Co-operative housing society (chs) - associate membership.
kumar gangadharan
(Querist) 15 February 2015
This query is : Resolved
Dear Sir,
A & B are joint owners of a flat in a CHS and their names appear in the same order in the share certificate. Can their daughter C be admitted as an associate member of the CHS and her name endorsed in the share certificate. Also, is it possible for either A or B to give up their ownership in favour of C in future. What are the formalities. Kindly advise. Thanks & regards. Kumar Gangadharan
Kishor Mehta
(Expert) 16 February 2015
Sir,
[1] The first named member has to apply in the prescribed form to the Society for inclusion of his/her daughter's name as an associate member and send the share certicate for the necessary endorsement. The fee is Rs.100/-.
[2] Any member wishing to transfer his/her share in the ownership flat to his/her relative can gift his/her share by a registered gift deed.
Good Luck,
Kishor Mehta
kumar gangadharan
(Querist) 16 February 2015
Thank you Mr Kishor Mehta.Appreciate your quick response.One follow-up question..Can one of the existing joint owners/members gift his/her share without attracting any gift tax/wealth tax either by the benefactor or the beneficiary. Thanks & regards.
ajay sethi
(Expert) 16 February 2015
co owner can execute gift deed in respect of his share . it would attract stamp duty as per stamp act of the state . i t should also be registered
ADV-JEEVAN PATIL, MUMBAI
(Expert) 16 February 2015
Bye laws admittedly do not permit for multiple names on Share Certificate. However, you both can make your daughter as Nominee whereby after your demise she will become member of the Society.
kumar gangadharan
(Querist) 16 February 2015
Thank you Mr Ajay Sethi and Mr Patil for the info.
kumar gangadharan
(Querist) 16 February 2015
Mr.Sethi, one follow-up question. Any gift tax is payable on such a transaction? If yes, how is it determined?
ajay sethi
(Expert) 16 February 2015
In case you have been gifted immovable property , without any consideration, and the stamp duty value exceeds Rs 50,000, it is this stamp duty value which will be part of your gross income.
T. Kalaiselvan, Advocate
(Expert) 18 February 2015
the non member cannot be made as an associate member without having any share in the property, therefore it is mandatory for the member to have a share in the property and for that you can proceed as desired by gifting away your part of share but it should be a registered gift deed. You may consult your lawyer for gift tax details in this regard.
Hemant Agarwal
(Expert) 15 April 2015
1. ONLY & ONLY, the title-owners of the property can be mentioned in the Share Certificate. Recording any other name on the Share Certificate, which is not mentioned on the registered Flat Sale-Purchase deed, shall be prosecutable in a Criminal Court.
2. A Society membership, obtained thru "Nomination Form" does NOT confer any Title ownership on the Property. The Nominee will NEVER be able to sell such property.
Keep Smiling .... Hemant Agarwal
READ ARTICLES ON: http://hemantagarwal21.blogspot.in/?view=sidebar
kumar gangadharan
(Querist) 23 April 2015
Dear Sirs,Please advise which form (19B or 19C) under Appendix 7 /8 of the under CHS Model Byelaw 2013 to be used to apply for Associate Membership of a co-operative housing society where there is already a joint ownership and the joint owners' daughter wishes to join as an Associate Member. Thanks and regards.
Kumar Gangadharan
Advocate Ravinder
(Expert) 23 April 2015
The stamp duty for gift deed in Telangana is 1% on the Govt. market value. It will slightly differ from state to state.
It is to be noted that there is slight contradiction of opinion between Kishore mehta and Jeevan Patil. Wherein the former says that the daughter's name can be named as associate member in share certificate, whereas the later says that Byelaws do not permit for multiple names.
The opinion of Kalaiselvan and Hemanth Agarwal to some extent supports the opinion of Jeevan Patil. He says that unless the person gets any legal title, he cannot become member in the share.
It is to be clarified whether a person not having any legal title can become member of the society by merely paying membership fee or is it mandatory to become share holder.
Anybody Kindly clarify.
Kishor Mehta
(Expert) 23 April 2015
Dear Shri Gangadharan,
According to
"Model Bye-Laws of Co-Operative Housing Societies [Tenant Co-Partnership Housing Society] 2014 edition"
[a]The format of Application for Associate memebership is given at Appendix - 5 [Under Bye-Law Nos. 19B & 19C]
[b] The format for NOC of the owner for the associate membership is given at Appendix - 10A [Under Bye-Law No. 116(d)]
Good Luck,
Kishor Mehta
kumar gangadharan
(Querist) 23 April 2015
Thank you Mr. Kishore Mehta for the reply.I have a followup question.
a) does associate membership confer any right on the person who is admitted as an associate member as far as the ownership of the flat is concerned OR does it only confer rights for attending society meetings and to contest election.
b)can the associate member be appointed as nominee of the flat by the owner/s.
Regards.
Kishor Mehta
(Expert) 23 April 2015
Dear Shri Gangadharan,
The associate membership DOES NOT COFER ANY RIGHT OF OWNERSHIP on the applicant, this is very clearly cited in the form. An associate member, with the permission of the owner, can vote on his/her behalf, can stand for election and can act on the managing committee till the owner permits him/her to.
The associate member can be nominated in a CHS.
Good Luck,
Kishor Mehta
kumar gangadharan
(Querist) 23 April 2015
Dear Sir, Many thanks for a very prompt and clear reply.
Best regards.
