Question 1

I am gifting my flat to a close friend, not a relative. Is transfer premium payable, and is the paperwork different from a sale?

Accepted Answer

Yes, premium is payable. The premium exemption covers only transfers to the member's family, to a nominee or heir after death, and exchanges between members. A gift to a friend is an ordinary lifetime transfer. It needs a stamped and registered gift deed and the usual transfer papers. The note to BL 37(e) (2014) switches off the premium only for a transfer to a member of the transferor's family, to a nominee or heir after death, and for a mutual exchange of flats. "Family" is the list in BL 3(xxv); a friend is outside it. The general body may therefore charge the premium it has fixed, within the Government cap (see transfer-002), together with the ₹500 transfer fee. The papers are those for any voluntary transfer: the transferor's application with the share certificate, the donee's membership application, the donor's resignation, undertakings, and the registered instrument. Rule 106C-4(b) (2026) and dBL 26(a)(ii) name a registered gift deed as a valid basis for admission, so the society cannot insist on a sale agreement. The "valid reasons for the proposed transfer" asked for by BL 37(e)(v) are satisfied by stating that it is a gift. Stamp duty on a gift to a non-relative is at the full conveyance rate under the Maharashtra Stamp Act; that is for the parties and their advocate.

Question 2

My brother and I own our flat jointly. He wants to give up his share in my favour. How is his name taken off the share certificate?

Accepted Answer

He executes a registered release (relinquishment) deed or gift deed of his share in your favour. You then apply to the society with that deed and his resignation as joint member. The committee records the change and endorses or reissues the share certificate in your sole name. Premium is not payable because a brother is family. A joint holder's interest is property; it moves only by a registered instrument, not by a letter to the society. The draft 2026 bye-laws list a "Release or Relinquishment Deed" among the documents on which membership rests (dBL 23(c)), and Rule 106C-4(b) accepts any similar registered legal instrument. Steps: (1) register the release deed; (2) file an application with the certified copy, the original share certificate and the outgoing holder's resignation — a joint member may resign by notice through the member he holds jointly with (dBL 42(b); BL 28 for the 2014 associate, who is today's joint member); (3) the committee takes it on record, updates the Register of Members and the Share Register and endorses the certificate (dBL 33(g)). The ₹500 transfer fee may apply; the premium does not, because a brother is within "family" in BL 3(xxv). The society may insist that the flat's dues are clear, since this is a lifetime transfer (dBL 33(c)(v)).

Question 3

I live abroad. Can my power-of-attorney holder in India sell my flat and sign the society's transfer papers for me?

Accepted Answer

Yes, if the power of attorney expressly authorises sale and is properly executed and registered. The attorney signs the registered sale deed and the society forms in your name. What the society must see is a registered conveyance in the buyer's favour, not the power of attorney alone. A power of attorney is authority to act, not a transfer. The Supreme Court in Suraj Lamp (2011) held that immovable property can be conveyed only by a registered deed of conveyance (para 16), while confirming that a genuine power of attorney given to a relative or agent to manage affairs or execute a conveyance remains valid (para 19). So your attorney may execute the registered sale deed on your behalf. For the society, the attorney signs the transfer application, your resignation and the undertaking to clear dues (BL 37(e); dBL 27(b)), attaching a certified copy of the power of attorney. The committee should check that the power covers sale and dealing with the society, that it is still in force, and that the sale deed is registered. A power of attorney executed abroad usually has to be authenticated at an Indian mission or apostilled and then adjudicated for stamp duty in Maharashtra before use; your advocate will advise. The attorney cannot attend general meetings in your place (BL 103; dBL 99(b)).

Question 4

I bought my flat years ago on an agreement, a general power of attorney and a will from the seller, but no registered sale deed. Can the society admit me as a member?

Accepted Answer

Not on those papers alone. Such "GPA sales" do not transfer title, and the Rules require a certified copy of a stamped, registered instrument for membership. Get a registered conveyance from the seller (or his heirs), or a court decree, and then apply. Rule 106C-4(b) (binding from 22 Jun 2026) admits a person only on a certified copy of a duly stamped and registered agreement with the promoter or transferor, or a registered gift deed or similar legal instrument; the 2014 bye-laws ask for a registered, stamp-paid agreement (BL 19(a)(vi), 37(e)(iv)). The Supreme Court in Suraj Lamp (2011) held that sale-agreement, general-power-of-attorney and will transactions neither convey title nor create an interest in immovable property; a will speaks only on death and an unregistered agreement is not a transfer (paras 16-18). A committee that refuses to admit on such papers is therefore acting on a lawful ground (BL 38(b); dBL 33(e)). Routes out: ask the original owner to execute a registered sale deed in your favour; if he has died, approach his heirs; if he refuses, a suit for specific performance or declaration in the civil court. Meanwhile you may continue to pay charges for the flat, but as occupant through the recorded member, not as member.

Question 5

Can a housing society refuse to admit a buyer because he is a Non-Resident Indian or an Overseas Citizen of India?

