• Society transfer fee

Is Society Transfer fee payable by buyer/seller, in case of exchange of Flats, where area is the same.
Asked 3 months ago in Property Law
Religion: Hindu

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11 Answers

The Model bye-laws states that a transfer fee of Rs 500 is payable on transfer of shares and interest in the capitalproperty of the society. Further, the maximum premium that can be charged by the society is Rs 25,000. However, in case of a transfer to the member's family or to his nominee or his heirlegal representative after his death and in case of mutual exchange of flats amongst the members the transfer fees will not be applied.

Ajay Sethi
Advocate, Mumbai
84384 Answers
5530 Consultations

5.0 on 5.0

Hello,

  1. Society transfer charges are payable unless the membership transfer is within the family or to the legal heir of a deceased member. Usually there is a nominal fee of Rs.500/- with a max cap of Rs.25,000/-.
  2. Although a fully functional Housing Society is in place, every sale-purchase will require NOC from MHADA and every sale / purchase need to be registered in Mhada's list of members (by paying registration charges or any other charges as applicable by mhada)

S J Mathew
Advocate, Mumbai
3348 Answers
159 Consultations

5.0 on 5.0

  1.  

Devajyoti Barman
Advocate, Kolkata
22515 Answers
364 Consultations

5.0 on 5.0

In the case of an exchange the consideration is in kind and not in cash

For eg. Consider 2 flats - flat A and flat B

Tom is owner of flat A and Jerry is owner of flat B

The area is same 

Tom wants to exchange his flat A with Jerry's flat B

So consideration for Tom is flat B whereas consideration for Jerry is flat A

Thus transfer fee can be paid 50:50 by Tom and Jerry or as mutually agreed 

There is no hard and fast rule when it comes to payment of transfer fee as to who should bear the same 

As regards Mhada noc you need to check the lease deed if there is any restriction of taking a NOC of MHADA before any transfer. Ask the society for a copy 

Yusuf Rampurawala
Advocate, Mumbai
6500 Answers
55 Consultations

5.0 on 5.0

Dear Sir

Society Transfer fee is usually payable unless, it is a transfer within a family.

It is advisable to get an NOC from MHADA before buying or selling any flat.

Thank you

Anik Miu
Advocate, Bangalore
2729 Answers
27 Consultations

4.9 on 5.0

The society generally levies the transfer fee for sale of property and in some places the exchange of property / flats within the same society are also considered as transfer for the purpose of levying transfer fees. 

It depends on the bylaws of your society. You may go through the bylaws of your society  and confirm it.

T Kalaiselvan
Advocate, Vellore
74484 Answers
1226 Consultations

5.0 on 5.0

If the society is the lessee and the MHADA is the lessor,  then it may not be necessary to obtain NOC from MHADA for purchase or sale of leasehold property through society. 

T Kalaiselvan
Advocate, Vellore
74484 Answers
1226 Consultations

5.0 on 5.0

Its paid by buyer. 

Prashant Nayak
Advocate, Mumbai
24476 Answers
52 Consultations

4.4 on 5.0

Will need more details for a detailed response. The answer is only given on the said facts mentioned above. 

If you need any further assistance then you can approach me through LinkedIn.
https://www.linkedin.com/in/prashant-nayak-5477b138

Prashant Nayak
Advocate, Mumbai
24476 Answers
52 Consultations

4.4 on 5.0

You need society NOC for sale of flat and not MHADA noc 

Ajay Sethi
Advocate, Mumbai
84384 Answers
5530 Consultations

5.0 on 5.0

- Buyer has to pay the society transfer fee to the sum of Rs.500/- only 

- Further, if the transfer is within the family members or to the legal heirs after the death of owner of the flat , then no fee is charged 

- NOC is required for selling the property from the society , as now the property come under the control of society and not Mhada.. 

Mohammed Shahzad
Advocate, Delhi
8182 Answers
86 Consultations

5.0 on 5.0

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