I know they can ask black money in the range of 1-3 lakhs when an owner is selling the flat to someone while the builder is also selling unsold flats to new customers in parallel

But can they just plain deny NOC to a resale deal ?... Even that I think that they could do that...but in real practice, do they ever just plain deny an NOC ?

In the worst case, we are ready to pay him 3 lakhs ...and I think thats the max they could ask according to the current norms ("legal" or "illegal but standard practice")
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  • Originally Posted by simantadatta
    I know they can ask black money in the range of 1-3 lakhs when an owner is selling the flat to someone while the builder is also selling unsold flats to new customers in parallel

    But can they just plain deny NOC to a resale deal ?... Even that I think that they could do that...but in real practice, do they ever just plain deny an NOC ?

    In the worst case, we are ready to pay him 3 lakhs ...and I think thats the max they could ask according to the current norms ("legal" or "illegal but standard practice")

    if the agreement is apartment did then he dont need to take NOC from builder or society,
    if the society is formed then they need to take the NOC from society and not from society.

    Also i heard that builders ask money for noc but that is upto 50000/- what i have heard and not more than that.few builders wont take money for NOC.
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  • Originally Posted by mamol
    if the agreement is apartment did then he dont need to take NOC from builder or society,
    if the society is formed then they need to take the NOC from society and not from society.

    Also i heard that builders ask money for noc but that is upto 50000/- what i have heard and not more than that.few builders wont take money for NOC.


    In my case registration has happened and possession also is given to the seller, but the society has not formed yet.

    In that case builder must give NOC as the seller is selling the flat to me.. without which I can't buy, right ?

    Regarding the money, I know for a fact that Bal Developers had asked 3 lakhs for Kapi Asamat resale... and thats the max I could think of. Mont Vert does not ask for any, but several small-medium scale builders take anywhere between 50K to 2 lakhs as far as I know... wanted to validate that, and also check if they can in worst case just refuse to give the NOC completely !
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  • Wondering why you are so stressed out. Someone wants to resale his flat to you, so shouldnt that guy be fighting with the builder for the NOC? NOC charges can be shared by seller and buyer, but getting the NOC is sellers responsibility. Ask the seller to put pressure on the builder and appoint a lawyer if required.

    Legally, only Rs. 25000 is the NOC charges (towards transfer of ownership etc), but builders may charge anything. Normally it is in the range of Rs. 100 psqft
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  • Originally Posted by simantadatta
    In my case registration has happened and possession also is given to the seller, but the society has not formed yet.


    Has sale deed happened? If Yes then I would like to know why builder has to give provide NOC? What objection can builder have?

    Also since you are ready to pay whatever in *black* :bab (3)::bab (59): for NOC, then at least make sure you are spared of hassles of sale deed, other society formation charges etc.

    Originally Posted by simantadatta

    In that case builder must give NOC as the seller is selling the flat to me.. without which I can't buy, right ?

    Regarding the money, I know for a fact that Bal Developers had asked 3 lakhs for Kapi Asamat resale... and thats the max I could think of. Mont Vert does not ask for any, but several small-medium scale builders take anywhere between 50K to 2 lakhs as far as I know... wanted to validate that, and also check if they can in worst case just refuse to give the NOC completely !


    There was resale transaction happened where I stay, not involving me. I vaguely remember that builder did not charge anything towards NOC. So press for the NOC without any dime.
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  • Legally, the builder has no right whatsoever to take money from the buyer under the garb of NOC. This is pure loot.

    NOC charges need to be paid only if a co-op hsg soc is formed & that to max 25k.
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  • Can I buy this resale flat WITHOUT NOC ?

    The builder is delaying giving NOC.. saying he will have to discuss with his lawyer etc and also the builder is 3 partnership.

    So the seller told me to check with my lawyer if it's possible to do the deal without NOC as I am not taking any loan.

    I will check with my lawyer but what do you guys think ? I think even if it's legally OK to buy resale flat without builder's NOC, it may not be practically right thing to do as the builder can then create problems to me when I move in there.

    PBAP says builder can take NOC but not more than 2% of the agreement value.

    The other option builder is giving to the seller is to sell the flat to the builder and then let the buyer (me) do the deal with the builder with a profit markup on top of what builder bought the flat for, it's not discussed how much profit markup will be there, but since the amount builder offering to my seller is more than what I'm offering there's a slight risk that it may be tempting to the seller...
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  • Usually your bank will ask for an NOC before disbursing the money. But if you are not taking any loan and directly dealing with the seller, I doubt if the builder has any role to play here. You will be paying the registration/stampduty directly to the government and flat will be in your name. Better consult a lawyer and proceed. In anycase, it is not worth paying more than 1L for NOC.
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  • Originally Posted by realacres
    Legally, the builder has no right whatsoever to take money from the buyer under the garb of NOC. This is pure loot.

