Membership and Voting Rights
Does selling a flat automatically transfer all society liabilities (dues) to the new owner?
Written By: GatePal Analyst
Last Updated on
Short Answer
No, selling a flat does not automatically transfer all society liabilities (dues) to the new owner.
Detailed Explanation
Section 30 of the Gujarat Cooperative Societies Act, 1961 addresses the transfer of shares and interest of a member. This section states that the transfer of shares or interest of a member in a cooperative society shall be subject to the provisions of the by-laws of the society. This means that the liabilities of a member, including dues to the society, do not automatically transfer to the new owner upon the sale of a flat. The new owner will only be liable for the society dues if the by-laws of the society specifically provide for such liability to be transferred.
Rule 148 of the Gujarat Cooperative Societies Rules, 1965 further clarifies the procedure for the transfer of shares or interest in a cooperative society. According to this rule, the transfer of shares or interest shall be made only with the consent of the society and in accordance with the procedure laid down in the by-laws. This ensures that the society has control over the transfer process and can enforce any provisions regarding the transfer of liabilities to the new owner.
In practice, when a flat is sold in a cooperative housing society, the society may require the seller to clear all outstanding dues before transferring the ownership to the buyer. The society may also conduct a verification of dues and issue a no-dues certificate before approving the transfer of ownership. This helps in ensuring that the new owner does not inherit any outstanding liabilities of the previous owner.
Real-world Scenarios
Mr. A sells his flat in a cooperative society to Mr. B. Before approving the transfer, the society checks Mr. A's account and finds outstanding maintenance dues. The society asks Mr. A to clear the dues before transferring the ownership to Mr. B.
In another scenario, the society's by-laws explicitly state that all outstanding dues must be settled by the seller before the transfer of ownership to the buyer. This ensures that the new owner does not become liable for any previous dues.
Reference
Section 30 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]
Rule 148 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]
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