Transfer of shares and interests to nominee
P.V. Sankaranarayanan
(Querist) 15 March 2019
This query is : Resolved
in a jointly held flat in our housing society in Mumbai, original member sold the flat for which an agreement of sale was jointly made by the original member and the joint holder being his wife, regisered but before making an application to the Society the original member expired. Hence the joint member made an application for transfer of shares and interests to a third party. The original member in fact had nominated his two daughters as the nominees for 50% share each. Can the Society transfer the flat to the buyer of the flat ignoring the rights of the nominees since the agreement for sale has been made by the original member and the joint holder ? The buyer has sent a lawyer's notice to the Society threatening to go to court in the event of non-transfer. The buyer nor the seller has provided any letter of indemnity to Society for which the Society is continuously following up which has not yet vbeen complied with by both the parties.
Dr J C Vashista
(Expert) 16 March 2019
Society has no authority to transfer "title" of the flat on the basis of "nomination" registered by deceased member.
Be clear that role/ authority/ power of Society is confined to "share" of the member.
Dr J C Vashista
(Expert) 16 March 2019
In order to get the "agreement to sell" executed issue a legal notice through a local prudent lawyer to all legal representatives of deceased "owner" along with co-sharer i.e., his widow.
Dr J C Vashista
(Expert) 16 March 2019
In case there is some reservation/ hitch / problem with the LRs + widow of deceased in executing the "agreement to sell", you will have to file a suit for specific performance before jurisdictional (where property is located) Civil Judge.
Kishor Mehta
(Expert) 16 March 2019
Once the sale agreement is properly stamped, executed and registered, application for transfer of shares in a CHS is a mere formally. The nominees do not have any legal right,s, the Society is legally bound to transfer the shares to the name of the purchasers in this case.
Kishor Mehta
(Expert) 16 March 2019
However the Society should be satisfied about the validity of the sale agreement.
P. Venu
(Expert) 17 March 2019
Yes, the society has no powers to transfer rights due to inheritance or otherwise. It needs to be through operation of law.
M V Gupta
(Expert) 30 April 2019
As the agreement for sale has been registered, the flat can be transferred by the Society upon the widow, who is the joint owner of the flat and has signed the AFS, and the nominees and the legal heirs of the deceased if they are different from the nominees applying to the Society to transfer the shares in favor of the buyer in the prescribed forms under the bye laws.
