during pendency of loan no NOC can be issued by society
2) it can be issued subject to obtaining no due certificate from bank that granted loan
(1) Can NoC be issued for a property(flat) that has been mortgaged to a bank (for availing a loan)? Can Society refuse to issue NoC? (2) If Society decides to issue NoC, should this loan be mentioned? (3) Would it be wrong, if Society issues NoC without mentioning the loan/mortgage on the Flat? Greatly appreciate the responses on [deleted] ...... Regards
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If the NoC from Coop Society is required by the flat-owner for taking 'Solvency Certificate', what are the precautions that Society should take before issuing NoC for a flat that is mortgaged?
during pendency of loan no NOC can be issued by society
2) it can be issued subject to obtaining no due certificate from bank that granted loan
1. Yes the society can refuse
2. Yes, the loan should be mentioned in the NOC as well.
3. Yes, the person getting the NOC might misuse the same.
Regards
Hi,
Loan or mortgaged property doesn't come under purview of Co-operative housing Society, it is a personal matter of owner of the flat or seller. Society can issue an NOC if no dues (regarding maintenance of the seller/owner of the flat) is pending. Mortgaged property is an issue between seller and buyer of the property. Without clearing the bank Loan, by the seller, the transfer of property is not possible as Banks keep the original documents of the flat against which the loan is issued. A Co-op Soc. can not issue NOC to flat owners for the purpose of "solvency Certificate", it is beyond the authority of Co-op Soc. The flat owner must clear the loan obtained against the flat if he wishes to sell the flat mortgaged by the bank.
See loan and mortgage is bank affair not the society.
See loan and mortgage is bank affair not the society.
Yes, but what is the need of NOC, all the buyer need is no dues from society.
Society has nothing to do with bank loan.
NOC is issued that no charges are due to society.
About bank loan , you will have to inform the buyer. Society has no say in this.
If the society is not having any encumbrances upon the flat (this means if all dues of society are paid), the society is bound to give NOC
it will not be a NOC
it will simply be a statement on society letterhead stating that so and so member owns a flat in society premises which has been mortgaged with so and so bank
society does not incur any liability by issuing above letter
1. IF the Flat is already mortgaged to a Bank and the Society has marked lien on its records, THEN it would be a criminal offence, IF the Society issues any NOC for further Loan or whatever, and the Society Office Bearers would be liable for criminal prosecution.
2. However, Society can issue NOC for Loan Topup from the same earlier lending bank, subject to getting a consent letter from this lending bank.
This is my response to you:
1. More importantly you will require NOC of the bank since the property is mortgaged therein;
2. From where do you plan to procure the 'Solvency Certificate'? Is it a bank?
3. If the NOC of society is required then special clause can be mentioned in the same about the mortgage;
4. Consult a local lawyer, discuss full facts and take steps.
Once a flat is mortgaged to bank for the purposes of home loan, it cannot be alienated or without the permission of the bank.
Hence the society might have declined to issue NOC.
If the society is giving NOC (what is the reason), it may mention about the existing loan on the property because the society would have given NOC while availing the bank loan earlier.
Whether it would be wrong or right to issue NOC without or with a mention about the existing loan on the proeprty is not a legal issue and ther is no bye laws also on it, it is purely on the basis of some standard being maintained by the society or on any standard procedures they have been following on such types of issues.
For the purposes of solvency certificate there is nothing wrong in society issuing the NOC with a mention that this NOC is issued for the purpose of solvency certificate alone and ther exists a mortgage loan on it.
Such an endorsement will not make any difference to the NOC now furnished by the society.
Society will not issue NOC certificate if flat is mortgage with bank because unless n until loan is paid or bank manager tells to issue NOC than only society can issue otherwise not.