Also known as No-objection certificate
When a flat in a society changes hands, buyers and banks usually ask for a no-objection certificate from the society. It typically confirms the seller’s membership and share certificate, that maintenance and other dues are paid, and that the society has no objection to the transfer or to the bank taking the flat as security.
Whether a society may refuse an NOC, and whether a sale needs one at all, depends on the state law and the society’s bye-laws. In Maharashtra, for example, transfer of membership follows the society’s bye-laws and the co-operative societies law; a society cannot block a lawful sale at will but can insist on its dues and procedure.
For rentals, many societies ask for tenant details and police verification and issue a letter permitting the let-out.
Example
A seller in Navi Mumbai agrees to sell a 650 sq ft flat for ₹82 lakh. The buyer’s bank wants a society NOC before disbursing. The society issues it after the seller clears ₹18,400 of pending maintenance, and confirms it will transfer the share certificate once the sale deed is registered and the transfer forms are filed.
Figures are illustrative, not market rates.
Questions about Society NOC
Is a society NOC compulsory to sell a flat?
It depends on the state’s law and the society’s bye-laws. In practice banks usually ask for one, and buyers want proof that dues are paid. Where the law does not require it, a society generally cannot use the NOC to stop a lawful sale.
What does a society NOC usually contain?
The member’s name and flat number, confirmation of membership and share certificate, a statement that dues are paid to a date, and that the society has no objection to the sale, rental or mortgage. Banks often supply their own format.
Sources
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