Owner's association asking for original sale deeds to deposit with them.
Balasubramanian
(Querist) 22 October 2014
This query is : Resolved
In Bangalore owners of apartments of a building have formed an association under societies act,(not as a co-operative housing society wherein the ownership is passed on by the Builder by conveyance)for managing the affairs of the premises/Building.Now this association is insisting for deposit of all original sale deeds with them from individual owners.Can the association insist for it,whether this is allowed in law,whether there is any provision in the statute?or whether they can be custodians of original sale/title deeds which the individual owners of apartments are holding?.I have been a member of co-operative housing society in mumbai for 45 years,I have never come across our or any co-operative housing society asking the members to deposit original sale deeds with them?PL.advise.
ajay sethi
(Expert) 22 October 2014
no association has no business demanding original sale deeds . furnish certified copy of sale deed for association records . refuse to give originals
Isaac Gabriel
(Expert) 22 October 2014
Don't mortgage your asset to the building owner.
Sudhir Kumar, Advocate
(Expert) 22 October 2014
If the constitution of the Society allows them, then they may be right.
If all of you have taken loan from soceity, then they may be right.
Rajendra K Goyal
(Expert) 22 October 2014
Seems unwarranted on the face, however all the relative papers has to be referred.
K.K.Ganguly
(Expert) 22 October 2014
1. No. They can not ask for original Title Deed,
2. Submit certified Copy of the same alongwith a covering letter stating that you do not want to deposit the Original Title Deed for which you are submitting herewith the certified copy thereof.
Sudhir Kumar, Advocate
(Expert) 23 October 2014
I am not able to agree or disagree with any expert.
I reiterate
If the constitution of the Society allows them, then they may be right.
If all of you have taken loan from soceity, then they may be right.
K.K.Ganguly
(Expert) 23 October 2014
1. In the instant case, the flat owners themselves have formed the co-operative housing society for managing the affairs of the premises/Building,
2. Standard Bye laws of such Societies do not stipulate submission of original Title Deed & if any Society stipulates this clause in its Bye law, then the said clause can be challenged before the Registrar of Societies/Court,
3. I stay in one such Society where the photocopy of the Title Deed, after being checked with the original title deed shown, is submitted before the society & the original Title Deed is returned.
Sudhir Kumar, Advocate
(Expert) 23 October 2014
I know such bye-laws will not be registered being contrary top the law of land. But if such bye-lws are there and are registered also then they may be binding till challenged and struck down.
further most of the owners will be having loan from banks and originals will not be with them as well.
In case all houses have been purchased after taking loan from the society then it is legal for society to seek mortgage of originals.
that is the reason as said.
If the constitution of the Society allows them, then they may be right.
If all of you have taken loan from society, then they may be right.
K.K.Ganguly
(Expert) 23 October 2014
1. In the instant case "owners of apartments of a building have formed an association under societies act,(not as a co-operative housing society wherein the ownership is passed on by the Builder by conveyance)for managing the affairs of the premises/Building",
2. It is not a society for providing loan to buy the said flats,
3. It is an association formed for "managing the affairs of the premises/Building". So, original Title Deed will not be kept with the association for mortgaging the property to secure any loan,
4. However, it has been rightly pointed out that if the flat owners have taken loan from Banks duly mortgaging the flats, the original Title deeds will be kept by those Banks and can not be deposited with the Association.
T. Kalaiselvan, Advocate
(Expert) 23 October 2014
I agree with the views of expert Mr. Ganguly. It is unfair to demand the title deeds by the association and also illegal under the given situation. They have no business with the title deeds, in the event of verification of the owners to the flat, they may obtain a photo copy of the documents for their record purpose. They can neither frame a bye-law also to this effect, if a resolution has been passed in any AGM to this effect, it may be out of ignorance of law and can be challenged by referring the matter to the registrar. Take the help of lawyer and tackle the issue legally.
P. Venu
(Expert) 23 October 2014
The society, as formed, is purely a voluntary and non-coercive body. It cannot usurp police powers over the life and soul of its members. If its bye-law contains such a provision, such condition is void from its nativity for being repugnant to public policy.
H.M.Patnaik
(Expert) 23 October 2014
Yes, in the background of facts stated by the Querist, the Owners welfare society can not enforce such an illegal demand on the members and the harrassed members can take approprite legal action tochallenge any such action.
H.M.Patnaik
(Expert) 23 October 2014
Yes, in the background of facts stated by the Querist, the Owners welfare society can not enforce such an illegal demand on the members and the harrassed members can take approprite legal action to challenge any such action.
Raj Kumar Makkad
(Expert) 24 October 2014
Compared attested photocopies are sufficient for this purpose.
Sudhir Kumar, Advocate
(Expert) 24 October 2014
even attested copies may not be required unless specified in bye-laws.
