Transfer of Shares to legal heirPosted: September 25, 2013
We have a member in our society who has died intestate. She has also not filed her nomination form in favour of any one. She used to stay with her son. Her other children have given an NOC in favour of the son staying with her at the time of her death. Now, the son wants us to transfer the flat in his name. The following 2 questions arise :
- Can the Society waive the transfer charges, since the transfer is to a blood relative ? Do the Model Bye-laws allow it ?
- Does he have to pay the Stamp Duty for transfer to the Stamp Office ?
MCS Bye Law No 38 (ix)
Transfer Order Dated 26.08.2011 issued by Deputy Registrar M Ward under instruction from Lokshahi Din vide letter B/1035.
Courtesy : J.B.Patel – Jeby, Housing Societies’ Activist, 9829538570
Bye-Law No. 35 will be applicable in this case. The Society will have to give notice in at least 2 local newspaper for the same as per Appendix-16 format. Cost will be recovered from the member. Also an Indemnity bond from the other legal heirs to the Society will be required. Stamp duty is not applicable in this case neither does any premium on transfer fees are applicable. Membership fee of Rs. 100 may still be applicable.
This is not transfer of shares technically. Name of the nominee on the share certificated does not mean he / she is the owner. They are only trustees of the said premises and the ownership rights of the legal heirs are still applicable.
If society is not competent in handling the matter then hiring a lawyer may be a better option. Hope this helps.
Courtesy : Rajesh Thakkar