Information regarding Share Certificate of Housing Societies
Information regarding Share Certificate of Housing Societies
- Share Certificate is one of the most important documents issued to the members of the Co-operative housing society
- As per Model Bye-laws# 9(a): A Share Certificate, prescribed in bye-laws, bearing distinctive number and indicating the name of the Member, the number of shares issued and the value paid there on, shall be issued by the Society to every Member for the shares subscribed by him, within a period of six months of the allotment of the shares.
- In Maharashtra, societies are governed by Maharashtra Cooperative Societies Act. This Act provides the rules and regulations governing Cooperative Housing Societies also.
- Total Authorized Share Capital of a Co operative Society is fixed by Registrar of Co op Societies at the time of registering the Society. This share capital is divided into shares of Rs 50/- each.
- After the amendment to the byelaws in 2014, in cooperative housing societies in Maharashtra, each member has to pay for 10 shares, which is the limit of his share in the liability of the Society.
- The paid up capital of the society need not always be equal to the authorized capital as the latter is kept higher, for future eventualities. Thus, a member owns 10 shares in the society, for which the society issues a share certificate, giving details of the name of member, the premises no., share certificate no., and the distinctive nos. of the shares and the amount paid (Rs. 500).
- Thus, share certificate no. 1 will be for share nos. 1-5, share cert. no 2 for shares 6-10 etc. This certificate is the only proof of the ownership of the premises by the member, as in Maharashtra, all premises are owned by the Societies and the flats are allotted to members on the basis of share certificate only.
- However, it is advisable to issue a consolidated single share certificate to members, by taking back the original certificate – to avoid its misuse by members.
- In this case the share certificate shall reflect 2 parts – one, information about the original share certificate, old distinctive numbers etc, and two, the new additional 5 shares issued to him with the new series of distinctive numbers for these 5 shares.
- The Name & order of appearance on the Share Certificate will be exactly the same order as appearing on the Sale Agreement.
- No change in the share certificate shall be done without following due process of law including spelling mistakes in Sale agreement reflected similarly in Share certificate
- When the Share certificate is issued to Member, Society has to ensure there is not liability on the property in such a case the Share Certificate will be maintained at Society Office or the Financial Institute, which has lieu against the Property.
- In case of sale/transfer, Share Certificate shall be surrendered to Society office along with other forms & documents (Bye-laws 38(e)(i))
- After proper Society procedure & process is completed share certificate is transferred in name of the buyer from the seller and thereafter the seller has no right in the premises, as he ceases to be a member of the Society.
- The share certificate has to be retained by the owner of the premises, as his membership is dependent on that.
Checklist for issuing Share Certificate to Original Member :
- Does Member Property clear of any lieu?
- In addition to request for Share certificate has the Member Submitted in writing that he /she does not have any Mortgage or loan or any liability against the property and if he/she does then he/she indemnify the Office bearers & Society ?
- Is the Member in possession of Original Sale Agreement while collecting the Share certificate?
- Is the Share certificate collected by Member in person?
- If the member is claiming share certificate after clearing all Mortgage or loan or any liability. Has he /she submitted Loan Clearance certificate in original or Certified copy of same?
IF THE ANSWER TO ANY OF THE ABOVE IS NO THEN SHARE CERTIFICATE SHALL NOT BE HANDED OVER TO MEMBER. IF ANSWER TO ALL THE ABOVE POINTS IS YES THEN SHARE CERTIFICATE CAN BE HANDED OVER TO MEMBER ONLY OR ANY OTHER PERSON NOMINATED BY MEMBER THROUGH ISSUING OF POWER OF ATTORNEY FOR THE SAME.
Checklist for issuing Share Certificate to Member due to resale of property:
- Has the Incoming new member completed all Society Transfer formalities?
- Has the incoming members name entered in society record & Share certificate?
- Does incoming member have any lieu against the Property?
- In addition to request for Share certificate has the incoming member Submitted in writing that he /she does not have any Mortgage or loan or any liability against the property and if he/she does then he/she indemnify the Office bearers & Society ?
- Is the incoming member in possession of Sale Agreement while collecting the Share certificate?
- Is the Share certificate collected by incoming member in person
- If the incoming member is claiming share certificate after clearing all Mortgage or loan or any liability. Has he /she submitted Loan Clearance certificate in original or Certified copy of same?
