The homeloan condition is nothing to do with MC. It's banks headache. They can't issue such conditional noc
What kind of NoC is required from Society if my flat is on Home Loan (but no pending dues)
I want to sell my flat that is under home loan. I require the NoC in normal format to submit at the time of registration. The Managing Committee (M.C.) of my society is saying they can issue a NoC with a line at the end that says, "the NOC is only valid after the home loan is paid/closed". Q1) Can the M.C. issue a normal NOC for me (for registration) without the "Home Loan" line added in the NOC? Q2) Should the M.C. be bothered about my home loan OR do they only have to see if I have any pending dues (which I don't) with regards to the society?
Asked 3 years ago in Property Law
Religion: Christian
13 Answers
The buyer of my house is also taking the loan from the same bank. The bank (HDFC Ltd) is aware of this 'transfer' but they have asked for 'Agreement copy' and 'Registration copy' post registration to proceed further with the disbursement and simultaneously closing my current loan Q) Will/Should the Registrar office have any issue if they see a NOC with a line at the end that says/talks about Home Loan pending?
Asked 3 years ago
Since your flat is mortgaged to bank and intimation given to society not to permit transfer of flat unless loan is paid society has to mention about home loan in NOC
it cannot issue normal NOC to you
If buyer is taking home loan from HDFC. The. Loan can be transferred in name of buyer
furnish documents sought by bank
you should not face any problems in registration
No NOC is needed in the first place
How is the MC even concerned with the pending home loan
If the loan is not repaid the flat will be auctioned
Society's premises will not be touched
So the NOC given by the society is completely misconceived
Why is the society speaking and acting for the bank ?
If the bank has no issues with the transfer and has given am implied NOC then how is the society even concerned
Society cannot stop someone from selling his flat only after the entire home loan is repaid
It's obvious that the pending loan will be taken over by the purchaser who will step into the shoes of the member
The society's act is therefore completely illegal
1. Firstly you cannot transfer the property to the buyer by executing a registered sale deed without discharging the loan amount in full, the bank will object to this and the registrar may not entertain your request for registration. Hence the society is right in mentioning that the NOC is issued towards home loan purpose alone.
2. Since you have already obtained NOC to be issued to bank for home loan purpose or the there is an entry in the society records that the home loan is persisting on your property, the society may not go beyond this in respect of giving the NOC.
If the property is under home mortgage loan, the registrar would not entertain registration of sale deed from you until and unless the bank is cancelling the registration entry of the mortgage loan on your name.
It may be your property but once you have obtained a home loan against the proeprty, the bank becomes the owner till such time you clear or discharge the entire loan, therefore the registrar will not entertain any application for registration from a person who do not have title to the property.
- A home buyer should take an NOC from the society before selling his home, because this certifies that there are no dues on the society by the seller, and it also proof that the respective society association will not refuse your induction as a member.
- Further a NOC also needed for availing a loan from a bank or any other financial institution, and also a purchaser some times required the same.
- Further, the society is having no right to ask for the details of banking loan taken by the members as on default the society will not be responsible.
- Hence, the society should simply issue an NOC after mentioning that society not having any due to maintenance etc. towards the said member.
- If the bank is ready to sanctioned loan in the name of buyer then society having no role to dictate its rules and interfere into the same.
Hello,
- The NoC that the MC is issuing is the normal one. The one liner that comes with the condition is not of any consequences for the purpose of Registration.
- The fact that the same bank is providing the loan for the purchaser makes it easier as any one that should have any objection in the bank in the given situation.
Dear Sir,
The buyer should take an NOC from the society before selling his home, as it certifies that there are no dues on the society by the seller,
And NOC also serves as proof that the respective society association will not refuse your induction as a member. Also, NOC is required for availing a loan from a bank or any other financial institution, and also a purchaser sometimes required the same.
Society has no right to ask for the details of banking loan taken by the members Hence, the society should simply issue a NOC after mentioning that society not having any due to maintenance etc. towards the said member.
If the bank is ready to sanctioned loan in the name of buyer then society having no role to dictate its rules and interfere into the same.
Thank you
Does the registrar office go ahead with the registration if they see the Agreement (and NoC) where it mentions "There is a pending home loan (HDFC Ltd) on the flat to be sold, but will be transferred/closed post registration". Because my buyer is also taking a loan from HDFC Ltd, more like a loan transfer. Q) Does the registration office reject such a document if they see there is a home loan pending on it? OR they are not concerned with this aspect as far as all other things are in place? (Note: my originals are with the bank, they will be internally transferred)
Asked 3 years ago
Since it is internal loan transfer from HDFC registration would not be rejected
Until and unless the persisting encumbrance on a property is not cleared, the registrar may not entertain another registration on the same property.
The bank cannot transfer the property documents to the other bank directly without you having received it, hence you have to obtain the property documents, get the property registered on the prospective buyer's name after which the new bank which is granting home loan would require the buyer to produce the new registered sale deed to be deposit with them for the purpose of collateral for the home loan.
Dear Client,
The Registrar Office may allow registration of such property with pending home lean if they can verify the NoC provided by the Bank.
Thank you.
It will require an NoC as stated