Comprehensive Guide on Transfer of Share to Heir Without Nomination in Housing Society

17th March , 2025 ~ QMS

Comprehensive Guide on Transfer of Share to Heir Without Nomination in Housing Society

Introduction

In a housing society, the transfer of membership and property share is typically carried out based on a nomination made by the deceased member. However, if no nomination exists, the transfer process becomes more complex and must be handled as per the Maharashtra Cooperative Societies Act, 1960 (MCS Act, 1960) and the Model Bye-laws of Cooperative Housing Societies.

This guide explains the legal framework, step-by-step procedure, and documents required for transferring the share of a deceased member to their legal heir in the absence of a nomination.

Legal Framework

The following laws govern the transfer of shares in a housing society without nomination:

1. Maharashtra Cooperative Societies Act, 1960 – Governs the functioning of cooperative housing societies.
2. Maharashtra Cooperative Societies Rules, 1961 – Provides rules for managing succession-related issues.
3. Model Bye-laws of Housing Societies – Specifies the procedure for share transfer.
4. Indian Succession Act, 1925 – Applicable if legal heirs need succession certificates or letters of administration.

Step-by-Step Procedure for Transfer

Step 1: Intimation to the Society

Upon the death of a member, the legal heirs must inform the housing society in writing, enclosing a copy of the death certificate.

Step 2: Submission of Succession Documents

Since no nomination exists, the society requires proof of legal heirship. The following documents must be submitted:

• Death Certificate of the deceased member.
• Legal Heir Certificate issued by the revenue authorities or a competent court.
• Succession Certificate from the court (if required).
• Probate of Will (if the deceased left a will and it is probated).
• Letter of Administration (if applicable).
• Indemnity Bond from the legal heir indemnifying the society against claims from other heirs.
• Affidavit from Legal Heirs stating their consent to transfer the share to the claimant.
• No Objection Certificate (NOC) from other legal heirs (if applicable).

Step 3: Society’s Verification Process

The managing committee will:

• Scrutinize the submitted documents.
• Publish a notice on the society’s notice board and circulate it to members, inviting objections (typically for 15 to 30 days).
• If no objections are received, the society proceeds with the transfer.
• If objections arise, the matter may be referred to the court.

Step 4: Society Approval

Upon successful verification, the managing committee passes a resolution approving the transfer of shares to the legal heir.

Step 5: Updating Society Records

The housing society will:

• Amend the Share Certificate with the new owner’s name.
• Update the membership register.
• Inform municipal authorities, if necessary.

Step 6: Stamp Duty and Registration

If the deceased member was the sole owner, legal heirs must execute a Deed of Relinquishment or Deed of Family Settlement if multiple heirs are involved. The document must be stamped and registered.

Challenges and Solutions

Common Challenges:

• Disputes among Heirs: If multiple heirs claim the share, the dispute must be resolved through a legal process.
• Lack of Succession Certificate: If heirs do not possess one, they must apply to the civil court.
• Delayed Society Response: If the society delays or denies transfer, legal recourse can be sought through the Registrar of Cooperative Societies.

Solutions:

• Encourage Members to Nominate: Societies should educate members about the importance of making nominations.
• Legal Consultation: Heirs should seek legal assistance if disputes arise.
• Timely Documentation: Ensure all necessary documents are in order to avoid delays.

Conclusion

The transfer of a deceased member’s share in a housing society without nomination involves legal formalities, verification, and potential disputes. To streamline the process, legal heirs must submit the required documents promptly and cooperate with the society. Housing societies, in turn, must adhere to the prescribed legal framework to facilitate a smooth transfer. By ensuring proper documentation and compliance, societies can avoid unnecessary complications and safeguard the interests of legal heirs.

For further information, please visit www.quasoc.in or write an email on info@quasoc.in.