No need for Developer’s NOC for flat sale/transfer

No need for Developer’s NOC for flatsale/transfer


In a major relief to flat Buyers and Society Residents, according to the State Government, there is no need for a No-Objection Certificate (NOC) from the Developer for sale or transfer of flat (resale) in a fully constructed building.

The State Housing Department has issued an Official Communication in this regard after coming across cases, where the Developers have illegally collected the money from flat Buyers for providing such NOC’s.

The Department claims to have received complaints stating that the Developers had collected upto Rs.500 per sq.ft. in such cases of transfer of a 540 sq.ft. flat Buyers are forced to cough up an additional Rs.2.7 lakh or so. According to the Department, there was no requirement for NOC under norms mentioned in the Maharashtra Ownership of Flats Act (MOFA).

The MOFA norms requiring formation of the Society and conveyance of the plot to the Society within a stipulated time after completion are not being observed in a very large number of cases. Recovery of illegal amounts in the name of NOC for sale or transfer of flats is being reported in several cases.

The Department has also written to the Inspector General of Registration,  asking him to ensure that Officials in the Registration Department register sale documents without insisting on the NOC from the Developers. The Departments says, it has received complaints, where Officials have refused to register the documents without the NOC.

The Cidco, which has leased out a number of properties in Navi Mumbai, has also  been asked to ensure that Developers of these plots comply with MOFA norms. The Department has sought Cidco’s opinion on whether its permission was needed for transfer/sale of flats for plots leased by it. The Department is of the opinion that the permission-insisted upon at present is not required. The Government has urged Societies, where the Developers haven’t conveyed plots within stipulated time to apply for deemed conveyance.

For More

Advocate Selvakumar



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