Documents Required for Sale of Property in a Co-operative Society

Feb. 3, 2011 - PRLog -- In a sale transaction in India, transfer of full ownership takes place only after due compliance of all formalities, full payment of the sale price and registration of the title document, executed before the concerned registering authority. Execution refers to the signing of the Deed of Sale by the parties concerned and attested by witnesses.
When the ownership of a house is by way of allotment by the Development Authorities like DDA, GDA, HUDA and other such authorities, an Allotment letter is issued by the authorities which becomes the title document. When the allotment is by a Co-operative Group Housing Society, a Share Certificate constitutes the title document. When the property is purchased from a private builder / person, a Sale / Conveyance / transfer deed. Deed duly registered on required Stamp Duty would be the legal title document to own a house.
While selling a property, the Seller/Vendor must have:
1.   A clear and marketable title to the property.
2.   The title to the property on sale must be free from all encumbrances, claims and court proceedings.
3.   The ownership of the titleholder can be traced from title deeds and revenue records.
Documents required for selling a flat in a Registered Co-operative Society
The documents that may be furnished for the perusal by the purchaser are as follows:
1.   A Copy of the Share Certificate issued by that Society in favour of the Seller.
2.   Previous chain of original Conveyance/Sale Deeds. If the Deed has been lodged for Registration, then a copy of such Conveyance, Sale Deed, etc. along with a photocopy of the receipt from the Sub-Registrar where the document has been lodged for registration must be provided.
3.   Copies of stamped receipts for payments made to the previous Sellers.
The intending purchaser can ask the Seller to apply for a 'No Objection Certificate' from the Society indicating that the Society has no objection to transfer the Share Certificate in favour of the intended purchaser and admitting the purchaser as a member of that Society. The Certificate should also confirm that the Seller has no default/outstanding payments to be made to the Society as of date.
A set of Society transfer forms, etc. for transfer of ownership should be duly filled and signed by the Seller and purchaser to be submitted to the concerned Society.
In case of a flat where the Society has not been registered or the flat is originally allotted by the Development Authority, copies of the following documents may be made available to the purchaser for perusal:
1.   Previous chain of agreements with past owners in original with original receipt of Registration (if any)/original letter of allotment issued to the first owner by the development authority. In case the latest agreement is pending registration, the original receipt issued by the Sub-Registrar acknowledging the pending Registration needs to be shown along with a certified true copy of that agreement.
2.   Original stamped receipts of payments issued to the previous and present Seller by the Builder/Development Authority/Society.
3.   Transfer permission from the respective authority i.e. Development Authority/ Society.
4.   Copy of approved plan & occupation certificate issued by Competent Authority (like the Municipal Corporation).
Documents pertaining to a resale flat in a Registered Co-operative Society:
•   Share certificate of the Society bearing the name of the Seller
•   Previous chain of conveyance/sale deeds, Sub - Registrar's receipt
•   37 (I) clearance if applicable
•   230 A certificate from the Income Tax authorities (to be obtained by Seller)
•   Original stamped receipts of payment made to previous Sellers
•   No objection certificate from the Society for transfer and sale of flat
•   Last receipt for the out goings bill paid to the Society and electricity bill
•   A set of Society transfer forms for transfer of ownership
•   Certificate of Title from an Advocate
As soon as the documents are vetted by the purchaser's Advocate and the purchaser decides to go ahead with the transaction, the intending purchaser can ask the Seller to get a No Objection Certificate issued. This Certificate should place the transfer of the Share Certificate in favour of the intended purchaser, admitting that no default/outstanding payments are to be made to the Society as of date.
The purchaser can ask for the 230 A Tax Clearance Certificate of the Seller which can be obtained from the concerned Tax Authority. The 230 A certificate is issued by the Income Tax authorities. A set of Society Transfer Forms, etc for transfer of ownership needs to be duly filled and signed by the Seller and purchaser and should be submitted to the concerned Society.
37(I) clearance needs to be obtained in certain cities under section 269 UL (3) of the Income Tax Act, 1961. Any immovable property specified by the Appropriate Authority which is transacted above a certain value requires a No Objection Certificate from the Appropriate Authority. Various transaction limits have been set for different cities in India.
For more details contact the Expert Real Estate / Property Attorneys & Lawyers at :
Global Lawyers
Call: 0091 9810153965
Visit : http://www.globallawyers.in

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