Guide · Documents📘 Updated 5 Nov 2026 · ⏱ 11 min read
Resale Property Checklist for Agents Society NOC, Transfer Charges and Old Dues
A new-project sale has one seller, the builder, and one set of papers. A resale has a previous owner, a society or authority, perhaps a bank, and years of bills. Here is what changes, in the order you need it.
Quick Answer
On a resale, check what a new sale never needs: the society NOC and share certificate (or the authority's transfer permission), no-dues letters for maintenance, property tax and utilities, the seller's bank foreclosure letter, the builder's transfer NOC if the flat is under construction, the seller's residential status for TDS, and mutation after registration.
Resale deals fail on paperwork, not price.
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Depends on bye-laws and state law; banks often ask for it.
Transfer premium (Maharashtra CHS)
Capped at ₹25,000 under the model bye-laws. State-specific.
Authority transfer
GMADA, HSVP, Noida and others record the new owner; fees vary.
Seller's home loan
Pay the lender directly; originals due within 30 days (RBI).
TDS
Resident seller: 1% at ₹50 lakh+. NRI seller: Section 195, higher, no threshold.
Capital gains
The seller's matter. Refer to a chartered accountant.
What Is Different About a Resale Compared With a New-Project Sale?
In a new-project sale the seller is a RERA-registered promoter: the agreement follows the state's model form, Section 13 caps the advance at 10% before a registered agreement, and the buyer can go to the Authority for refund or delay interest.
In a resale, the seller is usually an individual, and the flat may carry a loan, arrears, a society fee or an authority record still in an old name. None of that shows on a RERA page.
Point
New-project sale
Resale
Title to check
Promoter's land title, mostly disclosed on the RERA portal
Every link from the original allottee to the current seller
Third parties
Builder, buyer's bank
Seller, society or RWA, authority, seller's bank, buyer's bank, sometimes the builder
Old dues
None; builder handles until possession
Maintenance, property tax, utilities, authority dues may follow the flat
TDS
Builder is resident; 194-IA
Seller may be NRI; then Section 195
After registration
Builder forms society, conveyance
Buyer must get share transfer, mutation and utility name changes
The general title chain applies to every purchase and is covered in our property due diligence checklist. This page stays on the items that only a resale throws up.
What Is a Society NOC, and Who Needs a Share Certificate?
In a co-operative housing society, the owner is a member holding shares shown on a share certificate. A sale transfers the shares and membership too, which is why banks ask for the original certificate and a society NOC.
Societies that adopted the model bye-laws under the Maharashtra Co-operative Societies Act, 1960 can charge a transfer premium fixed by the general body, not exceeding ₹25,000. In Bharatiya Bhavan CHS v. Krishna H. Bajaj (Bombay High Court, 17 Feb 2010) a 3% demand was held illegal (Confirmed). Lower caps for smaller municipal areas and villages are reported (₹20,000 down to ₹5,000); check the society's adopted bye-laws. The court also refused a refund because the excess was paid without protest, so object before paying.
Membership timeline (Maharashtra, reported)
Section 22(2) of the same Act is reported to deem an applicant a member if the society does not communicate its decision within three months. Keep dated proof of the buyer's membership application.
Is the NOC legally required?
Under the model bye-laws, the seller gives notice and the buyer applies for membership. Most lenders still want a written NOC, so treat it as a practical requirement.
No society? Apartments in Punjab, Haryana and most builder projects
Many flats sit in builder-maintained projects or associations with no share certificate. Ask for the RWA's or agency's no-dues letter and transfer fee in writing.
Does a Development Authority Have to Approve the Transfer?
Where a development authority allotted the property, it keeps its own record of the holder. Registration at the Sub-Registrar alone does not update it.
Punjab: GMADA (Mohali area)
GMADA runs separate services for "Transfer of Property in Case of Sale (NOC)" before the deed and "Re-transfer of Property on the Basis of Registered Sale/Gift/Transfer Deed" after it, the latter with a 5-working-day service time (Confirmed, GMADA application form). Transfer fees: verify with the GMADA Estate Office. See also GMADA approved colonies.
Haryana: HSVP
HSVP's citizen charter lists a Transfer Permission Letter and a Re-Allotment Letter, each at 4 working days for the standard case, and longer for court-decree cases (Confirmed). Fees and documents: verify with the HSVP Estate Office or its online portal.
Uttar Pradesh: Noida and Greater Noida
The authority records a resale through a transfer memorandum, for a fee. Housing.com reports the Noida residential rate fell from 5% to 2.5% of the allotment rate in 2021 (Reported). Details in our Noida agent guide; confirm the current rate with the authority.
