Housing society or Property NOC | The A-Z Guide

By Xtremes Marketing | Published Feb 28 2023 12:40AM

Significance of No Objection Certificate (NOC) in Real Estate

Introduction

In the world of real estate, every development project must go through a series of regulatory processes to ensure compliance with local laws and standards. One crucial document that holds immense importance in the real estate business is the No Objection Certificate (NOC). In this blog, we will explore the significance of the NOC in the real estate industry and shed light on who has the authority to issue it in Pakistan.

Understanding the No Objection Certificate (NOC)

A No Objection Certificate (NOC) is an official document issued by specific government authorities to housing societies and other real estate schemes. It serves as evidence that a particular project has fulfilled the necessary requirements and complies with the prescribed regulations. Without a valid NOC, a housing society or real estate development may face legal implications and operational limitations.

Authority to Issue a NOC

As per the laws of Pakistan, only designated authorities have the power to issue a valid NOC for development, approval, and business in the real estate industry. One of the primary NOCs required is the approval of the society's master planning, which is issued by regional development authorities such as CDA, RDA, PDA, LDA, or SBCA. In some major cities, layout planning (LOP) approval from development authorities is also mandatory.

The Process

To obtain a NOC, housing societies or real estate developers submit their master plans, town planning designs, and other infrastructure proposals to the relevant government authorities. Officials from these development bodies conduct site visits and thoroughly assess the submitted documents against established standards. Upon satisfactory evaluation, an approved NOC is issued, allowing the society to proceed with plot sales and site development. In certain cases, developers may be required to make specific changes or improvements before the NOC is granted.

Importance of NOC in Real Estate Business

1. Legitimacy and Compliance

The NOC ensures that the housing society or real estate project operates within the legal framework and meets the necessary standards set by regulatory authorities. This lends credibility and legitimacy to the project, providing peace of mind to investors and potential buyers.

2. Investor Confidence

A NOC acts as a guarantee for investors, assuring them that the project has undergone rigorous scrutiny and is in compliance with all regulatory requirements. It enhances investor confidence and increases the chances of attracting funding and partnerships.

3. Risk Mitigation

By obtaining a NOC, developers can mitigate potential risks associated with legal complications and unauthorized developments. It protects both the developer and the investors from falling into fraudulent or illegal schemes, ensuring a secure and transparent investment environment.

4. Infrastructure Development

The NOC process ensures that the housing society or real estate project adheres to specific infrastructure standards. This results in the development of well-planned communities with essential amenities such as water, electricity, roads, and sewage systems, providing a better living experience for residents.

Timeline For NOC Process

For individual residential, commercial, and industrial projects, it takes about 30 working days. For housing societies and mega-real estate projects in Pakistan, the relevant development authorities and metropolitan corporations take about 60 to 75 working days to approve the no objection certificate (NOC).

No Objection Certificate (NOC) Fees/Charges

Depending upon the scale of your real estate or construction the cost/fee for a no objection certificate (NOC) may vary from 500 to several thousand rupees (PKR). Due to fluctuations in the recent real estate market, there may be some additional fees or charges added for the approval of a no objection certificate (NOC) for a society.

Validity of a NOC?

The validity of a no objection certificate (NOC) may vary from 1 year to several decades. Which can be either canceled or renewed by the relevant development authorities.

Types of No Objection Certificates (NOC)

Here are the different types and levels of no objection certificates (NOC) issued for approval of a society and real estate schemes:

No Objection Certificate from Tehsil Municipal Committee (TMA)

No Objection Certificate from Court or Administrator

No Objection Certificate from Landlord

No Objection Certificate from Development Authorities i.e. CDA or PDA etc.

1. No Objection Certificate from Tehsil Municipal Committee (TMA)

Locally developed societies such as those under development in Charsadda, Swat, or Mardan, etc., there are Tehsil Municipal Committee (TMA) that issues the relevant no objection certificate (NOC). Every society or real estate located and under-developed in a rural area has to receive the approved no objection certificate (NOC) from the Tehsil Municipal Committee (TMA).

