CHS PROBLEMS SOLUTIONS

Owning a home involves far more than purchasing a property. Ensuring that ownership records are properly updated, complying with statutory requirements and understanding the rights and obligations that accompany membership of a cooperative housing society (CHS/the Society) are equally important. Seemingly routine matters can often become complicated when older land records, cross-border ownership or Society bye-laws come into play.

 

This week’s queries reflect these practical challenges. They cover the steps required to update revenue records after obtaining a deemed conveyance, the procedure for transferring a Jointly-owned property between spouses when one owner is a foreign national and the circumstances in which a housing Society may levy non-occupancy charges on a flat that has been let out.

 

Question: We have a cooperative housing society in Thane. Our Society has already obtained deemed conveyance. My questions are as follows:

 

1. There was an Urban Land (Ceiling and Regulation) (ULC) Act issue because our landlord owned excess land decades ago. Our developer completed all the formalities under the ULC law.

 

2. When we approached the Talathi to incorporate our Society's name in the 7/12 extract, he asked for a ULC certificate, although the ULC law has since been repealed. We need help in getting our Society's name entered in the 7/12 extract and property card.

 

Answer: Your Society may approach the Thane collector's office to ascertain whether any certificate or clarification relating to the earlier ULC proceedings is required. Submit the 7/12 extract, property card and other relevant land records relating to your Society's land along with your application.

 

You should also apply to the city survey office with a certified copy of the registered conveyance deed to have the property card transferred to your Society's name. Once the property card is updated, submit a copy to the Talathi's office for mutation of the 7/12 extract. If the Talathi still insists on a ULC-related document, you may seek clarification from the Collector's Office regarding the requirement.

 

Question: My sister is married to a US citizen, and she and her husband have been living in the US for over 25 years. They jointly own a flat in Thiruvananthapuram. Her husband now wishes to gift his share of the flat to his wife.

 

1. What is the procedure and what documents are required?

 

2. Her husband is not eligible for an overseas citizen of India (OCI) card because he served in the US military.

 

3. His notarised citizenship certificate is available.

 

4. His passport and driving licence are available for verification.

 

Answer: Since the flat is jointly owned by your sister and her husband, she already owns a 50% share in the property. Her husband can gift his 50% share to her through a registered gift deed, making her the sole owner of the flat.

 

The gift deed should be executed and registered before the sub-registrar's office within whose jurisdiction the flat is situated. The parties will be required to produce the title documents of the flat, identity and address proof, passport details and other documents as may be required by the registering authority.

 

If either of them is unable to be present in India for registration, they may authorise a person in India by executing a valid power of attorney in accordance with the applicable legal requirements. It is also advisable to confirm whether the Foreign Exchange Management Act (FEMA) or any other regulatory requirements apply to the husband's case before proceeding with the transfer.

 

Question: I own a flat in a cooperative housing society in Pune. I understand that, as per the bye-laws, a housing society can charge non-occupancy charges of up to 10% of the service charges if a flat is let out. Can these charges be challenged in court or by filing a complaint with the registrar if the Society has no specific reason for levying them and is simply charging the maximum permissible amount to reduce the maintenance burden on resident members? Please advise.

 

Answer: A cooperative housing society can levy non-occupancy charges if a flat is given on rent. These charges are limited to 10% of the flat's service charges, excluding municipal taxes.

 

If the flat is let out to close relatives as defined under bye-law No. 3(xxv) under the definition of ‘family’, or if the flat is kept vacant, non-occupancy charges are generally not leviable.

 

If the Society is levying non-occupancy charges in accordance with the applicable bye-laws, merely charging the maximum permissible amount is not by itself a ground for challenge. However, if there is any breach of the law or the bye-laws, the flat-owner may file a complaint with the deputy registrar of cooperative societies having jurisdiction over the area.

 

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