• NOC by coop housing society

(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
Asked 5 years ago in Property Law
Religion: Hindu

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17 Answers

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 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

Hi,

It is suggested to incorporate and include all relevant facts such as loan amount, EMI etc. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

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 

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

Take an affidavit from the said person

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

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.  

Rajni Sinha
Advocate, Mumbai
425 Answers
39 Consultations

4.6 on 5.0

1. NOC cannot be subjected to bank noc.if there.is no dues.from.there side.can issue a NOC.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

See loan and mortgage is bank affair not the society.


See loan and mortgage is bank affair not the society.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

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.

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

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

Netra Mohanchandra Pant
Advocate, Navi Mumbai
1545 Answers
5 Consultations

4.4 on 5.0

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

Yusuf Rampurawala
Advocate, Mumbai
7483 Answers
79 Consultations

5.0 on 5.0

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.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

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.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

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.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

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.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

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.

 

Ganesh Kadam
Advocate, Pune
12910 Answers
253 Consultations

4.9 on 5.0

If society has knowledge of the mortgage it has to issue noc after mentioning the same

Prashant Nayak
Advocate, Mumbai
31804 Answers
175 Consultations

4.1 on 5.0

Dear Client 

  1. NOC can be issued by society if they don't have knowledge about the bank loan
  2. Yes if society have knowledge of loan then it should be mentioned on NOC. 
  3. It would be wrong if society issue NOC without mentioning about the loan. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

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