• Transfer of membership in a CGHS property in Delhi

I am the President of a Cooperative Group Housing Society. One of the Residents of our society had bought a flat in 2011 from a original member for a consideration of Rs. 36.00 Lakh. The deal was through an unregistered but notary attested Sale Deed. The Flat has been in the possession of the Purchaser who has been residing in the flat since 2011.
In 2017, the purchased got the sales deed Registered by paying the due Stamp Duty & interest/Penalty. The duty is paid on the value shown in 2011 Sales Deed.Now the member has applied for the transfer of membership in the society. Now I have two questions:
1. Since the competent authorities have accepted the Sales deed & Registered the same which means the ownership is transferred in the name of Purchaser, CAN THE SOCIETY TRANSFER THE MEMBERSHIP IS THIS CASE. 
2. The stamp duty is paid on 2011 valuation (Purchase Price) with interest/ Penalty. Is it tenable in the eyes of the law, though the sales deed has already been Registered by the competent authority.
Lokendra Gera
Asked 4 years ago in Property Law
Religion: Hindu

3 answers received in 10 minutes.

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22 Answers

1. Yes.

2. You can transfer the membership. 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

Society should transfer flat in name of purchaser since stamp duty and registration charges have been paid on sale deed 

 

society is not concerned with valuation of property 

Ajay Sethi
Advocate, Mumbai
97607 Answers
7901 Consultations

Yes

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

Yes, if the seller of the flats has paid all maintenance charges and transfer fees of the society and there is nothing balance than society can transfer title ownership on buyer name and share certificate as well. Because as per the Indian registration act and tht transfer of property act the title of ownership has got transferred from seller to buyer's name.

Ganesh Kadam
Advocate, Pune
12997 Answers
264 Consultations

Yes it can transfer the ownership. The registrar will register a sale deed when it is presented before it. Although he was residing from 2011 he registered it in 2017 and due penalty was also paid. Hence it is justified and legal.

Rahul Mishra
Advocate, Lucknow
14107 Answers
65 Consultations

The buyer and the seller have both disclosed the previous notarized agreement and have now registered the property as per the 2011 rates. The registrar has accepted the same. You should also accept it.

Rahul Mishra
Advocate, Lucknow
14107 Answers
65 Consultations

1. Yes they need to

2. Yes it's teneble

Prashant Nayak
Advocate, Mumbai
32934 Answers
209 Consultations

Yes.

Whether stamp duty levied on 2011 rate is not concern of Society. And delayed sale deed registers on purchase price with penalty and not on present date.

SHOULD WE ACCEPT THE SAME & TRANSFER THE MEMBERSHIP -- YOU HAVE TOO. 

Yogendra Singh Rajawat
Advocate, Jaipur
23012 Answers
31 Consultations

1. Typically under the cooperative laws, the Society is concerned only about the "Transfer of Membership" AFTER receiving the certified copy of the stamp duty paid & registered sale deed (which is under the "Transfer of Property Act") alongwith the prescribed membership Transfer Forms and all fees related to membership transfer.

2. Since the competent authority (who is also a Constitutional Authority) as far as Stamp Duty and Registration Fees is concerned, his order (registration) is Final & Irrefutable and deemed compliance of all the laws etc.... applicable on date of registration, and this is irrespective of valuation of property, at his discretion.

3. You are advised that there is nothing illegal & unauthorized in the facts mentioned by you and membership can be duly transferred AFTER approval of the committee members, BUT subject to no outstanding dues against the Flat.

 

 

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

1. Yes absolutely.  With the completion of sale by execution and registration of the sale deed the society is free to transfer the membership. 

2. It's the duty of the Registrar to see whether required stamp duty is paid or not.  Even if it is not then also you can not intervene. 

You have no authority to dispute a registered sale deed. 

Devajyoti Barman
Advocate, Kolkata
23351 Answers
523 Consultations

1. If an individual purchased the flat from the flat owner by a registered sale deed, then he is entitled to transfer the share certificate to his name from the name of the seller.

Therefore there is no question of denial to his application for transfer of share  certificate to his name.

 

2. You, rather the society is not the authority  to question about the stamp duty, it is the duty of the registrar.

You have to confirm that if the owner of the flat is having a original registered sale deed on his name executed by the previous member of this association.

 

T Kalaiselvan
Advocate, Vellore
87806 Answers
2365 Consultations

What is your botheration about the valuation of the property or the stamp duty that has been paid by the owner for registering the property.

You are to confirm that if the property was duly registered on the name of the owner by the competent authority, if it is confirmed you can go ahead to transfer the share certificate to his name from the previous member after the new member complies with the necessary formalities as envisaged in the bylaws of ther association.