Accepted Answer

No. Residence abroad is not a ground of refusal in the Act, the Rules or the model bye-laws. Foreign exchange law allows NRIs and OCIs to buy residential flats in India. The committee may ask only for the usual documents, an Indian address for notices, and where needed a local attorney's details. Refusal is lawful only for non-compliance with the Act, the Rules, the bye-laws or a statutory order (BL 38(b); dBL 33(e)); s.23(1) forbids refusal "without sufficient cause" of a qualified person. The eligibility tests are capacity to contract, a registered title document and land-grant conditions (BL 17; Rule 106C-4; dBL 22-23) — nationality or residence is not among them. Under the FEMA (Non-debt Instruments) Rules 2019, an NRI or OCI may acquire residential immovable property in India other than agricultural land, farm house or plantation property; a foreign national who is not an OCI and not resident is in a different position, and that is a question for the buyer's advocate, not the committee. Practical points for the society: record a correspondence address and e-mail for notices; note any power of attorney for dealings with the society; remember that the member (not an attorney) must attend meetings personally. Tax deduction at source on payment to an NRI seller is the buyer's obligation under income-tax law and is not a condition of membership.

Question 6

My flat is mortgaged to a bank that holds the original share certificate. How do I sell and transfer it?

Accepted Answer

The loan is usually closed from the sale price and the bank then releases the share certificate and title papers. The society records the transfer when it receives the certificate (or the bank's letter) with the other papers. The draft 2026 bye-laws ask for the original certificate only "wherever available". A housing loan from a bank is one of the charges a member may create without the society's prior permission; the society notes it in its mortgage records (BL 43 proviso; dBL 41). When the flat is sold, the usual sequence is: the buyer's bank or the buyer pays the seller's lender directly; the lender issues a closure letter and returns the share certificate and agreements; the seller then files the transfer application with the certificate (BL 37(e)(i)). Where the certificate is still with the lender at the time of application, the draft 2026 bye-laws require it only "wherever available" (dBL 27(b)(iv)), so a letter from the lender confirming it holds the certificate and will release it on closure helps the committee proceed; the committee may endorse the new name when the certificate arrives. Loan closure does not clear the society's own dues — those must still be paid before a lifetime transfer becomes effective (s.154B-7; dBL 33(c)(v)). If the buyer takes a new loan, the new lender's charge is noted in the society's records.

Question 7

Before I sell, can I get a statement of dues from the society, and can the society later claim more from my buyer?

Accepted Answer

Yes, ask the Secretary for a written, itemised statement of dues up to a date. It is not a statutory certificate, but it is strong evidence of what the society claimed. The society can still recover amounts it could not have known of, but a buyer who relied on the statement has a good defence against later surprises. A lifetime transfer is not effective until the society's dues are paid (s.154B-7; dBL 33(c)(v); Rule 24(1)(c)), and the seller undertakes to discharge all liabilities (BL 37(e)(vi)). Neither the 2014 nor the draft 2026 bye-laws prescribe a "dues certificate", but every member may ask for the portion of the books recording his own dealings with the society (s.154B-8, earlier s.32; dBL 37(a)(viii)), and the Bombay High Court in Banganga Anurag CHS (2025) gave weight to a society's detailed break-up of dues that the purchaser never challenged. For the Secretary: give the statement head-wise and period-wise (service charges, sinking and repair funds, water, parking, interest), state the date up to which it runs, and exclude anything that is not a lawful charge. For the buyer: attach it to the sale deed, keep back a retention amount, and pay the society directly at registration. Later disputes about the figure go to the Deputy Registrar or the Co-operative Court (s.91).

Question 8

The society's figure of arrears on my flat is wrong, and it says it will not record my sale until I pay it. What can I do?

Accepted Answer

Pay the undisputed part, ask in writing for the detailed working, and challenge the rest before the Deputy Registrar or the Co-operative Court. The courts enforce the dues condition where the dues are admitted or unchallenged, but treat a genuinely disputed figure differently. Paying under written protest is a common way to keep the sale moving. Section 154B-7 makes the payment of the society's dues a condition of an effective transfer, and the Bombay High Court has enforced it strictly where the arrears were admitted (Tanvis Diamoda CHS, 2025, para 12) or where a detailed break-up went unchallenged (Banganga Anurag CHS, 2025, para 37). The same judgments distinguish cases where the dues themselves are seriously disputed. What "dues" means is set by the heads a society may lawfully levy (Rule 106C-12; BL 64-66; dBL 61) and interest within the cap — not premium above the s.79A limit, "donations" or penalties imposed without the bye-law procedure. Steps: (1) write to the committee asking for the head-wise, period-wise computation; (2) pay what you accept; (3) if the sale cannot wait, pay the disputed balance "under protest" with a covering letter; (4) file a dispute under s.91 or complain to the Deputy Registrar for a refund or correction. A committee that levies unlawful amounts on a transfer is also open to action under s.79A(3).

Question 9

Two members want to swap flats within our society. What is the procedure, and is any premium payable?

