There is a growing preference among investors to buy homes in housing societies owing to their many advantages, primarily safety. This trend is now noticeable not only in the larger cities but also in the tier-II cities in the country. Before investing in apartments in housing societies, one must be aware of the various no-objection certificates (NOCs) to be acquired.
An advantage of living in a housing society is the wide array of amenities that are provided in the project. However, in order to provide these, the builder needs to acquire at least 50 government NOCs, from construction to handover. For instance, the builder has to acquire NOCs from various government departments to provide basic facilities like electricity and water.
It is imperative to ascertain that the builder has every requisite approval in place before buying property at a project. For under-construction properties, another vital NOC that has to be acquired is from the banks that are financing the project. In case of any hassles between the builder and the banks in the future, this will safeguard the buyer’s interests.
It is legally binding for housing societies to form a residents’ welfare association, and these legal bodies are extremely powerful. An investor will have to acquire no objection certificates from these residents’ welfare associations as well, especially for resale properties. This is to ensure that the association does not object to the sale of the property and transfer of ownership.
For resale of property where the seller is still paying back the mortgage, an NOC from the bank is required. This will state that all dues have been cleared, and the property buyer will be free of any legal encumbrances. Acquiring these crucial NOCs will enable a home investor to buy and fully enjoy a property in a housing society.
Tata Carnatica prelaunch residential township at Devanahalli, North Bangalore.