 

T Kalaiselvan
Advocate, Vellore
87806 Answers
2365 Consultations

You should accept the same and transfer the flat in name of buyer 

Ajay Sethi
Advocate, Mumbai
97607 Answers
7901 Consultations

In my view the 2011 document cannot be registered in 2017 at all

Because under the registration act a document which is signed by the parties has to be presented for registration within 4 months of signing and if there is a delay and document is presented after 4 months then it can still be registered if the delay does not exceed further 4 months. The party has to pay penalty for delayed registration which is upto 10 times of the registration fee

Thus as per the registration act a document which is signed can be registered maximum within 8 months subject to payment of penalty as above alongwith the normal registration fee

So if this is the law then how can the 2011 document be registered 6 years later in 2017??

I think the parties executed a fresh sale deed in 2017 because the 2011 document is not registrable at all

As regards the stamp duty, in Maharashtra the rule is that if the sale deed is unregistered then the property has to be valued NOT on the basis of the rates prevailing when it was signed  but on the rate when it is sought to be stamped and registered. 

If there is an agreement for sale (which is different from a sale deed) and if such document is not stamped and given for stamping several years after its signing then the stamp duty is computed considering the rate prevalent on the date of signing and penalty is levied. If this agreement for sale is unregistered and a sale deed is not made and registered then despite the agreement for sale  being stamped subsequently with penalty, the sale deed would attract stamp duty computed as at present date from which the duty paid on the agreement for sale is deducted and  balance  duty becomes payable. The liability continues till the sale deed is registered. I think Delhi has a similar rule. But that needs to be ascertained from a local lawyer 

 

But Registration act is a central act and applies to all states. So I am not able to understand how the sale deed signed in 2011 came to be Registered in 2017!

 

But that also needs to be ascertained if there is any amendment made to registration act by the Delhi legislature as regards the rule of registering the document max within 8 months of its signing

Yusuf Rampurawala
Advocate, Mumbai
7767 Answers
79 Consultations

First check the term eligibility for membership / membership in your bye law .Also check what are the rules or preconditions to transfer flats?

A member of a housing society who has sold his plot or flat on agreement for sale or by sale deed shall cease to be a member of that society from the date of the sale of plot or flat.

Provided that the purchaser having registered agreement for sale or registered sale deed, as the case may be, in respect of such plot or flat, may apply for membership by paying transfer fee of five hundred rupees and share money and admission fee as per the provisions of the bye-laws of the society and the committee shall grant membership to the applicant within thirty days after the submission of his application. In case of refusal by the committee, the applicant may appeal to the Registrar within thirty days and the decision of the Registrar shall be final.

 

Please do understand that housing society has no role in sale of flat and society is not the authority to question about the stamp duty of sale deed. If you got an application from seller (Owner of the flat) and buyer of Flat , it is your duty to transfer the membership from existing owner to new buyer .

Ajay N S
Advocate, Ernakulam
4097 Answers
113 Consultations

if purchaser executed registered sale deed and other documents are clear then society should transfer flat in the name of purchaser. 

Mohammed Mujeeb
Advocate, Hyderabad
19326 Answers
32 Consultations

1. Yes society can transfer the membership on name of current owner.

2. Yes it is tenable in eyes of law. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

1) Yes.

2) Yes it is tenable in the eye of law.  Each transfer has to be registered by paying stamp duty and registration charges

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

Yes, it can be accepted and membership can be transferred.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

1. Since there is already Sale deed in favour of the said purchaser and the possession is given to him , then the society is bond to transfer the membership to him legally .

2. The valuation of stamp duty not come under the jurisdiction of stamp duty , and as per Stamp Act, it come under the office of Collector of stamps and to impose file accordingly. 

- Hence you can transfer the membership to the said new purchaser as per rule and by-laws of society. 

Mohammed Shahzad
Advocate, Delhi
14773 Answers
225 Consultations

Dear Sir/Madam,

You are suggested that said membership can be transferred in the name of purchaser by the society. The registration, payment of penalty etc, make the sale vaild and tenable in the eyes of law. You have no option but to accept the same and transfer the membership.   

Ganesh Singh
Advocate, New Delhi
6769 Answers
16 Consultations

Dear Client,

This is to inform you that

  • A member of a housing society who has sold his plot or flat on the power of attorney or agreement for sale or by sale deed shall cease to be a member of that society from the date of the sale of plot or flat.
  • The Cooperative society after receiving the certified copy of the stamp duty paid & registered sale deed along with the prescribed membership Transfer Forms and all fees related to membership is liable to transfer the membership to the new owner.
  • Please note that, according to the Cooperative Societies Act 1912 the housing society has no role in the sale or purchase of the flat or for checking of the stamp duty of the property for providing with the membership.

Pulkit Prakash
Advocate, Delhi
309 Answers
7 Consultations

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