Procedure & Checklist for Transfer of Flats under Maharashtra Co-op Society Act

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Procedure & Checklist for Transfer of Flats under Maharashtra Co-op Society Act n its Bye laws

An application for transfer of shares and interest in the capital or property of the society should be made in the prescribed form, along with the share certificate An application for membership of the proposed transferee should be made in the prescribed form Valid reasons for the proposed transfer should be furnished All the liabilities of the society should be discharged Transfer fee should be paid Entrance fee of the proposed transferee should be paid Premium (to be fixed at the general body meeting) has to be paid.

This will not apply to transfer of shares and interest of the transferor in the capital or property of the society to a member of his family, his nominee or his legal representative  after his death and in case of mutual exchange of flats amongst the members or a registered gift deed executed by the member. No objection certificate required under any law, an order or sanction issued by the government or a financing agency should be furnished The managing committee or the general body cannot refuse any application for admission to membership or transfer of shares and interest in the capital or property of the society except on the grounds of non-compliance of the provisions of the Act.

If the decision of the committee or general body meeting, on the application for the transfer of shares and interest in the capital or property of the society is not communicated to the applicant within three months of its receipt, the transfer application will be deemed to have been accepted and the transferee will be deemed to have been admitted as a member of the society .

Any transfer made in contravention of the Act, rules or the bye-laws will be void and will not be effective against the society. The transferee will be eligible to exercise the rights of membership on receipt of a letter in the prescribed form from the society. 

“No Objection Certificate” of the Society is not required to transfer the shares and interest of the transferor to the transferee. However in case such a certificate is required by the transferor or transferee, he shall apply to the society and committee of the Society may consider such a application on merit within one month. [Bye Law No. 38(d)]

DOCUMENTS REQUIRED FOR TRANSFER OF A FLAT

  1. Notice of Intention to transfer shares in the prescribed form 20(1) [15 days Notice of Intention as per Bye law 38(a)]
  2. Letter of consent of the proposed transferee in the prescribed form 20 (2) [under Bye law No. 38(a)]
  3. Application, for transfer of shares and interest in the capital/property of the society, in the prescribed form. [ (Form No. 21 ] . The application should contain valid reasons for the 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. 
  1. Application for membership of the proposed transferee in the prescribed form No.23 (being an individual).
  2. Resignation in the prescribed form [as per Bye law no.27 (a) Appendix No.13]
  3. Transfer Form along with Transfer Fee Rs. 500/- &  payment of amount of Premium at the rate fixed by the general body meeting but within the limits as prescribed under the circular, issued by the Department of Co-operation/Govemment of Maharashtra from time to time. No additional amount towards donation or contribution to any other funds or under any other pretext shall be recovered from transferor or transferee [Form No. 21 (1) ]
  4. Payment of Entrance Fee Rs. 100/-.
  5. Declaration by the Transferor for not holding immoveable property in any Urban Agglomeration, specified under the provisions of the Urban Land Ceiling and Regulation Act, 1976, exceeding 500 Sq.Meters.[ Form No. 25]
  6. Declaration by the Transferee for not holding immoveable property in any Urban Agglomeration, specified under the provisions of the Urban Land Ceiling and Regulation Act, 1976, exceeding 500 Sq.Meters.[ Form No. 26 ]
  7. Undertaking to discharge all the liabilities to Society by transferor.
  8. Undertaking to be furnished by the prospective Member to use the flat for the purpose for which it is allotted. [(Form No. 4)]
  9. Stamp duty paid Agreement copy along with Copy of N.O.C. issued by Appropriate Authority Income Tax, if applicable.(as per section 269AB of the Income Tax Act) (Above 75,00,000 Agreement). 
  10. Original Share Certificate.
  11. Certified True Copy of Registration Receipt.
  12. Proof of payment of Stamp Duty.
  13. Copy of Possession Letter issued by the Transferor to the Transferee, that the Transferee has been put Peaceful, vacant & physical possession. (Possession Letter)
  14. Obtaining No Dues Certificate from the Society.
  15. Letter to the Electricity Department to transfer the Electric Meter.
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