In India, housing societies are formed with joint ownership where there are shared spaces and services. A share certificate of society is a vital document that confirms ownership and also the proportion of ownership in a community.
When someone buys an apartment, one would receive a share certificate, which would show the membership and stake in the society.
While it doesn’t directly prove property ownership, it indicates your involvement in the cooperative. The number of shares usually reflects the size of your apartment, giving you voting rights and other benefits. Understanding share certificates is essential for residents wanting to engage in their community and manage their investments effectively.
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Why Is a Share Certificate of Society Important?
- Proof of Ownership: A share certificate holds immense value since it is the material proof that a member has a right to be a part of the housing society. The word “shares” here refers to owning shares and investment in the property owned by the society, like common areas and amenities.
- Legal and Financial Transactions: The share certificate plays a significant role in property transactions. When a member decides to sell or transfer their apartment, the share certificate becomes a required document for legal transparency.
- Voting and Management Rights: With a share certificate of society, the member has voting rights in a society meeting, so his vote can be part of significant decisions related to the management, maintenance, and overall upkeep of a society.
How to Obtain a Share Certificate of Society?
To obtain a share certificate, certain steps must be followed according to the housing society’s by-laws:
- Membership Confirmation: Once you purchase a flat or apartment, the housing society confirms your membership through a written letter.
- Submit Documentation: A formal application must be submitted to the management committee requesting the share certificate of society, along with required documents like the sale deed and proof of identity.
- Issuance of Share Certificate: After the management committee’s approval, the share certificate is issued, typically within a few months of purchasing the property.
Transfer of Share Certificates
In the case of property resale, the transfer of the share certificate is a critical step. The following process is generally followed:
- Application for Transfer: The current owner must submit a transfer application along with the original share certificate and a sale deed to the society.
- Payment of Transfer Fees: The new buyer is responsible for paying the transfer premium, and both the buyer and seller must ensure there are no outstanding dues or liens on the property.
- Issuance of New Certificate: After the completion of all necessary paperwork, the management committee issues a new share certificate to the buyer, establishing their rights within the society.
Documents Required to Transfer Share Certificate
When transferring a share certificate during a property sale, the following documents are required:
- Transfer Application: A request from the seller to the housing society for ownership transfer approval.
- Sale Deed: A registered document outlining the sale terms.
- Original Share Certificate: The seller provides this for cancellation so a new one can be issued.
- No-Objection Certificate (NOC): Issued by the society, confirming the seller has cleared all dues.
What If a Member Loses or Damages Their Share Certificate?
In case a share certificate of society is lost or damaged, members must promptly inform the society and follow these steps:
- File a Police Report: Report the loss by filing an FIR and submit it to the society.
- Submit an Indemnity Bond: The member must provide an indemnity bond assuring the society that no claim will be made if the original certificate is found.
- Issuance of Duplicate Certificate:
After processing the request and paying any required fees, the society issues a duplicate certificate.
Conclusion
Understanding the importance of a share certificate of society is vital for every member, as it proves ownership and outlines rights within the society. It also plays a key role in property transactions and legal disputes.
How ADDA Can Help
ADDA, a society management software, simplifies the management of share certificates. It helps members track transfers, store documents securely, and stay updated on dues. By using ADDA, members can ensure smooth and efficient property transactions within their housing society.