Cooperative housing society (CHS) bylaws have provisions for a 'sinking fund' to be utilised when structural or major repairs are needed. When a reconstruction or alteration, heavy repairs or structural additions need to be carried out, the money set aside in the sinking fund is used. 
 
Essentially, it serves as an investment that you make every month to insure your residence in the long term when the need arises to rebuild or construct it due to damage and dilapidation. This amount is one of the headers in each flat owner's monthly or quarterly maintenance bill. While the bylaws are clear on how such contributions are calculated, housing societies and their managing committee members still make the mistake of passing resolutions in contravention of the model bylaws. 
 
This week, we will learn about the bylaws that define sinking and repair fund contributions, clarify doubts over adding property tax to monthly maintenance bills and look at two separate cases of transferring property in the absence of a succession certificate and with a registered Will, respectively. 
 
References to the appendixes and the bylaws in the solutions below are per the cooperative societies model bylaws of 2014. 
 
Calculation of Sinking and Repair Fund in Maintenance Bill
 
Question: According to the Maharashtra cooperative housing society model byelaws, what should be the base calculation of flat maintenance charges, such as sinking and repair funds?
 
Answer: Under Bye-law No. 67(a)(iii), it has been explained that expenses of repairs and maintenance of the buildings of the Society is taken at 0.75% of the construction cost of the flat.
 
Under Bye-law No. 67(a)(v), it has been mentioned that the Sinking Fund will be collected as provided under byelaw No. 13(c), at 0.25% of the construction cost of the flat.
 
The above construction cost of the flat, is when the flat is newly constructed and its cost is as determined by the architect. Construction cost is for the building and does not include the cost of the land.
 
Requirement of a Release Deed In Case of Registered Will
 
Question: My dad (who is alive) has made a registered Will, bequeathing his flat to me upon his death. Is a release deed from my brother required (when dad is still alive or later upon his death) to avoid any legal complications?
 
Answer: A release deed is required from all of your father's children. It should be done only after your father's death, on an Rs500 non-judicial stamp paper and submitted with a copy of your father's registered Will and death certificate. This will state that the undersigned are releasing their right to your father's flat in favour of a child to whom the father has given his flat in the Will.
 
This release deed must be witnessed by two persons and should be registered with the sub-registrar of assurances office. Then, this registered release deed, along with a copy of your father's Will and death certificate, ends up having the same legal value as a probate of the Will.
 
NOTE
We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question 
 
Transferring Flat without a Succession Certificate 
 
Question: I read your reply to a query in your column regarding a cost-effective method of transferring a flat without a succession certificate. We (my sister and myself) are in a similar situation where the managing committee of our Society refuses to transfer the flat to our names without the succession certificate.
 
My father passed away in 1996 and the flat was in his name. The said flat was legally transferred to our mother's name, and her name was entered in the share certificate. My mother passed away in August 2019. Before my mother passed away, she had made a Will, which is registered. We had filed the necessary nomination documents and included my sister's and my name in the document, duly signed and stamped by the Society with the percentage of share mentioned. 
 
We had approached the managing committee with all the required documents as specified in the byelaws, but the office-bearers refused to accept these and insisted on a succession certificate, without which they refused to do the needful. We are the only two legal heirs and we are roman Catholics. We have been living in the same Society and flat since 1974. Appreciate it if you can kindly share your valuable advice in the matter. 
 
Answer: With a copy of your mother's Will and the death certificates of your parents, along with the PAN and Aadhaar copies of your sister and yourself, make a 'confirmation deed' on Rs500 non-judicial stamp paper, witnessed by two adults. This document is to be registered with sub-registrar of assurances office.
 
The confirmation deed and its Index-2 should be given to the Society to transfer your late parent's flat in your joint name, as co-members of the flat, with a 50% share to each. This confirmation deed made as above, serves the same purpose as a probate of the Will, which is a more costly process.
 
If still Society is not transferring the flat jointly in your names, after following the above process, then make a complaint against the Society to deputy registrar of cooperative societies, under the Bye-law No. 174(A)(iii).
 
Charging Property Tax as Part of Maintenance Bill
 
Question: Is maintenance part of property tax? Can Society collect the property tax in the head of maintenance? What is the rule? The Society collects monthly but pays yearly. They are keeping money in bank and getting extra interest. Since it is tax, they are cheating on members of Society. What is the remedy?
 
Answer: I went through your query. Your Society is following the correct process as per the rule.
 
If the local municipality is giving a collective bill of the property tax of each flat, to your Society, then the Society can collect the appropriate tax every month from each flat and pay it once in a year or every six months to the municipality. 
 
(Shirish Shanbhag has an MSc in Organic Chemistry, Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)