Which Old Dues Must Be Cleared Before Registration?
Unpaid charges often follow the property, not the person. Ask for a recent written no-dues letter from each of these:
Society or maintenance agency: maintenance, sinking fund, repair fund, parking, interest on arrears.
Municipal body: property tax up to the current period, with receipts.
Electricity, water and piped gas: final bills paid; note meter readings on handover day.
Development authority (if allotted): no-due certificate for instalments, extension or non-construction fees.
Builder (for an under-construction or recently delivered flat): statement of what the original buyer paid and what is still due.
What If the Seller Still Has a Home Loan?
Common and manageable in the right order. The original title documents are with the seller's bank until the loan is closed.
Seller asks the bank for a foreclosure letter showing the exact payoff amount and the date it is valid until.
The agreement to sell records that part of the price goes directly to the seller's bank.
The buyer or the buyer's bank pays that amount straight to the seller's loan account; only the balance goes to the seller.
The seller's bank issues a loan closure NOC, releases the original documents and removes its charge.
RBI's circular of 13 September 2023 requires regulated lenders to release original property documents within 30 days of full repayment, and to pay the borrower ₹5,000 for each day of delay attributable to them (Confirmed). It covers "personal loans"; home loans are widely reported to be included. Write a long-stop date into the agreement.
Possession Letter, OC and Under-Construction Resales
For a ready flat, ask for the occupancy certificate and the original builder's possession letter to the first buyer. No OC is a risk for the loan, utilities and future sales. Our guide to OC vs CC vs completion certificate explains which is which.
For an under-construction flat there is no sale deed yet, only an allotment letter and builder-buyer agreement. The builder must endorse or assign it to the new buyer. Get:
The builder's written transfer NOC and its transfer fee.
A statement of payments made and instalments pending.
An endorsed or fresh agreement in the buyer's name, registered where the state requires it.
Without it, the buyer has no direct claim on the builder for possession or delay interest.
TDS, Stamp Duty and Capital Gains: Who Handles What?
TDS: the buyer's duty
Resident seller: 1% under Section 194-IA when the consideration is ₹50 lakh or more (Confirmed, incometaxindia.gov.in). NRI seller: Section 195 applies instead, at capital-gains rates, with no threshold. Under the Income-tax Act, 2025 these are Section 393(1) and Section 393(2); from 1 Oct 2026 a resident individual or HUF buyer reports the NRI deduction in Form 141 (Schedule E). See TDS on property purchase.
Do not advise on exemptions; suggest a chartered accountant, especially for NRI sellers who may seek a lower-deduction certificate.
The Resale Checklist, Stage by Stage
Tick it off with the buyer. The cheapest time to find a problem is before the token.
1. Before the token
Before any money changes hands
☐ Seller's sale deed (or allotment letter) and matching ID ☐ Title chain and encumbrance certificate (see the due diligence checklist) ☐ OC and the original possession letter ☐ Any home loan or other charge, and with which bank ☐ Society or RWA bye-laws and transfer fee in writing ☐ Authority ledger or no-dues status for allotted property ☐ Token receipt with flat, price, refund terms and agreement date
2. Before the agreement to sell
Once both sides are committed
☐ Society NOC and original share certificate ☐ No-dues: maintenance, property tax, electricity, water, gas ☐ Seller's bank foreclosure letter ☐ Builder's transfer NOC (under-construction resale) ☐ Seller's residential status for TDS ☐ Written split of every fee and duty
3. At registration
On the day of the sale deed
☐ Loan payoff straight to the seller's lender; balance by bank transfer ☐ TDS deducted and deposited ☐ Stamp duty and registration fee paid ☐ Originals, keys and meter readings handed over
4. After registration
Within weeks, not months
☐ Share certificate transfer and membership ☐ Authority re-transfer or transfer memorandum ☐ Municipal mutation and property tax ☐ Utility connections in the buyer's name ☐ Seller's capital gains: refer to a chartered accountant
Who issues what, and how long it typically takes
Document
Issued by
Typical time
Society NOC
Society managing committee
No fixed rule; ask at the next committee meeting
Share certificate transfer / membership
Society
Maharashtra: decision within 3 months reported (Section 22(2))
Maintenance no-dues
Society, RWA or maintenance agency
Usually days; varies
Property tax receipts / no-dues
Municipal body
Online receipts same day in many cities; verify locally
Foreclosure letter
Seller's lender
Varies by lender; ask on day one
Original documents release
Seller's lender
Within 30 days of full repayment (RBI)
Builder transfer NOC
Builder
As per the builder's policy; get it in writing
HSVP transfer permission
HSVP Estate Office
4 working days (standard case, citizen charter)
GMADA re-transfer after deed
GMADA Estate Office
5 working days (GMADA form)
Noida transfer memorandum
Noida / GNIDA / YEIDA
Verify with the authority
Mutation
Municipal or revenue office
State-specific; verify locally
A planning guide, not a promise; build slack into the agreement.