    NOC charges need to be paid only if a co-op hsg soc is formed & that to max 25k.


    where does this 25K goes when paid to the Co-op housing society??
    In the society fund for the society work???

    If no society is formed then can builder ask for money legally???
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  • Originally Posted by kingmanish
    where does this 25K goes when paid to the Co-op housing society??
    In the society fund for the society work???

    If no society is formed then can builder ask for money legally???


    It goes into society fund as income .

    If no society is formed then better not to buy the resale apt.
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  • Originally Posted by suryawork
    It goes into society fund as income .

    If no society is formed then better not to buy the resale apt.


    Why is it dangerous to buy a resale if no society is formed??

    One reason is that builder might ask for 50k rs to give NOC.

    Second is when society forms you will have to pay society formation charges..

    what else???
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  • Originally Posted by kingmanish
    Why is it dangerous to buy a resale if no society is formed??

    One reason is that builder might ask for 50k rs to give NOC.

    Second is when society forms you will have to pay society formation charges..

    what else???


    Resale has advantage that u can buy where a society is formed . Society has standard NOC rates if u want to resell again and wont blackmail u for a certain percentage as is happening in this case . Society formation means builder is left with no stake in the land thereafter .
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  • Yes thats correct.

    But I have seen some buildings which are very old but still there is no society formed.

    No body is interested in forming the society as it will cost them money.

    secondly they will have to pay maintenence charge.......

    I think they fail to see the convenience it brings with it
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  • Originally Posted by suryawork
    Society formation means builder is left with no stake in the land thereafter .

    No that not true, even if the society is formed builder still has a stake in the land. Only after the conveyance deed is done the builder loses all the stake in the land. Forming society only means that builder is no longer responsible for day to day maintenance. Thats it.

    Also it a legal obligation on the part of the builder to form the society when 60% of the flats are sold/occupied. legally the builder should form the society within 3 months of handing over the possession of the flat, if not he can be taken int he court of law for the same.
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  • The builder cannot refuse to issue NOC legally. But he can delay the matter. Generally the man who signs the agreement will not be the lower sales staff. he will make it inconvenient by being out of contact. he will find various difficulties. he will have to talk to his advocate.
    he knows if the seller goes to court, it will take years before decision comes. so he takes advantage as no seller would like to wait and prefer to sort out the matter by paying and recovering the same in his sale price. This is systemic fault and greed in action.
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  • Originally Posted by kingmanish
    Yes thats correct.

    But I have seen some buildings which are very old but still there is no society formed.

    No body is interested in forming the society as it will cost them money.

    secondly they will have to pay maintenance charge.......

    I think they fail to see the convenience it brings with it


    The builder is taking advantage of lax implementation of law which says society is to be formed when sixty % of flats are sold.
    Society formation charges are taken by builder in lump sum before signing of agreement. he actually registers the society and hands over along with all funds to elected society members.
    Similarly maintenance charges are always taken by builder for one or two years in advance.Some builders may like to hold these funds and delay society formation, that is off course a different things.
    After society is formed the most important thing is conveyance deed handing over land to the society. Which gets delayed by builder for some reason or other by many,though there are builders who do conveyance in reasonable time.
    Laws have become more consumer friendly by making deemed conveyance available to use as a last resort by approaching Registrar when builder refuses to convey tile to society. Non formation of society is also reportable to Registrar of societies. Things are changing slowly and more even field is coming up. Hope Regulatory act gets passed with strong provisions to stop irregular practise by builders. Draft Regulatory bill is available online and in one of the threads in this forum. Amendments are required to plug loopholes given in that.Be positive change will come and make buying of flats a better experience for genuine customers, till then shun Pre Launch offers however attractive they may be. Even if they offer Honda city and kitchenette to those who book flats, don't go for pre launch offers. I vaguely remember seeing some such offer in yesterdays TOI.
    Mantra should be completed flats/ready possession flats with CC only.Those who intend to buy/invest would be well advised to read MOF Act and the booklets on Society formation and model bye laws etc. Those who are well versed with these rules will know what to check,what to ask from builder and not depend upon interested parties like brokers,Sales staff etc.
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