Can a society demand that transfer premium be paid if the said flat is transferred by a duly registered Gift Deed from the original owner to his sister-in-law, brother-in-law and mother-in-law? If one of the registered beneficiaries is the mother-in-law of the original owner, can one-third of the transfer premium be charged?
1. No transfer premium can legally be charged by the Society for transferring the title of the flat of its owner who is the member of the said Society.
2. However, the Society will delay issuing the NOC and/or fresh share certificate.
3. You can transfer the title and then ask for the issuance of fresh share certificate in favour of the Donee of the flat.
Society can levy transfer charges in case of gift deed in favour of SIL , MIL , BIL
2)
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.
The relation of the brother, Sister, Father, Mother, Grand Father, Grand Mother, etci.eA lineal descendant, in legal usage, is a blood relative in the direct line of descent - the children, grandchildren, great-grandchildren, etc. falls within the definition of a family as per the model bye-laws.
- If the transfer to the member's family or to his nominee or his legal heirs after his death and in case of mutual exchange of flats amongst the members the transfer fees will not be applied.
- But, if transfer to out of family , then society can charge Rs.500 to 25,000/- .
- Further ,if society charged you an excess amount by way of a transfer fee, you can recover the same from the society.
- Further , if charged more then you can file a compliant under section 91 of the Maharashtra Cooperative Societies Act against the society in the cooperative court for the recovery of the amount as well.
This is a very weird situation. How can they charge anything at all. They cannot.
Transfer premium is not necessary for deceased member, mutual transfer among two members of the society or transfer among family members.
If Society does not accept the application of transfer from member, the member can make application to the Society through Registrar of Co-operative Societies.
It is obligatory on the part of the Society to take decision within 60 days on such application received from the Registrar.
For transfer of flat, the member has to produce necessary legal documents according to Bye- law No.38(E).
Society will provide no objection certificate if demanded by member to produce the same for the loan from the financial agencies. If society is not able to give such certificate of N O.C, they have to inform concerned person in writing within 15 days.
If the Society refuses to issue N O. C. then member has a right to seek justice from three members committee or making an application to the Registrar.
Registrar of Co-operative Societies will give his verdict on the applications regarding NOC received against the decision of the society after hearing all concerned. Such verdict shall be binding on society and member. .
Dear Sir/Maam,
1. The society would be wrong in demanding any transfer premium as the issue of premium arises only in case of sale transaction where "consideration" is involved. In your case there is no question of sale of flat to a third party.
2. Hence in your case, since it's a transfer between your relatives, you will have to pay transfer 'fee' of Rs. 500 and do not need to pay any transfer 'premium' or 'donation' or anything else to society at all.
Thank you
