• Is NOC required to resale flat while society is not formed?

Hi, I am holding a flat in Pune. A possession was given before 4 years, but builder has not formed a society yet. I want to sale my flat and don't want to wait for society to be formed as no one knows how long it may take.
My builder asks 50,000 cash in order to provide NOC to buyer. My questions are,
1) Is NOC required to resale flat in this case?
2) What if NOC is not obtained if buyer doesn't want to take home loan?
3) Can any legal action be taken if the demand of builder is illegal?
Asked 5 years ago in Property Law
Religion: Other

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16 Answers

Dear Sir,

If you are in Maharashtra and if a co-operative housing society is formed you have to get NOC from the Society. If the Society refuses NOC, it has to give valid reason for the same. Sometime societies refuse NOC without valid reason. In such cases if the aggrieved member complains to the registrar, he will ask the Society to give reason for refusal. If no valid reason is given the registrar can order the transferee admitted as a member.  In your case the society is yet to be formed. I suggest that you apply to the builder to give NOC. If the builder refuses NOC without valid reason, you file a complaint before the consumer court under "Unfair Trade Practice" by the builder. The consumer court will decide the case on merit


Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

1) If buyer doesn't want home loan than NOC is not required you can directly go fro sale deed with other documents.

Ganesh Kadam
Advocate, Pune
12932 Answers
256 Consultations

4.9 on 5.0

builder consent is not necessary to sell the flat on resale basis 

 

2) refuse to pay RS 50,000 cash demanded by builder 

 

3) issue legal notice to builder to form society as required under provisions of maharashtra ownership of flats act 

Ajay Sethi
Advocate, Mumbai
94910 Answers
7570 Consultations

5.0 on 5.0

1. No builder can include a cause whereby his consent would be required for re selling the fat. Even if it is there and you have your sale deed registered in your name then you can proceed to sell the flat without his NOC as if there is no such restrictions is there.

2. To take home loan NOC of builder is never mandatory .

3.Do not agree on such proposal. 

Devajyoti Barman
Advocate, Kolkata
22865 Answers
492 Consultations

5.0 on 5.0

you dont need lawyer to file case before consumer forum 

 

2) take the plea that once builder has sold flat  by registered sale deed he does not have any right , title , interest in flat his NOC is not required for sale of flat but builder is demanding Rs 50000 cash as transfer charges 

Ajay Sethi
Advocate, Mumbai
94910 Answers
7570 Consultations

5.0 on 5.0

1) You can file case in consumer forum and RERA. All of the members can file case in the RERA against builders for CC and OC and get society handover as early as possible and formed first proposed society.

 

2) Once all member formed proposed society and tale possession of the society than builder does not have much rights except the title transfer from builder's name to society name i.e. Conveyance deed.

Ganesh Kadam
Advocate, Pune
12932 Answers
256 Consultations

4.9 on 5.0

He can't demand such a huge amount for NOC. You don't require NOC from builder. You can approach Consumer Court against the Builder.

Prashant Nayak
Advocate, Mumbai
32059 Answers
183 Consultations

4.1 on 5.0

The builder needs to cooperate and render all necessary support for the formation of RWA. The builder is mandated to do so in terms of the Maharasthra Apartments Act. 

1. No need of of NOC from the builder, as a pre-requisite of sale. 

2. No need of NOC.

3. Approach consumer court. 

Vibhanshu Srivastava
Advocate, Lucknow
9622 Answers
303 Consultations

5.0 on 5.0

No necessary for you to engage a lawyer. You can represent your case yourself in the present case 

Vibhanshu Srivastava
Advocate, Lucknow
9622 Answers
303 Consultations

5.0 on 5.0

1. Builder's demand is completely illegal

2. the transfer fee which he is demanding in cash would have been applicable if the possession of the flat was not given to you and before taking possession you wished to transfer the flat to a third party

3. only in above case the builder's NOC would be required so that he would recognise the third party buyer as the person to whom the possession of the flat would be given

4. your case is completely different though. You already have the possession of the flat and the flat is allotted to you on ownership basis

5. so no question whatsoever of taking the builder's NOC or paying him any transfer fee

6. you can simply sell the flat to the buyer and the builder cannot take any legal action at all

7. to the contrary you and other buyers must take legal action against the builder for not having formed society as per law and also for not having conveyed the land and building to such society. This is a clear violation of MOFA for which the builder can be sent to jail 

 

Yusuf Rampurawala
Advocate, Mumbai
7536 Answers
79 Consultations

5.0 on 5.0

No NOC required , You are absolute owner to sell.

Yogendra Singh Rajawat
Advocate, Jaipur
22669 Answers
31 Consultations

4.4 on 5.0

If you purchased the flat from the builder with paying full consideration and the sale deed is registered in your favour, then no NOC is required to sell the property now. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

you can file a case in consumer court in India without the help of a lawyer. Mind, however, that you must be aware of and follow the procedure and stage of a consumer court case 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

The NOC will be given by the builder.

The charges cannot be more than 25000.

The charges for NOC by builder is not out of law and there is no illegality in it. 

T Kalaiselvan
Advocate, Vellore
85112 Answers
2215 Consultations

5.0 on 5.0

You may not be able to make a complaint against him before consumer forum for this reason. 

You may discuss with a local lawyer and first issue a legal notice and after that you can plan further legal action against the builder. 

T Kalaiselvan
Advocate, Vellore
85112 Answers
2215 Consultations

5.0 on 5.0

1. IF your agreement is duly registered & Stamp Duty paid, THEN builders NOC or any other document is not required, at all. Such demand by builder is illegal and amounts to criminal extortion.

2. Based on your earlier registered Sale Deed, you can sell /transfer /gift /mortgage /whatever and it will be 100% legitimate, without the builders involvement.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

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