Society NOC fees
Emran
(Querist) 25 August 2016
This query is : Resolved
I am planning to buy resale flat in Mumbai. Who is supposed to pay society fees for NOC ? Is it buyer or seller?
Ms.Usha Kapoor
(Expert) 25 August 2016
BUYER HAS TO PAY.
A POTENTIAL BUYER, INTENDING TO PURCHASE A FLAT IN A SOCIETY, USUALLY PAYS THE AMOUNT THROUGH A LOAN, APPROVED FROM A FINANCIAL INSTITUTION WHICH, ALMOST MANDATORILY, INSISTS UPON A NOOBJECTION CERTIFICATE FROM THE COOPERATIVE HOUSING SOCIETY, HOUSING THE PROPERTY.
THE COOPERATIVE COURT HAS HELD THAT THE HOUSING SOCIETY CAN PLACE REASONABLE RESTRICTIONS ON THE TRANSFER OF A FLAT TO PREVENT NUISANCE FROM UNWANTED ELEMENTS BUT THAT DOES NOT MEAN THAT THE SOCIETY CAN HAVE SUCH A RIGHT OF PROFITEERING, OUT OF THE CO-OPERATIVE MOVEMENT.
R.K Nanda
(Expert) 25 August 2016
Contact local lawyer.
Emran
(Querist) 25 August 2016
I have found that it is the responsibility of the seller (transferor) only.
Pls see below the link
https://www.kaanoon.com/32831/who-is-liable-to-pay-the-flat-transfer-fee-to-co-op-housing-society
Somewhere I have read that is paid in the ratio of 50:50 by seller and buyer.
Need to know who is supposed to pay as per the bye law. Buyer, Seller or both. Thanks
Kumar Doab
(Expert) 25 August 2016
What you have found is correct.
Seller is member of society and has to clear all dues to get NOC.
Buyer is yet not member of society.
Emran
(Querist) 25 August 2016
Thanks Kumar Doab.
If it is seller then why above expert is saying that it is the responsibility of the buyer.
Contracting statement creates confusion.
Can I get some references to verify whether it is seller or buyer.
Rajendra K Goyal
(Expert) 25 August 2016
NOC fees is to be paid by the buyer till agreed otherwise.
Rajendra K Goyal
(Expert) 25 August 2016
Repeated query:
http://www.lawyersclubindia.com/experts/Society-fees-for-issuing-NOC-for-resale-of-flat-613401.asp
Ms.Usha Kapoor
(Expert) 25 August 2016
NOC is not mandatory at all. If at all it is demanded by society and it refuses to issue NOC on payment OF FEE IT HAS TO GIVE REASONS FOR REFUSAL.Please read the following information.
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3.10 Transfer of flat and transfer fee
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3.10 Transfer of flat and transfer fee
A member should not transfer his ownership of flat to others before completing one year, to his membership of the society.
A member has got ownership of a flat through court or heirs by order of court above condition of one year is not applicable.
Even though there is no necessity of No objection certificate for transfer of flat, according to rule 24 of the Rule 1961, he has to give 15 days’ notice to society before transferring of flat.
On receipt of such notice, the Secretary should place the same before the meeting of the committee and take decision thereof before 30 days and inform such decision to the member within 8 days from the decision of society.
If any member has demanded No Objection Certificate from the society for transfer, the responsibility of the chairman/secretary is to approve the same and if it is not possible to issue NOC then the reasons for it should be communicated to the member within eight days.
For transferring the membership to the nominated heirs/persons after the death of the member, the managing committee should proceed as per the provisions in Rule 25 of section 30 of the Co-operative Act.
It is necessary to take decision within three months on receipt of the application for transferring the share and the decision should be communicated.
If Society has not taken any decision within the 3 months stipulated period as per provision in Section 22(2) and society has denied such application there is a provision to appeal before the Register u/s 23(2).
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).
It is necessary to deposit admission fee, transfer fee and transfer premium along with transfer application.
Amount of Premium shall be maximum Rs.25,000/-. Similarly it shall be Rs.25,000/- or the amount which was approved by the General body meeting of the society whichever is less. The said provision is applicable to all the flat and plot owner’s of society.
Transfer premium is not necessary for deceased member, mutual transfer among two members of the society or transfer among family members.
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. All the above provision are applicable to flat, tenement, shop, bungalow/ plot, garages etc.
Kumar Doab
(Expert) 25 August 2016
I shall not comment any view.
You can also relate society bye laws and Model Bye Laws, for charges on NOC, registration fee for buyer.
If you are not satisfied and/or are confused, despite clear posts at various portals, visit your own counsel in person for consultation.
