Amrit Shah (owner) 07 April 2014

Can nominee sell flat without share transfer in his name?

Sir/s

2 sons wants to sell dead mother's mumbai flat where they are nominees. No other legal heirs. But they have not transferred share certificate to their name because new buyer will have to wait 1 year for his name to come on certificate as per section 29(2) of the Maharashtra CHS Act

1. Can they sell flat without their name on share certificate? Since they are nominees, will registrar-office accept the transfer deed?

2. Will society transfer share certificate directly to buyer's name, skipping transfer to nominees first

3. If no solution, then only option is to first transfer share certificate in nominees name. Then buyer can buy, and transfer shares after 1 year. There is risk. Are such sales frequent?

Thanks for your time to this

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4 Replies

T. Kalaiselvan, Advocate (Advocate) 09 April 2014

Upon the intestate death of the title holder of his self acquired property, if there is no will or any family settlement/arrangement, the property will automatically devolve upon all the legal heirs of the deceased. Here this is a housing society, where nomination facility is available and the nominee is automatically entitled to get the shares transferred on his name and disburse the property to the legal heirs of the deceased. therefore they are two different subject, sale deed of property on the one side and transfer of share of property in the society is different subject. Consult a lawyer, take his opinion and proceed.

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Amrit Shah (owner) 09 April 2014

Thank you Mr T Kalaiselvan, you've rightly articulated as 2 separate issues, and I'm searching to solve 2nd issue of transferring share certificate. Will talk to lawyers

T. Kalaiselvan, Advocate (Advocate) 09 April 2014

You are welcome Mr. Amrit Shah.

Kumar Doab (FIN) 10 April 2014

Mr. Kalaiselvan has nicely explained.

The ClassI legal heirs are nominee too.

The society would have detailed rules on which document it shall accept for legal heir ship and if legal heir are Nominee too then can it allow sale without any more docs or not?

Otherwise let the share certificate (ownership) be transferred to legal heir by due process. Thus they may command better price too.