Accepted Answer

The two members make a joint application to the Secretary giving the flat numbers, areas, buildings and reasons, and execute a registered exchange deed. No premium is payable on a mutual exchange between members. The committee decides under the normal application procedure and updates both share certificates. BL 40 (2014) prescribes a joint application stating the members' names, the flat numbers, carpet areas in square metres, the building numbers or names and the reasons for the exchange; BL 41 applies the ordinary BL 62 procedure (acknowledgement, defects within 15 days, decision within three months). The note to BL 37(e) exempts a mutual exchange among members from the transfer premium. Because each flat moves to a new owner, the exchange needs a stamped and registered exchange deed; the draft 2026 bye-laws name it expressly as a mode of transfer (dBL 26(a)(iii)) and list it among title documents (dBL 23(c)). The committee then records both changes in the Register of Members and the Share Register and endorses or reissues the certificates. Points to check: each flat's dues (a lifetime transfer needs them cleared); any land-grant condition (BL 17(c)); parking slots, which are allotted to the member and do not automatically travel with a flat.

Question 10

After our divorce, the family court decree gives the flat to my former spouse. How does the society put the flat in her name?

Accepted Answer

The former spouse applies for membership with a certified copy of the decree and the share certificate. A court decree is a recognised title document, so the society acts on it without needing the other party's signature. Whether the decree itself must be registered or stamped is a question for the advocates. The draft 2026 bye-laws list a "Court Decree" among the documents establishing title on which admission may rest (dBL 23(c)) and treat a transfer under a court's order as one "by operation of law", which does not fail merely because the outgoing member will not sign the usual forms (dBL 26(a)(v), 26(d), 27(c)). Under the 2014 bye-laws the committee may refuse only for non-compliance (BL 38(b)); a decree binding both spouses is a lawful basis for the change. What the society should do: take a certified copy of the decree, the share certificate (or note its absence), the applicant's membership application and fees; enter the change in the registers; and act only on the operative part of the decree, not on pleadings. If the decree merely declares a right and directs execution of a conveyance, the society should wait for that registered conveyance. Whether premium applies is unclear: a former spouse is not "family" in BL 3(xxv), but the transfer is not a sale.

Question 11

How do the transfer steps and deadlines differ between the 2014 bye-laws, the 2026 Rules and the draft 2026 bye-laws?

Accepted Answer

The 2014 bye-laws: 15 days' notice, a document checklist, defects pointed out in 15 days and a decision in three months. The 2026 Rules: minimum admission conditions only (five shares, ₹500 entrance fee, registered instrument, committee approval). The draft 2026 bye-laws: scrutiny in 15 days, decision in 30 days from a complete application, communication in 7 days, and a separate route for court and auction sales. 2014 (BL 37-39, 62): the seller gives 15 days' notice with the buyer's consent; papers include the application with share certificate, buyer's membership application, seller's resignation, registered stamped agreement, "valid reasons", undertaking to clear liabilities, ₹500 transfer fee, entrance fee (₹100 in the text) and premium within the cap; defects are pointed out within 15 days and the decision comes within three months, failing which the buyer is deemed admitted. Rule 24(1) (not excluded for housing societies) also asks for 15 clear days' notice and discharge of the seller's liabilities. 2026 Rules (Rule 106C-4, in force 22 Jun 2026): five shares and ₹500 entrance fee; any registered instrument, including a gift deed; committee approval. Draft 2026 bye-laws (dBL 26-27, 33, 60): a wider list of instruments; transfers by sale certificate treated as by operation of law; Secretary's scrutiny within 15 days; decision within 30 days of a complete application; communication within 7 days; deemed membership after three months remains. Until the final 2026 bye-laws are adopted, a society follows its registered bye-laws, read with the Rules where they conflict.

Question 12

The transfer form asks the seller to give 'valid reasons for the proposed transfer'. Must I explain why I am selling, and can the committee judge my reasons?

Accepted Answer

Under the 2014 bye-laws you must state a reason, but a short honest one (sale, relocation, gift, family need) is enough. The committee cannot refuse a transfer because it dislikes the reason. The 2026 Rules do not ask for reasons at all. BL 37(e)(v) (2014) lists "valid reasons for the proposed transfer" among the papers, but BL 38(b) allows refusal only for non-compliance with the Act, the Rules, the bye-laws or a Government order. The reason is therefore a disclosure, not a test of merit: a society cannot decide that a member's wish to sell is not good enough. Rule 106C-4 (2026), which sets the conditions for admission, does not require reasons, and the draft 2026 bye-laws drop the item from the list of documents (dBL 27(b)). Where a registered society still has the 2014 wording, write one line (for example "sale for consideration", "gift to daughter", "relocation"). If a committee withholds a transfer on the ground that the reason is inadequate, the buyer can appeal to the Registrar under s.23(2) and rely on deemed membership after three months under s.22(2).

Question 13

Our society stands on CIDCO (or MHADA, SRA, Collector) land. What extra is needed when a flat is sold?

Accepted Answer

The land-owning authority's conditions apply on top of the society's rules. Usually that means the authority's permission or NOC for the transfer and payment of its transfer charges. The society may lawfully refuse to admit the buyer until that permission is produced. BL 17(c) (2014) makes admission, whether direct or by transfer, subject to the approval of the competent authority and the land-grant terms where the society's land came from the Government, CIDCO, MHADA, SRA or another authority; BL 19(a)(viii) requires the buyer to be eligible under that authority's rules; and BL 37(e)(x) lists any NOC required by law or order among the transfer papers. The draft 2026 bye-laws repeat this: admission is subject to the lease, grant or allotment conditions (dBL 22(d)), prior permission must be obtained before admission (dBL 23(g)), and the committee must check it before approving a transfer (dBL 27(d)(v)). The society's own premium cap under s.79A is separate from any charge levied by the authority; the society cannot add its own "NOC fee". Lock-in periods and eligibility rules differ by scheme (for example SRA and MHADA lotteries) — check the allotment letter and lease deed, and consult the authority's office.

