NOC FROM LEGAL HEIRS

Disputes related to properties are common and court cases related to ownership rights over a property can go on for decades. Such disputes are more common in cases of inheritance. When you inherit a property, it may not include conducting any financial transactions, until and unless you give away your share to someone against a consideration or vice-versa.

But you still need to go through the legal formalities to obtain ownership of that property. You may want to sell or gift it to someone, but even to do that in a legal manner, you first need to make it legally yours.

Legal formalities may differ depending up on the nature of the property, your rights over it, number of legal heirs and other aspects. Here is how and what to do once you inherit a property.

Legal ownership - When you inherit a property the first thing you need to ensure is to get it transferred in your name. 

“If it’s a movable property, which may even include bank balances and securities, it should be transferred in the name of the beneficiary. Similarly, if it’s an immovable property, it should be transferred and mutated in the name of the beneficiary in the relevant government and/or revenue records depending upon the nature of the property. 

But a property can be transferred only if you have substantial proof to claim your inheritance. When a person dies leaving a Will, his executors are required to administer the property as per his wishes set out in the Will, provided the same are not contrary to law.

Documents - Once the beneficiaries and their shares, rights and liabilities are decided, the property has to be transferred in their names. For this you need to apply for property transfer at the sub-registrar’s office. “In most of the cases documents needed are Will or Will with probate or succession certificate.

In relation to the assets, the ownership document of movable and immovable assets are required. In absence of a Will, you may also need to prepare an affidavit, along with a no-objection certificate from the other legal heirs or their successors. If you have paid any consideration (in kind or cash) to any heir or claimants to acquire their share, do mention this in the transfer papers.

FORMAT OF NOC

FOR TRANSFER OF DECEASED FATHER PROPERTY

(This Declaration is to be executed on Non- Judicial Stamp Paper of Rs.100/- and should be duly attested either by Notary. This Declaration has to be executed by each legal heir separately by providing identification proof).

DECLARATION

I, __________, son/daughter/spouse of _________ aged ___, an Indian Inhabitant / NRI presently residing at __________________, do hereby solemnly affirm and declare as under:

1.That __________, the deceased, was holding _____ shares in (the name of the company) covered under Folio No. _______ and Share Certificate No(s). ___________, bearing Distinctive Nos. ________ to __________.

2.That (name of the shareholder), the deceased expired on __________.

3.That I am a legal heir of the said deceased. I am the (in what relation) of the deceased.

4.I do not desire to make any claim of title of the said securities held by the deceased. I hereby agree to renounce all my rights existing as well as they may accrue to me in future in respect of the aforesaid securities.

5.I declare that I have no objection whatsoever in transmitting the said securities in the name of the applicant, _________.

I am executing this declaration to be submitted to the concerned authorities of the Company.

I hereby state that whatever is stated herein above are true to the best of my knowledge.

Solemnly affirmed at ________        )                  Photograph

On this ____ day of ______ 20..      )        (Signature of the Legal heir)

Deponent

Identified by me                                         Before Me

Advocate                                 S.E.O./ Oaths Commissioner/Notary

PRACTICAL ISSUE

Fact - My father died recently in India. Myself, my mother and my sister are the legal heirs. I have got the death certificate and legal heir certificate as well. My sister is an NRI working in USA. Indian Bank requesting NOC letter from all kids. As there is a couple of Indian bank accounts of my father without a nominee and the banks are requesting for a NOC letter and Disclaimer (On stamp paper/green sheet) signed by myself and my sister and Notorised in India to settle all the deposits to our mother. Since my sister is NRI, the banks mentioned that she either needs to come in person or the documents be sent to USA for her to sign and return back with some certificate from the Indian embassy in USA.

Query – Can documents and forms filled/signed by myself, my mother and witnesses before a Notory and then send it to the USA for my sister to get them signed and certified by Embassy in USA? Or Indian Notory can only notorise after the signature and certification by Indian Embassy/Consulate in USA?

Solutions - Create the NOC letter on paper (Avoid stamp paper, if possible) as told by Bank. As your sister lives in the jurisdiction of Indian Embassy and they need any document to first ‘Apostiled’ by US state secretary, before they can attest it. Now, the US state secretary may NOT apostile the document with Indian stamp paper. You can ask for the content to be written from bank or write it yourself (whatever clauses you think are appropriate).

Send NOC document to your sister US. She would need to get it ‘Apostiled’ by US state secretary first. This is a requirement for specifically Indian embassy. She would need to visit (or send by postal mail) to Indian embassy for attestation. Indian embassy will keep a copy of this document with them.

Once it is attested, she can send it back to you and then you all (whosoever is in India) can sign and get it notarized. You can do it either way. I mean first your sign and notary in India and then send to USA OR first send to USA and then your sign and notary in India. It does not matter.

Query - An Indian-born person who is a USA citizen have a trust set up in the US and I want to know whether the plan of disposition outlined in their trusts would be applicable to property In India. What would be the process in India for the transfer of ownership of the assets at the death of a relative of person? What process in India for the transfer of ownership of assets at their deaths? Is there any restriction on the removal of intangible assets from India if received as an inheritance?

Solution : The assets in India can be disposed off as per the trust provided the same are in conformity with Indian Laws. The assets of the relative can be transferred as per the WILL , if any, left by the relative or in what capacity the person is related to the relative to inherit the assets. At the death of person the assets can be transferred to the legal heirs or as per WILL or as per Trust depending upon the circumstances. The intangible rights can be transferred in India in accordance with the Transfer of Property Act and that too by a registered document.

Things to remember before selling an ancestral property

Clear title of the property : Title is the proof or evidence of the right of ownership. Make sure that the title of the ancestral property is clear and is in the name of the seller. The buyer has the right to verify if the property is indeed in the name of the person selling it and is free from loans and mortgages.It is important to make sure that all the property papers are in order to achieve a quick sale.

Legally approved : Check whether the ancestral property is legally approved by visiting the civic authority’s office. You can also visit any leading bank to confirm the same as banks only approve properties that have legal clearances with valid documents.

Property tax : The property tax has been paid and there are no tax dues on the property. Pending charges can put off prospective buyers and create several problems in the sale of your ancestral property.

Free from dispute : The ancestral property that you are trying to sell should be free from dispute and there should be no pending cases against it. For instance, a person , being the only son of his father, inherits his property and wants to sell it. His paternal uncle objects claiming that he had contributed some amount for purchasing the property and now wants his share back. Such a property is said to be disputed. The owner should resolve the issue before proceeding with the sale of the property.

No objection certificate: When you inherit a property, you have to get it transferred or mutated in your name. In order to do the same, you need to have substantial proof to claim your inheritance. In the absence of a legally acceptable will, you will have to obtain a No Objection Certificate (NOC) from all the legal heirs.

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BN - 20122019