There are some conditions to be met in order to make a valid transfer of property in a housing society
In order to transfer a flat in a cooperative society, some formalities need to be complied with. A housing society is a society with the objective of providing its members with plots, houses or flats. It can also be existing to provide its members with amenities and services. A society can be a co-operative society that is registered or deemed to be registered under the Society Registration Act.

A member of a housing society is a person joining in an application for the registration of a co-operative society that is subsequently registered, or a person duly admitted to membership of a society after its registration, and includes a nominal, associate and sympathiser member. An associate member jointly holds a share of a society with others, but his name does not stand first in the share certificate.

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, along with the consent of the proposed transferee in the prescribed form. On receipt of this notice, 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.

In the event of ineligibility of the member to transfer his shares and interest in the capital or property of the society, the committee will direct the secretary to inform the member accordingly within three days of the decision of the committee. 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.

Procedure to transfer interest

An application for transfer of shares and interest in the capital or property of the society should be made in the prescribed form, along with the share certificate

An application for membership of the proposed transferee should be made in the prescribed form

• Valid reasons for the proposed transfer should be furnished
• All the liabilities of the society should be discharged
• Transfer fee should be paid
• Entrance fee of the proposed transferee should be paid
• Premium (to be fixed at the general body meeting) has to be paid. This will not apply to transfer of shares and interest of the transferor in the capital or property of the society to a member of his family, his nominee or his legal representative
• No objection certificate required under any law, an order or sanction issued by the government or a financing agency should be furnished

The managing committee or the general body cannot refuse any application for admission to membership or transfer of shares and interest in the capital or property of the society except on the grounds of non-compliance of the provisions of the Act.

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. Any transfer made in contravention of the Act, rules or the bye-laws will be void and will not be effective against the society.

The transferee will be eligible to exercise the rights of membership on receipt of a letter in the prescribed form from the society.