Legal Question in Administrative Law in India

What is the purpose of issuing NOC and can the society be held responsible for issuing NOC if later on the buyer of the flat comes to know about some outstanding arrears of the seller prior to his selling to the new buyer??


Asked on 9/02/13, 4:13 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

02.08.2013

Dear Sir / Madam,

All the Office bearers of the Society have to submit an Indemnity Bond to the Society. So if the Society follows a practice of issuing an NOC for sale / transfer of a flat saying that there are no Society dues / arrears from the member who is selling the flat, and if the buyer later on realizes that there are actually some outstanding arrears, the concerned Secretary / Treasurer / Chairman who has issued the NOC, jointly and severally, will have to make good the loss to the buyer.

To safeguard the buyer, a condition is always mentioned in the Sale Agreement that : "All Society and other Government dues, arrears, outstanding if any, applicable, pertaining to the period prior to the date of sale, and payable by the seller, will be the sole responsibility of the seller and he / she is liable to pay and settle such arrears / outstanding to the Society / concerned Authority."

Regards,

Read more
Answered on 9/02/13, 5:11 am
KarVai Legal Solutions Rajiv Gupta 9811284735 Ch.No: 359, Western Wing, Tis Hazari, Delhi www.karvai.in

NOC is issued after obtaining no due certificate.

Adv. Rajiv

Read more
Answered on 9/03/13, 9:15 am


Related Questions & Answers

More Administrative Law questions and answers in India