• Share Certificate in case of Apartment Owner Association

Dear Experts,
Need support for the following --

Ours is a Apartment in Ghaziabad ( UP) and we have Apartment Owner Association.(We are NOT co operative housing society).

We have a registered sale deed of our apartment that gives us complete owner ship/clear title of Apartment and rights to use proportionate common areas.


Problem Statement ( for which support is needed).
We are seeking home loan from financial institution and they are asking for share certificate, and our apartment association says, share certificate is not applicable for apartments ( it is more applicable for Co operative Housing)

What we done.. we are stuck .. financial institution is asking for share certificate and our apartment association says its not applicable.

Is share certificate not applicable for apartments? Any reference to any act with clause number etc ( such as UP Apartment Act).

Any other way..or response or document as a substitute/equivalent to share certificate that could satisfy the financial institution.

Regards
Asked 1 month ago in Property Law from Ghaziabad, Uttar Pradesh
Religion: Hindu
Your apartment association is correct 

2) share certificates are issued in a cooperative housing society and  not in case of apartment association 
Ajay Sethi
Advocate, Mumbai
45573 Answers
2677 Consultations

5.0 on 5.0

No it can be given to those also while doesn’t part of the CO-operative or company act.
As stated earlier, the legal position about ownership of flats in condominium is different from the flats in Co-operative Society or the Company. Various Sections of the State laws provide that each apartment, together with its undivided interest in the common areas and facilities, appurtenant to such apartment, shall for all purposes constitute heritable and transferable immovable property within the meaning of any law for the time being in force in the State. Accordingly, an apartment owner may transfer his apartment and the percentage of undivided interest in the common areas and facilities by way of sale, mortgage, lease, gift, exchange or in any other manner whatsoever in the same manner, to the same extent and subject to the same rights privileges, obligations, liabilities etc., as any other immovable property or, make a bequest of the same under the laws applicable to the transfer and succession of immovable property. Section 5 of the Act provides that each apartment owner shall be entitled to the exclusive ownership and possession of the apartment.

Unlike the flats in Co-operative Society, flats in condominium are not the property of the condominium but remain the property of the apartment owner and can be transferred like any immovable property by execution and registration of a Deed of Apartment (Sale Deed). This will, however, be subject to the procedure and conditions laid in the bye-laws of the condominium.

If a flat is acquired in a condominium by two co-owners, the rights of both the co-owners are distinctly recognised and each co-owner is treated as the owner of his share in the apartment.
You can consult me for further details.
Sanjay Baniwal
Advocate, South Delhi
1237 Answers
4 Consultations

4.9 on 5.0

Act – An alternative to a Co-operative Housing Society was introduced by the Maharashtra Apartment Ownership Act, 1970. Condominium is a Building or Complex of Buildings containing a number of individually owned Apartments or houses. ownership of common areas is shared by all.


A Society issues certain shares to its members as per the Bylaws and the Share Certificate becomes an important title deed, since the allotment of the premises are related thereto.


 This is not so in a Condominium of Apartments/Buildings.


in cooperative society, Share Charges & Flat Transfer fee – Under the Model Bylaws, a Society can charge only Rs. 500/- as Transfer Fee with a maximum of Rs 25,000/- as a premium.


In apartments association, Share Charges & Flat Transfer fee – The Bylaws can be more flexible and the amount of Transfer Fee can be provided therein.

On the whole there is no system of share certificate in apartments association, the banker/financier may b asked to give in writing about the provisions of law or share certificate in the apartments association.

The bank which is insisting this may not be aware of the difference between cooperative society and the apartments association.

You may approach the higher officer of the bank to clarify and grant approval.
T Kalaiselvan
Advocate, Vellore
35749 Answers
388 Consultations

5.0 on 5.0

Only the Deed of Apartment in favour of the apartment holder is needed.
For share certificate you can simply give an affidavit stating that yours is a condominium and no share certificate is issued
You can also request the condominium committee to issue that statement on their letterhead alongwith a copy of the Deed of Declaration
Yusuf Rampurawala
Advocate, Mumbai
553 Answers
2 Consultations

5.0 on 5.0

Hi,
In case of societies the share certificate forms a part of the title deed but the same is not applicable in your case. You are the owner of the flat/apartment and hence share certificate is no applicable in this case. So, you should convince the bank official accordingly. 
Ganesh Singh
Advocate, Delhi
1028 Answers

4.0 on 5.0

Share Certificate is not applicable under the Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) Rules, 2011.  
Shivendra Pratap Singh
Advocate, Lucknow
5066 Answers
78 Consultations

4.9 on 5.0

The financial institutions create unnecessary restrictions. In your case when you don't fall in the CHSL category why are they demanding the same. You can ask them to give in writing with reasons for the same. You can approach banking ombudsman for redressal of the said greivance.
Prashant Nayak
Advocate, Greater Mumbai
2391 Answers

4.8 on 5.0

Dear Client,

What is need of share certificate.
Provision of share certificate rests in societies formed under Cooperative Society act, 
Yogendra Singh Rajawat
Advocate, Jaipur
2985 Answers
2 Consultations

4.7 on 5.0

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