Transfer fee ,membership fee in apartment owner's association
Thomas Benjamin
(Querist) 25 April 2015
This query is : Resolved
We like to get an expert opnion regarding the Transfer fee and membership fee in a Apartment owners byelaw.The clause regarding the membership in the first meeting was as follows:-
“ The owner or his/ her spouse, son/daughter as may be decided by each residential apartment owner in the building viz.; LINK HEIGHTS shall hold membership in the Association and shall constitute the general body of the Association. The membership shall be compulsory. In case of sale or transfer of ownership of apartment, the membership of the Association will be deemed to have been automatically transferred from the seller/transferor to the purchaser/transferee. “
In last AGM, the above clause was changed and decided to collect Rs25000 from new buyers as Transfer Fee. We challenged. Association has no right to collect Transfer fee. because,Association’s duty is to manage the maintenance &staff,for which Association is collecting the monthly maintenance fee.
Now the Association is going to Amending the clause as “It is mandatory for each and every NEW BUYER in LINK HEIGHTS to become Member of the LINK HEIGHTS Apartment Owners Association by payment of Non-refundable Membership fees of Rs. 25,000/- (Rupees –Twenty five thousand only)”
We like to get an expert opnion regarding
1.Transfer fee of a maintenance managing association to a new buyer
2 Is it correct procedure of changing the automatic to a paid membership transfer?
3.The new buyer is not ready to take the membership as per bye law, but ready to share monthly expenses.
Thanks with regards
Hemant Agarwal
(Expert) 03 December 2016
1. "IF" the Individual Flats /Houses are Title-Owned by the Respective Flat-Owners, under the parameters of Transfer of Property Act, THEN membership of any Association /Society is "voluntary" and NEVER "mandatory". This means that Flat-Owners joining in as members are for mutual convienences, for the common services and amentities. This also means that Flat-Owners can safely refuse membership of the Association /Society. PERIOD.
2. The Bye-Law clauses are effective "ONLY" against those Flat-Owners who volunter to join the Association /Society, as members, for the mutual convienences, for the common services and amentities. PERIOD.
3. The Bye-Law terms /conditions /clauses can be amended "ONLY" with the express and recorded consent of the members and THEN "mandatorily" registered with the relevant authorities, without which the bye-laws are null & void.
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
Rajendra K Goyal
(Expert) 03 December 2016
Agree with the expert Hemant Agarwal.