Sec 29 of maharashtra cooperative society act & its violations
Sujay
(Querist) 28 November 2012
This query is : Resolved
Wanted to know more about sec 29 of Maharashtra cooperative housing society act.
A hypothetical situation where A is the 1st owner, B is the 2nd & C is the 3rd prospective buyer.
1) What if a person – A has bought a property in 2002, society is registered in 2008 but has issued a share certifcate to A dated june 2012 and then in JULY 2012 society endorsed B’s name in the share certificate as A sold the flat to B.
2) Now B is intending to sell the flat to C can C buy it ? Can the soceity accept him as a member? is it violation of section 29.? as in situation
1) the share cert transfer is within a span of 1 month & 2) in 2nd situation the sale of flat is within 6 months of the earlier sale.
What is the solution to the same?
ajay sethi
(Expert) 28 November 2012
it is a hypothetical query divorced from reality . if society is registered in 2008 it wont take 4 years to issue share certifcate to its members . it would be within period of 6 months .
as far as sale of flat by B to C is concerned society wont admit C as member as B cannot sell flat for period of one year
R.K Nanda
(Expert) 28 November 2012
do not create hypothetical query in terms of
A,B & C.
prabhakar singh
(Expert) 28 November 2012
"A hypothetical situation "
IS NOT ATTENDED HERE.
Sujay
(Querist) 28 November 2012
Thanks sirs for your reply,
It is not an hypothetical situation, I am self employed as financial consultant for Housing loans. unfortunately I have received a file as above for finance and I have avoided the names hence ABC.
As to Mr sethi's comment, the soceity thou formed in 2008 endorsed the name of A only in june 2012 as the owner was out of INDIA and the property was not self used.
Now further to it B thou his endorsement in share certificate is just july 2012 has sold the flat to C this month and soceity has also issued the NOC to mortgage.
Is it permissible ?/ legal?/any solutions to solve the issue if any?
What are the problems that the buyer will face as he has already paid for the property?
Awaiting your kind expert advice.
ajay sethi
(Expert) 28 November 2012
NO society cannot give permission for B to sell flat to C . flat has to be held for a year
i fail to understand how buyers can spend crores in buying flats but fail to spend reasonable amount on legal fees .
has he consulted a lawyer he would not have bought the flat .
t6he problem with many cooperative societeis is that the office bearers dont know the law .
Raj Kumar Makkad
(Expert) 28 November 2012
In continuation to the advice of Ajay, I advise to execute an agreement to sale for full amount and also get this agreement registered between B & C and fix the term of execution of sale deed after July 2013 so that the matter may be got resolved and banker can duly mortgage this property in that event. An affidavit and mortgage deed should also be got executed from B along-with C so that the interest of financier may be got secured in worst situation.
