Society Share Certificate Transfer & Membership Guide
A definitive procedural roadmap for flat buyers, sellers, and Managing Committees navigating share certificate endorsements and statutory transfer limits in Maharashtra.
What is the procedure for transferring society shares in Maharashtra?
Under Model Bye-Law 38 and MCS Act Section 29, transferring shares requires submitting 15 days notice (Appendix 20), membership application (Appendix 21), indemnity bond (Appendix 23), registered sale deed, and clearing all dues. The statutory transfer premium is strictly capped at ₹25,000. The committee must decide on the application within 3 months.
Mandatory Statutory Transfer Documents
Formal 15 days advance notice submitted by the outgoing member expressing intention to transfer shares and flat ownership.
Formal application by the purchaser seeking admission as a regular member of the society, along with entrance fee (₹100) and share value (₹250 for 5 shares).
Notarized indemnity bond on statutory stamp paper indemnifying the society against any claims arising from the transfer.
Original stamped and registered Agreement for Sale / Sale Deed registered with the Sub-Registrar of Assurances, with index-II.
Physical original society share certificate for endorsement of transfer by the Secretary and Chairman.
Clearance confirming that all maintenance charges, property taxes, and outstanding dues on the flat have been fully settled.
The Statutory ₹25,000 Transfer Premium Cap
Binding State OrderUnder binding State Government Orders issued under Section 79A of the MCS Act (dated 09-08-2019 and 09-08-2001) and Model Bye-Law 38(e)(vii), the maximum transfer premium that a society can charge is strictly capped at ₹25,000.
Societies cannot demand mandatory 'donations', development fund fees, or additional sums as a pre-condition for approving the transfer. Any collection exceeding ₹25,000 is illegal and can be challenged before the Deputy Registrar.
Managing Committee Statutory Decision Timeline (3 Months)
Under Bye-Law 38(c) and MCS Act Section 22(2), the Managing Committee must consider and decide upon a complete transfer application within 3 months from receipt. If the society fails to communicate a decision within 3 months, the transfer is deemed approved, and the transferee can apply to the Deputy Registrar for deemed membership.
Related Transfer Resources & Guides
Source & Statutory Verification
Need Expert Flat Transfer Scrutiny in Your Society?
Housenex verifies member flat transfer files, draft resolutions, and endorses share certificates for Managing Committees across MMR.