Response

A No-Objection Certificate (NOC) from Society is not mandatory while buying a flat. A societyÕs role is limited to registering the transfer of shares from the seller to the buyer. Any attempt by a housing society to block the sale of the flat will violate the law and entail severe legal repercussions.

The right to buy or sell a property is a statutory right under the Transfer of Property Act, 1882. The right of a property owner is supreme in this regard. He can sell his flat to anyone without any restrictions whatsoever.

Time and again, news reports surface detailing harassment of flat-owners by housing societies.

These societies tend to obstruct people of certain castes, communities or religions from taking flats in the building. Time and again, notices are put up restricting bachelors from taking flats on rent in the society, causing considerable harassment to flat-owners and people at large.

The law makes it mandatory for the housing societies to form a residentsÕ welfare association. These legal bodies enjoy great power in terms of sale and purchase of property.

As a home buyer, you will also need to get some NOCs from these bodies as well. In case you are buying a resale property, an NOC by the RWA is required, saying it does not object to the ownership transfer.

In case you are taking a home loan, the bank would demand this document before sanctioning the loan.

Reference: Transfer of Property Act, 1882 and Indian Registration Act, 1908.
Case law:
1) Gurmeet Nihal Singh, New Delhi vs Assessee on 2 May, 2016

2) R.N. Sahni & Anr. vs The Financial Commissioner & Ors. on 31 July, 2012

3) Oriental Insurance Company … vs Thippeswamy on 7 July, 2003

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