Society forcing to pay transfer fee and foreclose loan
Sameer Zodgekar
(Querist) 24 February 2010
This query is : Resolved
I have a flat in Pune purchased in 2004. I occupy it. Now, I intend to sell it. Our cooperative housing society members are not giving any documents, despite giving a request to do so. They hold that I should first pay transfer fee, then foreclose the loan, show that letter to society and then get an NOC. The buyer is frankly disbelieving. How can a buyer foreclose my outstanding loan of bank without any document photocopies like Index-2, Sale deed, Commencement certificate and importantly, an NOC? Previous sale deed is with society; members have only share certificate. What is the law? What can I do? The society is even refusing to issue me a no-dues certificate despite I having paid all the fees, like maintenance and other. Regards. Sameer
Raj Kumar Makkad
(Expert) 25 February 2010
Society is violating the relevant rules and crossing its limits. You should serve a notice through a local counsel. It is your right to sale your property and society cannot stop you. You are required just to clear all dues but society is not linked with bank loan etc.
Vineet
(Expert) 26 February 2010
Mr Sameer
Are you sure these documents except the NOC is not with you or kept with bank alongwith original share certificates. The Society must have also given an undertaking to the Bank regarding recording of Bank's lien on the property.
You should request the society to give a conditional NOC mentioning Bank's lien and charges payable to the Society.
Sameer Zodgekar
(Querist) 26 February 2010
No Mr. Vineet. Bank has loan agreement and agreement to sale. Agreement to sale does not contain commencement, completion certificate. Besides, sale deed was made after society formed, common with all other members. Copy of sale deed is with society, who is expected to provide me with a photocopy. i have, however, a share certificate. I requested society to issue a no-dues certificate and photocopies of documents. I agreed to pay transfer fee in advance. The chairman insists copy of prior sale deed isn't necessary to sell flat. Besides, Managing members insist they will issue an NOC AFTER loan clearance.
