NOC for transfer of Properties from Legal Heirs

A NOC is a document that states certain information about a property and is issued by government bodies, local governments, banks, and even individuals. In real estate deals, a NOC serves as confirmation that the NOC provider would not face any legal issues if the transaction goes through. Obtaining a NOC for property transfer and land registration has become a crucial practice, as it allows the government to monitor the spread of illegal colonies. Obtaining NOCs from the relevant departments is required for the transfer of land or the development of a colony. 

NOCs, or no-objection certificates, are legal documents that may be required to complete a variety of duties. When it comes to property transfers, however, the relevance of NOCs is crucial. Builders require a huge number of NOCs to begin a housing project, sellers require NOCs to sell their property and homebuyers may require certain NOCs to complete their acquisitions. This is why anybody participating in a property sale or purchase must have a thorough understanding of this significant document.

A letter of authorization (NOC) is a document that allows a person or a corporation to proceed with the purchase or building of a property. Applicants must get a No Objection Certificate (NOC) from the proper government authorities before constructing an apartment, a bungalow, or any other structure. A No Objection Certificate (NOC) is a must-have document that will put the property in jeopardy if it is not obtained. Various No Objection Certificates from different authorities are necessary for property transactions of varied types.

Under Section 21 of the Registration Act of 1908, a NOC from the authority is required for the transfer of immovable property or land. The procedure for transferring land or property involves submitting an application for a land transfer NOC, along with the required papers and costs, to the appropriate Circle Office. The deputy commissioner will issue the NOC certificate. After receiving the NOC for land, the applicant can proceed with property registration and mutation.

Section 21 of the Registration Act of 1908

Section 21 of the Registration Act, 1908 lays down the provision for the description of property and maps or plans. The provision does not expressly mention the term ‘No Objection Certificate’ but it provides the need for a non-testamentary document consisting of the following ingredients during the time of registration of immovable property:

• Description of such property which will be sufficient to identify the property.
• The property’s existing and former occupancies.
• Houses in towns shall be described: 
• The direction in which the house is facing, 
• Numbers of the house or that of the street/road they are located in, 
• Name of the house or the land they are situated in. 
• A Non-testamentary document containing a map or plan of any property must contain the true copy of the map or plan, for the purpose of registration. 

Legal Remedies for Home Buyers in case of delay in possession by the builder

jurisdiction of the consumer court. If it’s a source of income for the home buyer. i.e. getting rent out of it, or is the place of residence then the delay in delivery of the flat would attract the jurisdiction of the consumer court, instead of going to RERA.  

A home buyer can file a complaint in the consumer forum for deficiency of service by the developer and it can be filed in the District, State, or National Consumer Courts, depending upon the value of the subject matter and the compensation that the home buyer is claiming.

As the breach of contract takes place, the complaint should be filed at the earliest opportunity available with the home buyer, as it is seen in the past that the consumer court aids in getting faster relief than other authorities.    

The usual practice that is followed to file a written complaint about the delay in delivery to the appropriate consumer court is to take the help of a lawyer in drafting the appropriate documents. The following are the steps to be followed to file a complaint against the developer in the appropriate consumer court. 

• Legal Notice: The first and foremost step is to send a legal notice to the developer and ask for compensation for the delay or other reliefs that are available under the law.  
• Response: The second step is to wait for a specific period so that the developer can respond.  
• Complaint: The third step is to prepare a petition/complaint depending upon the unsatisfactory response or on the basis of no response stating all the facts, evidence, etc. 
• Filing of the Complaint: The next step is to approach the appropriate consumer court and file the complaint/petitioner against the developer.

3. Civil Suit/Writ Petition in High Court

The right to file a civil suit or writ petition in the high court is only available when there is no appropriate regulatory authority in that particular state. It should be filed where the defendant resides or carries on his business or where the property is located.

4. Arbitration

The right to refer the dispute to arbitration can only arise if a clause for arbitration exists in the agreement. So it will be the first remedy available with a party that would be required to be exhausted to use the other remedies. In Arbitration, the Arbitrator will be the one to decide whether the builder has deviated from the agreement or not and would pass such award as he/she deems fit.

The arbitrator will decide the amount of compensation liable to be paid by the developer for deviating from the terms of the agreement and to execute the award or to enforce it; an appropriate civil court needs to be approached.

5. Criminal Case

The home buyer in certain cases or instances can also approach a criminal court for example when the developer is deliberate not handing possession of the property and is thereby causing delay and is also not ready to pay back the amount of money paid by the home buyer.  The developer can be sued for cheating and dishonestly inducing delivery of property u/s 420 of the Indian penal code, 1860, and/or for criminal breach of trust u/s 405 of the Indian penal code, 1860.

In the criminal court, if the developer is found guilty then he/she might be made liable to pay some amount of penalty and/or compensation to the home buyer and/or would be sent to jail.     

