This article has been written by Oishika Banerji of Amity Law School, Kolkata. This article discusses the No Objection Certificate, a legal document that consists of information on property and is generally issued by a government or authorised institutes for the purpose of transfer of property.

It has been published by Rachit Garg.

Introduction 

When you claim you have no objection to anything, you’re saying you’re not upset or annoyed by it. For example, I’m not opposed to banks generating money or I no longer have any reservations about you seeing her. The No Objection Certificate (NOC) legally validates this saying. One of the documents required for the transfer of a property is a no-objection certificate from other legal heirs, as well as an affidavit. If any heir or claimant has received any consideration, in-kind or cash, for acquiring their share, it must be noted in the transfer paperwork. After the death of the person in whose name the property is registered, legal heirs must understand the method for obtaining ownership of the property. The procedure is simple in the presence of a will. If the property was inherited rather than self-acquired, legal heirs can also contest the will. In the absence of a will, however, the rule of succession takes effect. If a legal heir desires to relinquish his or her claim to a property portion, he or she must present a NOC in favour of family members who are also legal heirs, stating the same in the document. This article provides a discussion on NOC. 

No Objection Certificate (NOC) from legal heirs for property transfer 

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

new legal draft

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:

  1. Description of such property which will be sufficient to identify the property.
  2. The property’s existing and former occupancies.
  3. Houses in towns shall be described: 
  1. The direction in which the house is facing, 
  2. Numbers of the house or that of the street/road they are located in, 
  3. Name of the house or the land they are situated in. 
  4. 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. 

Purpose and process of application of a No Objection Certificate (NOC)

Land or property transfer refers to changes in ownership, and anytime someone buys a piece of land/immovable property, he or she must obtain authorization and register the transaction with the appropriate authority in order to ensure that he or she has legal ownership title. To transfer land or property, a NOC for the transfer of immovable property must be obtained from the authority, as required by Section 21 of the Registration Act 1908.

Obtaining a Certificate from the Circle Officer and submitting the application to the Deputy Commissioner’s Office is a part of the procedure. The NOC will be issued by the Deputy Commissioner. After receiving the NOC, the Applicant can proceed for Registration and then for Land Mutation.

Detailed procedure 

The four step procedure to get a No Objection Certificate has been detailed hereunder: 

  1. Drafting

Prepare the NOC draft in word format, a sample of which has been provided below.

  1. Stamp Paper

Buy Rs. 100 non-judicial e-stamp papers from a co-operative bank, court, or sub-registrar office near you. Following are the details required to buy a non-judicial e-stamp paper;

  • Applicant Name: Your name.
  • Description of Document: Affidavit.
  • First party name: your name.
  • Second-party name: Not applicable.
  • Purchased by: Your name.
  • Stamp duty: Rs. 100.
  • Contact No: Your contact number (though it will not be shown on stamp paper).
  • The fee for e-stamp paper is Rs. 100 (stamp duty).
  • Vendor processing fee Rs. 10.
  • The total cost is Rs. 110.
  1. Printing

Print the filled draft on non-judicial e-stamp paper.

  1. Notary
  • Carry the following documents to the notary public near you.
  • Printed NOC.
  • ID Proof (Preferably Aadhaar or passport for notary cross-verification).
  • The notary public reads the NOC and cross-verify the ID proofs.
  • Sign the NOC in front of the notary. Notary seals and signs the NOC. A notary makes an entry in a notary book. The notary charges around Rs. 50.

Documents required for getting a No Objection Certificate

  1. Court fee.
  2. Photograph of buyer and seller.
  3. Declaration of consideration. In case of flat value of both flat area and apportionment of land.
  4. Up to date revenue receipt (khajana rashid).
  5. Citizenship of purchaser (certified copy of voter list/passport etc)..
  6. Land patta (if available).
  7. Affidavit of buyer and seller or Power of Attorney holder.
  8. Photo ID of buyer and seller.
  9. Power of Attorney copy (if the seller is an Attorney Holder).
  10. Pattadar to submit affidavit in favour of POA Holder.
  11. Authority/NOC of Co-partner in case of flat.NOC from Co-pattadar.
  12. GMC/GMDA/Municipality/Town Committee receipt/occupancy certificate in case of flat.
  13. PAN/TAN Card.

