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Flat transfer in a housing society: step by step

Flat transfer in a housing society step by step: documents, ₹500 transfer fee, premium caps, NOC, the committee's deadlines and deemed membership.

Updated 2026-09-23

When you sell a flat in a co-operative housing society, two things change hands. The flat passes by a registered sale deed. Your shares and interest in the society pass by the society approving the transfer and admitting the buyer as a member. This guide covers the second step: what to file, what the society may charge, and how long the committee has to decide.

It follows the 2014 model bye-laws, read with the Maharashtra Co-operative Societies Act and the 2026 Rules. Your society’s registered bye-laws may differ in detail.

Do I need a society NOC to sell my flat?

No. BL 37(d) says the society’s No Objection Certificate is not required to transfer your shares and interest. If a bank or the buyer still asks for one, apply for it. The committee must consider the application on its merits within one month.

You must give the Secretary 15 days’ notice of the intended transfer in the prescribed form, with the buyer’s consent (BL 37(a)).

The society cannot use an NOC to extract money the law does not allow. What it may insist on is that its own dues on the flat are cleared. The High Court has held, reading section 154B-7, that a transfer is not effective until the society’s admitted dues are paid (Tanvis Diamoda CHS, 2025).

Documents for flat transfer in a housing society

BL 37(e) lists what the seller and the buyer file:

  1. The seller’s transfer application in the prescribed form, with the original share certificate.
  2. The buyer’s membership application in the prescribed form.
  3. The seller’s resignation in the prescribed form.
  4. The registered agreement, with stamp duty paid.
  5. The reasons for the transfer.
  6. The seller’s undertaking to clear all liabilities to the society.
  7. The transfer fee of ₹500.
  8. The buyer’s entrance fee. This is ₹500 from 22 June 2026 under Rule 106C-4(a); the 2014 bye-law said ₹100.
  9. The premium, if the general body has fixed one (see below).
  10. Any NOC a law or authority requires, for example from a land-granting authority or a financing bank.
  11. The declarations and undertakings the bye-laws prescribe.

How much transfer premium can a society charge?

The general body fixes the premium, but only within the limits the Government has set under section 79A. The directive of 9 August 2001 caps it at ₹25,000 in a municipal corporation area. Lower caps apply elsewhere; ask the Deputy Registrar’s office for the figure for your area.

In New India CHS v State of Maharashtra (2013) the Bombay High Court held that the directive binds every housing society and overrides its bye-laws and resolutions.

Two further rules apply:

  • Nothing else can be collected on a transfer. BL 37(e)(ix) bars any “donation”, “development fund” or other contribution “under any other pretext”.
  • No premium on some transfers. Premium is not payable on a transfer 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)).

The committee’s clocks: 15 days and 3 months

BL 62 sets the timetable for every application, and BL 38(a) applies it to transfers:

  • The Secretary must acknowledge the application when it is received (BL 62(a)).
  • The Secretary must point out any shortcomings within 15 days of receipt (BL 62(b)).
  • The application goes to the next committee meeting, complete or not (BL 62(c)).
  • The committee must dispose of it within 3 months of receipt (BL 62(e)).
  • If the application is rejected, the reasons are minuted. The decision is sent to the applicant within 15 days (BL 62(f)–(g)).

The committee may refuse only for non-compliance with the Act, the Rules, the bye-laws or a Government order (BL 38(b)). Examples are missing papers, unpaid dues on the flat, or a condition of a land grant. A rule the committee has made up is not a valid ground.

The draft 2026 bye-laws propose tighter deadlines: acknowledgement within 3 days, scrutiny within 7 days, and a decision within 60 days of a complete application (dBL 60). These are not yet in force.

What is deemed membership under section 22(2)?

If the society does not communicate its decision within three months of receiving the application, the buyer is deemed to have been admitted as a member (section 22(2) of the Act; BL 38(c), 62(g)). If the society disputes this, the Registrar decides after hearing both sides.

In Dadar Avanti CHS (2004) the Bombay High Court upheld a Registrar’s declaration of deemed membership. It also held that section 22(2) sets no time limit for asking for that declaration.

Checklist for buyer and seller

  • Seller: ask the society for a written statement of dues and clear it before registration.
  • Seller: give the 15-day notice with the buyer’s consent.
  • Both: file every document in BL 37(e) together, and keep the Secretary’s dated acknowledgement.
  • Pay only the ₹500 transfer fee, the entrance fee and the capped premium. Refuse any “donation”.
  • Reply to any shortcomings letter quickly.
  • After three months with no decision, write to the society asking to be entered in the Register of Members and issued a share certificate.
  • If the society refuses, apply to the Deputy Registrar under section 22(2), or appeal a refusal under section 23(2).

What the law says

  • BL 37(a), (d), (e) and note (2014): notice, no NOC, documents, fee, capped premium, and exemptions for family and heirs.
  • BL 38 and BL 62: refusal only for non-compliance, 15 days to point out shortcomings, 3 months to decide, and deemed admission.
  • MCS Act section 22(2): deemed membership, decided by the Registrar. Section 23: open membership and appeal.
  • Section 79A directive of 9 August 2001: cap on transfer premium, upheld in New India CHS (2013).
  • Rule 106C-4 (2026): ₹500 entrance fee, and a registered instrument as the basis of membership.
  • Draft 2026 bye-laws, dBL 60: shorter deadlines. This is draft only.

More on buying and selling flats: Transfer of flats & shares FAQ.

Sources

General information, not legal advice. Your society's registered bye-laws may differ; for a dispute or a decision with legal or financial consequences, consult the Registrar's office, an advocate or a chartered accountant.

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