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Society NOC request letter

The letter a selling member sends to the housing society asking for a no-objection certificate and a no-dues certificate, with the wording the reply should contain.

6 numbered clauses20 blanks to fillFree to copy and adapt

Who uses it and when

Who

A flat owner selling a flat in a co-operative housing society or an apartment owners' association, and the buyer checking the reply.

When

After the agreement to sell, before the sale deed is registered. Lenders usually ask for the NOC before disbursing a loan.

Assumes

Assumes a co-operative housing society with share certificates. For an apartment owners' association, drop the share references and ask for a no-dues letter and a record of the new owner.

The full template

Words in [BRACKETS] are blanks. Fill them in below or after you copy it — nothing you type is sent anywhere.

Fill in the blanks on screen (0 of 20 filled)
LETTER REQUESTING NO-OBJECTION CERTIFICATE FOR SALE OF FLAT

From:
[MEMBER FULL NAME]
Flat no. [FLAT NUMBER], [BUILDING / WING]
[SOCIETY NAME]
[SOCIETY ADDRESS WITH PINCODE]
Membership no.: [MEMBERSHIP NUMBER]   Share certificate no.: [SHARE CERTIFICATE NUMBER]
Phone: [PHONE]   Email: [EMAIL]

Date: [DATE]

To:
The Secretary / Chairperson
[SOCIETY NAME]
[SOCIETY ADDRESS]

Subject: Request for no-objection certificate and no-dues certificate for the sale of flat no. [FLAT NUMBER]

Dear Sir / Madam,

1. I am the owner and a member of the society in respect of flat no. [FLAT NUMBER], holding share certificate no. [SHARE CERTIFICATE NUMBER] for shares numbered [SHARE NUMBERS].

2. I intend to sell the flat to [BUYER FULL NAME(S)], residing at [BUYER ADDRESS], for which the sale deed is proposed to be registered on or about [PROPOSED REGISTRATION DATE].

3. [IF APPLICABLE: The flat is mortgaged to [LENDER NAME]. The loan will be closed from the sale proceeds, and the lender's closure letter will be submitted to the society.]

4. I request the society to issue:
   (a) a no-objection certificate for the sale and the transfer of my membership and shares to the buyer; and
   (b) a no-dues certificate stating that all maintenance, sinking fund, repair fund, parking and other charges are paid up to [DATE UP TO WHICH DUES ARE PAID].

5. I enclose:
   (a) a copy of my sale deed / allotment letter for the flat;
   (b) a copy of the share certificate;
   (c) the latest maintenance bill and payment receipt;
   (d) [ANY FORM THE SOCIETY'S BYE-LAWS PRESCRIBE FOR TRANSFER].

6. I undertake to pay the transfer fee and any transfer premium as allowed by the society's registered bye-laws and the applicable rules, against a receipt.

7. The buyer will apply separately for membership, in the form the bye-laws prescribe, after registration of the sale deed.

Thank you.

Yours faithfully,

______________________
[MEMBER FULL NAME]

-----------------------------------------------------------
WHAT THE SOCIETY'S CERTIFICATE SHOULD SAY (for checking the reply)

[SOCIETY LETTERHEAD WITH REGISTRATION NUMBER]
Date: [DATE]
This is to certify that [MEMBER FULL NAME] is a member of the society holding share certificate no. [SHARE CERTIFICATE NUMBER] in respect of flat no. [FLAT NUMBER]. All dues payable to the society in respect of the flat have been paid up to [DATE]. The society has no objection to the sale of the flat to [BUYER FULL NAME(S)], subject to the buyer applying for membership under the bye-laws.
Signed: Secretary [NAME]   Chairperson [NAME]   Society seal

This is a sample, not legal advice. Have a lawyer review it for your state and your deal before anyone signs.

What to check, clause by clause

Numbered as they appear in the template.

1

Membership details

Quote the membership and share certificate numbers exactly; the society will check them against its register.

2

Buyer and date

Spell the buyer's name as it will appear in the sale deed.

3

Existing loan

A lender holding the share certificate or title will have to release it. Say so up front.

4

What you ask for

Ask for both the NOC and a dated no-dues certificate. A special levy already resolved but not billed should also be disclosed.

6

Transfer fee

Transfer fees and premiums are limited by the society's registered bye-laws and state rules. Pay against a receipt; question any demand above the bye-law figure in writing.

Certificate

What the reply should say

Dues paid up to a stated date, the member's and buyer's names, the flat and share numbers, signed by office-bearers under the society's seal.

How to complete it

In the order it happens.

  1. 1

    Fill in the letter and attach the documents listed in point 5.

  2. 2

    Submit it to the secretary against an acknowledgement, or by email to the society's official address.

  3. 3

    Pay the transfer fee as per the bye-laws against a receipt.

  4. 4

    Check the society's certificate against the wording at the end of the template.

  5. 5

    Give the NOC and no-dues certificate to the buyer and the buyer's lender before registration.

Questions people ask

Is a society NOC legally required for a sale?

Practice differs by state and society. Even where the law does not strictly require it, buyers' lenders usually ask for it, and the no-dues certificate protects the buyer from inheriting unpaid dues.

How much can a society charge for a transfer?

Only what its registered bye-laws and the state's co-operative rules allow. Ask which bye-law a demand is made under, in writing.

Who applies for the buyer's membership?

The buyer, after registration, in the form the bye-laws prescribe, with the seller's resignation or transfer form.

Sources

  • Your state's co-operative societies act and rules, and the society's registered bye-laws