Question 14

Who pays the transfer fee and the premium — the seller or the buyer — and can the society collect both from both?

Accepted Answer

The bye-laws put the transfer papers on 'the transferor / transferee' together and do not split the cost; who bears it is a matter between seller and buyer. The society may collect one transfer fee of ₹500, one entrance fee from the buyer and one premium within the cap — not each of them from both parties. BL 37(e) (2014) begins "The Transferor / Transferee shall submit following documents and fulfil compliance", then lists the ₹500 transfer fee (vii), the entrance fee payable "by the proposed Transferee" (viii) and the premium (ix), adding that nothing else may be recovered "from transferor or transferee" under any pretext. Only the entrance fee is tied to a particular party. The sale agreement usually states who bears the premium and fee; the society should accept payment from either and issue one receipt per item. Charging the premium twice, or a "buyer's premium" and a "seller's premium", is a second levy that BL 37(e)(ix) forbids, and the cap under the s.79A directive of 9 Aug 2001 applies to the transfer as a whole. Transfer fee and premium are credited to the Reserve Fund (BL 12). The entrance fee is ₹500 from 22 Jun 2026 (Rule 106C-4(a)).

Question 15

The society approved my purchase months ago but still has not endorsed or issued the share certificate in my name. What are my remedies?

Accepted Answer

Write to the committee asking for the certificate within a fixed time, citing the approval. The 2014 bye-laws expect certificates within six months, and non-issue of share certificates is a matter the Registrar deals with. Keep the approval letter: it already lets you exercise member rights. BL 9(a) (2014) and dBL 14(a) require a share certificate within six months of allotment of the shares, signed by the Chairman, the Secretary and an authorised committee member under the seal (BL 10). On a transfer, the society endorses the existing certificate or issues a new one when it approves the transfer (dBL 33(g)), and records it in the Register of Members and Share Register. BL 39 lets the transferee exercise membership rights on receipt of the society's letter (or a Registrar's order under s.22 or s.23), so the delay does not suspend your rights. The draft 2026 bye-laws list "non-issuance of Share Certificates" as a matter for the Registrar (dBL 190(A)(ii)). Practical steps: (1) a written request with the approval reference and a 15-day deadline; (2) a complaint to the Deputy Registrar with copies; (3) if the committee's failure is persistent, the Registrar may issue directions to the society under his general powers (s.79 and Chapter XIII-B). Banks and later buyers will ask for the certificate, so do not let the matter drift.

Question 16

The buyer has taken possession but the society has not yet admitted him. Who pays the maintenance bills in the meantime?

Accepted Answer

As far as the society is concerned, the seller remains the member and liable until the transfer is recorded; bills stay in his name. The seller and buyer can agree between themselves that the buyer pays, and the society may accept payment from him, but that does not make the buyer a member. A person ceases to be a member only on the transfer of the whole of his interest (s.25; BL 54(b); dBL 55(b)), and a transfer is not effective until it is registered in the society's books and the transferor's liabilities are discharged (Rule 24(1); s.154B-7). BL 39 gives the transferee membership rights only on the society's letter or a Registrar's order. Until then the seller remains answerable for charges and for the conduct of occupants (dBL 35(h)), and the society's first charge on the flat continues. Practical course: the sale agreement should fix the date from which the buyer bears outgoings; the society can accept cheques from the buyer "on account of" the flat and show them in the seller's ledger; once the transfer is approved the ledger moves to the buyer from the date of approval. If the buyer occupies before admission, he is for the time being an occupant through the member, and the usual intimation rules for occupants apply.

Question 17

Part of the flat stands in my minor child's name. Can I, as guardian, sell it, and what should the society ask for?

Accepted Answer

A natural guardian generally needs the permission of the court to sell a minor's share in immovable property. The society should ask for a certified copy of that court order before recording the transfer of the minor's share. Without it the sale can be challenged later. A minor may hold a share or interest through a guardian (BL 17(b); dBL 22(b); Rule 20(2), which remains in force for housing societies). For Hindus, s.8(2) of the Hindu Minority and Guardianship Act 1956 requires the court's previous permission for a natural guardian to transfer any part of the minor's immovable property, and a transfer without it is voidable at the minor's instance (s.8(3)); for others, a guardian appointed by the court acts under the Guardians and Wards Act 1890 with the court's leave. For the society, a transfer "in contravention of the Act, Rules or the Bye-laws" is void against it (BL 38(d)), and the committee must satisfy itself that the transferor had a transferable right (dBL 27(d)(ii)). Practical checklist: the registered sale deed signed by the guardian for the minor; a certified copy of the court's permission; the minor's birth certificate; and the other co-owners' signatures. When the minor turns 18 he signs for himself. Take an advocate's advice before the sale.

Question 18

Can I sell my flat while our building's redevelopment is under way, and does the buyer get my new flat?

