Buying a resale flat in a housing society: transfer

The documents in a society flat

• The registered sale deed or agreement between seller and buyer (see agreement for sale and sale deed and property registration).
• The share certificate of the seller. The Maharashtra Housing Manual calls it “a main document of the member”. A society must issue it to each member; the model bye-laws give a period of six months from allotment, and a duplicate can be issued on a police complaint and affidavit if it is lost.
• The society’s no-dues position: the seller must pay service charges and other dues.
• The conveyance of the land and building to the society, if done: the Manual’s checklist for societies asks whether the conveyance deed has been done. Ask for it.

Maharashtra: the published procedure

1. Notice. A member who wants to transfer shares and interest in the society gives the Secretary 15 days’ notice in the prescribed form, with the proposed buyer’s consent (model bye-law 37).
2. Committee. The Secretary places the notice before the next committee meeting and checks eligibility. A society cannot refuse a transfer or admission except for non-compliance with the Act, rules, bye-laws or other law (bye-law 38).
3. NOC. The Manual says an NOC is not necessary for the transfer. If the seller or buyer asks for one, the committee may consider it on merit within one month (bye-law 37(d)); the manual’s section on loans says a society must give an NOC for a bank loan or say in writing within 15 days why not.
4. Documents with the application: application for transfer with the share certificate; the buyer’s membership application; the seller’s resignation; the registered agreement with stamp duty paid; reasons for the transfer; an undertaking to clear dues; the transfer fee; the entrance fee; and the premium.
5. Decision. If the decision is not communicated within three months, the application is deemed accepted and the buyer deemed admitted (bye-law 38(c), s. 22(2) of the Act). A refused applicant can appeal to the Registrar.
6. Membership takes effect on the society’s letter or the Registrar’s order (bye-law 39).

The Manual also says that a member should not transfer the flat before completing one year of membership, except for a flat acquired through a court order or heirs.

Fees as published in Maharashtra

These come from a 2012 Manual and a model bye-law dated 2014; later government orders or society bye-laws may differ. Ask the society for its current bye-laws and the Registrar’s latest circulars.

Other states

Co-operative societies are regulated by state law. The Maharashtra figures above do not apply to Delhi, Karnataka, Gujarat or Tamil Nadu. Check with the Registrar of Co-operative Societies of the state. Do not assume that an amount quoted by a society in another state follows the Maharashtra cap.

What RERA adds for new buildings

For a new project the promoter must enable the formation of an association or society of the allottees, and where local laws are silent it must be formed within three months of the majority of allottees having booked (RERA s. 11(4)(e)). The promoter must also execute the registered conveyance in favour of the allottee along with the undivided proportionate title in the common areas to the association (s. 17(1)). In a resale, check that these were done.

Which professional to consult

A property lawyer (advocate) enrolled with the State Bar Council can check the society’s bye-laws, the share certificate and the transfer documents. See property lawyers and real estate agents.