• Dispute with Society for transfer fee

I bought a resale flat in Nov 2009 from the original owner. For loan purposes I got the NOC from the Builder with the help of the Original owner. The NOC from the builder mentioned that he has no objection in us purchasing the flat and that he will inform the housing society when it is when registered. 
After we started living the society asked us (not the original owner) to pay the transfer charges of Rs. 25,000 along with the maintenance fee from Jun 2007 which the original owner did not pay. We have regularly paid our society maintenance charges till date except the transfer fee and charges before Nov 2009 but the society has continued with their demand. 
We do not live in the society anymore and have rented out our flat and the society is now threatening to cut the water and electricity supply to my flat if we do not pay the dues.

When we asked the Secretary to furnish the society registration documents and the other details they denied it saying they wont show any documents till we pay the transfer fee and due amount. Move over they have also levied a penalty on the outstanding dues and demanding us to pay. 

I need some expert guidance as to how to resolve this matter as I am not aware of all the legal arguments in this scenario. Any advice in this regard will be greatly appreciated.
Asked 2 years ago in Property Law from United States
Religion: Hindu
1) claim of society is barred by limitation . 

2) if any dues for period 2007- 209 are pending society should have filed suit within period of 3 years 

3) transfer fees are payable by the seller . if transfer  fees  were not paid society would not have transferred flat in favour of purchaser

4) society cannot disconnect electricity and water supply . it i s essential service 
Ajay Sethi
Advocate, Mumbai
45461 Answers
2671 Consultations

5.0 on 5.0

1. When you buy a property you also inherit all the liabilities pending in respect thereto except those which have been excluded by the sale deed. The society is right in demanding the amount from you i.e the buyer as all the liabilities stood transferred to you if the sale deed did not exclude these. 

2. Your tenants have the right to pay the transfer fee and deduct it from the rent payable to you. 

3. It is advisable to pay the pending charges.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

Generally it is the seller who has to pay the transfer fee, in your case since you had NOC from builder you may have to pay the transfer fee. The Co-operative Court has held that the co-operative society can place reasonable restrictions on transfer of a member’s interest to prevent nuisance from unwanted element but that does not mean that the society can have such a right of profiteering out of the co-operative movement. The association or society cannot disconnect the water supply electricity or any other basic amenities.  It is against the human rights.If you get a demand in writing about the arrears for the period before your purchase, you may give a suitable reply repudiating their claim by narrating the facts that it was originally purchased by an X and you bought it from X subsequently in the year 2009 hence you are not liable for any previous payment. Dont pay the penalty levied and you may ask them to approach for recovery and if court orders, you are ready to pay the same. 
Issue a legal notice stating their demands are unlawful and unjustified.
T Kalaiselvan
Advocate, Vellore
35621 Answers
386 Consultations

5.0 on 5.0

In my view, the society is asking you to pay the fees payable to the society under the following directive and the claim of the society appears to be correct based on the below directive. 

Directive to be given to all co-operative Housing Societies in the Maharashtra State Under section 79 (A) of the Maharashtra Co-operative Societies Act, 1960.GOVERNMENT OF MAHARASHTRA, No. SAGRUYO-2011/PRA.KRA. 360/14-SA, Co operation, Marketing and Textile Department, Date 15th October, 2011

Under  section 3.10. Transfer of flat and transfer fee, sub clause 13) 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.

However the previous owner is liable to pay all of the maintenance charges till such time you took possession of the property. 

Hope this helps. 

Rajgopalan Sripathi
Advocate, Hyderabad
1307 Answers
158 Consultations

5.0 on 5.0

according to section 55 of the transfer of property act, it is liability of the seller (previous owner) to pay all the fee incurred before sale. you should file an objection before the society and initiate any action after decision of your objection. 
Shivendra Pratap Singh
Advocate, Lucknow
5066 Answers
78 Consultations

4.9 on 5.0

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