Accepted Answer

Generally yes: the Act lets a member transfer his share and interest by a registered document (s.154B-12), and nothing in the Act or the Rules freezes transfers during redevelopment. But the 2019 redevelopment directive requires the development agreement to provide that new members are admitted only after the project is complete and with the general body's approval (cl. 18(5)); whether that reaches a buyer from an existing member is not settled. Read the development agreement and the PAAA before you sign. A member's right to transfer his share, right, title and interest by a registered document following the Rules and bye-laws (s.154B-12; dBL 34(h), draft) continues during redevelopment, and the committee may refuse only for non-compliance (BL 38(b); dBL 33(e), draft). The buyer takes the seller's position in the society and, by assignment, under the permanent alternate accommodation agreement (PAAA) — the right to the new flat, transit rent and other benefits; the directive keeps the rights of those in possession of flats intact (cl. 18(9)). The directive also requires the development agreement to say that new members will be taken into the society only after the redevelopment project is complete, with the general body's approval (cl. 18(5)). It is aimed mainly at buyers of the developer's sale flats, but a committee may read it as covering any new member during the project; the buyer's admission may then wait until completion while the seller stays on record. On completion, fresh share certificates follow (dBL 14(b), Form 02, draft). Watch points: the PAAA may require the developer's written consent or intimation for assignment; the society's dues must be paid (s.154B-7) and the premium cap applies as on any sale; the buyer takes the redevelopment terms already approved. The draft 2026 bye-laws make refusal to vacate after approvals a ground for expulsion (dBL 52(g), draft) — a buyer inherits that obligation.

Question 19

A court injunction or a recovery officer's attachment order has been served on the society about a member's flat. Can we still record a sale by that member?

Accepted Answer

No. The society must obey a court's injunction or a lawful attachment and keep the transfer pending until the order is vacated or the court permits it. Record the order in the member's file and tell the parties in writing why the application is on hold. The Supreme Court held in Ramesh Himmatlal Shah (1975) that a member's right to occupy a housing society flat is property that can be attached and sold in execution; only the share in the society's capital is protected by s.31. An attached interest cannot be privately transferred to defeat the attachment. The draft 2026 bye-laws tell the committee to keep an application pending where a court or competent authority has restrained the transfer (dBL 32(e), for succession cases, and dBL 33(e), which permits refusal for non-compliance with any lawful order), and the 2014 bye-laws allow refusal on the ground of an order issued under statutory powers (BL 38(b)). Good practice: acknowledge the order, minute it, flag the flat in the Register of Members, reply to the applicant within the normal time with reasons, and act at once when a certified copy of a vacating order arrives. When the property is later sold in execution, the purchaser comes in by a sale certificate (see transfer-006).

Question 20

A company owns a flat in our society and is selling it to an individual. Is anything different from an ordinary sale?

Accepted Answer

The steps are the same, but the company acts through an authorised signatory. The society should see a board resolution authorising the sale and the signatory, and the registered sale deed executed by the company. Any nominal member who occupied the flat for the company ceases with the transfer. A body corporate may be a member (s.22(1)(b); BL 18; Rule 106C-4 proviso, which requires a resolution authorising it to apply). When it transfers, the transferor's application, resignation and undertaking are signed by the person the company's board has authorised, and the committee should keep a certified copy of that resolution with the file (dBL 27(b)(vii) allows the society to ask for prescribed declarations). Under the 2014 bye-laws, an employee or director occupying the flat for the company may have been admitted as a nominal member; that status ends when the company ceases to be a member (BL 56). The individual buyer applies on the ordinary form with a certified copy of the registered deed (Rule 106C-4(b)). Premium applies within the cap; the family exemption does not, because a company has no "family". Any dues, including non-occupancy charges within the 10 % limit, must be clear before the transfer is effective (s.154B-7).

Question 21

From what date can the buyer vote and use members' rights — the sale deed date, the application date or the committee's approval?

Accepted Answer

From the society's approval letter (or a Registrar's order declaring him a member), not from the sale deed. Registering the sale deed transfers the flat; admission to the society is a separate step that completes the transfer of the shares and membership. BL 39 (2014) says the transferee may exercise membership rights on receipt of the society's letter in the prescribed form or an order of the Registrar under s.22 or s.23. The draft 2026 bye-laws provide a form for this intimation (Form 21) stating that the transferee may exercise membership rights from the date of the letter, and require the society to communicate its decision within seven days (dBL 33(b), 33(g)). Section 154B-7, as reproduced by the Bombay High Court, links an effective transfer to both payment of dues and the transferee's acquiring membership. If the society sits on a complete application for three months, the buyer becomes a deemed member under s.22(2) and a Registrar's declaration fixes the position. For elections, the voters' list is drawn from the Register of Members on the date the provisional list is published, so a buyer admitted after that date may not vote in that election.

Question 22

I bought a flat at a bank's SARFAESI auction. Do I have to pay transfer premium on top of clearing the old owner's dues?

