• Issuance of share certificate

Hi ,
I purchased flat from seller ( he is land owner so builder provide him some amount of flats ) , i asked society to issue me a share certificate but society asked to me pay transfer fee as the current owner on share certificate is still seller name but my sale agreement did before society formation . 
is it necessary to pay these charges to society ? and who will pay these charges ( me or seller ) ?
Asked 7 years ago in Property Law
Religion: Hindu

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15 Answers

1) If the transcations is happened before formation of society, than share certificate will be automatically comes on current owner name. Kindly check first all dates whether society was proposed or not ?

 

2) Normally, it is decided at the time purchasing the flat that who is going to pay transfer fees buyer or seller, or 50-50% among both the parties.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

1) seller has to pay transfer charges 

 

2) society would not transfer flat in your name if transfer charges are not paid 

Ajay Sethi
Advocate, Mumbai
99884 Answers
8151 Consultations

Transfer charges are only Rs 25000

 

flat would not be transferred in your name unless transfer charges are paid 

Ajay Sethi
Advocate, Mumbai
99884 Answers
8151 Consultations

Before registered society its called proposed society. Just made application of society formation.Let me know the details of society formation and your flat purchase date.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

Transfer fee applies only when a society member sells his flat

In your case your seller was not a society member when he sold the flat to you

So where is the question of paying transfer fee?

Society has to issue you share certificate in which your name will be stated on its face

Your name has to be stated as primary or original member and not in the transferee column

Obviously the seller cannot be a primary or original member as when he sold, society was not even in existence

If what the society is demanding is to be accepted then for all sale transactions done prior to society formation, transfer fee would become payable, which obviously cannot be the intent of the law of charging transfer fee

So neither you nor seller are liable to pay any transfer fee

You have to take legal action against society for making such illegal demand

Write to registrar of societies and mark letter to society. Do follow up of letter through RTI

Please note your seller is not liable and no legal action can be taken against him as may be suggested by some panel member here (which i learn from your follow up queries, that such a suggestion has been made, which is erroneous) 

Yusuf Rampurawala
Advocate, Mumbai
7904 Answers
79 Consultations

Issue legal notice to seller to pay transfer charges demanded by society 

 

you can sue seller to recover transfer charges paid by you under protest 

Ajay Sethi
Advocate, Mumbai
99884 Answers
8151 Consultations

See of sale deed was registered prior to formation of society then there is no charges applicable you shall be primary member of the society . Though if only sale agreement was there no sale deed on record before society formation sale deed was done after society formation then you have to pay the respective charges which can be maximum upto 25000.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

If at time of formation of society if flat is already registered to you then no charges applicable they cannot seek any amount from you or seller.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

You can take action against society seller has no role here for there demand you can serve a legal notice and further complaint before the registrar of.society for this wrong demand.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Transfer charges are applicable on second sale not on first sale. For buying from builder you don’t have to pay transfer charges  

Mohammed Mujeeb
Advocate, Hyderabad
19348 Answers
32 Consultations

1. IF the seller's name was recorded in the Society Registration procedures, by the builder, THEN the society is right in demanding the Share Transfer Premium, as may be prescribed in the registered bye-laws of the Society. Typically the builder would have to deal with the Society for such things and not you.

2. You have an option of filing a Consumer Court case, for the harassment and deficiency by the society & builder.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

Buyer pays the transfer fee to Society. If you don't pay the share certificate will be on previous owner name

Prashant Nayak
Advocate, Mumbai
34596 Answers
249 Consultations

The seller has to pay the transfer charges and not the buyer, hence you may refuse to pay the same, let the seller undertake this responsibility.

 

T Kalaiselvan
Advocate, Vellore
90083 Answers
2502 Consultations

Since you have entered into agreement for  purchasing the property before the formation of society, you need not have to pay any transfer fee to the society even though it is landlord's share of flat.

You can refuse and take it up legally.

 

T Kalaiselvan
Advocate, Vellore
90083 Answers
2502 Consultations

You dont bother if the seller is not obliging to pay the same, you may take legal steps if the society insists you to pay the same at a alter stage.

T Kalaiselvan
Advocate, Vellore
90083 Answers
2502 Consultations

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