Prasad Ganapathy 12 February 2024

Transfer premium housing society

For Transfer premium to be collected of second /third sale in a chs established in 2012 under MCS Act 1961.

(1) Old bye laws state 2.5% of sale minus old purchase value consideration or 25000 whichever is lower.
(2) New Bye laws says transfer premium to be decided by AGM subject to 25000 cap or lesser amount.

(3)Is transfer premium applicable on first sale/transfer if not is there any specific rule against the same.

(4) is transfer premium applicable on free transfer i.e no financial consideration is there ?

Please answer separately for all above FOUR points.

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2 Replies

kavksatyanarayana (subregistrar/supdt.(retired)) 12 February 2024

As per By-law No. 38 and a circular dated August 9, 2001, the premium transfer fee in housing societies is capped at Rs 25,000.

1. Yes. 2. Transfer premium as decided during the general body meeting but not more than the government-prescribed amount of Rs 25,000. 3. Yes. as per the above rule. 4. yes. a minimum fee shall be paid.

T. Kalaiselvan, Advocate (Advocate) 12 February 2024

Society transfer charges, ranging from Rs 25,000 to a percentage of the flat’s sale price, must be paid when a member sells shares and rights. Societies may calculate fees based on the difference between the book value and the purchase price, usually set at 2.5%. Transfers within the family, defined in by-laws, are exempt from such fees.

Transfer premium is not necessary for deceased member, mutual transfer among two members of the society or transfer among family members.

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).