Accepted Answer

Probably yes, within the cap. The premium exemption covers only family, nominee, heir and exchange transfers, not auction sales. The draft 2026 bye-laws' auction form mentions only the ₹500 entrance fee, so the position may change; ask the society to show its general-body resolution on premium. The note to BL 37(e) (2014) lists the only transfers free of premium: to the transferor's family, to a nominee or heir after death, and mutual exchanges. An auction purchase is none of these, so a society that has fixed a premium within the s.79A cap may apply it. On the other hand, the draft 2026 bye-laws treat a sale certificate from a court, recovery officer, SARFAESI authorised officer or bank as a transfer "by operation of law" (dBL 26(a)(iv), 26(d)), and their Form 11 for this route asks only for the ₹500 entrance fee and a certified copy of the sale certificate — it is silent on premium and transfer fee. Separately, the buyer must clear the previous member's admitted dues before membership (Tanvis Diamoda CHS, 2025; see transfer-005). Before bidding, obtain a written dues statement and the society's premium resolution; if the society demands more than the cap, or items outside the lawful heads, complain to the Deputy Registrar.

Question 23

Our society still asks for a stamped 'NOC from the society' fee and a 'transfer form fee' on every sale. What documents and fees can it lawfully insist on?

Accepted Answer

Only the documents in the bye-laws (or the 2026 Rules) and three amounts: the ₹500 transfer fee, the entrance fee and the premium within the cap. A small fee for a copy of an application form may be charged where the bye-law schedule provides one; an 'NOC fee' is not a lawful levy. The society's NOC is not needed for a transfer (BL 37(d)); if the parties ask for one, the committee considers it within a month, but the fee schedule in the bye-laws has no NOC fee. BL 37(e)(ix) forbids recovering anything beyond the listed items "under any other pretext", and the Bombay High Court held in New India CHS (2013) that s.79A directions override a society's bye-laws and resolutions on transfer charges. The draft 2026 bye-laws' schedule of fees lists ₹25 for a membership application form and ₹100 for a duplicate share certificate (dBL 39(b)), and their list of matters for the Registrar includes "charging of excess premium for transfer" (dBL 190(A)(vi)). What the committee may insist on: the prescribed forms, the registered instrument, the share certificate, resignation, undertaking, payment of dues, the statutory NOCs of land-grant authorities, and the three amounts. Excess collected can be claimed back through the Deputy Registrar or a s.91 dispute.

Question 24

My father gave me his flat by a registered gift deed during his lifetime. My sister objects. Must the society wait for her consent?

Accepted Answer

No. A registered gift deed by the owner is a valid basis for admission, and the other children's consent is not a legal requirement during the donor's lifetime. The society records the transfer; if the sister claims the gift is invalid, she must go to the civil court. During his lifetime a member may transfer his shares and interest by a stamped, registered gift deed (dBL 26(a)(ii); Rule 106C-4(b)), and a transfer to a child is within "family", so no premium is charged (BL 3(xxv), 37(e) note). Heirs have no share in a living person's self-owned property, so their consent is not among the documents the bye-laws require (BL 37(e); dBL 27(b)). The committee checks that the donor held the flat, that the deed is registered, and that the usual papers and dues are in order (dBL 27(d)). An objection alleging undue influence, fraud or lack of capacity questions the deed itself; the society has no power to decide that and should tell the objector to seek relief from the civil court. It must, however, stop if served with an injunction. If the flat was ancestral or co-owned, the position differs — then the co-owners' shares matter and the society should see their signatures or a partition.

Question 25

My bank wants a NOC from the society for a home loan against my flat. Does the society have to give it, and can it charge for it?

Accepted Answer

A member does not need the society's permission to mortgage his flat to a bank, his employer, LIC, the society or an approved agency for a loan. He only has to inform the society. Banks still ask for a letter confirming membership and the charge in the society's records. The society should issue it promptly. No fee or premium is prescribed for it. The 2014 bye-laws (the second BL 43 in the archived text) bar a member from assigning, mortgaging or charging his occupancy right without the society's written permission. A proviso exempts loans for buying the flat, or repaying such a loan, from the employer, a member, LIC, a bank, the society or an agency approved by the Commissioner for Co-operation. The draft 2026 bye-laws exempt loans from an employer, LIC, a bank or financial institution, the society, or a Government-approved agency, for any purpose. The member intimates the society and submits documents for its record (dBL 41). Mortgaging the flat is listed among a member's rights (dBL 34(h)). The society records the mortgage in its Loan / Mortgage Register (BL 140 item 10). An application for permission, where one is needed, is decided under BL 62 within three months. What the society may state in the letter: - that the applicant is a member, with the share-certificate number; - the dues position; - that the mortgage has been noted. It should not add conditions, such as clearing unrelated disputes. The bye-law fee schedule does not list a fee for such a letter. The society's first charge on the member's shares and interest for its dues is unaffected (BL 73; dBL 71).

Question 26

I am selling my flat. Do I need a No Objection Certificate (NOC) from the society first?

