7/31/2019 DNA Property Transfer Fee

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Ours is a registered housing society. Atthe time of selling the flats by the pro-

moter/ builders an undertaking wasgiven to the banks/ financial institu-tions, (where the buyers had availedof the loan for the purchase of the flats)that the share certificates would besubmitted to such institutions, as and

when the society is formed. Now soci-ety has been formed and the share cer-tificates are ready and the society is inthe process of completion of the for-malities for the issuance of the sharecertificates. Please let me know

whether share certificate s could bedirectly given to the individual mem-bers or office bearers are bound to for-

ward the same to these financial insti-tutions. Ifthe share certificates are giv-en to the members of the society wouldit amount to any contravention by theoffice bearers and would they be heldaccountable. Clause No.9 ofthe modelbye law states that share certificateshall be issued by the society to everymember for the share capital sub-scribed by him/her. Can the office bear-ers of the society release the same tothe financial institution/bank insteadof issuing the same to the members ofthe society? Incidentally none of the fi-nancial institutions have demandedthe same as ofnow.

KR RamachandranYou have rightly mentioned that

Clause No.9 of the model bye laws pro-vide that the share certificate shall be is-sued in the name of the member, whohave subscribed to the share capital ofthe society. As far as the delivery of theshare certificate is concerned, if an un-dertaking has been given by the builderin the cases, where the members haveavailed of the housing loans from the fi-nancial institutions including banks, tosend the same by the society directly tosuch financial institutions, that under-taking should normally be honoured andthe share certificates should be sent bythe society to those financial institutionsunder intimation to the members con-cerned. The same procedure may also befollowed where registered society is al-

ready in existence but it has not issuedshare certificates, (like so many societiesin Mumbai/ Navi Mumbai) and where themembers have obtained housing loansfrom the financial institutions and thebanks, and an undertaking is obtained

from the society either separately or byway ofa clause in the mortgage NOC thatthe share certificates, as and when issuedor transferred, will be sent to the con-cerned financial institutions. However, ifthere is any lapse in honouring any suchundertaking, it may be difficult to attachany liability against the office bearers ofthe society. But where the members haveavailed ofthe loans from the financial in-

stitution and submitted share certificateswith other documents as security forloans and later on share certificates aresent by the financial institutions to thesociety for the purposes of transfer en-dorsement, the share certificates shouldbe returned back to the financial institu-tions concerned, failing which officebearers may be held responsible. It mayalso be noted that the lien/charge of suchfinancial institutions should also berecorded by the society in the lien regis-ter maintained by the society.

According to bye-law No.14 (c) of 2009,it is now possible to utilise the sinkingfund of a society towards major repairsafter the same is certified by an archi-tect and approved by the general bodyby way ofa resolution. However whenthe banks were approached after meet-ing these requirements, they refusedto entertain the application on theground that they have received ordersthat all applicants must get first ap-proval of the concerned Dy. Registrarbefore they can release the funds. Ifthisis the requirement, then the situationis not different as against prior to theamendment of bye-law 14 (c).

Jude ChavesA society is governed and has to func-

tion according to bye-laws adopted by itand approved by the Dy. Registrar. If thesociety has adopted 2009 model bye-laws with the approval of Dy. Registrar,the bank cannot refuse on the submis-sion of the requirements of bye-law No.14 (c) of20 09. In case the society has notapproved 2009 bye-laws, it will be gov-erned by the earlier bye-law No.14 (c) asapproval of Dy. Registrar will be neces-sary. You should have called for the copyof the orders being referred to by thebank for refusing the funds to examinethe matter further.

Ours is a four-storey building and weare in the process offorming the soci-ety. I purchased a shop in this buildingfrom the builders and the number of

the shop was given as 6. But, subse-quently, I came to know that in all oth-er documents such as electricity bill,share certificate, CIDCO Deed etc. thisshop has been numbered as 5. Builderhas told that he has combined shop

No.1 and 2 and thus it has happened.All the shops are having the same prob-lem. What can be done?

Shailendra MauryaA builder cannot change the num-

bering of the shops and the flats fromwhat is given in the sanctioned plan andthe copy of which is annexed with theAgreement for Sale and also in theAgreement for Sale, which would alsoreflect in the records ofthe office of Sub-Registrar, without having the revised ap-proval from CIDCO or NMMC as the casemay be. A list of the members, showingthe numbering of the flats and theshops, is always attached with the leasedeed executed by CIDCO. Therefore, thebuilder will have to execute a rectifica-tion deed and have the same correctedin all the records such as MSEB, NMMC(if the area has been taken over), sharecertificates and all other records to avoidany confusion and complication in thesale and purchase of the flats and/orshops in future. By such deed only, thepresent correct number of the shopswould be reflected in the records of theOffice of Sub-Registrar.

My father has two flats in a society inKalyan, out of which one was pur-chased in his name in the year 1977and the other in the name of mygrandmother, who has passed away inthe year 1988 without leaving any will.My father told the secretary to recordthe flat of my grandmother in hisname in the year 2011 without ourconsent. The original document oftheflat ofgrandmother is with me. Kind-ly inform me the procedure to get theflat in my name.

