Buying Or Selling A Resale Property? Here Are Rules To Transfer Cooperative Society Membership

Buying a resale home in a cooperative housing society means the homebuyer has to pay a membership fee to the committee. However, under the rule this fee is limited to Rs 25,000. Many resale homebuyers in Mumbai reported that they were being charged more than the said amount. In the wake of these complaints, the Commission of Corporation ruled that the cooperative housing societies in Mumbai cannot charge over Rs 25,000 as membership fee.

The Commissioner while ruling this also said that any further complaints by homebuyers against housing societies will be heard by the deputy district registrar, and not the court.

So, in case you have also invested in a resale home of a cooperative housing society, here is the process the homebuyer and the seller must follow to have a hassle-free transfer of membership:

For the seller

To begin with, the seller has to give a 15-day notice to the secretary of the cooperative housing society informing them about his/her intention of letting go of the membership. The managing committee of the society must hold a meeting to understand whether or not the seller is eligible to transfer his/her membership rights.

It would require the seller to provide certain documents to be eligible. These include:

* A notice of intention of the member to transfer their shares and interest in the property of the society.

* An application for transfer of shares and interest in the property of the society by the transferor.

* A resignation of membership of the society (in case of surrendering the flat to the society) .

*Submission of a no-objection certificate (NOC) from a financing agency, if any.

*A declaration that would support the handing over of the possession of the apartment to the new homebuyer.

 For the homebuyer

There are certain documents that the homebuyer also has to produce in whose name the membership will be transferred. These include:

*A letter of consent of the proposed transferee to transfer the shares and interest of existing member i.e. the seller.

*The buyer must also submit the membership application form to the society.

*The buyer has to furnish an undertaking that they would use the flat for the purpose for which it is allotted to them.

*A copy of the paid stamp duty has to be attached too.

*The buyer must also pay a transfer fee of Rs 500.

*The buyer will also have to pay a premium of Rs 25,000. However, in case the flat is being transferred among family member or to the legal heir of the actual owner after their death or mutual exchange of flats among the members, this fee is not applicable.

*The buyer will have to provide a declaration in accordance with the provisions of any law for the time being in force, in such form as it is prescribed under these bye-laws.

*Submit a covering letter to the society that has the information regarding sale and purchase of shares of the society.

*Submission of the Indemnity Bond is a must, too.