Nominee or legal heir: who gets a society flat after a member's death?

When a member of a housing society dies, families often find two claims side by side. The nominee named in the society’s register says the flat is his. The legal heirs under a will or the succession law say it belongs to all of them. Both are partly right, because the society and the family deal with different questions.

This guide explains the difference. It also covers the new routes the MCS (Amendment) Rules 2026 created: provisional membership in Form Y-4 and transfer on a family arrangement in Form Y-5.

Does the nominee become the owner of the flat?

No. Nomination tells the society whom to deal with. It does not decide who owns the flat.

Section 30(1) of the Act tells the society to transfer the deceased member’s share or interest to the nominee. Section 30(4) protects the society when it does so. The courts have kept the family’s rights separate:

In Gopal Vishnu Ghatnekar (1981) the Bombay High Court said nomination makes certain the person the society has to deal with. It does not take the estate away from those entitled to it in law.
In Indrani Wahi (2016) the Supreme Court held that the society must transfer to a valid nominee. That transfer does not settle title among the heirs, who can pursue their claims in the proper forum.

The 2014 model bye-laws say the same thing. A member admitted on the basis of nomination holds the flat in trust until all legal heirs are brought on record, and cannot sell or create third-party rights (note to BL 33).

What is a provisional member (Form Y-4)?

From 22 June 2026, Rule 106C-6(1) sets the procedure after a member’s death:

The nominee applies for provisional membership in Form Y-4, with an indemnity bond protecting the society against future claims. If there are several nominees, they make one joint application.
A provisional member has no right, title or ownership in the property, and his name is not entered on the share certificate (Rule 106C-6(1)(g)).
He stops being a provisional member once the legal heirs’ names are entered on record (Rule 106C-6(1)(f)).

In practice the provisional member represents the flat before the society until succession is settled. He pays the charges and deals with the committee. Whether a provisional member may vote or stand for the committee is not settled in the texts we have. Wait for the final 2026 bye-laws.

What if there is no nomination?

If the member made no nomination, or no nominee comes forward, the society follows Rule 106C-6(1)(b)–(e). BL 34 of the 2014 bye-laws had much the same steps.

The society publishes a notice inviting the legal heirs to apply, in at least two local daily newspapers and on its notice board.
After making the inquiry it thinks fit, the committee may admit a legal heir as provisional member on Form Y-4 with an indemnity bond.
If there are several claimants, they file an affidavit naming the one to be admitted.
If they cannot agree, the committee asks for a legal heirship certificate, succession certificate or letters of administration from a competent court.

Under BL 34, if nobody claims the interest at all, it vests in the society.

Transfer on a registered family arrangement (Form Y-5)

The heirs may agree among themselves who takes the flat. Rule 106C-6(2) gives them a direct route:

The heirs sign a family arrangement deed and register it.
They apply to the society in Form Y-5 with the deed and an indemnity bond.
The committee immediately publishes a notice in two local dailies and on the notice board, inviting claims and objections.
If no objection comes in within the prescribed time, the committee may transfer the share and interest as the deed says.
If anyone objects, the committee must not transfer. It tells the heirs to obtain a legal heirship certificate or letters of administration.

The Rule does not state the objection period. Follow your society’s bye-laws until the final 2026 bye-laws fix one. An unregistered family settlement is not enough for this route.

Nomination vs will: which wins?

The will decides ownership. The nomination only decides whom the society deals with first. If the nominee and the beneficiary under the will are different people, the society will admit the nominee as provisional member. The beneficiary then produces the will, with probate where the law requires it, and applies for transfer.

To avoid a dispute, keep your nomination in line with your will.

Checklist for members and families

Member: file a nomination in the society’s form during your lifetime, and keep the Secretary’s acknowledgement. Joint members file separately (Rule 106C-8).
Member: the first nomination is free. Each change costs ₹100 under BL 31 (2014).
Family: tell the society about the death in writing, with the death certificate.
Nominee: apply in Form Y-4 with an indemnity bond. Do not sell or mortgage the flat.
Heirs who agree: register a family arrangement deed and apply in Form Y-5.
Heirs who disagree: go to the civil court for a succession or heirship certificate. The committee does not decide ownership.

What the law says

MCS Act section 30(1)–(4): transfer to the nominee or the person who appears to be the heir, payment of value, and protection of the society.
Rule 106C-6(1) (2026): provisional membership in Form Y-4, notice to heirs, affidavit, court certificate, and no title for the provisional member.
Rule 106C-6(2): transfer on a registered family arrangement in Form Y-5.
Rules 106C-8 and 106C-9: nomination, separate forms for joint members, and the nomination register.
2014 BL 31–36: nomination procedure and fees, the trust note to BL 33, heirs’ notice, and payment of value.
Case law: Ghatnekar (Bom HC 1981) and Indrani Wahi (SC 2016), both holding that nomination is not inheritance.

The draft 2026 bye-laws (dBL 28–31) repeat these points. They are not yet final.

More on nomination and succession: Nomination & succession FAQ.

Sources

Maharashtra Co-operative Societies (Amendment) Rules 2026, Maharashtra Government Gazette Part IV-B Extraordinary No. 366, 22 June 2026
Model Bye-laws of Co-operative Housing Society (flat-owner type), 2014 — Commissioner for Co-operation
Maharashtra Co-operative Societies Act 1960 — Commissioner for Co-operation
Indrani Wahi v Registrar of Co-operative Societies, Supreme Court of India, 10 March 2016
Gopal Vishnu Ghatnekar v Madhukar Vishnu Ghatnekar, Bombay High Court, 24 June 1981

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.