Transfer fee on purchase of a flat in mumbai
Paresh Vaidya
(Querist) 04 December 2013
This query is : Resolved
I bought a re-sale house in Mumbai in March 2010.
The Co-op Housing Society charged Rs 75000/- as Transfer Fees.
I read that as per Model Bye-laws (post 2013 amendment), Bye Law No. 38(e)(vii), the transfer fee is only Rs. 500/-.
My queries are:
1) What was the applicable transfer fee in March 2010?
2)Can a Society have its own Transfer Fee rules over and above the Model Bye-Laws?
3) If the fee at that time was Rs. 500/- only, and the Society has collected Rs. 75,000/-, can I now claim the excess amount paid back from the Society?
4) Can I claim interest also from the Society? If yes, at what rate?
5) What is the remedy if the Society refuses to refund the same?
Thanks in advance for the Guidance.
ajay sethi
(Expert) 04 December 2013
society can charge Rs 25,000 for trnasfer of flat . if society has charged ypou Rs 75,000 issue legal notice to society to refund excess amount with interest . if society refuses complain to registrar
ajay sethi
(Expert) 04 December 2013
by a Circular issued by the Commissioner of Co-operation and Registrar Co-operative Societies dated 27th November 1989, the maximum premium was increased to Rs.25,000.
Under the new Model Bye-laws, Bye-law 38(e)(vii) provides for transfer fee of Rs.500 only. Further, Bye-law 38(e)(ix) provides for the payment of premium at the rate to be fixed by the General Body but within the limits as may be prescribed by the Department of Co-operation, Government of Maharashtra from time to time. Circular dated 9th August 2001 issued by the Co-operation and Textile Department pegs the maximum amount at Rs.25,000.
The practice of demanding transfer fees has also been strongly condemned by the Maharashtra State Co-operative Appellate Court, Bombay in the case of Shri Ramanna Co-operative Housing Society Limited v. S. D. Chittar, Bombay, 1989 C.T.J. 319. The Co-operative Court has held that the co-operative society can place reasonable restrictions on transfer of a member’s interest to prevent nuisance from unwanted element but that does not mean that the society can have such a right of profiteering out of the co-operative movement. It further held that the practice of demanding transfer fees not approved by the Registrar is totally illegal
Paresh Vaidya
(Querist) 04 December 2013
Thank you so much for your prompt reply.
Can you please also confirm whether it is the responsibility of the seller or the purchaser to pay the Transfer Fee and Premium?
ajay sethi
(Expert) 04 December 2013
resonsibility of seller . society recovers transfer charges from seller only
Paresh Vaidya
(Querist) 04 December 2013
Is there any law specifying the responsibility of the Seller? If yes, could you please quote the same.
In my Sale Deed with the Seller, it is stated that the transfer charges will be borne equally by the Seller and the Buyer.
If there is a law clearly putting the onus on the Seller, I hope it will override the Sale Deed.
Much appreciate your valuable advice.
R.K Nanda
(Expert) 04 December 2013
nothing more to add.
V R SHROFF
(Expert) 04 December 2013
MR. "nothing more to add."
WHY ADD THIS COMMENT TO WASTE TIME OF ALL???
I HATE THIS ANSWER.
DO QUERIST/ ADM/ MEMBERS LOVE OR LIKE THIS ANSWER????
EARN WITHOUT WORK?????
V R SHROFF
(Expert) 04 December 2013
NO CO-OP SOCIETY IN MAHARASHTRA can charge more than Rs. 25000/- as Transfer Charges.
u can challenge it, and U will win.
Rajendra K Goyal
(Expert) 05 December 2013
Expert V R SHROFF ji,
In reference to your comments I humbly submit:
a) I also hate so many things but have to bear all. Just unable to reform as per my wish.
b) Unable to gather meaning of:
EARN WITHOUT WORK?????
What earning you are referring.
I am unaware if this forum gives some honorarium for the replies and you are referring the same since I have not received any.
Humbly I submit if you are referring any monetary earning from this section, just for information I add, till today I have NOT repeat not earned a single paisa either due to this section / site or even from law profession. I am totally associated due to my interest. At this juncture of life I do not hope to earn from law profession.
I spend 4-5 hours daily on this site, attend 2-3 calls associated with answers, pay my internet charges. I am associated with this site due to my hobby and not for earning.
Even if any of my act is not liked I regret.
prabhakar singh
(Expert) 05 December 2013
It is a better course to agree than to disagree.
Why so because KINGS do not like disagreements!?
prabhakar singh
(Expert) 05 December 2013
Kings make call of boycotts yet they breach first but they say .................?because
A KING can do no wrong!IF IT IS SO !THEN HANGAMA HAI KYOON BARPA?
