Resident welfare society

Sohan (Querist) 29 October 2023 This query is : Resolved
Request info if Resident Welfare Society can charge fees like Apartment selling fee of Rs 1 Lakh, even all maintenance charges and regular contributions have been paid out. Thanks

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This discussion explores whether a Resident Welfare Society (RWA) can legally charge a substantial 'apartment selling fee' of Rs 1 Lakh, even when all maintenance and regular contributions are up to date. It clarifies that transfer fees are typically governed by the society's bye-laws and specific laws, such as those in Maharashtra, which limit such charges to a maximum of Rs 25,000 for property transfer, plus a small fee for name changes. Transfers within immediate family are often exempt from these fees.

kavksatyanarayana (Expert) 29 October 2023
You mean when you go for the sale of a flat, you/the buyer(as mutually agreed) have to pay the transfer charges only but not other fees.

Sudhir Kumar, Advocate (Expert) 30 October 2023
please see constitution of the RWA.

P. Venu (Expert) 30 October 2023
What are the facts?
What is the context?
Is the RWA a registered body?
Of so, under which law?
What do you mean by "charge"?

T. Kalaiselvan, Advocate (Expert) 30 October 2023
According to Bye-Law No. 40(d)(vii), the society must collect transfer fees equal to 2.5 per cent of the difference between the apartment's book value and the price the transferor paid for it, or a maximum of Rs. 25,000—whichever is less.
In society transfer fees, in the case of a gift deed, you must give the society Rs. 500 as a transfer “fee.” The bye-law is very clear in this regard: If the transfer is within the family (defined by the bye-law as including mother, father, brothers, sisters, sons, daughters, sons-in-law, and daughters-in-law), then society CANNOT demand the transfer “fees/premium,” not even as “donation” or under any other pretext.
The difference between the book value of the apartment and the price the transferor paid might be used by society to calculate transfer fees, which are set at 2.5 per cent. Before one year has passed since joining, a member cannot transfer their apartment ownership to someone else.
The law in Maharashtra does not permit a society to charge more than Rs 25,000 for transfer of property in the new buyer's name in its records. Another Rs 500-650 at the most can be charged for change of name in the share certificate,

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