• Flat sale

Hi
I am selling my flat located in Pune.
My flat purchaser has asked for NOC from society of my house and the Chairman is demanding 2% of sale value as charges for society transfer. As what I read online either NOC is not required for sale or there is cap of 25000. The 2% value goes above 25000 so what should I do about this?
should I pay 25000 or whatever is 2% and is the NOC mandatory.
Can you point me where I can find law defined by government with regards to society transfer charges legally?
Asked 4 years ago in Property Law
Religion: Christian

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18 Answers

1) NOC from society is not mandatory for sale of flat

2) further society cannot charge 2 per cent of sale consideration as transfer charges

3) complain to deputy registrar against the society refusal to give NOC

4) bye laws adopted by society contain provisions that NOC is not required for sale of flat

Ajay Sethi
Advocate, Mumbai
87899 Answers
6207 Consultations

5.0 on 5.0

Dear Client,

THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960 will in ur case -

Even though there is no necessity of No objection certificate for transfer of flat, according to rule 24 of the Rule 1961, he has to give 15 days’ notice to society before transferring of flat.

If any member has demanded No Objection Certificate from the society for transfer, the responsibility of the chairman/secretary is to approve the same and if it is not possible to issue NOC then the reasons for it should be communicated to the member within eight days.

If Society does not accept the application of transfer from member, the member can make application to the Society through Registrar of Co-operative Societies.

Amount of Premium shall be maximum Rs.25,000/-. Similarly it shall be Rs.25,000/- or the amount which was approved by the General body meeting of the society whichever is less.

If the Society refuses to issue N O. C. then member has a right to seek justice from three members committee or making an application to the Registrar.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Please see the bye laws of the society. I think in most of the cases the NOC from the society is needed by the purchaser to make sure that there is no dues out standing towards the society.

The transfer charges fixed by society to recognize transfer of property to a new owner. You may discuss this to the purchaser to share the cost of 2% if possible. This is not unfair and is very common every where.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

1) If it is mentioned 2% or 25,000/- which ever is maximum amount that may be chargeable through society transfer. As per bylaws created by society or you will find more details in Maharashtra Co-op Housing Society Act.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

1. The society except a nominal fees can not change such a hefty fees as 2% of the market value of the proeprty.

2. So the claim of the society is totally unjustified and without any basis.

3. Meet the registrar's office to know on the actual amount to be paid while transferring share certificate.

4. Only the Registrar's office can give you proper idea as regards the fees for such NOC.

5. Please note that NOC is not compulsory while selling the flat.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

Please note NOC Is not mandatory. Secondly they cannot charge you 2% of sale value. File A complaint against the society before deputy registrar.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

The Noc is not mandatory.

In the state of Maharastra there are bye laws for co-operative societies so under old by laws there was a provision for 2.5 fees for noc which was scrapped by the new bye laws in 2001.

In case of Sanwarmal Kejriwal Vs. Vishwa Cooperative Housing Society, Churchgate the Apex court had held that a society could not bar the admission of a member if he met with the qualifications laid down under the bye-laws.

And under model bye-laws of March, 2001, are clear that an NOC is not required from a society. S. 23 of the Maharashtra Cooperative Societies Act clearly emphasises the concept of open membership, where there is no scope for discrimination on religious background of joining member.

Transfer of flat: Under the old bye laws in case if flat was to be transfered, a charge of 2.5% of the difference in the purchase value minus sale value would be levied as transfer charges. But under the new model byelaw number 45 all that has been scrapped and a common charge is levied as per the general body resolution subject to the condition that it is not above Rs 25,000. Also the Society needs to meet/pay TDS on this charge as per tax Laws.

Ask your secretary to give the reason not giving noc without paying anything and the same can be taken before HC under the writ jurisdiction. Only the capped value of 25000 that also with the resolution of the society can be asked.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

There`s no need for NOC, you can proceed, they are charging illegally or ask them in written duly stamp.

Even though there is no necessity of No objection certificate for transfer of flat, according to rule 24 of the Rule 1961, he has to give 15 days’ notice to society before transferring of flat.

On receipt of such notice, the Secretary should place the same before the meeting of the committee and take decision thereof before 30 days and inform such decision to the member within 8 days from the decision of society.