Worked Example: A Mumbai Society Flat With a Running Loan
Rahul, an agent in Mumbai, has a buyer for a flat in a co-operative housing society at ₹1,20,00,000. The seller is a resident with ₹30,00,000 still due on a home loan. The society secretary says the "transfer charges" are ₹1,00,000.
Step
Amount
Sale price
₹1,20,00,000
TDS by buyer, 1% under 194-IA (resident seller)
₹1,20,000
Paid directly to seller's bank (foreclosure letter)
₹30,00,000
Balance to seller
₹88,80,000
Society demand
₹1,00,000
Model bye-law cap, municipal corporation area
₹25,000
Excess Rahul flags before anyone pays
₹75,000
Rahul asks for the adopted bye-laws and the general body resolution fixing the premium, and cites the ₹25,000 cap. The agreement records that the seller pays the premium, the buyer pays stamp duty, and ₹30,00,000 goes to the seller's bank on registration day. He diarises 30 days for the originals. Had the seller been an NRI, Section 195 TDS would replace the 1% line, and both sides would see a chartered accountant first.
Every document name, in one PDF
Share certificate, foreclosure letter, transfer memorandum, mutation, OC, encumbrance certificate: the India Real Estate Dictionary PDF explains 500+ terms in plain English for ₹499. The online dictionary is free.
Pay the lender directly against a foreclosure letter. Only the balance goes to the seller.
"Society charges are whatever they say."
In Maharashtra CHS on the model bye-laws, the premium is capped at ₹25,000. Object before paying.
"Registry done, you are the owner, all finished."
Share transfer, authority re-transfer, mutation and utility name changes still follow.
"Seller lives in Dubai, same 1% TDS."
NRI seller means Section 195: higher rate, no threshold, buyer needs a TAN.
"Builder flat, just sign with the first buyer."
Without the builder's endorsement, the new buyer has no claim on the builder.
How This Protects You and Your Buyer
For the buyer
No inherited arrears, clean originals with no bank charge, records in their own name for a future sale or loan, and correct TDS.
For you
Fewer deals collapsing on registration day, a written split of every fee, and commission not held hostage by a missing NOC. In RERA-registered projects, Section 10 requires you to help the allottee get the information and documents they are entitled to; this checklist is how you show you did it.
Frequently Asked Questions
What documents are needed to buy a resale flat?
The seller's sale deed and chain, an encumbrance certificate, the OC and possession letter, the society NOC and share certificate (or the authority's transfer permission), no-dues letters, and the bank's foreclosure letter if there is a loan.
Is a society NOC compulsory for selling a flat?
It depends on the bye-laws and state law. Under Maharashtra's model bye-laws the seller gives notice and the buyer applies for membership, but many lenders still insist on a written NOC. Ask the buyer's lender early.
How much transfer charge can a housing society take in Maharashtra?
State-specific. Under the model bye-laws adopted by Maharashtra co-operative housing societies, the transfer premium cannot exceed ₹25,000; the Bombay High Court held a 3% demand illegal. Smaller towns are reported to have lower caps.
Who pays the society transfer charges, buyer or seller?
In practice it is negotiated. Write who pays the society premium, the authority transfer fee and any builder fee into the agreement to sell, so nobody argues at registration.
How do I buy a flat on which the seller has a home loan?
Get a foreclosure letter from the seller's bank. The buyer or the buyer's bank pays that amount directly to the seller's bank, which releases the originals; only the balance goes to the seller.
Is TDS different when the seller is an NRI?
Yes. For a resident seller the buyer deducts 1% under Section 194-IA when the consideration is ₹50 lakh or more. For a non-resident seller, Section 195 applies instead, at capital-gains rates with no ₹50 lakh threshold. Under the Income-tax Act, 2025 these are Section 393(1) and Section 393(2); from 1 Oct 2026 a resident individual or HUF buyer reports the NRI deduction in Form 141 (Schedule E).
Can an under-construction flat be resold before possession?
Yes, by the builder endorsing or assigning the allotment and agreement to the new buyer. Get the builder's written transfer NOC, fee and payment statement. Without the endorsement, the buyer has no direct claim on the builder.
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