By Arosh John | Founder – John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief – Thane Real Estate News (TREN)
Thane & Mumbai | November 2025
“Society NOC hai kya?” — a question every buyer and seller hears in almost every resale transaction across Thane and Mumbai.
Despite its popularity, the role of a Society NOC is widely misunderstood and often misrepresented.
This post explains the real legal position, based on the Maharashtra Co-operative Societies Act, Rules and Model Bye-Laws.
1 | Is Society NOC Mandatory for Resale?
No. A Society NOC is not a legal requirement for executing or registering a resale flat in Maharashtra.
The Maharashtra Co-operative Societies Act, 1960, the corresponding Rules and the Model Bye-Laws (2014/2021) do not make a Society NOC mandatory for property transfer.
Model bye-laws clearly state:
- NOC is not required for transfer of a flat
- If a member requests it (often for bank purposes), the society may issue it, but it is not compulsory
Conclusion: The buyer and seller can legally execute and register the resale agreement without a Society NOC.
2 | Does the Sub-Registrar Require a Society NOC?
No.
The Sub-Registrar does not require a Society NOC to register a resale agreement.
Documents required typically include:
- Signed & stamped resale agreement
- Stamp duty & registration fee
- KYC (PAN, Aadhaar, photos, biometrics)
- Title chain papers (if applicable)
A housing society is not a party to the sale, therefore its NOC is not part of the registration checklist.
3 | Why Do Societies Issue NOCs in Practice?
Societies issue NOCs or “No-Dues / No-Objection” letters mainly for internal clarity:
- Confirming dues are cleared
- Ensuring no disputes are pending
- Acknowledging that a transfer is happening
- Preparing to update their records after sale
This is administrative convenience, not a legal prerequisite for resale.
3A | Bank NOC vs Society Transfer NOC – What Buyers Must Know
Most confusion happens because the same word “NOC” refers to two very different documents.
3A.1 Bank-Required NOC (Confirmation Letter)
When the buyer is taking a home loan, banks often ask for a short confirmation letter from the society:
- Flat & owner details
- No dues
- No dispute
This is a bank’s internal policy requirement, not a legal requirement under Maharashtra law.
3A.2 Society Transfer NOC (Membership NOC)
Issued after registration, when the buyer applies for:
- Membership
- Transfer of shares
- Update of records
- Share certificate endorsement
This NOC is part of membership processing and cannot be misused to block or delay the sale.
Important: This has nothing to do with executing or registering the sale agreement.
4 | Society’s Role – Before & After the Sale
Before Sale
- Society cannot demand NOC as a pre-condition
- Society cannot prevent registration
- Buyer & seller can complete the transaction independently
After Sale
Buyer must apply for:
- Membership
- Share transfer
- Updating society records
A society must process this within a reasonable timeframe.
If it refuses membership without valid grounds, the buyer can approach the Deputy Registrar.
5 | Can a Society Stop a Resale?
No.
A society cannot legally stop or invalidate a registered resale transaction.
It may object only to membership in specific circumstances:
- Major unpaid dues
- Bye-law violations
- Pre-existing legal disputes involving the flat
Even these cannot affect the legality of the registered sale.
Key principle:
Sale (registration) and membership (society admission) are legally separate.
6 | Legal Transfer Charges vs Illegal “NOC Fees”
A society may legally charge:
- Transfer premium: up to ₹25,000
- Entrance fee: ₹100
- Nominal share transfer fees
A society cannot legally charge:
- NOC fees
- Welfare fees
- Any percentage of sale value
- Donations linked to transfer
Such charges have no legal validity.
7 | Practical Guidance for Flat Owners in Thane & Mumbai
For Sellers
- Clear dues before handover
- Provide bank-format NOC if buyer’s bank requires it
- Do not pay illegal NOC charges
- Submit transfer documents promptly after registration
For Buyers
It is strongly recommended to request a Society No-Dues Certificate before completing the sale.
It confirms:
- Regular maintenance is cleared
- No penalties, repair funds or arrears are pending
- No objections from society’s end
This protects the buyer from inheriting past dues.
After registration:
- Apply for membership transfer
- Pay only legal transfer charges
- Escalate unreasonable delays to the Deputy Registrar
Quick FAQs – Society NOC in Maharashtra
Is Society NOC compulsory for resale?
No.
Does the Sub-Registrar ask for it?
No.
Why does a bank ask for NOC?
Bank policy requirement, not legal requirement.
Should buyers take a No-Dues Certificate?
Yes — strongly recommended.
What is the maximum chargeable transfer fee?
₹25,000 + nominal fees.
Can society refuse membership?
Only for valid, written reasons.
About the Author
Arosh John is the Founder of John Real Estate (MahaRERA Reg. No. A51700001835) and Editor-in-Chief of Thane Real Estate News (TREN).
Recognised across the Mumbai Metropolitan Region as The Real Estate Expert of Thane, he brings over 10 years of specialised experience in resale transactions, society documentation, villa advisory, luxury homes and NRI property matters. He is known for translating complex laws, regulations and market realities into clear, factual and actionable insights for homebuyers, sellers and investors.
Disclaimer
This article is published for public awareness under Thane Real Estate News (TREN). It is based on the Maharashtra Co-operative Societies Act, Rules and Model Bye-Laws, and current interpretations as of November 2025. Readers facing society-specific disputes or transfer-related legal issues should consult a qualified real-estate legal professional for case-specific advice.
