Property gift deed share transfer process co-op housing soc.

The registered gift deed executed by your father on your name is covered by transfer of property of act and it is very much valid and legal, whilse so, the property being a flat coming under a CHS, the shares on the name of the original allottee(owner) can very well be transferred on the name of the donee by either donor or the donee making an application to the Secretary of the society.  Apart from nominal transfer charges, the society cannot levy any extra charges which will be ultra vire or contrary to the bye-laws.  If the society is demanding the same, ask them to give in writing after which you can resort to legal course of action as envisaged in law.

Thanks T. Kalaiselvanji

Thank you very much.

I would like to share more on the share transfer issue(although it looks crazy).

On first attempt my father gave written application for share transfer on the day of gift to chairman.

When we ask how  will you transfer the share, he reply that simply handover original share certi. to me and i will issue new share within six months.

We asked for in written on society's letter pad that we have applied for share transfer and that we will pay by cheque.

He refused on this issue because he wanted to do it his way.

We cooperated with him and agreed that we will hand over original share but only with written proof(other wise lawyer's view was he can simply make entry on transfer table given behind the share ).

On second attempt he asked for premium.

Now he asks for premium, original share and original allotment letter and ready to accept in written.

We don't  trust his procedure is he playing with us or what.

What precaution  should we take ?

and what is the right procedure?

The procedure about share transfer will be very much available in the bye-laws itself or else it will be available in the preamble of the act.  What the chairman does is called as ignorance of law.  Appendix 20(2), appendix 21 and appendix 23 are the forms to be filled by the transferee, transferor for transfer of shares, application by transferee for consent as well as membership (20(2) & 22), application by transferor(21) is the requirement to be complied with;

to be precise:. APPENDIX – 20 (2) [A Form of consent of the Proposed Transferee for the transfer of the shares and interest of the member (Transferor) to him (Transferee)].  APPENDIX – 21 [Form of application for Transfer of shares and interest in the Capital / Property of the Society by the Transferor.]  APPENDIX – 23 [Form of application for membership of the Society by the Proposed Transferee.] Documents Pertaining To Co-op. Hsg.

Issue him (chairman) a legal notice if he is still declining to follow the laid down procedures in this regard.

I think the first part of the query is resolved.

As we can safely conclude from shri T. Kalaiselvanji's reply (1),

that property transfer and share transfer are different issues.

1) Gift Deed is valid under property transfer act and backed by law.

2) Share transfer comes under Co-op Housing Society Bye-laws.

So making gift deed is a valid practice and will secure the future of loved ones while you are alive.

There are some precautions for donors (parents, elderly peoples) because it is irrevocable.

Make sure some provision is there in gift deed that you and your spouse has right to use the gifted property while you both are alive.

So finally, we can agree with shri T. Kalaiselvanji and declare that

FIRST PART OF THE QUERY IS RESOLVED and there for it ends here and need no further discussion.

I am going to write detail guide on how to gift a property in next message as i promised(PART 1).

I am not a knowledgeable person of law, but at least i can compile what i understand and share with others.

NOTE:

HELP FULL ONLY FOR CO-OP HOUSING SOCIETY(FLATS ONLY).

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HOW TO MAKE A GIFT OF PROPERTY TO A FAMILY MEMBER(PART 1 OF THIS QUERY).

1) Go to an expert lawyer for making of a gift deed.

2) Make some precaution in deed for DONOR AND SPOUSE that they can use property while they are alive.

3) Pay stamp duty (varies from state to state) and register your gift deed.

4) DONOR should hand over some documents to DONEE listed below.

LIST OF DOCUMENTS DONEE SHOULD RECEIVE FROM DONOR.

(from beginning of the construction of your society)

1) Copy of sell deed,title clear, lease paper of land(plot on which it is built) of your society.

2) Copy of registered building plan and plot layout.

2.1) Map of plot (space used for construction and left over space)

2.2) Building plan (registered by local authority).

3) Copy of permission to construct building from local authority(raja chithhi).

4) Copy of completion certificate from local authority.

5) Copy of conveyance from builder.

6) Copy of letter of registration of society(local authority).

7) Copy of society's own bye-law.

8) Original allotment letter or sell deed in the name of DONOR ( and all previous sell deeds of all previous owners).

9) Original share certificate in the name of DONOR.

10) Original NOC given by society to DONOR and  for DONEE( ask for it before you execute gift).

11) Original NO DUE CERTIFICATE given by society to DONOR and  for DONEE( ask for  it before you execute gift).

12) Copy of receipt of paid lease of society's plot(last 31 march).

13) Copy of receipt of common electricity bill(society's elec. bill).

14) Copy of receipt of local taxes paid by society(water charges etc.).

15) Copy of receipt of property tax paid by DONOR(for flat donor owns).

16) Copy of receipt of last electricity bill paid by DONOR(for flat donor owns).

17) Copy of receipt of society's common charges paid by DONOR(for flat donor owns).

NOTE :

If something  is improper or missed, inform me i will correct it. 

First of all many thanks to shri T. Kalaiselvanji for prompt and proper reply(2).

I have searched and downloaded CHS modern bye-laws 2013.

I will respond to second reply of  shri T. Kalaiselvanji,

but only after reading bye-laws.

