Saturday, November 16, 2013

FLAT PURCHASE

FLAT PURCHASE By Way of share Certificate Method



Co-operative Societies Acts of many states provide for formation of Housing Co- operative housing societies. Karnataka Co-operative Societies Act also permit the formation of Co-operative housing societies. These societies acquire the land; construct the flats, which are allotted to its members. The society allots shares to its members. Such societies need to be registered with registrar of Co-operative societies.
Members are of different category, the member, associate member, and nominal member. Individuals, Partnership firm, registered company, registered society local authority, State government, central government,
public tr
ust, any other corporate body registered under the relevant act, may become member of the co-operative
hou
sing society, subject to the rules governing the admission.
A minor can also become a member of Housing Society through his guardian; Certain states have put
re
striction of membership of family trust, Hindu undivided family.


1. A society purchases the land or takes on lease divide into several plots and allots to its members. The members construct houses, on such allotted lands. In such cases, the land is owned by the societies and the houses
on plot
s to members. Such societies are caller Tenant ownership type housing societies.

2. Societies acquire land by sale or on lease and construct the buildings; flats are allotted to the members. In
are called tenant Co-Partnership Co- operative housing societies.

3. Societies are also formed by the persons who purchase the flats from the builders, under agreement as per flats ownership acts of the respective states. In this case also, both the land and building belong to the society after the execution of conveyance by the builder in favor of the society. Such societies are called flat owners
Co-operative housing society.



Flat owners Co-operative society societies are of more common. These societies are very popular in Maharastra, Gujarat, and West Bengal and not so common in Karnataka.

Flat owners Co-operative societies issues shares to its members by which the members gets to right to live, reside and enjoy the flat. It is to be remembered that the rights and interest of the member in the
flat is limited only to reside and enjoy. Member can transfer only such right. He is not the absolute
owner of the flat. of the flat, society transfers the shares to the names of the purchaser, on purchaser complying with
th
e formalities. After the purchaser is admitted, the purchaser becomes member of the society and acquires right to reside and enjoy, the flat.

4. In case of death of a member the society transfers the shares to the name of the nominee; In the absence of any nomination, the society may transfer the shares to anyone of legal heirs on consent given by other legal heirs. In case of any dispute, the legal heirs may have to obtain letter of administration from a competent court.

The flats are to be required to be occupied by the owners. In case the flats are let out, the members have to pay   non- occupancy charges to the society. In case of transfer of share to the others, the member has to give a notice to the society along with the consent of the proposed purchaser. The member may also obtain no-objective certificate from the society for transfer of share. The managing committee on considering the notice of transfer will


Application of the transfer of shares along with share· certificate.

Membership application for the purpose of transfer

Resignation letter from the original member.

Prescribed transfer fee, membership fee, price of the shares premium amount, copy of the stamp duty paid
agreement, declaration by both transferor/transferee under urban



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