Checklist For Buying Property From Cooperative Society

Cooperative societies are based on the principles of cooperation- mutual help. Cooperative housing society provides its members with plots, houses or flats. Buying a property or flat from cooperative society is different from buying an individual home or buying an apartment from builder. A member wanting to transfer his shares and interest in the capital or property of a society should give 15 days notice of his intention to do so to the secretary of the society in the prescribed form.

Checklist for buying property

A property with clear documentation and title commands a higher price in the market compared to one with a title defect. Ensure that you are dealing with the right seller and that the seller has discharged all his liabilities. Following is a checklist that helps you to buy a flat or property from a cooperative housing society.

• The first thing a buyer needs to check is whether the housing society is genuine. A cooperative society provides a certificate for registration of the society and byelaws of society to all its members. For verifying the genuineness of a housing society, check the certificate of registration and copy of byelaws of the society.

●    A society allows its members to sell or transfer the shares and interest in the capital or property of a society only if the seller pays prescribed fee and discharge the liabilities of the society. Ensure that the seller has paid the transfer fee, your entry fee or membership fee and discharged all his liabilities.

• A member wanting to transfer his shares and interest in the capital or property of a society should give 15 days notice of his intention to do so to the secretary of the society in the prescribed form. Ensure the seller submitted transfer form to the secretary of the society.

• The managing committee or the general body will not refuse an application for admission to membership or transfer of shares and interest in the capital or property of a society except on the grounds of non-compliance of the provisions of the Act, the rules and bye-laws of the society or any other law or order issued by the government.

• On receipt of a request with regards to a member wanting to transfer his shares and interest in the capital or property of a society, the secretary of the society will place it before the meeting of the committee held next, pointing out whether the member is prima facie eligible to transfer his shares and interest in the capital or property of the society or not.

• If the committee is satisfied that the member is prima facie eligible to transfer his shares and interest in the capital or property of the society, it will direct the secretary to inform the member within three days.

• If the decision of the committee or general body meeting, on the application for the transfer of shares and interest in the capital or property of the society is not communicated to the applicant within three months of its receipt, the transfer application will be deemed to have been accepted and the transferee will be deemed to have been admitted as a member of the society.

• Check with the seller of the apartment if his parking slot will be made available to you. Get to know about the rules about parking space and parking lots.

• Be prompt in getting the ownership title of the house transferred to your name at the first annual general meeting of the building society held after you buy your house.

• Consult a property lawyer, especially where the sale is through a power of attorney. A good lawyer will undertake proper investigation and issue prominent public notices to clear interest of other properties in the property concerned.

• Getting a home loan sanctioned ensures that the documents are in place as banks or institutions conduct due diligence before disbursing loans. It is recommended that you collect the title report or title search for the last 30 years

List of Documents required from Cooperative Society

Below is a list of documents that are required when you apply for a Home Loan for buying property from coopertaive society:

• Certificate of the registration of the society.
• Copy of the byelaws of the society.
• The latest receipts of taxes paid.
• Allotment letter from the society in your name.
• Original share certificate of the Society.
• No objection certificate from the society.
• Copies of stamped receipts of payments made to previous sellers
• Copy of the lease deed, if executed.
• Commencement certificate granted by Corporation.
• 7/12 extract or property register card in the society’s name. 7/12 extract is issued by the concerned land authorities giving details such as the survey numbers, area, date from which current owner is registered as owner etc.
• Copy of N.A permission for the land from the collector.
• Search and title report (with the details of documents) for the last 30 years.
• Copy of order under the Urban Land ceiling Act.
• Copy of the building plans sanctioned by the competent authority.
• Original Agreement to assign / Deed of assignment.

A property with clear documentation and title commands a higher price in the market compared to one with a title defect. Ensure that you are dealing with the right seller and that the seller has discharged all his liabilities. Following is a checklist that helps you to buy a flat or property from a cooperative housing society.