Importance of a No Objection Certificate (NOC)

A NOC, in addition to showing that there are no objections, can also be submitted in a court of law and be used to prove your innocence if you find yourself in a legal labyrinth. Obtaining a NOC from your bank or lending institution, for example, once your home loan has been settled, will allow you to collect all of the property’s legal documentation without difficulty. A NOC can also aid in the removal of a lien on the property. A lien on your property means that the banks or lending institutions have a legal claim on it and the right to sell it until your obligations are paid off.

Use of a NOC in relation to the transfer of property 

A No Objection Certificate can be issued for various purposes. Mentioned below are some of the general purposes for which one might be asked to issue or obtain a NOC.

  1. For education/training (by an employee or student).
  2. For visa or immigration.
  3. For banking-related purposes.
  4. Issued by an employer to allow his/her employee to work with a different department, take different shifts, or change parameters of their contract.
  5. For remodeling or reconstruction of a property

A NOC for property transfer helps in the following: 

  1. Remove lien from your property.
  2. Improve your credit score.
  3. Get another loan.
  4. Sell your property.
  5. Get insurance claims, if any.

Important tips to be kept in mind while drafting a No Objection Certificate 

There are a few aspects that must be discussed and addressed in the letter, according to the widely used NOC format. Individuals must remember that a NOC must be written on the issuing organisation’s official letterhead. While understanding the essential components of a NOC is crucial, learning how to write one efficiently is also required. The following are some things to think about when creating a No Objection Certificate:

  1. Keep the letter brief and to the point.
  2. Use simple language and avoid using complicated words.
  3. Ensure that all pertinent information about a NOC format is put down.
  4. The No Objection Certificate should have a clear tone.
  5. It should be written on letterhead at all times.
  6. If you’re drafting a letter of authorization for a travel visa, make sure to include the length of your stay and the reason for your visit.

Common queries associated with NOC 

  1. Is it necessary to get a NOC from society for a gift deed for a property

You do not need to seek a NOC from the society to donate a property provided you have all the necessary paperwork to verify ownership.

  1. Is a NOC valid for life?

No, a NOC is only valid for six months after it is issued.

  1. How do I write a NOC for land?

You can simply indicate that you are willing to rent/sell your land and then go on to describe the property in detail.

  1. Is NOC required for company registration?

When a corporation leases a property for the purpose of utilizing it as a registered office, the landlord must provide a NOC letter. When registering for company registration, the NOC certificate must be given to the Registrar of Companies.

Importance of a NOC after closing your home loan

A No Objection Certificate (NOC) is a legal document issued by a mortgage lender or bank to a customer stating that the customer owes the lender no money. A NOC, also known as a “No Dues Certificate,” can be acquired from the lender once the loan has been fully paid off. A NOC also relinquishes the lender’s rights to the collateral.

How does NOC impact credit score

Many of us do not bother to get the NOC after totally paying off an outstanding loan due to ignorance. Few people realize that now that CIBIL is in effect, their credit score will almost always be used when they apply for a new loan. And if the closure of a previous loan has not been updated on CIBIL (due to your previous lender’s failure to send the information to CIBIL), your credit score will suffer. Then, and only then, does a NOC come to one’s rescue, as it is the only document that can prove that a previous loan has been returned.

Receiving your NOC

Even though all lenders are required to deliver the NOC to the customer via registered mail after the loan has been paid off, it is possible that the customer will not receive it due to delayed dispatch or a change of address. The absence of this simple document can result in a slew of complex issues. For example, obtaining the NOC with the essential property facts is critical in the case of a house loan. It should include the house address, the customer’s name, and the loan account number.

Misplacing your NOC

If you have a mortgage and your home is registered, you must submit a copy of your NOC to the registrar of properties to have the lien of hypothecation struck off; otherwise, the lender will remain the owner of the house and you will be unable to sell it. In addition, any unintentional losses and subsequent insurance claims will be paid to the lender rather than you. The lender will simply return the title deeds in the event of non-registered properties. 

What if you previously obtained a NOC but misplaced it and now require it? 

  • To begin, a FIR concerning the loss of the NOC is usually necessary. 
  • Then, using a copy of the FIR and all of the loan data, make a request to the lender.
  • However, obtaining a duplicate NOC may take some time and effort. 
  • Many lenders have made the format of the NOC available on their websites. 
  • Make sure the certificate includes the property’s information as well as the loan’s information.