IF THE ANSWER TO ANY OF THE ABOVE IS NO THEN SHARE CERTIFICATE SHALL NOT BE HANDED OVER TO MEMBER.IF ANSWER TO ALL THE ABOVE POINTS IS YES THEN SHARE CERTIFICATE CAN BE HANDED OVER TO MEMBER ONLY OR ANY OTHER PERSON NOMINATED BY MEMBER THROUGH ISSUING OF POWER OF ATTORNEY FOR THE SAME.
As per new Bye-laws 2014, each of the premises, irrespective of the area or type of the premises, should be issued ten shares of Rs 50 each, in one share certificate.
When share certificate is issued, signature of the share holder or first share holder (if share is held by more than one person, by virtue of buying the flat by joint agreement) is taken on the back of the share certificate's counterfoil, with date.
When share is issued for the first time as above, its entries are also made for the first time, in the I-form and J-form (books) of the society, in the name/s of original buyer/s of the flat.
When such original buyer sells the flat, subsequent buyer's name is written on the back of share certificate, and such change is entered in the I-form and J-form of the society.
Every time, when sale of flat takes place, there is no change made in the share certificate's counter foil, or new share certificate is not issued in place of old certificate, but its entry is made only on the back side of the original share certificate, and its changed new entries are made in the I-form and J-form of the society.
In all cases of transfer of flat, name of the original flat holder continues to remain present on front side of the share certificate, at all the times.
When the flat is sold, share certificate is transferred in the name of the buyer, after passing the transfer in the monthly meeting of the Managing Committee, and not in the AGM of the society.
AGM of the society just conforms the name change of the flat name by the committee, during the period between last AGM and present AGM of the society.
It is just a formality to know the members of the society, who are the new members of the society, by replacing the existing members, either by sale or by gift or by death.
As you say, there is no cashbook folio for the transfer of the society's share for the buyer of the flat.
For transfer of a new flat in the name of the new buyer, buyer of the flat has to fill in and submit forms, and fees as below:
(1) Appendix-2,
(2) Appendix-3 (on Rs200 Non-judicial stamp paper),
(3) Appendix-25(2) (on Rs200 Non-Judicial stamp paper),
(4) Xerox copy of the Index-2 of your sale deed,
(5) Rs500 cheque for share certificate and
(6) Rs100 cheque towards entrance fee.
Within 30 days of submission of above documents along with the fees as stated above, by the original buyer/s to the society, original buyer will be issued original share certificate in the name of the buyer/s, and an intimation of the membership letter in form Appendix-26.
A resale buyer of the flat, has to fill in and submit to the society following forms:
(1) (by seller) Appendix-20(1) and Appendix-21
(2) (by buyer) Appendix-20(2) and Appendix-23
(3) (by buyer) Appendix-3 (on Rs200 Non-judicial stamp paper),
(4) (by buyer, jointly with the seller) Appendix-25(1) (on Rs200 Non-Judicial stamp paper),
(5) Xerox copy of the Index-2 of buyer's sale deed,
(6) Rs100 cheque towards entrance fee,
(7) Rs25,000 cheque for transfer premium. and
(8) Original share certificate, which is in seller's name, to transfer it in the buyer's name by Society.
Within 30 days of submission of above documents along with the fees by the resale flat buyer/s to the society, resale buyer will be issued the share certificate (which is given to the society by the buyer) transferred in the name of the buyer/s, duly endorsed on the backside of the share certificate by the society along with an intimation of membership letter in form Appendix-26.
IMPORTANT NOTE:
Whether for getting the new share certificate or for getting transferred share certificate, if buyer of the flat or first named buyer of the flat has no independent income source, then intended member has to submit an undertaking on Rs200 Non-Judicial Stamp Paper, in the from In Appendix-4, from an earning member, who is ready to bear the cost of Society's dues for the flat to be transferred in the name of the non-earning member.
Please note: All form's Appendix numbers, are as given in Appendices of the Bye-laws of year 2014.
When share certificate is issued, signature of the share holder or first share holder (if share is held by more than one person, by virtue of buying the flat by joint agreement) is taken on the back of the share certificate's counterfoil, with date.
When share is issued for the first time as above, its entries are also made for the first time, in the I-form and J-form (books) of the society, in the name/s of original buyer/s of the flat.
When such original buyer sells the flat, subsequent buyer's name is written on the back of share certificate, and such change is entered in the I-form and J-form of the society.
Every time, when sale of flat takes place, there is no change made in the share certificate's counter foil, or new share certificate is not issued in place of old certificate, but its entry is made only on the back side of the original share certificate, and its changed new entries are made in the I-form and J-form of the society.
