Transfer of ownership fee
We are an apartment owners association located in Mysore city, registered with registrar of societies in mysore district. we have passed a regulation by majority voting in our AGM that
1) buyer & seller of a flat have to jointly pay 1.5% of the sale deed value as transfer of ownership fee to the association.
2) owners who have rented out their flats have to pay non-occupancy charges to the association.
Some members are opposing this saying that it is illegal to collect any additional charges from the members other than the monthly maintenance charges.
what is your advice to us on this topic?
Asked 2 years ago in Property Law from Mysore, Karnatka
The charges to be collected is a collective idea becoming legal once it has been passed by a resolution in a AGM or special meeting. The bye laws can be amended accordingly. If the majority approves and passes the resolution, there cannot be any legal infirmity in it, so once the resolution was adopted there is no question of anyone objecting to it and this becomes law making a binding effect on all the members.
1) 1.5%of sale deed value to be charged as transfer charges are exorbitant
2)in maharashtra transfer charges cannot be more than Rs 25000 .
3) association can levy transfer charges on the seller ie transferor only and not from the purchaser of the flat
4) non occupancy charges in maharashtra cannot be more than 10 %of maintenance bill
5)amount to be charged as non occupancy charges have to be specified . it cannot be at the whims and fancies of the association
The association can not charge sch fees on the garb of welfare It is indeed illegal and the society can be penalised any complaint is lodged.
The association has no authority to impose any charges other than the maintenance charges. It amounts to extortion. The resolution is illegal and can be declared so by the court.
if an AGM has been called as per law and the majority of the members have given their consent/vote for implementation of this scheme, then the minority cannot raise any objection. if the association has acted in accordance with the rules stipulated in the bye laws and rules and regulations that has been formulated by it, then nobody can raise any objections.