x is entitled to sale proceeds of one flat as he has bought a flat from y by registered sale deed
2) even if NOC is not obtained from society sale deed is valid
3) how can society sell the unsold flats ? it has no legal title on said flats
Claim over assets of a CGHS of a buyer of a resold flat
'X' bought a flat from 'Y' in a CGHS. 'Y' did not take NOC from the society to sell the flat. The society had 3 unsold flats. The Sale Deed between 'X' & 'Y" has no mention of these 3 flats. Now the society has sold the flats. Who is entitled to claim benefits of the sale proceeds of the 3 flats X or Y.
Asked 2 months ago in Property Law
Religion: Hindu
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12 Answers
The society has 84 flats. 3 members got disqualified hence the 3 flat were unallotted. In a way these 3 flats were joint assets of the society members. The society had some payment liabilities. By order of the court the 3 unallotted flats were auctioned. The liabilities of society were paid from the auction proceeds and the balance was transferred to the society amount. In the mean while few flats in the society were sold by the original members of the society. In a way the members transferred the rights and possession of the flat to the purchasers, however, Sale Deed has no mention of 3 unallotted flats. The question here is are the purchasers of the flats entitled to benefit from auction proceed or the original member.
Asked 2 months ago
1) if original member has sold flat he is entitled to sale proceeds
2) in respect of auctioned flats society is entitled to sale proceeds which will be used for benfit of all flat owners
Society is a separate legal entity
the 3 unsold flats belonged to the society
these flats were sold in an auction to pay off the society's liabilities
surplus was paid to the society
thus it is only the society which is entitled to the auction proceeds remaining after deduction of its liabilities
neither the original member nor his transferee/purchaser would have any claim over the same
The society proposes to undertake some renovation and development work. In normal course the society would have raised a demand to meet the expenses, however, in the present it is proposed not to raise any demand but to use the funds acquired though the auction to meet the expenses. The question is are the recent purchasers of the flats in the society who had not clue about the existence of these 3 flats also entitled to benefit from these auction proceed or any other preexisting funds in the society account or should they be asked to pay their share of the renovation expense.
Asked 2 months ago
Recent purchasers also entitled to enjoy the benefit from auction proceeds or other funds
they cannot be asked to pay share for renovations when other flat owners are not making any contribution
Had the 3 flats not been there, the purchasers by means of the Sale deed would have got only the right to possess and occupy the flat. The fact that the society got some money is incidental for the purchasers. Question is in these circumstances are the rights of the original members and the purchasers the same.
Asked 2 months ago
the purchasers or their predecessor have no right whatsoever in the moneys belonging to the society
The rights of original members and purchasers are same
Dear Client,
In the present scenario, X is the buyer of the flat, Y is the seller of the flat, and the flat in question is from the Cooperative Group Housing Society (CGHS). Now, initially the Society had 3 unsold flats, and the Sale deed between X and Y did not mention the three flats, and subsequently an issue has arisen as to who is entitled to claim the benefits of the sale proceeds after the society has sold the flats. Legally, since X has purchased the specific flat through a sale deed, and the three flats were not part of the sale, X may not have a claim to make pertaining to the sale proceeds from those flats. However, if the same was previously mentioned in the Sale Deed, the same may be possible. Y, being the original owner, retains the rights to any benefits that have been derived from the unsold flats, until the same has been transferred through any legal written document to another person. This is in compliance with the Transfer of Property Act, 1882.
Hope you find this answer beneficial for resolving the dispute.
- It is not mandatory to get the NOC from the society for selling the flat, and the being the owner Y was having his right to sell the same
- If the said flat purchased by the X is not the one which is auctioned , then its mention the agreement is not necessary.
- The said sale proceed of three unsold flats , should be used for the welfare of the members,
X purchased a flat from Y by a registered sale deed, hence he becomes an absolute owner of the property he purchased by a registered sale deed.
If Y was the absolute owner with a registered title document on his name hen he need not obtain a NOC from society to sell the property.
The three unsold flats belong to society in which neither Y nor X can claim any rights to the sale proceeds.
The unsold flats which were sold by auction as per the court order belongs to the society and not to any individual member.
Therefore any sale proceeds fetched through auction sale shall go to the account of the society.
The society funds are for the members of the society.
if a owner has sold his flat to a prospective buyer then he cannot claim any rights in the society, however the new buyer who subsequently becomes a member of the society shall be entitled to the benefits of the society as provided to all other members
The new buyers once purchased a flat in the society are automatically entitled to be a member of the society.
The society funds are with the society's management and not held by the members of the society.
The society funds are for the welfare of all the members.
The members means whoever is currently a member of the society can avail all the benefits that has been extended to all the members of the society.
Thus the funds remaining in the accounts of the society being utilized for redevelopment or renovation shall be for the benefit of all the members and not for any individual alone
All the three flats which remained unsold belonged to the society and the funds generated by auction sale of the same shall be included into the accounts of the society and jot to any individual's account.
The society is running fr the society members and their welfare, hence this amount or the funds held by the society belongs to all the members who are currently in the books of the society as its members.
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