Nod to freehold property transfer without NOC to benefit 50,000
More than 50,000 property holders are expected to benefit as the UT administration has allowed the transfer of freehold properties without obtaining a No Objection Certificate (NOC).chandigarh Updated: Nov 27, 2014 14:07 IST
More than 50,000 property holders are expected to benefit as the UT administration has allowed the transfer of freehold properties without obtaining a No Objection Certificate (NOC).
In a recent order, the finance department has stated that the estate officer will allow the transfer of freehold properties to the intending purchaser on the basis of a deed of conveyance (sale deed/gift deed/family transfer etc), duly stamped and registered as required by the law.
The freehold property owner will also have to fulfill the requirement of sections 54 and 55 of the Transfer of Property Act, 1882. Sources in the administration said the order aims at negating the illegal transaction of the property.
Transfer subject to indemnity bond
The transfer will now be subject to furnishing of an indemnity bond by the intending purchaser to the effect that he/ shall be personally liable for settling all the court cases and dues so levied by the UT administration for settling the past liabilities.
He shall obtain the statutory completion/ occupation certificate, if not obtained earlier by the previous owner and remove building violations/misuse, if any besides he will execute the redemption deed if not executed earlier, wherever applicable.
The issue has been under consideration of the administration since long. Last year, the Supreme Court had dismissed a special leave petition (SPL) filed by the UT estate office challenging the decision of the Punjab and Haryana high court order that had struck down the requirement of a NOC at the time of sale of freehold property.
The apex court dismissed the plea stating that there was no provision in the laid down rules that called for requiring NOC before the sale of freehold property.
The estate office was asked to amend the rules if the authorities intended to make the NOC mandatory in such cases.
On December 3, 2012, UT authorities had moved the apex court seeking a stay on the implementation of the high court orders dated May 5, 2012, in which it had termed the practice of the administration demanding an NOC before the sale of freehold property as against the rules.
Till 1973, properties were allotted on a freehold basis in the city. Since then the system of allotting properties on leasehold was also started in city.
Leasehold means the sole proprietor of a property is not an individual but the property is under the UT administration.
The lease is generally for 33 or 99 years, and the property owner is required to pay yearly lease money.
Building plan NOD does not require NOC from co-owners
The administration has also stated that now an NOC will not be required from the other co-owners for getting sanctioned the revised building plan of any kind of property involving co-owners.
The sanctioning of building plan means that the plan of the building confirms to the building rules/ bye laws. It does not decide the rights of the co-owners.
A copy of the building plan passed can, however, be supplied to all the co-owners in case he does have any objection to the construction or renovation of the building.