2. No Objection Certificate from Court or Administrator

Sometimes, the court or other government administration offices issue a no objection certificate (NOC). These no objection certificates (NOC) can also be allotted to real estate available for lease for more than 4 years.

3. No Objection Certificate from Landlord

For property on rent, there is a no objection certificate (NOC) issued for the property on lease or rental properties. In the case of commercial properties or real estate on rent, there is a no objection certificate (NOC) which includes the agreement details between the tenant and the Landlord.

4. No Objection Certificate from Development Authorities i.e. CDA or PDA etc.

Most commonly, no objection certificates (NOC) are issued by the city's development authorities, i.e., CDA or PDA. Depending upon the city of the private or government housing society, commercial real estate or other construction housing schemes must receive a no objection certificate (NOC) from the development authority, i.e., LDA or PDA. With an approved NOC, a housing society, commercial real estate, or other construction can complete site development, sale of plots, or even advertisement of the property.

How to Get a NOC in Pakistan

Here are the steps and list of documents that come as a part of getting a no objection certificate (NOC) for a real estate or a housing society:

Visit the website of the Survey of Pakistan.
Connect with a department representative, and you will be further guided for the next steps.
Then you will be directed to connect with the representative of the regional housing authority i.e. RDA, CDA, PDA, or LDA, etc.
A society that receives its no objection certificate (NOC) has a list of information and relevant details related to the property.
A no objection certificate (NOC) contains the buyer or seller's identity, photograph, and identity proof.
Your citizenship status or evidence must also be attached to the no objection certificate (NOC) you receive for a society or other real estate scheme.
There are also some cases in which the Latest revenue receipts are required to approve the no objection certificate (NOC).
A no objection certificate (NOC) has the details related to the property owner's name
It also includes the property address. Details related to the development authority issuing the no objection certificate (NOC).
A no objection certificate (NOC) must have the exact date and location.
A society or real estate which receives its approved no objection certificate (NOC) must be signed and attested by relevant officers.
You would need the Security Clearance/ Building Living Permission or certificate / TMA's receipt/occupancy certificate for flats or apartments.
Different affidavits and other security clearances are required to get a no objection certificate (NOC) approved for initiating real estate project development.

While you should also connect with one of our real estate sales agents in Peshawar to get more details related to the documents and other information for receiving an approved no-objection certificate (NOC).

Documents required to get a NOC for a Housing Society

· Ownership Documents:

· Allotment Letter or Certificate

· Possession Letter

· Demarcation Certificate

2. NOC and Approved Layout Plan of Housing Scheme.

3. No Objection Certificate (NOC) by Authority to Process the Building Plan approvals in CDA.

4. Approved Layout Plan.

5. Approval letter of Design Vetting Committee (DVC).

6. Approved Building Plans Letter.

7. Approved Building Plans vetted by the Competent Authority.

8. Third-party vetting Certificates:

· Structural Design Vetting Certificate

· Mechanical, Electrical, and Plumbing (MEP Certificate)

· Firefighting Certificate

9. Access Road Approval (In case of CDA major avenues & Astride Roads).

10. Approved letter from National Highway Authority (NHA) (In case of GT road).

11. Height Clearance Certificate from Civil Aviation Authority (if in the surrounding of the Airport or to achieve maximum height).

12. Utility Connection Approval

· Approval letter from Sui Northern Gas Pipeline (SNGPL)

· Approval letter from Islamabad Electric Supply Company (IESCO)

· Approval letter from Water Supply System

13. Approval letter for Fire Fighting System.

14. NOCs/ Environmental Approval from Pakistan Environmental Protection Agency (PakEPA).

15. Building Completion Certificate.

How to check for a Housing Society's NOC?