The Real Estate (Regulation and Development) Act, 2016 is a recent development of law and is yet to be implemented in all the states and so in a few states, Regulatory Authorities and Appellate tribunals might not be constituted yet, and therefore in that case the home buyer needs to seek other remedies. The implementation of RERA across all the states of India is the need of the hour. So that the Regulatory Authority and Appellate Tribunal could be constituted for each state for dealing with the issues connected with the delay in delivery of property and for other matters related to it. 

Before signing any contract, buyers should read all the points, including the disclaimers, and check the builder’s financial credibility.

Various types of NOCs in India 

The common types of NOCs that are used in India are provided hereunder:

1. NOC for property transfer: To transfer land or property one has to obtain NOC for the transfer of immovable property from the authority as required under Section 21 of the Registration Act 1908.
2. NOC for court purposes: A “No Objection Certificate,” or NOC, is an official and legal document that serves as a favorable testimony by one entity in favor of another. It has legal standing in a court of law and can be issued by a company for a variety of reasons.
3. NOC for Visa [employees]: A no objection letter is a letter from your company, school, or university stating that you have contractual or educational responsibilities in your country that you intend to fulfill. A No Objection Certificate for Visa, or NOC, is another name for it.
4. NOC for Visa [students]: NOCs for students pursuing a college degree or diploma, as well as for college migration, are provided on the basis of the individual’s personal needs. The NOC demonstrates that there are no objections to the specific person and purpose.
5. NOC of GST: It’s a No Objection Certificate (NOC) from the property owner saying that they have no objections to the taxpayer utilizing the property for commercial purposes. There is no specific format for the consent letter under GST. Any written document will suffice.
6. NOC from the landlord: A landlord’s No Objection Certificate (NOC) is required when a tenant (typically a company) who has leased property from the landlord intends to utilize the premises or a portion of it as a registered office.
7. NOC for leaving a job [issued by employer]: An employer expresses his or her consent of not having any issues with you (employee) leaving a particular job, by means of NOC for leaving a job. 
8. NOC for banking requirements: A NOC is a legal document provided by banks that provide house loans, such as IDFC FIRST Bank. The borrower has no outstanding debts to the lender, according to the NOC. The NOC has to be then submitted to the registrar of properties.
9. NOC cum experience certificate: NOC cum experience certificate is a legal document that consists of both a no objection clause as well as the clause providing the range of experiences the person serving a NOC holds. A NOC letter from the company to the employee shows your previous job experience and behavior as well. This certificate is issued as per the request of the person for his/her specific need. NOC shows no objection to a particular person and purpose. 
10. NOC for starting or leaving a course of study: NOC for the purpose of starting or leaving a course of study acts as consent from the part of the student who is availing the course to that of the institute from where the same is to be availed, 
11. NOC for attending a conference/event: This NOC is generally used to express your willingness towards attending a conference or an event. 
12. NOC for tour/visit: NOC for tour or visit is not a mandatory document but the same facilitates that you do not have any objection in carrying out the tour or the visit that you are about to make. This NOC holds relevance along with other important documents like your passport, ID proofs, photographs, and bank statements.

No objection certificate from the bank

It’s just as important to follow the proper procedures when applying for a home loan as it is to complete the essential home loan closing formalities. That is, if you have a home loan you must receive the NOC when the loan account is closed. The NOC for a house loan is a legal document that certifies that the borrower has paid all of his or her home loan EMIs as well as any other outstanding loan obligations.

No Objection Certificate for building construction 

In India, obtaining a No Objection Certificate from several agencies and government departments is required when building a house, an apartment complex, or any other project.

Certain types of buildings require a NOC from the fire department, according to the Development Control Regulations and the National Building Code, 2016. High-rise structures, for example, are structures that are 15 meters above ground level or have more than three floors. Before beginning construction, they must get a certificate of approval from the Director of the Fire Department.

The chief fire officer issues the No Objection Certificate once the building plan has been reviewed and approved by the sanctioning authority for construction.

No Objection Certificate from the mortgagee

Developers typically obtain funds for their projects by mortgaging them as a guarantee from banks and private financial institutions. In such instances, it is critical to request a No Objection Certificate from the developer. Once the NOC is received, the bank is unable to question the property transaction for a specific mortgaged project.

No Objection Certificate from the collector

In a few states, receiving the collector’s NOC prior to transferring the property is required. It applies in situations where corporations and development bodies lease their land to others. According to the lease documents, the lessor must notify the collector of any property transfers or mortgages and get a No Objection Certificate.

No Objection Certificate of court by the administrator

According to Section 307 of the Indian Succession Act of 1925, an administrator may not mortgage, sell, or swap any immovable property without the court’s authorization. Furthermore, the administrator is only allowed to lease these assets for a maximum of five years. A No Objection Certificate from any urban development authority or other pertinent authorities shall not be provided if a building breaches any of the construction rules. After stringent, transparent, and fair inspections, the authorities are anticipated to grant a NOC.

No Objection Certificate under Real Estate Regulatory Authority (RERA)

A developer or promoter must get prior written consent from two-thirds of the allottees before transferring or assigning rights and liabilities relating to a real estate projects, to a third party, according to Section 15 of the RERA. The RERA authorities will issue a comparable certificate if the allottees have granted the NOC.

