Flat or Share Transfer refers to the legal transfer of ownership rights of a flat along with the society’s shares from an existing member to a new member. In cooperative housing societies, ownership is linked not only to the sale deed but also to the transfer of shares recorded in society records.
Without proper share transfer, the buyer may face issues in voting rights, maintenance billing, or resale.
Why Flat & Share Transfer Documentation is Important
Proper documentation ensures:
- Legal recognition of the new owner by the society
- Update of society records and registers
- Eligibility to vote and participate in meetings
- Smooth maintenance billing and services
- Protection from future ownership disputes
Types of Flat / Share Transfers
- Sale Transfer – Transfer due to sale of flat
- Gift Transfer – Transfer to family members
- Inheritance Transfer – Transfer due to death of member
- Nomination-Based Transfer – As per nominee declaration
Step-by-Step Process for Flat / Share Transfer in India
Step 1: Submission of Transfer Application
The buyer and seller jointly submit a transfer application to the society along with prescribed forms and documents.
Step 2: Submission of Required Documents
Documents typically include:
- Copy of registered Sale Deed or Gift Deed
- Original Share Certificate
- Transfer forms duly signed
- ID and address proof of buyer and seller
- No Dues Certificate from the society
Step 3: Payment of Transfer Fees
Transfer charges are paid as per society bye-laws and state cooperative laws. These may include:
- Transfer fee
- Share transfer premium (if applicable)
Step 4: Committee Approval
The managing committee verifies documents and approves the transfer through a resolution passed in a committee meeting.
Step 5: Endorsement on Share Certificate
The society endorses the transfer on the original share certificate and issues a new share certificate in the buyer’s name.
Step 6: Update of Society Records
The society updates:
- Register of Members
- Share Register
- Maintenance billing records
Documents Required for Flat / Share Transfer
- Application for transfer
- Registered Sale Deed / Gift Deed / Will
- Original Share Certificate
- Transfer form duly filled and signed
- PAN and address proof of transferee
- No Objection Certificate (if applicable)
- Society dues clearance receipt
Transfer Fees & Charges
Transfer charges are regulated by state cooperative laws and society bye-laws. Generally, charges are nominal and subject to statutory limits. Excessive or arbitrary charges are not legally permitted.
Common Mistakes to Avoid
- Delay in applying for share transfer
- Missing original share certificate
- Incomplete signatures on transfer forms
- Non-payment of outstanding dues
- Ignoring society bye-laws
Flat Transfer vs Share Transfer
| Particulars | Flat Transfer | Share Transfer |
|---|---|---|
| Legal Basis | Sale Deed | Society Records |
| Authority | Sub-Registrar | Housing Society |
| Ownership Proof | Yes | Membership Rights |
| Mandatory | Yes | Yes |
Both are essential for complete ownership recognition.
Conclusion
Flat and share transfer documentation is a crucial step after purchasing or receiving a flat in a housing society. Timely and proper compliance ensures smooth membership transition, legal clarity, and uninterrupted society services. Every buyer should complete share transfer immediately after property registration.
Disclaimer
This article is for general informational purposes only and does not constitute legal or professional advice. Transfer procedures, fees, and documentation requirements may vary by state and society bye-laws. Readers are advised to consult the managing committee or a qualified professional before proceeding.