Property Transfer Maharashtra Housing Societies : Don’t You Want to Know the Process?

Introduction

Property Transfer Maharashtra Housing Societies – Buying or selling a flat in a Co-operative Housing Society (CHS) involves more than just registering a Sale Deed. Under the Maharashtra Co-operative Societies (MCS) Act, 1960, specific procedures must be followed to update the Society’s records and Share Certificate. This guide focuses strictly on transfers based on a Sale Agreement.

1. Property Transfer Maharashtra Housing Societies (sale deed) – Documents

To ensure a smooth transfer, the following set of documents should be prepared in triplicate (Society Copy, Buyer Copy, and Seller Copy).

A. Primary Legal Documents

• Registered Agreement for Sale: The original (for verification) and a copy of the registered agreement with the Index-II.
• Original Share Certificate: Required for the Society to endorse the new member’s name.
• No Dues Certificate: Proof that the seller has cleared all maintenance and society charges.

B. Mandatory Appendix Forms (Sale Deed)

The following documents are mandatory in case of transfer through sale deed for property transfer Maharashtra Housing Societies

Appendix No.	Description	Requirement
Appendix 20(1)	Notice of Intention to Transfer by the Seller.	Plain Paper
Appendix 20(2)	Notice of Intention to Acquire by the Buyer.	Plain Paper
Appendix 13	Resignation of the Outgoing Member.	Plain Paper
Appendix 21	Formal Application for Transfer of Shares & Membership.	Plain Paper
Appendix 3	Undertaking by the Buyer (Usage of flat).	₹500 Stamp Paper
Appendix 23	Indemnity Bond by the Buyer.	₹500 Stamp Paper
Appendix 14	Nomination Form (New owner’s nominees).	Triplicate

2. The ₹25,000 Transfer Premium: Who Pays?

As per Bye-law No. 38, the maximum premium a society can charge for a sale-based transfer is capped at ₹25,000 in case of transfer through sale deed for Property Transfer Maharashtra Housing Societies.

• The Payer: The MCS Act does not specify who must pay. This is a matter of mutual negotiation.
• The Trend: In most Mumbai and Mira Road transactions, the Buyer typically pays this premium.
• Note: If you are transferring via a Gift Deed or Inheritance, this premium does not apply (stay tuned for our upcoming posts on those topics!).

3. 🛑 Common Mistakes to Avoid

• The Stamp Paper Trap: Appendix 3 and Appendix 23 must be on ₹500 non-judicial stamp paper. Submitting them on plain paper or lower denominations often leads to rejection by society auditors.
• Illegal “Donations”: Societies cannot legally demand a “voluntary donation” above the ₹25,000 cap. This is a violation of the Government Circular (9th Aug 2001).
• Incomplete Resignation: Ensure the seller signs Appendix 13. Without a formal resignation, the society cannot legally process the new membership.
• Forgetting Nominations: Membership isn’t complete until you submit Appendix 14. Ensure your heirs are protected immediately.

4.💡 Frequently Asked Questions (FAQs)

Disclaimer: This post is for educational purposes only. While based on the MCS Act 1960 and Model Bye-Laws, laws are subject to change. Consult a legal professional for specific cases. The author, a GDCA qualified professional and society management expert, is not liable for actions taken based on this content.