See society can issue conditional NOC stating that there is no.right of other person and you have entered into agreement so once sale deed is done and submitted.to society they will transfer flat and fee for same is paid.

No bank will disburse funds unless NOC is issued by society for transfer of flat 

2) contention of seller that bank disburse funds then only NOC will be issued is unreasonable 

What bank is saying is correct. 

For disbursement of cheque bank require few papers 

• Society NOC
• Ask seller to take copy of society NOC and submit in bank and at same time take disbursement cheque. 
• Is this ICICI Bank
• Ask bank manager to do formalities of disbursement of cheque at a same time when seller will submit NOC and bank usually issues cheque to seller only

1. The demand of the seller has is unjustified and is without any basis.

2. The issuance of NOC by society n the asking of seller does not hamper his title in the property as ling as he on receipt of full consideration money does not execute and register a deed of sale.

3. So ask your seller to send such letter to society. Elise you will have to cancel this deal. 

There are no hard and fast rules in such procedures.

The bank would like to be safe on their part hence they insist on NOC.

The seller is hit by ego hence he insists on disbursement so that he can issue letter to society for NOC.

The society is simply following the bye laws in this regard that it can give NOC only after the seller is issuing a letter.

Thus all these three people are not affected by such ego clash or formality jargon or lack of understanding.

If the things are not coming under any control and the atmosphere is not conducive, you may think about cancelling the proposal to purchase the property also and ask for refund of the amount so far paid.

Sellee can apply noc.  He doesn't need bank approval in the same.  If the bank loan doesn't materialse noc is of no use. 

After issuing NOC by society,bank would disburse funds. 

No objection certificate required by the bank is justified as they do not want any disputes after the disbursal of loan and to protect their interest which is a usual practice. You should ask the seller to meet the branch manager once to clarify his doubts or to consult his advocate.

If the seller doesnt issue NOC, you would have to terminate this deal as no Bank would give you a loan without NOC from the society. 

Seller is right

Unless full payment is made to him, how can he give the letter to society requesting transfer to your name 

Here the bank is at fault. Society NOC is not even required

Cannot understand why it needs a society NOC

These banks come up with their own arbitrary procedures which puts all to inconvenience and hardship

Had you been a seller would you give consent for transfer to name of your buyer without full payment being made to you?

That is common sense which these stupid banks fail to understand leaving the hapless borrower to find out ways to overcome their stupid procedures 

Request the seller to request the society to state the following on its letterhead -

'This is to state that so and so is a member of our society and holding flat so and so and the shares so and so attached to the same, in society records. The member has paid all dues of the society in respect of his flat upto date and there are no outstanding dues from the member to society. The society has received application from member to transfer the flat and shares thereto in the name of so and so pursuant to the registered agreement for sale executed between the member and his buyer, whose copy is also given to society along with the transfer application. The society will consider the said application in its upcoming meeting to be held on ______ and resolve to transfer the flat and shares to the said _____ as per law.'

This would suffice for time being for the purpose of the stupid requirement of the bank

For sale of property, name trasfer dose not require, it is seller who will arrange NOC from society for you and he only responsible to pay trasfer charges. Name will trasfer only after registration of sale deed and society has no option except to change name.

Drop the deal if seller is not cooperating. Why you are getting wiling, this way you will face lose. Actually you have not fixed the deal properly. It is only seller who arranges NOC.

Ans Bank will not proceed without NOC or rare chance.

1. The process has not been understood properly which has created this problem. It is not at all a catch 22 situation.

2. the seller shall have to issue a letter to the Society informing that he is proposing to sell his property to you for which the Society may please issue a NOC. Such NOC is sought to ensure that there is no huge outstanding of maintenance left unpaid or there are no multiple claimants of the ownership  of the property.

3. It is simply the NOC which will be required from the Socety and no transfer charge etc shall have to be paid at this juncture which will be paid only at te time of transferring the name in the records of the Soceity.

4. The Bank will diusburse the loan based on the NOC issued by the Society.

5. Once the loan is disbursed and sale deed is registered, the seller will write to the Society to transfer the membership of the society in your name for which you shall have to pay the said transfer charge.

6. Obtain the NOC from the Society and approach the Bank for the loan.

Dear client 

In this case you should ask bank to issue loan sanction letter in name of seller in which they will mention that as and when they will get the NOC from society they will do disbursement of money in maximum two days on your name. 

It will satisfy the seller and he will agree to give the letter to society regarding sale of the flat. 

The seller is a private party and hence there should be no difficulty in getting a noc from him. In any case even if the transaction does not happen then too....he does not stand to lose anything by issuing a noc.

File an application to the registrar cooperative society.

Regards