NOTE:

I want to ask some questions for sake of my clarity, but only after reading bye-laws.  

PART 2 OF THE QUERY REGARDING TO SHARE TRANFER PROCEDURE.

This message is in response to detail reply no. 2 of shri T. Kalaiselvanji.

(After having a quick look at model bye-laws 2013.)

The procedure to transfer share is described in  model bye-laws 2013 under 38(e) (at page 19)

at the end of 38(e) there is a note for Sr. No. (ix) that comes under 38(e).[38(e)(ix)]

which clearly mentions that there should be no premium for family transfer(if i interpreted correctly).

Rs. 100 entry fee.

Rs. 500 transfer fee.

forms to be filled and filed to society with relevant documents are.

Where you can assume that

TRANSFEROR is DONOR and

TRANSFEREE is DONEE.

[

page 114 appendix 20(1) to be filled by TRANSFEROR and file it to society with form 20(2) attached.

(may not require in the case of gift deed, because gift means without consideration,

or in the field of consideration we may fill gift to family member)

]

page 115 appendix 20(2)

pages 116-117 appendix 21

pages 120-121 appendix 23

1) At APPENDIX NO 20(2), this form has to be filled by TRANSFEREE and file it to society(A Form of the letter of consent).

2) At APPENDIX NO 21, this form has to be filled by TRANSFEROR and file it to society(for transfer of shares and capital).

3) At APPENDIX NO 23, this form has to be filled by TRANSFEREE and file it to society(for membership of society with relevant docs).

Relevant documents may be.

1) Copy of registered gift deed.

2) Original share certificate(not sure about this)

3) cheque of total amount ( 100 + 500 = 600).

NOTE:

I can say that this query is almost resolved only few clarifications remains to answer.

Shri T. Kalaiselvanji,

I have read your in detail second reply, and after that i have also read model bye-laws 2013.

Now I understand the procedure of share transfer(updated message board on this). 

But I have few questions to ask.

1) Does model bye-laws apply to Gujarat?

2) With APPENDIX – 23 (Form of application for membership) which documents should i attach(proper list of documents)?

3) Proper legal interpretation of  NOTE at the end of 38(e) regarding to premium in case of family transfer(gift deed).

(Does it mean transfer while DONOR is alive,

or

 is it effective only in the case of legal heir after the owner family member has passed away).

The reply to your further queries are given against the questions reproduced below:

1) Does model bye-laws apply to Gujarat?

Ye, this is very much applicable to Gujarat as the act itself pertains to Maharashtra and Gujarat

2) With APPENDIX – 23 (Form of application for membership) which documents should i attach(proper list of documents)?

As stated by you in the last but one post of the thread, a photo copy of the registered gift deed and any other revenue record transferred on the name of transferee subsequent to the execution of gift deed;  share certificate; any other proofs asked by the society for compliance.

3) Proper legal interpretation of  NOTE at the end of 38(e) regarding to premium in case of family transfer(gift deed).

(Does it mean transfer while DONOR is alive,

or

 is it effective only in the case of legal heir after the owner family member has passed away).

A gift can be made only by a donor during his life time and not by his legal heirs on is/her behalf. 

Shri T. Kalaiselvanji,

Thanks for resolving all my queries in detail?

To clarify the third query in my last message.

What i mean is, having property transfered by gift deed

am i eligible under bye-laws 38(e) for exemption of premium.

Or

this provision is only applicable to those

who receive property after death of property owner family member.

My chairman believes that

exemption from premium is only available to those 

who receives property after the death of a owner family member.

He doesn't consider gift deed under family transfer.

That is why i asked for proper interpretation of last NOTE at the end of 38(e)

does it covers gift deed as family transfer.

NOTE:

This is the last question for my query  PART 2  regarding to share transfer process.

It ends here as PART 1 is answered and PART 2 is 99% complete.

Dear Mr. Piyush Kumar,

The foot note clause is very clear that the exemption would be available only for such transfers after the death of the owner to his nominee/legal heirs/successors etc. and also in case of mutual exchange of flats among the members. 

This implies as it says that the exemption is granted only upon the transfers due to death, hence all other type of transfers, again excluding inter transfers (exchanges) among members on mutual basis is exempted, are not exempted from paying the premium amounts at the rate fixed by the general body meeting.  This means that the transfer through gift deed is not exempted and your chairman is legally right in his opinion.  You cannot justify the exemption comparing the same to the mutual exchanges of flats within members of the society, they cannot be penalised for this because they are still within the same society and the legal heirs of the deceased are given exemption as a mark of sympathy to the deceased member and to help the legal heirs from not burdening them with more such financial burdens.

Hope this clears your further queries too.(?)

The last and final question is answered by Shri. T. Kalaiselvanji and it clarified every thing.

Now I can firmly say that all my queries are properly answered by  Shri. T. Kalaiselvanji.

At this last message I am thanking you  Shri. T. Kalaiselvanji from bottom of my heart,

as you have not only cleared my doubts but also saved me from a long legal battle.

I also thank 'lawyersclubindia' for having such a nice platform and elite members it really helps a lot.

NOTE:

This is the end of my query regarding “property gift deed and share transfer procedure”.

I hope this exercise  will benefit others and may serve as  a ready racknor.

You are welcome for your appreciations.