Investors need to know, How to check the NOC of a Society? Different housing societies across Pakistan are approved by the relevant development authorities or listed as illegal housing societies. Investors and buyers should be aware of all the scams and other fraudulent housing societies which may harm their financial resources. To make it easy for you to check the NOC status of the different housing societies across Pakistan, we have listed down the steps along with additional information given below:

Method to Check NOC of a Society

Checking for a Housing Society's NOC in Pakistan is an important step to ensure the legitimacy and compliance of the real estate project you are interested in. Here are the steps you can follow to check for a Housing Society's NOC:

1. Identify the Relevant Development Authority

First, determine the appropriate development authority responsible for issuing NOCs in the specific region where the housing society is located. It can be the Capital Development Authority (CDA), Rawalpindi Development Authority (RDA), Lahore Development Authority (LDA), or other relevant authorities depending on the city or district.

2. Visit the Official Website

Visit the official website of the respective development authority. Look for a dedicated section related to NOCs, approvals, or verification of housing societies. This section may provide guidelines and instructions on how to verify the NOC status of a particular society.

3. Search for the Housing Society

Navigate through the website to find the search feature or database where you can input the name or registration number of the housing society you want to check. Enter the relevant information and initiate the search.

4. Review the NOC Status

Upon searching, the website should display the results related to the housing society's NOC status. It may indicate whether the society has a valid NOC or if there are any pending issues or concerns. Take note of the NOC number, validity period, and any additional details provided.

5. Contact the Development Authority

If the website does not provide an online search option or if you require further clarification, contact the development authority directly. Seek assistance from their customer service department or designated officers responsible for NOC verification. They can guide you through the process, provide up-to-date information, and address any queries or concerns you may have.

6. Consult with Professionals

Consider consulting with real estate professionals, such as real estate agents, lawyers, or consultants, who have experience in dealing with housing societies and NOC verification. They can provide valuable insights, assist with the verification process, and offer advice on interpreting the NOC status and its implications.

Conclusion

Remember, verifying a housing society's NOC is crucial before making any investment decisions. It ensures that the project is legally approved, compliant with regulations, and provides a secure investment opportunity. By following these steps and conducting thorough due diligence, you can protect yourself from potential risks and make informed choices in the real estate market of Pakistan.

FAQs

Question: How to check for a Housing Society's legal status or NOC?

Answer: To check a housing society's legal status or no objection certificate (NOC), you should visit the official website of Xtremes Marketing. Or you can also visit the official website of the relevant authorities such as CDA, RDA, PDA, LDA, or SBCA, etc.

Question: What is the importance of a NOC in the Real Estate Industry?

Answer: A no objection certificate (NOC) in the real estate industry is relevant to developing and succeeding in a housing society or real estate. Without an approved no-objection certificate (NOC), no housing society can sell plots or develop its infrastructure.Question: Who can issue a NOC for Society?Answer: There are specific and legitimate government authorities, i.e. CDA, PDA, LDA, and SBCA, etc., that can issue a legal no objection certificate (NOC). A locally governed Tehsil Municipal Committee (TMA) can give a legitimate no objection certificate (NOC) to the society or other real estate underdevelopment in the rural regions.

Question: For how long can NOC be valid?

Answer: The validity of a no objection certificate (NOC) may vary from 1 year to several decades. Which can be either canceled or renewed by the relevant development authorities.

Question: What if a Housing Society Does not receive a NOC?

Answer: If a housing society does not receive any objection certificate (NOC), it can't sell its plots or develop its infrastructure in the community.

Question: How long does getting a NOC for Society to take?

Answer: Once all the relevant masterplans, layout plans, designs, and other technical documents related to the housing society or real estate are. Depending upon the processing of the submitted papers, the official development authorities issue a no objection certificate (NOC).

Question: Is there any NOC for Apartments or Flats?

Answer: Yes, each real estate, including apartments or flats, also needs a NOC for its development, leasing, and other functions. You can get more information by connecting with one of our expert real estate agents in Peshawar.

Society No Objection Certificate