One of the most important practices during the property purchase is called due diligence wherein the buyer of the property checks through the authenticity of the property. The buyer checks through the various documents and other facilities before taking over the property completely to make sure that the property is delivered as promised. Cross-checking and verifying the documents is one of the most important stages of home buying.

While checking through the various important documentation such as the Title Deed, Commencement Certificate, and Sale Agreement, it is important to cross-check and verify that no encumbrances are pending on the property. To ensure that there are no liabilities on the property it is important to acquire the no-objection certificate from different organizations, institutions, and agencies. The NOC needs to be acquired to avoid legal complications in the future.

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What you should know about the No Objection Certificate while investing?

Before carrying forward the plans of carrying out construction works on the property, the developers must attain a No Objection Certificate from about 19 departments. This may include various public service departments such as water, electricity, environment, etc. The developer or the builder of the project can start with the construction works only after they receive all these clearances.

Thus it can also be stated that acquiring the No Objection Certificate is more important to the real estate developers than the buyers of the property. This is also one reason why the real estate developers have been arguing for a single-window clearance as obtaining clearance from multiple windows may be time-consuming and thus resulting in project delays.

The developer of the property is also required to produce a commencement certificate along with the possession and occupancy certificate to the buyers. The commencement certificate is granted to the developers only after obtaining the requisite approvals. All the NOC collected from different authorities needs to be submitted with the local authority to issue the commencement certificate.

While purchasing a resale property the buyer should exercise extra caution and ensure that he collects the no-objection certificate from the society. This may not be necessary, however is important to ensure that no dues are pending on the property by the seller. This document can also help the new buyer in his induction as a member of the Residents Welfare Association.

Is NOC important in the case of home loan considerations?

If the seller of the property has acquired a home loan or any other kind of loan pledging the property, the seller must obtain a no-objection certificate while making the transfer of the property. The NOC may be required in certain other circumstances as well. One such instance is wherein the builder of the property has taken a loan keeping the property as a guarantee.

You may also require a No Objection Certificate from the bank in cases wherein you are closing your loan or transferring your loan to another bank. The No Objection Certificate so granted declares or states that the person in whose name the certificate is issued, has fully paid up all the remaining dues and that there is no sum outstanding.

The No Objection Certificate for the home credit loan contains important information such as your name, your loan account number, the address of your property, and the date of loan closure, along with the other details and is issued by the lender. The No Objection Certificate also contains a statement that declares that the lender has no collateral rights vested in the property and that the property is transferred back to its owner.

The No Objection Certificate is generally delivered to the person’s house and in circumstances wherein you prefer to receive in person, you may do so as well. Getting a No Objection Certificate on your home loan may be important as:

  • It may be important for improving your credit score.
  • It is also important as it helps you to ensure that the lender of the loan has recorded and acknowledged the repayment of the loan.
  • It also acts as proof of repayment of your loan and also makes it easy to avail of a home loan in the future.

How do you check and verify the authenticity of the no objection provided to him?

As already stated a No Objection Certificate needs to be obtained from various institutions, organizations, and agencies. The buyer may check and verify the authenticity of the objection certificate by following the following processes:

  • Make sure that you receive a personalized no objection certificate from the builder or developer of the housing project. The No Objection Certificate must contain details of your name and address along with the details of the developer and the property.
  • In cases wherein the amount is pending on the property, ensure to collect a no-objection certificate in which the details of the pending amount and the amount paid is to be mentioned by the seller or developer.
  • In circumstances wherein no amount is pending on the property or no liability exists against the property, it is recommended that you obtain a certificate that declares the same.
  • You may also employ a real estate agent or a property lawyer to help and carry out the activities of due diligence wherein you check through the various documents of the property.

Conclusion

Summing up, it is to be stated that the No Objection Certificate is an important document that needs to be acquired and kept safely even after the purchase of the property is completed. The importance of the no-objection certificate arises because the certificate declares that the property is free from any liabilities and that no one else has any form of collateral interest vested in the property.

The certificate needs to be acquired from different institutions, agencies, and organizations as prescribed by the law. It is more important to obtain a no-objection certificate to the builder or developer than the buyer of the property.