Accepted Answer

No. Under the 2014 model bye-laws the society's NOC is not required to transfer your shares and interest to a buyer. You give the society notice and file the transfer papers; if a bank or the buyer still wants an NOC, you may ask for one and the committee must consider it on merit within one month. Bye-law 37(a) asks the selling member to give the Secretary 15 days' notice of the intended transfer, with the buyer's consent, in the prescribed form. Bye-law 37(d) then says in terms that the society's "No Objection Certificate" is not needed for the transfer; where the transferor or transferee wants one (typically for a housing loan), the committee considers the application on merit within one month. The transfer itself is completed through the papers listed in BL 37(e) (see transfer-002) and decided under BL 38 and BL 62. The society cannot use an NOC as a lever to collect money that the law does not allow: BL 37(e)(ix) bars any donation or contribution "under any other pretext" beyond the fee and the capped premium. What the society may insist on is that its own dues on the flat are cleared — a transfer is not effective until they are (s.154B-7; see transfer-005). If an NOC is refused or delayed without reason, the member may complain to the Deputy Registrar; a dispute with the society over the transfer goes to the Co-operative Court under s.91.

Question 27

How much can the society charge when a flat is sold — transfer fee, premium, "development fund" donation?

Accepted Answer

Only three items: a transfer fee of ₹500, an entrance fee from the buyer, and a transfer premium fixed by the general body within the Government cap — ₹25,000 at most in a municipal corporation area. Any other "donation" or "fund contribution" on transfer is not allowed. Bye-law 37(e) lists what the transferor and transferee pay: transfer fee ₹500 (vii), entrance fee (viii) and premium "at the rate to be fixed by the General Body Meeting but within the limits" prescribed by the Government (ix), adding that nothing further may be recovered "under any other pretext". The limits come from the State Government's directive of 9 Aug 2001 under s.79A. The Bombay High Court (New India Co-operative Housing Society v State of Maharashtra, 2013) held that s.79A directions bind every housing society and override its bye-laws and resolutions: a society that demanded ₹2 crore on the transfer of a plot could not charge more than ₹25,000 (paras 17 and 20). The directive's lower caps for smaller towns (commonly reported as ₹10,000 in municipal council areas and ₹5,000 elsewhere) are in 01-regulatory-landscape.md but have not been checked against the GR text itself. Premium is not payable when the transfer is to a family member, to a nominee or heir after the member's death, or on an exchange of flats between members (note to BL 37(e)). Transfer fees and premium are credited to the Reserve Fund (BL 12). Excess already collected can be claimed back through the Deputy Registrar or a s.91 dispute; the Registrar can also act against the committee for breaching a s.79A direction (s.79A(3)).

Question 28

On what grounds can the committee refuse to admit the buyer of a flat as a member?

Accepted Answer

Only for non-compliance with the Act, the Rules, the society's registered bye-laws or a statutory order — for example missing documents, unpaid dues on the flat, or a land-grant condition (CIDCO, MHADA, SRA) that the buyer does not meet. Rules invented by the committee or a general-body resolution that are not in the bye-laws are not valid grounds. Bye-law 38(b) forbids the committee or general body to refuse a transfer "except on the ground of non-compliance" with the Act, Rules, bye-laws or a Government order. Section 23(1) of the Act says no society shall refuse admission to a duly qualified person "without sufficient cause". A refusal must be reasoned, minuted and communicated (BL 62(f)-(g)); s.22(2) requires the decision with reasons within 15 days of the decision or three months of the application, whichever is earlier. Permitted grounds include: the transferor has not held the flat for a year (s.29(2)(a), see transfer-008); incomplete papers under BL 37(e); unpaid society dues (s.154B-7); conditions of a Government, CIDCO, MHADA or SRA land grant (BL 17(c)); or a unit that is not a "flat" at all (a parking slot or basement bought separately — see parking-006). Refusing because the buyer is not a Government employee, or is of a particular community or diet, when the registered bye-laws say nothing of the kind, is outside the committee's power; the Bombay High Court was reported in 2025 to have said so in the Kendriya Vihar case (further reading; judgment not opened). Remedy: appeal to the Registrar under s.23(2) (to be decided as far as possible in three months), or tender the application through the Registrar under s.23(1-A); if the society does not decide in time the buyer may be a deemed member (transfer-004).

Question 29

I applied for transfer of the flat into my name more than three months ago and the society has not replied. What is my position?

Accepted Answer

If the society has not communicated a decision within three months of receiving a complete application, you are deemed to have been admitted as a member. If the society disputes this, the Registrar decides whether you are a deemed member after hearing both sides. Bye-law 38(c) and BL 62(g) say that where the decision on a transfer or membership application is not communicated within three months of its receipt, the transfer is deemed accepted and the transferee is deemed admitted as provided in s.22(2) of the Act. Section 22(2) adds that any question whether a person has become a deemed member is decided by the Registrar after hearing the parties. The Bombay High Court declined in Dadar Avanti CHS (2004) to disturb a Registrar's declaration of deemed membership where the society had not communicated its decision within three months, and rejected the society's plea of delay: s.22(2) sets no limitation period for seeking the declaration (para 7). The draft 2026 bye-laws tighten the clock further (acknowledgement in 3 days, decision within 60 days) — draft only. Practical steps: keep the Secretary's acknowledgement (BL 62(a) requires one); after three months write to the society asking to be entered in the Register of Members and issued the share certificate; if it refuses, apply to the Deputy Registrar for a declaration under s.22(2). A pending civil dispute with the seller does not by itself stop the Registrar from deciding (reported 2026 ruling, further reading).

Question 30

The previous owner left unpaid maintenance. Can the society refuse to transfer the flat to me until those dues are paid?

