Cooperative housing societies (CHSs) are often stringent about keeping accurate records and paperwork. The managing committees (MCs) of CHS have the key responsibility of ensuring that all the proof of sale towards the property is rightfully issued and kept on record. A share certificate, like the sale deed, is proof that the property's rightful owner must possess. 
 
Sometimes, members of the MC tend to overlook, forget to issue or transfer these share certificates to members. It, however,  can become a big issue for the flat owner-member, if property disputes arise in the future. While the sale deed does act as proof that you are the official owner of the property, a share certificate is legal proof that is indispensable as it shows you are a legitimate member of the CHS. 
 
This week, we are looking at two queries regarding share certificates, one where the MC refuses to transfer the flat to the nominee and another where the process of adding a co-owner's name on the share certificate is explained. We will also look at the method for calculating the fungible floor space index (FSI) for flats in a building planning to undergo redevelopment and the applicable charges for a gift deed. 
 
References to the appendix numbers in any of the below solutions are with regards to the Cooperative Housing Society By-laws book of 2014.  
 
Procedure to Add Co-owner's Name in Share Certificate
 
Question: How to do I add a co-owner to the share certificate issued by the Society? My flat is located in Pune and in the index-2 document of the registered sale deed, three names are listed. Our Society has issued a share certificate in the first owner's name as per the order listed in index-2. Now I want to add my name to the share certificate, which is listed in the second position in the index-2 document. 
 
What is the procedure for the same?
 
Answer: To add the co-owner's name as a co-member in the share certificate, apply with the form in Appendix-5 of the CHS bylaws book of 2014 and a copy of index-2 of your flat's sale deed.
 
In the aforesaid bylaws book, Appendix-5 form says, 'associate membership' form. In this form, where ever you find 'associate membership', cross it out and substitute it with the word 'co-membership'. 
 
Each person in the sale deed, at a position at number 2 and number 3 (as per index-2), has to make his/her application separately for co-membership simultaneously. Each co-membership applicant should give a co-membership application fee of Rs100 by a crossed cheque in the name of the Society.
 
You should also submit the original share certificate, the above two applications and entrance fees. Each applicant co-member will get his co-membership application fee receipt in his/her name.
 
Society will add the names of two co-members, to the share certificate, within a month and return the original share certificate to the flat owner.  
 
Society Refusing to Transfer Share Certificate based on Nomination Form
 
Question: My father had nominated my mother and me for a flat in a CHS  in the Mumbai suburban area. My father expired last September.
 
Now the society officials are refusing to transfer the share certificates on the basis of the nomination form. Instead, they are asking for a succession certificate and other heirship documents. 
 
I want to add here, that I have a sister who has no objection to the nomination and  in fact, she was one of the witnesses on the nomination form. Can you please advise on how I can go about this issue?
 
Answer: You, your mother and your sister all three should jointly make a 'release deed' on Rs500  non-judicial stamp paper, stating that your sister wants to release her right in your late father's flat, and you and your mother accept the right on your late father's flat. This is a cheap substitute for an heirship or succession certificate obtained from a competent civil court.
 
After doing this 'release deed' and having it witnessed by two persons, it should be registered with the sub-registrar of assurances. The sub-registrar of assurances certified copy of that release deed, with a copy of its index-2 of the flat, should be submitted to the Society, with membership form in Appendix-2 (as per the cooperative housing societies bylaws book of 2014), undertaking on Rs200 non-judicial stamp paper, as in Appendix-3. If your mother has no income source, then you will give an undertaking on Rs200 non-judicial stamp paper, as in Appendix-4, and a nomination form by your mother and you, as per the form in Appendix-14, with the original share certificate. 
 
Additionally, you will have to pay membership entrance fee of Rs100 with membership fee of Rs500 and second named person's co-membership entrance fee of Rs100. All fees should be paid by crossed cheque in the name of the Society to transfer the share certificate in the joint name of you and your mother.
 
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 
 
Calculating Fungible FSI for a Flat in a Building Undergoing Redevelopment 
 
Question: My building is 45 years old and is located is the western suburbs of Mumbai. The building has now opted for redevelopment. My carpet area is 600sqft (square feet) and the balcony area is 72.5sqft. Builder will redevelop under Mumbai's Development Control Regulation (DCR) 33(11). How much area should I ideally get after redevelopment? Also, should 35% fungible FSI be calculated on the basis of 600sqft or 672.5sqft, including balcony. I have tried to argue with the builder on this point, but he is asking for written proof that the calculation of fungible FSI includes the balcony area. Kindly advise. 
 
Answer: Fungible FSI is 35% of your carpet area. If you have a balcony, please see whether it is included in the FSI of the building. If not, the builder will give you 600 x 1.35 = 810 sqft carpet area, plus 72.5 sqft balcony. If the balcony is included in FSI, then 672.5 x 1.35 = 908 sqft.
 
35% fungible FSI you will get free of charge from the government, which if the builder is not giving, then kindly find another builder. Regarding this clarification, you can get official documentation from the building proposal department in BrihanMumbai Municipal Corp (BMC) located at Andheri East in Mumbai.
 
Prima facie, it looks like your builder is trying to fool you.
 
Charges for a Gift Deed
 
Question: One of my uncles (no blood relation) who is unmarried and staying with us for the past 35 years wants to gift his property to my mother, whom he considers as a sister, even though he has two sisters by blood relation. He is presently around 75 years old.
 
Need your advice on whether to opt for a sales deed or gift deed, as my uncle also fears that my mother may throw him out of the house if a sale deed is done. What would be the legal charges for a gift deed?
 
Answer: Your uncle should do a gift deed of his flat, to your mother, with the condition that she will allow him to reside in that premises till his death and look after him during his remaining lifetime.
 
Pay the stamp duty and register the gift deed with the sub-registrar of assurances. Then give the sub-registrar of assurances a certified copy of the gift deed and its Index-2 to the Society to transfer that flat in your mother's name.
 
For all this work, a professional may charge you Rs10,000 to Rs15,000, apart from the applicable stamp duty and registration charges.
 
(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.)