want to communicate from your statement that "..the builder is having hold of registration.." ?

Since the Bank has mortgaged "Title" documents, it is obvious that the Bank shall keep original "Title" (ownership) documents with them.

It is better to consult  a local prudent lawyer for appreciation of facts / documents and professional advise  

For the security reason they keep the original documents with them .There is no parameter that the amount of loan is higher or meager once the property mortgaged with banker then they keep the original documents until the loan amount fully repaid.

Please go through the SANCTION LETTER wherein they might have mentioned the terms and conditions and on security.  It is absolutely impossible to violate sanction terms and get the security mortgaged to the bank during the pendency of the loan.  Further, the mortgage is also indexed with Registrar Office and you can not do any transaction when the loan is outstanding, whatever smaller it may be even Rs.10/-

All these do not mean that there are no alternates.  You can request in writing to accept the equal amount of fixed deposit, LIC, Shares or other liquid securities and release the mortgage.  If there is enough security in the form of liquid securities (That can be encashed at any time), banks may obtain specific permission and may return your title deeds.  I am aware that many banks readily agreed for these adjustments.

Yes what do you mean by "..the builder is having hold of registration.." ? 
Is the purchase is being made directly from the builder or is there any intermediary?

If you are buying the property from the builder then you will be paying him the consideration amount either by yourself or through bank loan.

Why does the builder require a NOC from bank and for what purpose.

If the bank is settling the balance of sale consideration amount to the builder/seller, what is the need of NOC for the seller to be procured from Bank.

The bank will not furnish any such NOC at the whims of builder who has no reason to demand the same.

If this is not what you wanted to convey by your query, you may revert with your actual query and seek opinion/suggestions accordingly.