NOC format

There are a few aspects that must be discussed and addressed in the letter, according to the widely used NOC format. Individuals must remember that a NOC must be written on the issuing organisation’s official letterhead. The elements of a NOC letter include:

  1. Name of the person in favour of.
  2. Name of the person issuing.
  3. Address/contact of the issuing authority.
  4. Date issued.
  5. Official signature.

A few NOC formats have been provided hereunder. These are general formats that are adopted but are subjected to the circumstances they are made in. Keeping the same in mind clauses are either added or eliminated from the certificate. 

How to write a NOC for property transfer

TO WHOM IT MAY CONCERN:

This is to certify that [NAME HERE], resident of [ADDRESS HERE], is the owner of [PROPERTY NAME HERE], situated at [ADDRESS HERE], with Property Identification Number [NUMBER HERE] and containing an area of 25,746 square metres.

Certified further is that [NAME OF ORGANISATION] interposes no objection to the NAME OF ORGANISATION HERE of the said property.

ISSUED this 18th day of September, 2020, as requested by [NAME HERE] in support of his/her application for [APPROVAL NAME PROCESS HERE].

Signature: ____________________________

Date: _________________________________

Now let us look at a sample format of a NOC from an owner for leasing out his/her premises:

TO WHOMSOEVER IT MAY CONCERN

I/We, _________, son/daughter of ________ do hereby state that,

  • I/We/am/are the legal owner/s of the premises situated at _____________ (hereinafter referred to as “the said premises”).
  • I/We have no objection in _______________ {Enter name} using the said premises as the registered office of the partnership firm/proprietorship/LLP/private limited company/ public company.

Date: _________         Signature _____________

Place: ________       (Owner).

NOC format for GST 

Here is the NOC Format for GST:

I, ______ (Name of the Owner), r/o _________ (Address) here by solemnly confirm and affirm that:

1. I am legally in possession of and the owner of the property bearing address __________.

2. That I have permitted M/s ________ (name of the tenant) represented by _______ for using the aforementioned property for _______ (residential/business/commercial) purpose.

3. I have no objection if M/s _________ (name of the tenant) apply for obtaining GST registration for the aforementioned property.

Verification

Verification at ______ (mention place)n on ________ (date) that the aforesaid statement is true and accurate to the best of my knowledge.

Deponent

NOC format for training/education 

To Whomsoever It May Concern

Date: __/__/22

To,

Address: [Optional]

This letter is in reference to Mr/Ms/Mrs. _______________________ who has been a

sincere employee/student at __________________________ in the capacity of

______________________/ of course _________________________. He/She has

consistently shown academic/professional expertise since the day of joining/start of

course ___<xx/xx/xxxx>__________.

He/she is hereby allowed participation for the full duration of course/ training at ______________________.

Contact for any inquiries.

Sincerely,

[Signature][Name of Supervisor/ Head of Department][Designation][Organisation Address][Contact Number]

NOC format for leaving a job 

To Whomsoever It May Concern

Date: __/__/22

To,

Address: [Optional]

This is to certify that Mr/Ms/Mrs. _______________________ has been relieved of his duties and responsibilities as a ______________________ at ____________________________ on his request. We are grateful for services and wish him luck for his future endeavours.

Contact for any inquiries.

Sincerely,

[Signature][Name of Supervisor][Designation][Organisation Address][Contact Number]

Sample letter for Bank NOC

Date ___________

Branch manager,

Name of the Bank

Name of the Branch

Subject: Letter to Bank for NOC

Respected Sir,

I Name an Account holder at this bank with Account Number 1230xxx request you to issue no objection certificate against my particulars. I request you to proceed with the same as earliest as possible as the document needs to be submitted at my new office to begin the process of salary transactions.

Thank you

Sincerely,

XYZ

xxxxxxxxxx

Various types of NOC’s in India 

The common types of NOC’s that are used in India are provided hereunder:

  1. NOC for property transfer: To transfer land or property one has to obtain NOC for 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 favourable testimony by one entity in favour 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 fulfil. 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 utilising 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 utilise 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 an NOC holds. A NOC letter from the company to the employee shows your previous job experience and behaviour as well. This certificate is issued as per the request of the person for his/her specific need. NOC shows no objection for 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.

What is a 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 real estate project, 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.

Conclusion

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 an organisation’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. 

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%20the%20transfer%20papers.

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