By Arosh John | Founder – John Real Estate (MahaRERA Registered) | Editor-in-Chief – Thane Real Estate News
The Issue
In resale property transactions in Thane and Mumbai, banks require a society or developer NOC before loan disbursement. If a society has been formed, it issues the NOC; otherwise, the builder/developer provides it.
At times, societies or developers issue these NOCs before the registered agreement is submitted. While intended as a convenience, this can create serious risks for all parties.
Why NOC Verification Matters in Resale Property
- Legal Ownership – The Registration Act, 1908, gives legal validity only to registered agreements.
- Fraud Prevention – Avoids the use of forged/unregistered documents for loans.
- No Double Mortgages – Registration records reveal encumbrances.
- Bank Security – Banks rely on NOC as part of their due diligence. Premature issuance weakens it.
Best Practices for Societies & Developers
- Issue NOC only after the registered agreement is received.
- Confirm no dues before granting.
- Use the bank’s prescribed format.
- Maintain proper records and attachments.
- Educate members why this safeguard is essential.
A Gentle But Important Warning
Whether issued by a society or developer, the rule is simple: never issue a bank-format NOC without first verifying the registered agreement. This protects the seller, buyer, bank, and the institution itself.
Call to Action
💬 Are you a society office bearer or developer in Thane or Mumbai?
Connect with Thane Real Estate News for guidance on best practices.
About the Author
Arosh John is a leading realtor in Thane, recognised for his expertise in resale properties and society-related transactions across the Mumbai Metropolitan Region (MMR). As Founder of John Real Estate and Editor-in-Chief of Thane Real Estate News, he educates sellers, buyers, developers, and societies on transparent and secure property practices.
Disclaimer
This post is for informational purposes. NOC procedures differ across banks, societies, and developers. Always verify requirements with legal advisors and follow registered bye-laws. Thane Real Estate News accepts no liability for financial, legal, or governance decisions based solely on this content.
