What is a no-objection certificate (NOC) and why is it important?

Property buyers would definitely hear about the various no-objection certificates (NOCs) that they will have to arrange or ask the builder/seller to produce, during their house-purchase journey. NOCs are legal documents that are issued by government bodies and financial institutions, to state certain facts about the property. An NOC is a clarification that there is no legal hassle that will spring up, if the deal/transaction/business takes place.

When is an NOC issued?

For example, an employer issues an NOC to tell your new employer that they do not have objection to you joining another firm or for your travel Visa. An employee may issue an NOC to clarify that he/she has no objection to their salary being reduced for a valid reason. Similarly, a landlord or tenant may also require an NOC. A property buyer requires an NOC from the authority or a previous owner, to ensure that there are no legal tangles/encroachments attached to the property in question. In short, an NOC is sought or issued while you make an offer, or a business deal, or are involved in a transaction.

See also: What is an encumbrance certificate?

Why is an NOC important?

Besides establishing that there is no objection, an NOC can also be produced in a court of law and can be used to prove your innocence, if you happen to be caught up in a legal tangle.

For example, obtaining an NOC from your bank or lending institution, once the home loan is repaid, will enable you to collect all the legal documents of the property without any hassle. An NOC will also help in getting a lien on property removed, thereby, helping you to improve your credit score. A lien on property means that the banks or lending institutions have a legal claim on your property and the right to sell the property until you pay off your debts.

The NOC is an important document that allows financial institutions that you would deal with in the future, to get a clear picture about your financial health. For example, if you decide to avail of a personal loan and use your home as collateral and you do not have the no-objection certificate from your previous lender for the closure of a home loan, in such a situation, the application for the personal loan may be rejected.

What does an NOC contain?

An NOC consists of the basic details of the parties involved and is addressed to whomsoever it concerns.

Sample and format of an NOC

TO WHOM IT MAY CONCERN:

This is to certify that [NAME HERE], resident of [ADDRESS HERE], is the owner of [PROPERTY NAME HERE], situated at [ADDRESS HERE], with Property Identification Number [NUMBER HERE] and containing an area of 25,746 square meters.

Certified further is that [NAME OF ORGANIZATION] interposes no objection to the NAME OF ORGANIZATION HERE of the said property.

ISSUED this 18th day of September, 2020, as requested by [NAME HERE] in support of his/her application for [APPROVAL NAME PROCESS HERE].

Signature: ____________________________

Date: _________________________________

See also: What is an Occupancy Certificate?

Now let us look at a sample format of an NOC from an owner for leasing out his/her premises:

TO WHOMSOEVER IT MAY CONCERN

I/We, _________, son/daughter of ________ do hereby state that,

• I/We am/are the legal owner/s of the premises situated at _____________ (hereinafter referred to as “the said premises”).

• I/We have no objection in _______________ {Enter name} using the said premises as the registered office of the partnership firm/proprietorship/LLP/private limited company/ public company.

Date: _________         Signature _____________

Place: ________       (Owner)

Likewise, even a person selling a vehicle to another party in a different state, must also get an NOC from the Regional Transportation Officer (RTO) first, before it can be registered or used elsewhere. Nowadays, one can also obtain this type of no-objection certificate (NOC) certificate online, from the ‘Parivahan Sewa’ website under the Ministry of Road Transport and Highways.

In short, remember that an NOC is a vital procedure for house registration or immigration, building construction or just about anything that has to do with any transaction.

Common types of NOC

• NOC for Property Transfer
• NOC for Court Purposes
• NOC for Visa [Employees]
• NOC for Visa [Students]
• NOC of GST
• NOC from Landlord
• NOC for Leaving Job [Issued by Employer]
• NOC for Banking Requirement
• NOC cum Experience Certificate
• NOC for Starting or Leaving a Course of Study
• NOC for Attending a Conference/Event
• NOC for Tour/Visit

How to get no objection certificate?

For obtaining the no-objection certificate from an authority, organisation, or institution, you need to write a letter, mentioning your (applicant’s) details and explaining the purpose for which the NOC is required. It is also important to provide all the supporting documents.

What is no objection certificate from bank?

The way you follow the due procedures when applying for a home loan, it is also equally necessary to complete the necessary home loan closure formalities. That is, if you have availed of a home loan, you must obtain the NOC on the closure of the loan account. The NOC for home loan is a legal document, which states that the borrower has paid all the home loan EMIs and settled other outstanding loan dues.

No objection certificate for building construction

In India, when constructing a house, an apartment complex or any structure, it is necessary to obtain a no objection certificate from various authorities and government departments.

As per the Development Control Regulations and the National Building Code, 2016, certain categories of buildings require an NOC from the fire services department. For example, buildings that are 15 metres above the ground level or having more than three storeys, are considered high-rise structures. They require a certificate of approval from the Director of Fire Force, before starting the construction work.

After the building plan is reviewed and approved by the sanctioning authority for construction, the chief fire officer issues the no objection certificate (NOC).

No objection certificate under RERA

According to Section 15 of the RERA, for transferring or assigning rights and liabilities relating to a real estate project to a third party, a developer or promoter must obtain prior written consent from two-thirds of the allottees. Once the allottees grant the NOC, a similar certificate will be issued by the RERA authority.

No objection certificate for property use

When a tenant, usually a company, takes a property on lease and intends to use the premises as a registered office, then, getting a No Objection Certificate (NOC) from the landlord becomes necessary. The company must obtain the NOC before setting up the office.

Landlords must issue an NOC stating that they are willingly renting out the premises to the company and have no objection to the use of the premises or a part of it by the company.

The NOC should contain details, such as:

• Name of the landlord.
• Name of the company to which the property is being rented out.
• Address of the property.
• Date and place.
• Landlord’s signature and contact details.

No objection certificate for property transfer

Getting a no objection certificate (NOC) for land registration has become an important procedure, as this allows the government to keep a check on the growth of illegal colonies. For the transfer of land or development of a colony, getting NOCs from the department concerned is mandatory.

An NOC should be obtained from the authority for the transfer of immovable property or land, under Section 21 of the Registration Act, 1908. The procedure involves submitting an application, along with the required documents and specified fees to the respective Circle Office. The NOC will be issued by the deputy commissioner. The applicant can then go for registration and mutation of the property.

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