In all cases of transfer of flat, name of the original flat holder continues to remain present on front side of the share certificate, at all the times.
When the flat is sold, share certificate is transferred in the name of the buyer, after passing the transfer in the monthly meeting of the Managing Committee, and not in the AGM of the society.
AGM of the society just conforms the name change of the flat name by the committee, during the period between last AGM and present AGM of the society.
It is just a formality to know the members of the society, who are the new members of the society, by replacing the existing members, either by sale or by gift or by death.
As you say, there is no cashbook folio for the transfer of the society's share for the buyer of the flat.
For transfer of a new flat in the name of the new buyer, buyer of the flat has to fill in and submit forms, and fees as below:
(1) Appendix-2,
(2) Appendix-3 (on Rs200 Non-judicial stamp paper),
(3) Appendix-25(2) (on Rs200 Non-Judicial stamp paper),
(4) Xerox copy of the Index-2 of your sale deed,
(5) Rs500 cheque for share certificate and
(6) Rs100 cheque towards entrance fee.
Within 30 days of submission of above documents along with the fees as stated above, by the original buyer/s to the society, original buyer will be issued original share certificate in the name of the buyer/s, and an intimation of the membership letter in form Appendix-26.
A resale buyer of the flat, has to fill in and submit to the society following forms:
(1) (by seller) Appendix-20(1) and Appendix-21
(2) (by buyer) Appendix-20(2) and Appendix-23
(3) (by buyer) Appendix-3 (on Rs200 Non-judicial stamp paper),
(4) (by buyer, jointly with the seller) Appendix-25(1) (on Rs200 Non-Judicial stamp paper),
(5) Xerox copy of the Index-2 of buyer's sale deed,
(6) Rs100 cheque towards entrance fee,
(7) Rs25,000 cheque for transfer premium. and
(8) Original share certificate, which is in seller's name, to transfer it in the buyer's name by Society.
Within 30 days of submission of above documents along with the fees by the resale flat buyer/s to the society, resale buyer will be issued the share certificate (which is given to the society by the buyer) transferred in the name of the buyer/s, duly endorsed on the backside of the share certificate by the society along with an intimation of membership letter in form Appendix-26.
IMPORTANT NOTE:
Whether for getting the new share certificate or for getting transferred share certificate, if buyer of the flat or first named buyer of the flat has no independent income source, then intended member has to submit an undertaking on Rs200 Non-Judicial Stamp Paper, in the from In Appendix-4, from an earning member, who is ready to bear the cost of Society's dues for the flat to be transferred in the name of the non-earning member.
Please note: All form's Appendix numbers, are as given in Appendices of the Bye-laws of year 2014.
Excellent Guidelines.
ReplyDeletePlease let me know that How many shares to be issued to Proprietary Firm,Partnership Firm and Pvt Ltd Company who are members of the housing society ?
Please guide
If in a society we have three flats in single name.and how many shares certificate we get
ReplyDelete1 certificate against each flat. Total 3.
ReplyDeleteHi, there is no space on the share certificate to record the transfer. The page is full with the previous transfers recorded. In this case how do we move forward?
ReplyDeleteWhether:-
ReplyDeleteI) Share Certificate can be issued in the Joint Names of the Purchaser of the Flat in question.
II) In case the first named person is residing abroad, can the Original Share Certificate be handed over to the other joint holder against his / her POA
III) The Share Certificate can be issued while the Flat is mortgaged to a Bank against Home Loan to the Purchaser AND
IV) Such Share Certificate can be issued immediately after Registration Of the Housing Society pending TRANSFER of Conveyance Deed by the Builder in favour of the Society
Mrinal Kumar Ray
Email: mrinalkumar.ray@gmail.com
Mob: 9867974544
I want to sale my property but there is loan bank asking for show I-form and j-form of share certificate but my housing society not interested in showing what to do
ReplyDeleteHi
ReplyDeleteGreetings !
I purchased a MHADA Flat in mumbai from the first MHADA allottee. Sales registration was done long back. Due to Estate Agent's wrong information i never stressed on a share certificate. Once the REgistration was completed I asked the Estate Agent if we (seller & Buyer) had to go to Society or not for a share certificate and he said no need he would do the rest.
Now society not issuing certificate due to below reasons
1- First Allottee has not SIgned the share certificate till now
2- To extract more money Seller not coming to Society office though he came in my absence after Sale deed was handed over to Society for transfer of documents and society accepted one plain letter from him saying i have to pay him more which is wrong
3- MHADA already called the Seller and after that proceedings as per procedure MHADA transferred the flat in my name in their records and gave me a letter as my name regularised in their records
Now i need Way out information if the first owner has not signed the share certificate then what is the procedure so no problem should come to me while marketing the property for loan or selling etc.
