If a member wants to sell their flat, they’ll need a No Objection Certificate (NOC) from the society. It’s a simple process—just check that there are no unpaid dues. Compared to flat price, maintenance fees are small, so they’re rarely overdue.
You also need to confirm that the flat isn’t mortgaged. Since members might take a loan without telling society, always use the phrase "as per our records" to protect the society.
The second part can be tricky. When the potential buyer of the flat applies for a loan, the bank or NBFC will ask the society for an NOC—usually in their own format. They’ll want the society to confirm that:
- The flat isn’t mortgaged
- The society doesn’t have any loans
- The land is owned by the society
Be very careful with these templates. The wording can be misleading and might make the society over-commit. If you’re not confident, it’s best to get a lawyer to review it. Always stick to safe language like "as per our records".