Acquiring NOC from society not obligatory for gifting a flat

Indranil Bhoumik/Mint

My aunt owns a flat in a registered society in Mumbai. She has all the required possession paperwork. The constructing is beneath redevelopment. She needs to reward the flat to her actual sister, who’s my mom however the society shouldn’t be prepared to provide the affirmation letter. What motion might be taken towards the society?

—Manish

We’re assuming that the society by which the flat in query is located is ruled by the Maharashtra Co-operative Societies Act, 1960 and the Maharashtra Co-operative Societies Guidelines, 1961.

There isn’t any requirement beneath the Act and the Guidelines talked about above for a donor (the particular person gifting the property) to acquire a no-objection certificates (NOC) or a affirmation letter of any form from the society to reward her flat to any particular person. It’s to be famous that as per the current amendments, despite the fact that it’s advisable to acquire an NOC from the society, there isn’t any longer a requirement to acquire one even for the sale of a flat.

Nevertheless, for the reason that constructing in query is beneath redevelopment, it will be advisable in your aunt to attend until the redevelopment is full and the flat within the newly constructed constructing is allotted to her earlier than she executes a present deed. In case your aunt needs to execute the reward deed earlier than the development of the brand new constructing is accomplished, she should examine the phrases of the settlement executed between her and the developer and he or she should adjust to situations enumerated therein. If there aren’t any such situations within the settlement, it will be advisable for her to acquire a affirmation from the developer by the use of a separate settlement between your aunt and the developer.

It’s to be famous that as per part 122 of the Switch of Property Act, 1882, a present is taken into account to be legitimate solely when it’s made voluntarily; it’s with out consideration, there was a suggestion by the donor; and the supply has been accepted by the donee, the place the donee truly accepts the reward.

As per article 34 of schedule I of the Bombay Stamp Act, 1958, stamp responsibility payable on a present deed—if the reward is being made to a blood relative (together with the sister of the donor)—can be 2% of the market worth (prepared reckoner worth) of the property. A present deed is a compulsorily registerable doc beneath the Registration Act, 1908 and must be registered with the sub-registrar of assurances. The relevant registration prices may even need to be paid.

Assuming that your aunt has paid all dues owed by her to the society and the society shouldn’t be prepared to endorse your mom’s identify on the share certificates after the reward deed has been duly executed, stamped and registered, your aunt can write to the registrar to make sure that the society carries out the requisite adjustments in its information to mirror the identify of your mom because the proprietor of the flat.

Queries and views at mintmoney@livemint.com

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