--
Please feel free to revert for any clarifications if required.
Best Regards,
Rajiv Rode
+ 91 9930 69 6363
rajivrode@gmail.com
You will have to file suit/case against original owners and society
DeleteI am new ower of the flat. original share certificate in the name of earlier owner and is with Bank due to loan against property...
ReplyDeletemy understanding is unless the bank loan is settled, my name won't be entered in the share certificate.. Pls guide
Can Provision committee give the Share Certificates?
ReplyDeleteWhen there is a Administrator/Board, and there is a sale of a flat, can the administrator/Dy,Registrar enter the name of the purchaser on the Share certificate...?
ReplyDeleteMy brother was original member of the society. Society issued him noc to avail loan against property. As per your information above society may have retained his original share certificate due to this loan. Now after death of my brother flat transferred to my mother's name. The loan amount was also cleared but the question is how can I prove that original share certificate is retained by society? And how to obtain the same. Please help.
ReplyDeletewhile issuing duplicate share certificate ,original flat holder name continues to remain present on front side of the share certificate?
ReplyDeleteGreat information, thanks for sharing. If you are looking for society maintenance system then choose society notebook multiple property management system
ReplyDeleteB.S.Kadam, June,19,2021.
ReplyDeleteMy daughter purchased two residential flats in a co-op Housing society in Neral, Karjat, Maharashtra on resale basis from the original buyers. Estate Agent misguided us saying that so far society is not formed , though fact was that society was formed & registered. Agent obtained NOC from Builder and sale Agreement got registered. All necessary transfer forms duly signed by both buyer & seller, along with all the required documents and cheques of Rs. 5,000/-, 500/- & Rs. 100/- each issued in the name of the society given to the society on 30-06-2018. Thereafter several reminders also sent requesting for transfer, nothing has happened. Managing Committee is not transferring those flats in my daughter's name saying that premium amount of Rs. 25,000/- each must be paid to the society. I informed them that our society is in a rural area, and transfer premium amount is 5,000/-each and not 25,000/- each. but they are not accepting. I obtained order from Asst. Registrar, Co-op societies, Karjat, stating that collect Rs. 5,000/- each as transfer premium amount and transfer the subject flats to her name. Due to Corona 19 pandemic they could not transfer flats to my daughter' s name , saying that it has to be put in AGM. When my daughter tried to give cheques for maint. charges they have refused to accept / returned saying that cheques to be issued by the earlier buyers (Seller). Now they are charging interest on maintenance charges from the date of issue of order i.e. 03-06-2019. Can they levy interest from the date of order as they refused to accept cheques for maintenance from my daughter.
Please advise .
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ReplyDeleteOur society has issued share certificate worth Rs 100 each now can we make corrections on every certificate of Rs 50/ or continue with Rs 100
ReplyDeleteMr. X bought in a flat no "B18" (Building B Flat 18) in Pune in 2000 from Mr. Y in Pune. After that the back side share certificate shows information that Flat "A" is transferred from Mr. X to Mr. Y.
ReplyDeleteIn 2013, the Society where Mr. X bought a flat was reconstructed. After reconstruction, the Building name is changed to Varadvastu. Mr. X new flat no is Varadvastu 304.
Now society planning giving a new certificate to Mr. X
I have a questions
1. The new share certificate should have memorandum of transfers of the within mentioned shares? i.e Flat is transferred from Mr. Y to Mr. X
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ReplyDeleteThis blog post explains share certificates in Mumbai, Maharashtra, India. It details what they are, who gets them, and how they are transferred during flat sales. The society issues a share certificate upon initial purchase and keeps it updated during resales. Buyers should ensure no dues are on the property before receiving the certificate. Understanding this process is important for buying a flat in a housing society in Maharashtra.
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ReplyDeleteSociety registration in Delhi is governed by the Societies Registration Act, 1860, which mandates submitting a memorandum of association and a set of rules and regulations to the Registrar of Societies.
ReplyDeleteHave few questions:
ReplyDelete1) If share certificates are issued for parking spaces, are they legal & how to treat them if not cancelled & what is management committee's responsibility to get this corrected.
2) Already share certificate is issued on one flat. Can additional shares be issued on same property again?
3) If any scam is smelled, who to approach & how to get the documents of this transaction from the society?