DOCUMENTS TO BE EXECUTED AND SIGNED FOR TRANSFER OF SHARES IN A CO-OPERATIVE HOUSING SOCIETY

DOCUMENTS TO BE EXECUTED AND SIGNED FOR TRANSFER OF SHARES IN A CO-OPERATIVE HOUSING SOCIETY

On entering into an Agreement for the sale of purchase of Flat/shop etc. before execution of such sale deed the Transferor is required to prove to the Transferee that he is the true member of the society in which the said Flat or shop is situated . As a proof of his true membership the Transferor is required to produce before the Transferee the following documents :
I ) Original and copy of the Purchase Deed with society/with Builders.
II ) Original and a copy of Share Certificate.
Original and a copy of latest society’s bill,
Original and a copy of Best Bill,
Original sinking fund certificate if any,
Pass Book issued by the society,

Only after going through these records and on satisfaction of the true membership of the Transferor. The transferee agrees to sign the form No. 20-B to be filed before the society for its No Objection to admit the Transferee as its member.
On obtaining no objection certificate from the society and if the apparent consideration of sale deed exceeds Rs. 75,00,000/- ( For the property situated in greater Bombay ) both the parties are required to sign and file form 37-I in duplicate before the Appropriate Authority of the Income Tax Department along with a copy of the Agreement for sale signed by both the parties. The Appropriate Authority takes minimum 3 months ( excluding the month in which form No.37-I is filed ) time to pass the relevant order, wherein either it mentions regarding Acquisition of the Flat/shop or grant of No objection. In case of acquisition of the property the Appropriate Authority acts as the Transferee and pays the consideration mentioned in the Agreement after deducting a certain percentage as per the provision of sec. 269 UA (2) to the Transferor and the sale deed comes to an end. If the Appropriate Authority has granted its no objection to the sale of the Flat/Shop then and in such event both the parties proceed further and execute other relevant documents for the effective transfer and vacant and peaceful possession of the said Flat/shop.
The following are the various documents required to be signed by both the parties at the time of vacant possession of flat. The documents such as :

a Agreement of sale ( to be properly stamped ).
B Transfer Form.
Letter to the society requesting them to transfer share certificate in the name of purchaser and incidental to that use and occupation of Flat/shop etc.

The Transferor is required to indemnify the Transferee against any claim made by any third person by signing the Indemnity Bond. It is also advisable to take a special power of Attorney in favour of Transferee and also to send letters to the society for issue of share certificate in the name of Transferee and to the B.E.S.T. for transferor further is required to sign a declaration in support of his possession and also acknowledge the receipt of the consideration amount by signing the receipt. As per the urban land ( Ceiling and Regulation Act ) 1976 the Transferor is required to give declaration in the form 24 that he does not hold any vacant land the area of which together with the area of the proposed flat to be transferred does not exceed 500 sq.mtrs. similar declaration is required to be given by the Transferee too in Form No.25.

The Transferee is also required to send letter to the society and undertake to pay stamp duty and execute a document and sign the same. He is also further required to make an application to the society to admit as a member of the society by signing application for membership and filing the same with the society.