Vinod KumbharIf your grandmother has not left any

will and there is no dispute amongstthe legal heirs, society may transfer theflat of your grandmother in the namesof all the legal heirs of your grand-mother as per the provisions of byelaws (model bye-law No.35) and in case

there is any dispute, the society willhave to call for the succession certifi-cate issued by a court of competent

jurisd iction to transfe r her share,though your father will be one of thelegal heirs of your grandmother. Thesociety can't transfer the flat of yourgrandmother simply on the request ofyour father and even with your consentin the name of any one of you.

A society has been formed in June 2010,with the builder as the member for afew unsold flats and shops at NaviMumbai. I purchased a flat from thebuilder from those unsold flats in Jan-uary 2011 and agreement has been dulyexecuted and registered. I approachedthe society for the membership, butthey have asked me to undergo the pro-cedure of CIDCO transfer and pay thetransfer fee to the society. Please ad-

vise whether I may have to go for CID-CO transfer and have to pay the trans-fer fee to the society, when I am the firstpurchase of the flat from the builder?

Raju JaidWhen a flat or a shop is sold by a

builder from his unsold flats and theshops in the building, where a society hasalready been formed, the society is boundto enroll such a purchaser as a memberof the society on the compliance of therequirements of the membership and so-ciety cannot charge the transfer fee insuch cases. As regards CIDCO transfer, theentire land in Navi Mumbai is on leasehold basis from CIDCO and plots are al-lotted under different categories. If theplot in this case is from the category oftender plot, CIDCO transfer is not essen-tial till the lease deed has been executedby CIDCO in favour of the society. In allother type ofcases, CIDCO transfer is nec-

essary and you may have to bear CIDCOtransfer charges, ifapplicable in your case.

I purchased a flat in resale. The size ofthe flat is 625 sq. ft. and situated on the3rd floor of a 7-storey building. The so-

ciety is already registered and at thetime of purchase ofthe flat by me, thesociety has charged Rs.37,500 as thetransfer fee from the owner. Please letme know the rules and regulations re-garding the transfer fee prescribed inthe bye-laws of the society, because Ithink the society has charged muchhigher amount.

Dilip ShahThe rate of the transfer fee in case of

resale of a flat in a society building ismentioned in model bye law No.38 thatsuch amount will be fixed by the gener-al body meeting, but within the limitsprescribed in a circular issued by the stategovernment ofMaharashtra and no ad-ditional amount by way ofany name suchas donation or contribution etc. will berecovered from the transferor or trans-feree. According to the government cir-cular, the maximum amount as on date,which is to be charged is Rs.25,000. Thesociety may levy transfer charges at therate fixed by the general body meeting,if it is lower than the overall ceiling ofRs.25,000.

When we contacted KDMC for OC ofour building, the officials told us thatOC is CC, which, as per my knowledge,is the commencement certificate is-sued at the time of construction andOC is the occupancy certificate issuedafter the completion ofthe construc-tion and various approvals. KDMC isnot ready to give in writing and evennot accepting our RTI application.Please clarify.

Moin SayedWhen a construction ofa building has

to be taken up, the local authorities haveto issue development permission/ com-mencement certificate and on the com-

pletion of the construction, occupancycertificate or the completion certificateis required to be issued before takingthe possession ofthe flats. Therefore, twoseparate certificates are required to be is-sued, one at the time ofstarting the con-

struction and another after the comple-tion of the same and when the buildingis certified fit for occupancy which maybe called OC or the completion certificate.In Navi Mumbai such a certificate is calledoccupancy certificate. As regards not ac-cepting your application under RTI, youmay proceed against KDMC as per theprovisions of RTI Act.

Are there any rules about how socie-ty can allocate parking slots in thebuilding compound? Where there aremore cars than parking slots, canparking slots be given permanently tosociety members on a very low rent,

which is not increased at all for years.Is there anything in rules that stipu-late that everyone with car should geta chance in rotation or do the mem-bers adhere to the decision of themanaging committee?

Gautam BerryAllotment of parking slots are gov-

erned by the bye laws adopted by the so-ciety. The detailed procedure is men-tioned in the bye law No.78 of the mod-el bye law of 2001, if the same has beenadopted by your society. According to thesaid bye law, the parking slots have to beallotted on the basis of 'first come firstserved basis' but where the number ofvehicles of eligible members are in ex-cess of available parking slots, the man-aging committee will have to allot theparking slots by lots on yearly basis andthe society may charge parking chargesas decided in the general body meetingof the society.

If you have any queries regardingproperty-related or society matters,

email them along with your full contactdetails topropertydna@gmail.com.

Please note that replies provided inthis column are indicative and in thenature of guidance. Any action

should be taken only after consulting anexpert and examining the various

relevant documents.

Limit for society flat transfer charges is ` 25,000Advocate SR Ag

ar

walanswers queries fromDNA readers onproperty matters andsociety issues

epaper.dnaindia.com

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l twitter.com/dnal dnaindia.com/mobile 2MUMBAISATURDAY, APRIL 21, 2012PROPERTY