Q: i have purchased a flat directly from builder in a complex where society is already formed. Now society is demanding for transfer charges payment to register myself as a society member. Is it compulsory to pay transfer charges in case if the agreement is directly done with the builder ?
Right.... sometimes a society is formed to take care of maintenance, repairs, etc. When the service society demands transfer charges from the owner, then it is illegal. The service society has no relevance in matters of ownership of flats and hence cannot charge any transfer fee.
Hello Subodh, Co-operative housing societies levy transfer charges and transfer premiums according to the bylaws. The transfer fee charged by the society has a legal basis as in an existing cooperative society, the owner of the flat only holds a share in the society and enjoys the right to occupy the particular flat that he owns. The transfer fee amount is decided by the members of the general body of the society.
I agreed with Salini. On the other hand, transfer fee to a builder illegal too. There is no legal basis on which a builder can levy transfer charges on the apartment owner. However, numerous complaints have been brought to the forefront related to illegal demand of transfer fee by the builder. According to complainants, the builder succeeds to exert influence as banks and home financing companies demand that the buyer procure a ‘No objection to Mortgage’ certificate from the builder, failing which the loan cannot be availed. Also, the builder takes on the responsibility to form the society or condominium and can manipulate undue influence by leaving out a particular owner’s name as a member of the society.