Short Answer

When you sell your flat in a cooperative society, your membership does not automatically pass to the buyer. You need to resign from the society as per the Gujarat Cooperative Societies Act, 1961.

Detailed Explanation

Section 29 of the Gujarat Cooperative Societies Act, 1961 states that a member who wishes to transfer his interest in the society must give written notice to the society. Upon receiving the notice, the society may transfer the share or interest to the buyer, subject to the society's rules and regulations. However, the membership does not automatically pass to the buyer.

In practice, when you sell your flat, you need to formally resign from the society by following the procedures laid down in the society's bylaws. This typically involves submitting a written resignation letter to the society along with necessary documents related to the transfer of ownership. The society will then process your resignation and update its records accordingly.

Real-world Scenarios

• Mr. Patel sells his flat in a cooperative society to Mr. Shah. Before the sale is finalized, Mr. Patel informs the society in writing about his intention to transfer his membership. The society verifies the documents and processes the transfer of membership to Mr. Shah after Mr. Patel resigns officially.

• Mrs. Desai sells her flat without informing the society or resigning from her membership. The society later discovers the transfer and informs Mrs. Desai that she needs to resign formally for the membership to be transferred to the buyer.

• In a different scenario, Mr. Mehta sells his flat and resigns from the society simultaneously. The society acknowledges his resignation and transfers the membership to the buyer without any issues.

Reference

• Section 29 of the Gujarat Cooperative Societies Act, 1961: Official PDF