Society NOC & Flat Transfer Process in Maharashtra
A definitive guide for sellers, buyers, and Managing Committees navigating flat sale permissions, statutory transfer fees, and Model Bye-Law 38 requirements.
Is a Society NOC Legally Mandatory to Sell a Flat in Maharashtra?
Under Model Bye-Law No. 38(d) and State Government directives, a formal “No Objection Certificate” (NOC) from the society is not mandatory for the registration of an agreement for sale at the Sub-Registrar's office. However, to transfer the share certificate and admit the buyer as a member in society records (Register I), the member must give 15 days' notice (Appendix 20), clear all outstanding dues, and pay the statutory transfer premium (capped at ₹25,000).
The ₹25,000 Transfer Premium Statutory Limit
One of the most frequent disputes in Maharashtra cooperative housing societies revolves around transfer charges. Under Government Circulars issued under Section 79A of the MCS Act and Model Bye-Law No. 38(e)(vii), the maximum transfer premium that a society can charge is strictly capped at ₹25,000.
Societies cannot demand additional mandatory donations, building fund contributions, or arbitrary fees as a pre-condition for approving flat transfers or issuing share certificates. Any fee collected in excess of ₹25,000 is considered illegal and can be appealed before the Deputy Registrar of Cooperative Societies.
Step-by-Step Statutory Flat Transfer Procedure
Notice of Intention to Transfer (Appendix 20)
The outgoing member submits a 15-day prior notice to the society in Appendix 20 expressing the intention to transfer shares and flat ownership.
Submission of Transferee Membership Application (Appendix 21)
The incoming purchaser submits Form Appendix 21 seeking membership admission along with the registered agreement for sale and stamp duty proof.
Execution of Indemnity Bond (Appendix 23)
The purchaser executes an indemnity bond in Appendix 23 indemnifying the society against future municipal, tax, or legal liabilities.
Clearance of Society Maintenance Dues
All maintenance bills, property taxes, sinking funds, and transfer premiums (up to statutory cap of ₹25,000) are cleared.
Managing Committee Decision & Endorsement
The Managing Committee scrutinizes documents in its regular meeting within 30 days and formally endorses the transfer on the original share certificate within 3 months.
Download Official Flat Transfer Appendices
Official AppendicesDownload the official statutory appendices from the Model Bye-Laws directly from our forms repository:
Source & Statutory Verification
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