Accepted Answer

Yes, for dues that are genuine and not seriously disputed. The Act says a transfer is not effective until the society's dues on the flat are paid, and the Bombay High Court has applied this even to buyers at a bank (SARFAESI) auction. A buyer who genuinely disputes the amount must raise that dispute before the proper forum rather than simply demand membership. Section 154B-7, as reproduced by the Bombay High Court, provides that no transfer of a member's share, interest or occupancy right is effective unless the society's dues are paid and the transferee acquires membership. In Tanvis Diamoda CHS (Nov 2025) the Court set aside Registrar orders that had directed membership for an auction purchaser, holding the dues condition mandatory (para 12) where the arrears were admitted. In Banganga Anurag CHS (Dec 2025) it upheld a refusal where the society had given the buyer a detailed break-up of the dues and the buyer had never challenged the computation (para 37). The Court distinguished cases where the dues themselves are seriously disputed. For the committee: send the buyer (and the seller, before sale) a written statement of dues with the heads and period; do not add items that are not lawful charges (for example, premium above the cap or "donations"). For the buyer: ask the seller for a dues certificate before registering the sale, and retain an amount in escrow; if you dispute the figure, raise it before the Deputy Registrar or the Co-operative Court (s.91). The seller remains personally liable for arrears the society can recover under s.154B-29.

Question 31

I bought a flat at a bank auction (or court sale). The seller will not sign any society forms. Can I still become a member?

Accepted Answer

Yes, in principle. A member's right to occupy the flat can be sold in execution or recovery proceedings, and the buyer can apply for membership on the strength of the sale certificate. The buyer must still meet the membership conditions and clear the society's dues on the flat. The Supreme Court held in Ramesh Himmatlal Shah (1975) that the right to occupy a flat in a co-operative housing society is a species of property that can be attached and sold under a decree; s.31 of the Act, which protects a member's share in the society's capital from attachment, does not protect the occupancy right. The purchaser still has to be admitted under the Act and bye-laws. The 2014 bye-laws assume a voluntary sale (transferor's application and resignation, BL 37(e)); the draft 2026 bye-laws expressly recognise a sale certificate issued by a court, a Recovery Officer, a SARFAESI authorised officer or a bank as a transfer "by operation of law", and say the absence of the old member's signature or share certificate is not by itself a ground to refuse (dBL 26(iv), 27(iii)) — draft only. Before bidding, get a dues statement from the society; the Bombay High Court has held that an auction purchaser must clear the previous member's admitted dues before membership (transfer-005). If the society refuses without a lawful ground, appeal to the Registrar under s.23(2).

Question 32

I want to gift my flat to my daughter (or add my spouse). Does the society charge premium, and what papers are needed?

Accepted Answer

No premium is payable on a transfer to a member of your family; only the ₹500 transfer fee and the entrance fee apply. You need a registered, stamped gift deed (or other registered instrument) and the usual transfer and membership forms. The note to BL 37(e) exempts from the premium a transfer to a member of the transferor's family, to a nominee or heir after death, and an exchange of flats between members. "Family" in BL 3(xxv) is wide: spouse, parents, siblings, children, son-in-law, brother-in-law, sister-in-law, daughter-in-law and grandchildren. The 2014 list of documents speaks of a "Registered Agreement with Stamp Duty paid" (BL 37(e)(iv)); Rule 106C-4(b) (2026) and dBL 26 expressly accept a registered gift deed or other registered instrument. A person who only wants to be recorded alongside the owner without holding title becomes an associate member instead (membership-004), which needs no deed. Stamp duty on a gift to specified relatives is concessional under the Maharashtra Stamp Act; that is a matter for your advocate, not the society.

Question 33

Can I sell my flat within a year of buying it? The committee says members must hold for one year.

Accepted Answer

Not as a rule of law for a housing society. Section 154B(2) of the Act, inserted with Chapter XIII-B in 2019, lists s.29 — including the one-year holding condition in s.29(2)(a) — among the provisions that do not apply to housing societies. The 2014 bye-laws still ask the Secretary to check s.29(2), but that check no longer has a statutory basis, so a society cannot refuse a transfer on the strength of s.29(2)(a) merely because you have held the flat for less than a year. Section 29(2)(a) bars a member of an ordinary society from transferring his share or interest unless he has held it for at least one year. For housing societies, s.154B(2) says that sections 24, 26, 27, 28, 29 and 30, among others, shall not apply. The housing-society rules on transfer are now in Chapter XIII-B: a member may transfer his share, right, title and interest by a registered document, following the procedure in the Rules and bye-laws (s.154B-12), and a transfer other than to an heir or nominee takes effect only when the society's dues are paid and the transferee applies for and acquires membership (s.154B-7). BL 37(b)-(c) of the 2014 model bye-laws, which ask the Secretary to point out ineligibility under s.29(2)(a) and (b), were written before 2019; they cannot revive a one-year bar that the Act no longer imposes on housing societies. The committee still checks the transferee's eligibility, the stamped and registered agreement (Rule 106C-4(b)), the dues and any premium within the cap. If a society refuses admission on the one-year ground, the buyer can appeal to the Registrar under s.23(2).

Transfer of flats & sharesसदनिका व भाग हस्तांतरण