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Urmi   05 September 2023

Transfer of ownership to nominee

Hi

My parents died without a will. They owned a flat in Mumbai where my brother is a nominee. 

My brother submitted their death certificate in society and got the flat transferred in his name. 

Post which, he has further nominated his son in this flat. 

He says he is not willing to give me my share and sell the property ever so it he is not bothered. 

He has leased out this flat for 5 years period and is also not sharing the amount with me.

My basic understanding says the society can't transfer the flat in his name as he is only a nominee and the other legal heir (i.e. me) has not relinquished her rights.

Can I challenge the transfer of flat (and share certificate) and further nomination in a cooperative court?

Also, can I also get my share in the rent earned by him till date (almost 7 years).

Re



Learning

 7 Replies

T. Kalaiselvan, Advocate (Advocate)     06 September 2023

The share certificate of the flat is not the title document.

You have rightly understood that the nominee is not the owner of the property upon the death of the owner.

The nominee is just a trust to receive the property and distribute the same to the legal heirs/successors in interest.

You are having a right to a share in the flat, hence you may file a suit for partition and also file an application to restrain him from alienating the property in any manner besides  you can demand share in the mense profits out of the revenue augmented through the said property.

Dr. J C Vashista (Advocate )     06 September 2023

Well analysed, opined and advised by expert Mr. T Kalaiselvan, I fully agree.

Society can transfer "share" to nominee, which do not confer title (ownership), which would be transferred all heir(s) of deceased.

All legal representatives of your father shall get their share in income and liable for expenses incurred for the intestate property.

File a suit for partition, possession, rendition of accounts and  permanent injunction through a local prudent lawyer in the court of jurisdiction.

Real Soul.... (LEGAL)     06 September 2023

Repeating quiery will not change its ststus,,,, enjoying to tickle experts here.....

Urmi   06 September 2023

Thank you for responses. Attached are some documents on this transfer. 

It states transfer of flat, shares and interest. From responses, I understand transfer of share certificate doesnt mean transfer of ownership/title. 

Doesn't these documents indicating transfer of flat and interest mean the transfer of ownership?

Note: I am not repeating my queries, all are different and has different challenges in it


Attached File : 981149 20230906102530 adobe scan sep 06 2023.pdf downloaded: 13 times

Real Soul.... (LEGAL)     06 September 2023

response----- same as in your previous  query

 

https://www.lawyersclubindia.com/forum/filing-property-share-rights-without-id-proof-of-parents-230900.asp

P. Venu (Advocate)     06 September 2023

Yes, you may file a suit for partition as already suggested.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     06 September 2023

There is no clear law in this case. Some 40 years ago there was no stamp duty for the transfer of a co-operative housing society flat. The transfer was completely within the juridiction of the Society management. They had to endorse the transfer on the relevant share certificate and give it to the tranferee along with an allotment letter. That was all. Then the Maharashtra legislature amended the Bombay Stamp Act to include Co-op Society flats in the list of immovable properties liable for stamp duty on transfer. Every bill presented before the legislature gives a reason for the bill or the amendments to the Act. The reason given in this case was 'to earn revenue for the State' and nothing more. Flats continued to be transferred to the nominee (without stamp duty) and nominee could transfer the flat to a purchaser executing a stamped transfer deed and registered. Actually co-operative societies were outside the purview of the Registration Act. I do not know when they were brought under the Registration Act. However nominees were absolute owners for all purposes. I was myself Secretary of our Society for several years and many tranfers by nominees have happened in our society. Then some 10 years ago came judgments saying that nominees are not absolute owners of the flats. The Maharashtra Government amended the Act in 2019 or so to make nominees provisional members of the flat. It appears that a provisional member has all the rights of a member except that he cannot alienate the flat. It owner means that a prudent purchaser will not purchase the flat unless he is sure about the ownership of the flat by the seller. A propective tenant may not bother that much because much is not at stake for him. Ultimately he may have to vacate the flat and nothing more. If a flat is being held by the nominee the legal heir or heirs has/have to do the following. They have to apply to the court following necessary formalities and get succession certificate. Then along with the nominee/provisional nominee apply to the Society for the transfer.  If the nominee and/or the Society do not co-operate they will have to go to the court.

The Modi Government has amended the insurance law. Under the amended law a nominee is a beneficial owner provided he is one of the specified relatives. The specified relatives happen to be legal heirs under the succession act. The co-operative society law should also be amended similarly. I see no reason why a nominee should be treated differently from a legatee under a testament. This is a confusion created by judges.


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