• Society transfer charges in Mumbai

I am selling my apartment in Hiranandani Gardens, Powai and the housing society is asking for 2% of the sale value as transfer charges. Is 2% the correct charge? 

I came across this link and it seems that the costs cannot cross Rs. 25,000
https://www.quora.com/Should-we-pay-society-transfer-charges-more-than-25000-in-Mumbai

Please guide. Thanks
Asked 1 year ago in Property Law from Mumbai, Maharashtra
Religion: Hindu

Sir the 2 percent charge is illegitimate under existing laws and notification the society can ask a transfer charge upto limit of 25 thousand only it cannot ask more then that. Ask the society to give transfer charges in writing and then complaint before the registrar of societies as the society is asking exorbitant amount.

Shubham Jhajharia
Advocate, Ahmedabad
22882 Answers
93 Consultations

5.0 on 5.0

hello,

Under pressure from high-profile housing societies belonging to serving/retired bureaucrats and police officers, the State government has reduced the fee levied on transfer and sale of flats in cooperative housing societies situated on leased government land.As per the revised rates issued in May 2018, in case of a transfer or sale of the apartment before five years of the society formation, an amount equal to 3% of the transfer fee calculated as per the market rates will be charged. A 5% of the transfer fee will be levied on apartments falling in the post-five years category. Earlier, an amount equal to two times of the transfer fee in case of the post-five years category and three times in case of the pre-five years category were levied.

regards

Rahul Mishra
Advocate, Lucknow
6197 Answers
14 Consultations

5.0 on 5.0

As per Bye-Law no. 40(d)(vii) the Society should collect transfer charges 2.5% of the difference between the book value of the flat and the price realized by the transferor on Transfer of the flat OR maximum Rs. 25,000/- whichever is less. Supposed difference between purchase and sale of the flat is Rs. 4,00,000/- hence the society cannot charge transfer fee more than Rs. 10,000/-. But not many societies know the provision of charging 2.5% on the difference, instead, they directly jump to a maximum limit of Rs. 25,000/-.

Rahul Mishra
Advocate, Lucknow
6197 Answers
14 Consultations

5.0 on 5.0

Society cannot charge more than Rs 25000 as transfer charges

2) the demand of society for 2 per cent of sale consideration is illegal

3) complain to deputy registrar against society demand to pay 2 per of sake consideration as transfer charges

Ajay Sethi
Advocate, Mumbai
72060 Answers
4334 Consultations

5.0 on 5.0

1. 25000 was the maximum amount a society can take as transfer charges which now has increased to 30,000.

2. You can file a complaint before the Registrar against the society for the same.

Ruchit Dugar
Advocate, New Delhi
190 Answers

4.9 on 5.0

Transfer charges are fixed by the resident welfare Association and any buyer and seller has to pay the charges as specified by the Welfare Association recharges offer everybody and cannot be charge on individual basis

Vimlesh Prasad Mishra
Advocate, Lucknow
6203 Answers
19 Consultations

4.9 on 5.0

This is my response to you:

1. Ask them the reason for filing such transfer fees?

2. Yes the GR stands correct: https://sahakarayukta.maharashtra.gov.in/site/upload/documents/Housing%20Manual%202012%20English.pdf

3. Even as per the MCS Act and Rules, the charges/transfer fees has to be reasonable;

4. Also as per the model bye-laws the transfer charges cannot be so high;

5. If they are then issue a legal notice to the society;

6. If they do not respond then you will have to file an official complaint to the Registrar.

Gowaal Padavi
Advocate, Mumbai
1887 Answers
3 Consultations

5.0 on 5.0

the society demand is illegal

record it in a letter addressed to the society and mark that letter to the district deputy registrar of co-operative housing societies

the transfer fee cannot exceed maximum 25k

even by a resolution the society cannot over-rule this limit

Yusuf Rampurawala
Advocate, Mumbai
4858 Answers
29 Consultations

5.0 on 5.0

Dear Client,

Rightly held in given link, neither any doubt, Rs, 25,000 and less fees prevails all over Indian For transfer of member.

Notified by Maha. govt too, Complain to registrar.

Yogendra Singh Rajawat
Advocate, Jaipur
16743 Answers
21 Consultations

4.6 on 5.0

Dear Sir,

As per the Maharashtra Cooperative Societies Act, 1960, the Society cannot ask a member or a member to be to pay more than INR 25,000/- towards transfer charges.

But these days the Society under the name of other charges take the extra money.

It is upto you to pay the INR 25, 000/- or more. You can challenge this move before the Registrar of Cooperative Societies.

Clause No. 3.10 pertaining to Transfer of flat and transfer fee of the Manual annexed to the Directives dated 15th April 2011 given to all the Cooperative Housing Societies under Section 79 (A) of the Maharashtra Cooperative Societies Act, 1960, the Govt. of Maharashtra, states 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"

Regards,

Uma Vyavaharkar-Acharya
Advocate, Mumbai
33 Answers
1 Consultation

5.0 on 5.0

Dear,

You are right and the cap of rs. 25000/- on transfer fee is imposed by MCS act

and it is legally binding on all the societies.

If a society passes a resolution to increase the transfer fee beyond rs. 25000/-, then it is a clear

violation of the law.

One can easily approach deputy registrar of cooperative societies and get such law struck down.

If deputy registrar not act then the matter can be taken to cooperative court.

Tarun Agarwal
Advocate, Jaipur
769 Answers
3 Consultations

4.9 on 5.0

1. Society Membership Transfer charges are as follows:

a) Membership Transfer Fee = 500/-

b) Membership Entrance Fee = 100/-

c) Share Transfer Premium = 25000/-

ANYTHING else, besides above, is illegal and a prosecutable offence.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
3677 Answers
19 Consultations

5.0 on 5.0

The charges of 2% of the value of the sale price is exorbitant.

You can go through the bye laws for this in which there will be a mention about the charges to be levied on such transfers.

Rs. 25,000/- is considered as standard charges.

You may issue a legal notice to the society in the event they are adamant about the amount and not giving NOC.

You may even draq the society to the consumer forum for this.

T Kalaiselvan
Advocate, Vellore
61997 Answers
800 Consultations

5.0 on 5.0

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