Dear Sir, I have intended to sell my flat, which is in Malad west. I have booked a bigger flat in Malad west. I have given an application on 8th July 2019,to the Hon. Secretary of our society to give a zerox copy of property tax bill and NOC, regarding any dues from the Society. As per new model byelaws, NOC is not mandatory for sale deed, but my buyer insisting for the same. As I have taken Rs 500000 lakhs as token, I requested the Society to give NOC, as early as possible Also I have given a token money of Rs 100000 as a initial booking amount for the house I have booked in Malad-west. At this juncture, I would like to bring to your kind attention that our society went for redevelopment following 79 A procedure of MCS ACT 1960 in the year February 2013.We have signed the DA agreement and POA, to the developer. But some members of the society were against this developer and filed the case in HON. HIGH COURT, Mumbai. The matter is still under subjuidice. I was actively involved in redevelopment and I am one of the signatory to the development agreement. The developer has spent spent more than 1 cr, towards redevelipment Because of the delay in redevelopment some of the members fro side, revoked the consent to the developer. Hence MC had to dissolve and to call for the election. The members who opposed the redevelopment has come as committee members. Hence the MC, is demanding indemnity bond to indemnify any loss arising out of builder withdrawing from the redevelopment process. To my knowledge no where it is mentioned in the development agreement that the loss due to the stalling of redevelopment shall be borne by a indivial member, when the opposition members who are in the MC, is only responsible for the of todays sorry state of affairs of our society. Besides MC, has written in the reply letter that they would send me the draft of the indemnity bond. I have send another letter to send me the draft, so that I can have a legal opinion from the experts like you people. Since then 25 days have passed, MC intention is not clear. I am afraid I may lose the deal of selling my flat as well as to lose the flat, which I have booked, as the dead line is 20th of this month. (I have to pay 10% of the agreement amount which comes to around Rs 17 lakhs. I would request you to give your advice on the above issue, so that I can put some pressure to the MC, to get NOC. I will pay the legal fees. Kindly do the needful. Thanking you Yours sincerely R. Sampath Mob: [deleted] .
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1) you don’t need NOC from society for sale of flat
2) you can execute indemnity bond in favour of purchaser to indemnify him in case any claims are made by third parties
3) no need to execute indemnity bond in favour of society to indemnify society against loss caused to society due to builder withdrawing from redevelopment
4) complain to deputy registrar against society refusal to give NOC and insistence of furnishing indemnity bond
They can't take such kind of indemnity bond from you it's totally illegal. As per the model bye laws society has to reply to you within 30 days from your application of Noc that why they are not intended to give you the same. You can complaint to day registrar about the same
Inform the buyer that NOC is not required. Give an undertaking to the buyer that you will take all efforts to collect NOC from the society and shall be responsible for any loss if any occurred due to this.
If the buyer cancel the deal you can either forfeit the token money or enforce the performance by court order.
Society members can not be held responsible personally for any action taken by them unless the any part of the proceedings gone out of rules and regulations of the society or law.
All members are liable to face the consequences of any action of the society taken in good faith and within legal framework.
1. The situation at your present society really a messy one and unless your purchaser is ready to go away with the NOC you may very well loose the deal.
2. So forget this deal and try to protect your existing interest in the property owned by you.
3. The demand of Indemnity Bond by the new MC is certainly without any basis of law ans hence it is not binding upon you. Lodge complaint with the Registrar to nullify the action f the present MC as regards the indemnity bond issue.
4. Pursue the case in HC so the dispute ends soon.
Dear Sir,
The following information may kindly be read:
It will not be mandatory for flat-owners and housing society residents to get NOCfrom builders while selling or transferring their property, Maharashtra Chief Minister Prithviraj Chavan has said.
"There is no need for flat owners to seek NOC from builders before sale or re-sale of flats. There is no such provision in the Maharashtra Ownership of Flats Act (MOFA)," he said.
Chavan has said such illegal activities of pressurising flat-owners to seek NOC must be stopped.
The decision has been taken following complaints received by the chief minister about flat owners being prevented from sale or re-sale of their flats on ground that an NOC from builders is required.
It was also brought to Chavan's notice that after the building is constructed, formation of co-operative housing society and conveyance deed (transferring the land on which the building stands) to the housing society, is delayed.
Builders fleece flat-owners by demanding charges per square feet for transfer of flats and NOC for re-sale.
Flat-owners should bring to the notice of the government instances of government offices or officers asking for an NOC during sale or re-sale of flats. Flat-owners in buildings where the conveyance deeds have not been effected should get in touch with district authorities, Chavan said.
i think you should check the DA for a clause which states that if any society member intends to sell his flat then the builder will have a right of 'first refusal' - meaning the member must first offer his flat for sale to the builder and only if he refuses can the member sell it to any other person of his choice
such clause is usually there in a DA because after signing of the DA and POA, the builder has to take various steps for the redevelopment work and spends funds for the same
if the members sell their flats in between then the purchaser of the outgoing member may raise issues against the redevelopment which would halt the redevelopment work
the DA is signed with the builder only after majority society members give their consent for redevelopment in a general body meeting and the society passes a resolution to that effect
you being a consenting member [since you are a signatory to the DA] then cannot sell the flat to any third party unless you first offer it to the builder for purchase
your buyer may create issues with the builder on any redevelopment aspect and may withhold his consent
in such a case the builder would be in jeopardy as the requisite % of consenting members may reduce
this becomes important moreso when certain members have already withdrawn their consents unilaterally and have filed a court case against the builder
so the builder's woes would increase further
as per the Transfer of Property of Act, the seller is liable to co-operate with the buyer with regard to any due diligence that the buyer wishes to do to ascertain the clear and marketable title of the seller to the property being sold - this does not mean that the buyer can demand something which is not required by law - so i do not understand the apprehension of your buyer why he is insisting for the society NOC for sale - and neither are you obliged to provide such NOC
However i understand the apprehension of the MC that the member should give an indemnity to ensure that the builder does not pull out from the project - but even such indemnity would not be of much avail to the society since the outgoing member, after having sold his flat, would be least interested with the society affairs and the redevelopment. Yes if such a indemnity is being asked from your buyer then the society can enforce it against such buyer in the event he does not consent to the redevelopment by the builder who is already appointed
nothing stops you from selling your flat to the buyer. there is no legal requirement for any NOC for sale from society. So i do not understand how any pressure can be exerted on the MC for issuance of such NOC. In this case i think it is not the MC which is delaying the sale transaction but it is your buyer himself who is unnecessarily insisting for a sale NOC when there is no requirement for it in law
Why are you bothering, give them indemnity and once NOC is released, revoked it by sending legal notice. Otherwise also, for third party act, I B is not valid.
Can also complain to registrar.
if you want the deal to happen you should give indemnity bond to MC that if there would be any loss due to halting of redevelopment the you are ready to bear the share of loss as equal to other society members.
You can issue a legal notice through your advocate to the society demanding NOC while making a mention that they have been dodging the issue of NOC on one or the other flimsy ground.
You can mention in the legal notice that they will be dragged to consumer court seeking relief and remedy including compensation for the mental agony cause due to this.
This may invoke some response.
