Complete Checklist for anyone who wants to buy/sell a flat in a Co-operative Housing Society

If you want to purchase a flat in a registered CHS from a person who is the owner of the flat, Maharashtra Co-operative Societies Act, 1960 require you to consider the following things.

In addition to Investigating the Title, the following documents must be called for from the vendor:-

  • All documents of Title (Agreement for Sale and subsequent sale deeds)
  • Share Certificate
  • Possession letter / Letter of Allotment
  • Electricity bill, Telephone bill, Maintenance bill to verify that the Vendor is the occupant of the flat
  • NOC from the Society – undertaking from the society that,
  • He (Vendor) is the member of CHS and on a transfer you will be added as member in this CHS,
  • He (Vendor) has not taken any loan or encumbrance on flat to best known to the society,
  • there are no outstanding dues from him.

During transfer of flat it is very essential for a transferor, transferee and managing committee members’ of the Co-operative Housing Society to know checklist of transfer of flat.

Here check list contains documents required (applicable only to Maharashtra), things to be done and points to be considered during transfer of flat so that the transfer procedure is done smoothly and transferee and society do not face any problem after allotment of flat.

Checklist for Transferor/Seller

  • A member desiring to transfer his share and interest in the property of the society shall give Notice of his intention to do so to the Secretary in the prescribed form which is to be filled and signed by transferor and transferee. He should give in writing valid reasons for proposed transfer.
  • As per MCS Act 1960 Section 29 (2) it is necessary that the transferor should hold shares or interests in the society for at least a period of one year.
  • The transferor shall file an application for transfer of his shares and interest in the property of the society, in the prescribed form along with original share certificate.
  • The transferor shall pay transfer fee of Rs. 500/- to the society.
  • The transferor shall clear up his dues to the society.
  • The transferor shall give notice of resignation of membership as prescribed under the byelaw no. 27 (a), refer Appendix no. 13.
  • The transferor shall give an undertaking to discharge the liabilities to the society related to period of his membership.
  • Transferor and transferee individually or mutually may pay transfer premium amount as per the rate fixed by the General body meeting but subject to maximum of Rs. 25000/-.

Checklist for Transferee/Purchaser –

  • The transferee shall fill and sign form prescribed which has the consent of the proposed transferee for the transfer of shares and interest of the transferor to him.
  • He shall make an application of membership to the society and pay full value of shares of the society.
  • The transferee shall pay Entrance Fees as prescribed
  • If the transferor has not paid his over dues than transferee shall pay the over dues of the society.
  • Undertaking to be given jointly by the transferor and transferee on a Rs. 100/- stamp paper about the registration of transfer of a flat under section 269 AB of the Income Tax Act. (Such undertaking is not required where the transfer is between 2 relatives or if the consideration of the transfer is Rs. 75,00,000/- or less).
  • The transferee should submit true copy of agreement of sale with proof of payment of Stamp Duty and registration.
  • The transferee should see that the share certificate is transferred in his name within the stipulated period.
  • The transferee has to give an undertaking on Rs. 100 Stamp paper in a prescribed form to the effect that he shall use the flat for the purpose for which it was purchased by him and no change of user will be made by him without the previous written permission of the committee members of the society.

AUTHOR:

Adv. Nirali Shah Ms. Nirali Shah is a practicing advocate in Mumbai. She is currently pursing her Solicitor exams. Her specialty lies in Property laws and she also has a keen interest in the fast developing industry of Information Technology Laws and Start-up Laws. She also holds a certification in Corporate laws and Governance course from London School of Economics (LSE). As a hobby, she writes legal blogs.

You can find her profile and other articles at : https://www.linkedin.com/in/nirali-shah-a9aa5a91/

She can be reached at : advniralishah@gmail.com

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