If any member has demanded No Objection Certificate from the society for transfer, the responsibility of the chairman/secretary is to approve the same and if it is not possible to issue NOC then the reasons for it should be communicated to the member within eight days.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

It is not legal for society to demand 2 per cent of sale consideration from seller as development fees

You don’t nee d society NOC for sale of flat

Ajay Sethi
Advocate, Mumbai
87899 Answers
6207 Consultations

5.0 on 5.0

NoC is not necessary under for the buyer as society cannot.deny any right to lawful purchaser under S. 23 of the Maharashtra Cooperative Societies Act clearly emphasises the concept of open membership, where there is no scope for discrimination on religious background of joining member.

Also if he not ready in giving in writing this is just an arrangement of taking money it's not.legal to take 2% now as development fee.

Society cannot create any problem he has to just pay the maintenance fee and can also apply for membership of society. If anything contrary found report immediatly to registrar of societies.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Sir please go ahead and sell your property. Secondly the reason why they don't wanna give you anything in writing is because they wanna get unjustly enriched at your cost. You sell of property silently. If anyone cause him restriction he can approach jurisdiction court seeking injunction against society members.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

Even though there is no necessity of No objection certificate for transfer of flat, according to rule 24 of the Rule 1961, he has to give 15 days’ notice to society before transferring of flat.

On receipt of such notice, the Secretary should place the same before the meeting of the committee and take decision thereof before 30 days and inform such decision to the member within 8 days from the decision of society.

If any member has demanded No Objection Certificate from the society for transfer, the responsibility of the chairman/secretary is to approve the same and if it is not possible to issue NOC then the reasons for it should be communicated to the member within eight days.

Amount of Premium shall be maximum Rs.25,000/-. Similarly it shall be Rs.25,000/- or the amount which was approved by the General body meeting of the society whichever is less. The said provision is applicable to all the flat and plot owner’s of society.

Transfer premium is not necessary for deceased member, mutual transfer among two members of the society or transfer among family members.

Society will provide no objection certificate if demanded by member to produce the same for the loan from the financial agencies. If society is not able to give such certificate of N O.C, they have to inform concerned person in writing within 15 days.

T Kalaiselvan
Advocate, Vellore
78057 Answers
1543 Consultations

5.0 on 5.0

I approached the chairman with this information and he said I need to give 2 cheques one of 25k for society transfer charges and other of remaining value of 2% which will be used as development fee for society. Is this legal?

The law says that 'Amount of Premium shall be maximum Rs.25,000/-. Similarly it shall be Rs.25,000/- or the amount which was approved by the General body meeting of the society whichever is less. The said provision is applicable to all the flat and plot owner’s of society.'

Does the buyer really need NOC? What problems can society create for him if we dont get NOC done. Can society shares be transferred without NOC?

Even though there is no necessity of No objection certificate for transfer of flat, according to rule 24 of the Rule 1961, he has to give 15 days’ notice to society before transferring of flat.

It is necessary to take decision within three months on receipt of the application for transferring the share and the decision should be communicated.

If Society has not taken any decision within the 3 months stipulated period as per provision in Section 22(2) and society has denied such application there is a provision to appeal before the Register u/s 23(2).

If Society does not accept the application of transfer from member, the member can make application to the Society through Registrar of Co-operative Societies.

It is obligatory on the part of the Society to take decision within 60 days on such application received from the Registrar.

T Kalaiselvan
Advocate, Vellore
78057 Answers
1543 Consultations

5.0 on 5.0

1) If you had clear all due of society maintenance, than no issue you can prepare afterwards also. If other part may require now ask them.

2) You should ask Chairman provide Bylaws of society. In Bylaws everything is mentioned.

3) As of now you just pay 25K society transfer charges for 2% Say I want to say bylaws, Please transfer share certificate name.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

NOC is not mandatory in case of flat transfer.

they can not mandatory charge 2% of the sale consideration, for such arbitrary action approach the registrar of the societies and lodge a complaint.

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Further, as told earlier it is not legal for the society to charge 2% of the sale consideration towards the development of the society. You may just give 15 days notice as per the provisions of the act.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1. Society is entitled to a maxium of 25000/- as Share Transfer Premium, applicable in Maharashtra. Nothing beyond it.

2. Society NOC is not required by the Seller, BUT the purchaser would be troubled when he applies for the Society's membership. IF so at that time, the purchaser can give grievance petition before the local Consumer Forum /Court.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

there is no need of NOC from society for selling the house and over an above 25k nothing is to paid to the society. ask the chairman to give in writing in letter head of society that 2% of the value of the house is to paid to society and under which act to MCHS and later you can move to court or sub registrar of housing society for the corruption.

Anwar Zaidi
Advocate, Mira Bhayandar
231 Answers

4.5 on 5.0

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