A share certificate is an important property document for those who own a flat in a housing society. Getting a share certificate from a cooperative housing society is legal proof that establishes the person’s ownership and share in the society. Therefore, just like a sale deed or a possession letter, a share certificate is significant for property owners.
However, there may be a scenario when a society fails to furnish the share certificate. If a housing society denies issuing a share certificate, there are legal remedies available to property owners.
Click to read in detail about a share certificate and the procedure for issue
What is a society share certificate?
A society share certificate serves as a legal document that proves the person’s rightful ownership of the cooperative housing society’s shares.
Why do you need a society share certificate?
While a sale deed proves that the property has been legally transferred to the buyer, a share certificate validates the person’s investment and entitles them to various rights and benefits as defined by society’s regulations.
A society share certificate is required in transactions, such as selling or transferring shares. According to the Housing Society share certificate rules, in the case of a transfer, a share certificate must be issued to the transferee within one month of receipt of the instrument of transfer. It ensures transparency and accountability within the cooperative housing society.
What to do if the cooperative housing society denies issuing a share certificate?
If a co-operative housing society does not issue a share certificate even though the member has met all financial requirements, the member can take legal recourse. After repeated reminders, if the member does not receive their share certificate within 15 days of sending a reminder letter, they can approach the Deputy Registrar and register a complaint under Bye-law No. 174(A)(ii) and (iii). The member should submit photocopies of all relevant documents and correspondence with the society.
Alternatives to a housing society share certificate
If a member of a housing society has not received the share certificate, there are some alternatives to consider.
One solution is to have a membership card provided by the society, which may include all the information on the share certificate. Some societies may issue allotment letters or membership confirmation letters, which serve as proof of ownership and membership rights.
One can consider these alternatives to a formal housing society share certificate. However, the members must ensure that these alternative documents hold legal validity and define their rights in the housing society.
Housing.com News Viewpoint
A resident of a cooperative housing society must apply for a share certificate following the Cooperative Housing Society Act of their state. There are various documents one may have to submit. Make sure that you are aware of these requirements before applying for a society share certificate.
FAQs
Who issues a society share certificate?
The managing committee is responsible for issuing the housing society share certificate after due diligence.
What is the procedure for obtaining a society share certificate?
A member must apply for a share certificate along with the required society registration documents and fees.
Can a society share certificate be transferred?
A society share certificate can be transferred through a transfer deed. The transfer deed must be executed by the transferor and transferee and be registered with the society. The society will issue a new share certificate in the name of the transferee.
What happens if a housing society does not transfer share certificates?
If the society refuses to issue the housing society share certificate to a member, the member can file a legal notice against the society if there is no pending bill.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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