• Registration and membership fee

I Bought a flat in Mumbai directly from the builder in a new Redevelopment building and I am the original buyer of the flat from the builder.
The Agreement to Sale says I have to pay 25000 rs as Registration and Membership fee to the society.
From what I understand the Registration and Membership charges are 100 Rupees and Share certificate should be 50*10 500 Rs.
The society says the 25000 is transfer charges ..Which I think is not legal? Am I supposed to pay 25000 inspite of being a first owner and directly buying the property from the builder.. Also is the clause in the Agreement valid and legally binding
Asked 7 years ago in Property Law
Religion: Hindu

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4 Answers

1. Many society puts arbitrary clause of transfer charge of certain large amount of money which is other wise not prescribed by law.

2.On purchase of a society flat you are obliged to pay only the statutory fees and not any charge which the society whimsically imposes as in your case.

3.So you have every right to remove such clasue from the sale agreement.

4.Now if the spciety harases you while issuing share certificate then you can lodge complaint with the Registrar of the society.

Devajyoti Barman
Advocate, Kolkata
22921 Answers
498 Consultations

5.0 on 5.0

the terms of agrement would be binding upon you

2) ordinarily when you purchase flat directly from builder you dont have to pay any transfer charges

3) in such a case membership charges are nominal

4) pay the amount under protest

5) then complain to dy regsitrar regarding transfer charges levied by society in respect of flat purchased directly from builder

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

5.0 on 5.0

The property purchased by you now was a property under an existing society, therefore there involves transfer of the same which incurs transfer charges.

The provisions regarding transfer fee for the purpose of recording transfer of a flat from one person to another must have been a part of such Bye-laws framed by the society for the purpose of its day-to-day operations. I suggest that you should make the payment of transfer fee to avoid any litigation on this account. In case the aforesaid bylaws / rules or the resolution of the general body of the society provide for payment of a transfer fee it may not be possible for you to avoid the payment of such transfer fee.

The clause in the agreement is based on the bye laws.

T Kalaiselvan
Advocate, Vellore
85422 Answers
2239 Consultations

5.0 on 5.0

1. Every clause in the agreement to sell is legally binding and enforceable except if it is violative of the public policy or falls within any of the disqualifications laid down in section 27 of the Indian Contract Act,

2. Only a local lawyer can tell what is the society registration fee in Mumbai as the local laws differ from one state to another.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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