I have a property that i booked in 2016 and taken a home loan. Now, the property is ready and i want to go for registration. The builder is asking to get a NOC from the bank saying that "they have no objection in registeration on sub lease deed in my favour". I have approached the bank and the bank is saying they can not issue this until the loan is cleared.
Is this NOC necessary? and If it is, can a bank issue it without the closure of the loan?
It is not clear whether you are purchasing the property or getting it on lease. One place you are saying you obtained home loan and subsequently you are saying that you want to register a sub lease deed. Kindly clarify for giving proper advice.
What are the documents provided to the Bank for financing the property ?
Did you not give any undertaking for depositing title documents of the property after it is registered in your name ?
Whether the Bank is ready to get a mortgage deed executed against title documents ?
What is the reason / plea to decline NOC by Bank for registration of title documents and handing them to the Bank? There should not be any problem/ issue with financier to issue NOC if you project your case properly.
Are you in a financial position to clear outstanding amount of loan ?
I purchased the property. It is a flat in a housing complex. The flat is in construction linked plan. I booked the flat in 2016 and now the construction is complete and i can move in. The builder is asking the register the property beforing moving in. They have shared a list of documents to go ahead for the registration. 'Register a sub lease deed' is builders words where they asked to get a NOC from the bank for registration for the property. The exact wordings are :
"In case of bank loan, NOC from finalicial institution/bank stating that they have no objection to handing over physicalpossesion to me/us and registration of sub lease deed in my favour"
Yes. Bankers are tough and timid. When there is a loan outstanding, they apprehend litigations and the safety of employees. Contact a local advocate and issue a notice under CP Act explaining the position to Banker, and it may take time but you will certainly get that NOC restricting to that specific purpose. Before issuing notice, have original demand letter from Registrar or builder or society some kind of proof for the requirement of such NOC.
You are purchasing Flat but it seems the land is a leasehold land. Hence NOC is necessary from Bank and they will not have any objections to issue the same. The loan may have been processed based on the value of the flat. You can approach the bank for NOC. The bank will not have any problem in giving NOC.