Coop Society Nomination Problems

Transfer by Nomination Form

140_nomination_form_(web)There is a big misconception that after the demise of the first named member in a cooperative society, the nominated person automatically is the new owner.

  • This is a big misconception. The society has to transfer to the nominated member for the convenience sake. Filling up a nomination form is just an intent of the member to tell the society that such and such person will deal with you after the demise of the active member.
  • However to complete such a transaction/formalities, following process of law will have to be followed:
  1. Letter addressed to the Chairman/ The Secretary, by the Nominee in whose name nomination is registered in society records. His/Her intent to be a member of the society after the demise of the first named member.
  2. Copy of the nomination form which is duly registered with the society, in which date and number of registration are mentioned.
  3. Copy of the first named owner’s death certificate.
  4. FORM NO: 15 – Application to the society for membership along with the requisite application fees. It is safer to have FORM 17 also along with Form 15
  5. The original share certificate.
  6. Advertisement in two papers. 1. English and one Vernacular. (Specimen as in Form 16). If share certificate is lost or mutilated, the same can be incorporated in the above advertisement.
  7. FORM – 4
  8. FORM 27 (2) – If the value of the property is more than Seventy Five lakhs
  9. INDEMNITY BOND by the Applicant, indemnifying the society from any claims/ legal, quasi-legal, semi-legal process which might hamper the transfer of the said share certificates
  • This bond will clearly indicate that the applicant is the sole legal heir of the deceased member, and/or he has obtained NO OBJECTIONS from his/her siblings and other legal heirs and claimants, banks etc and the premises has no loan pending
  • FORM – 18: If there is an ownership dispute between the legal heirs or anyone else, Society will transfer the shares to the applicant, subject to his/her getting a clearance from the Courts (in this case the jurisdiction is Mumbai). In case the court decision goes against the nominee,  the managing committee will have no option but to follow court orders and not the nomination form.
  • In case of a dispute or there being more than one claimant to shares, the applicant and others involved in the litigation will not be considered members, hence not allowed to vote or contest society’s elections

All this is in addition to the original sale deed with the builder or the previous owners, which should be in Society’s records. If it is not, the applicant will have to provide a copy of the previous sale deeds also.

  • No / Nominal Stamp duty is applicable. It is recommended that the Nominee after he/she gets all clearance, within six months, gets the documents stamped by the Revenue and Stamps office and thereafter register with the sub-registrar.  This will update the Government records in his/her favor.
  • Transfer of electricity meter/ telephone and other utilities like gas supply will have to be undertaken by the transfree.

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4 comments on “Coop Society Nomination Problems
  1. If a case between cooperative housing Society Vs his tenant ,their is sudden resignation from all managing members and a Administrator is oppointed by registrar office . in that case can the case be on hold till the new secretary is oppointed

    • Technically – NO. The administrator will perform all the functions of the managing Committee. However, if you wish to postpone the hearing till the new managing Committee is appointed – you can tell the court that according to the Maharashtra Cooperative Act 2013 – now in force…. the provision of appointing an administrar by the Deputy Registrar has been withdrawn.
      Infact the Deputy Registrar should withdraw the administraror from your Society…. the Administraror is not supposed to sit in a society indefinetely. He is supposed to arrange/hold for a bonafide elections within 6 (SIX) months of his appointment.
      So the presence of the administrar in your society after a six month period – itself is illegal. You can challenge his presence in the society itself forcing him to hold legitimate elections.
      And you can request the court, since the presence of the administror itself is illegal, he cannot reprsent the society and your case be adjourned till a new managing Committee is formed.

  2. Our society has undergone a redevelopment recently, Can society permit a developer to sale the covered parking area to the new tenants. Also can a single member can purchase more than one a parking lots

    • The society cannot prevent the builder from selling anything.

      But legally the builder CANNOT. All the open spaces are the ownership of the Cooperative society. Even if the builder has so-called SOLD the open parking spaces – the society cannot recognise that sale and issue share certificates against such sale.

      The closed parking spaces (garages) one can certainly buy more than one – and a separate share certificate will have to be issued by the society for each such premises.

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