No Objection Certificate for property use

When a tenant, generally a company, signs a lease agreement and plans to use the property as a registered office, the landlord must provide a No Objection Certificate (NOC). Before establishing the office, the company needs to first secure the NOC.

Landlords must provide a NOC declaring that they are happily renting out the premises to the company and that they have no objections to the company using the premises or a portion of them.

The format of the NOC letter should include information such as:

• The name of the property owner.
• The name of the company that is renting out the home.
• The property’s address.
• Date and location.
• The signature of the landlord, as well as his or her contact details

A No Objection Certificate is one of the most important legal documents to have when selling or buying a property. A NOC is granted to confirm that a structure does not infringe on an organization’s, agency’s, or institute’s terms and conditions. This article aimed towards highlighting very relevant aspects associated with NOC so as to provide a guideline for its readers

Tarini Mehta v/s Sanjeev Chhabra & Others

    CS(OS). No. 558 of 2013, IA. No. 14356 of 2017

    Decided On, 24 May 2018

    At, High Court of Delhi

    By, THE HONOURABLE MR. JUSTICE YOGESH KHANNA

    For the Plaintiff: A.K. Singla, Sr. Advocate, Rahul Shukla, Advocate. For the Defendants: D1, B.S. Maan, Smita Maan, D3 & D5, Warisha Farast, Suhail R Bhat, D6, Katyani, Mehak Rastogi, Advocates.

1. This application is under Order 39 Rule 1 and 2 CPC. One Goverdhan Lal Obhroi was the owner of the suit property admeasuring 1066 square yards bearing No.3A, Ring Road, Lajpat Nagar-IV, New Delhi by virtue of lease deed dated 22.06.1964 duly registered as document No.2638 in additional book No.1, Volume No.1119, page Nos.90-93 in the office of Sub Registrar, Delhi.

2. He executed a Will dated 27.06.1983 in which he gave lifetime interest to his wife Smt.Sharda Obhroi and after her death, created further life interest, in the estate, for his two daughters viz defendant Nos.3 & 6 herein, and only on the death of his daughters viz defendant Nos.3 & 6, the property would vest in the daughters of defendant Nos.3 & 6. The plaintiff being the daughter of defendant No.6 and defendants Nos.4 & 5 being the daughters of defendant No.3 were to acquire the property as absolute owners in the event of the demise of their mothers namely defendants No.3 & 6.

Raj Kumari Sharma vs Rajinder Nath Dewan And Ors. on 25 March, 1987

Equivalent citations: AIR 1987 Delhi 323, 1987 (13) DRJ 139

   It is unnecessary to deal separately with several cases cited at the Bar before the learned Single Judge and again before us on the question of the law of surrender by a widow, under strict. Hindu Law because of our view that Satyawati was given the life estate’ and not ‘the widow’s estate. As stated in Hindu Law by Mulla 15th Ed. Para 197, there can be a surrender of the estate by a widow in the circumstances stated therein and the cases relied upon. The principle upon which the whole transaction rests is the effacement of the widow an effacement which in other circumstances is effected by actual death or civil death-which opens the estate of the deceased husband to his next heirs at that date. Under the Will, she had no power to transfer the property in any manner whatsoever and, therefore, she could not relinquish or abandon her rights in the said property beyond her lifetime. We are unable to accept the argument of Mr. Arun Mohan that there is no principle of law or authority to be found which may take the view that a life estate holder has no power to surrender the same in favor of the remainderman. Reliance by the counsel on Rudra Pratap Singh & Anr. v. Mt. Umral Kunwar and Anr, Air 1918 Oudh 389 is misplaced. It. was merely stated there that transfer effected by the widow of her life interest in favor of the remainderman, operates as a surrender, accelerating the devolution in favor of the latter by relying on the decision in Behari Lul v. Madho Lal Ahir Guyawal 19 I. A 30 (PC). The latter case dealt with the surrender by the widow or other limited heir of the estate inherited by her under Hindu Law and not bequeathed to her as life estate’, under a Will. The surrender of her estate by a widow inherited under Hindu Law stands on a different footing. No reasoning is advanced for extending this principle in Rudra’s case. In this case, Smt. Satyawati had absolutely no right to surrender any right, title, and interest in any manner whatsoever, and in fact, she was prohibited from transferring the property. She had only a ‘”life estate” with limited rights to pass on the estate to legal heirs of the testator. There can be no surrender accelerating the devolution “in favor of the legal heirs of the testator” which is a gift to a cla.ss of persons to be ascertained later.”

REFERENCES:-

1. https://www.kaanoon.com/59131/noc-from-legal-heir-to-sell-property.
2. https://cleartax.in/s/no-objection-certificate-noc-format-download.
3. https://housing.com/news/no-objection-certificate/#:~:text=A%20no%20objection%20certificate%20from,mentioned%20in%

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