Residents and members of a cooperative housing society (CHS/the Society) often face practical challenges that range from documentation and ownership issues to questions about governance and day-to-day management. Whether it is letting out a portion of property, transferring ownership after the death of a joint-holder or dealing with changes in the managing committee, a clear understanding of the applicable rules can help avoid unnecessary disputes. This week’s queries address these common concerns and outline the correct procedures under the relevant laws and bye-laws.
Letting out a Small Storage Space: Is a Leave and Licence Agreement Sufficient?
Question: I am a retired senior citizen. I have a small storehouse beside my bungalow. It has been used for storing gardening equipment till date. I wish to lease it to a neighbour (a vegetable vendor), who will use it to store vegetables. Will a simple leave and licence agreement be sufficient for this purpose? How should I proceed? What papers would be needed for this process?
Answer: You can give that place on a leave and licence (L&L) agreement. An L&L agreement has a term of 12 months. You can enter into an L&L agreement for multiple terms, up to five terms or 60 months, with rent increases each year.
There are agents who can prepare this L&L agreement on their laptop by visiting your home and providing you with a registered agreement within a couple of days.
When you give your space on an L&L agreement, ask the person to pay rent into your bank account. As per the rules, you should fill out a free form available at the local police station and submit a copy of your L&L agreement to the police station.
Transfer of Jointly Owned Flat to Surviving Spouse: Is Succession Certificate Required?
Question: Parents (mother and father) had a flat in joint names in a CHS. The mother is the first owner and the Society member. There is no nomination and the father has passed away.
Legal heirs at the moment are the mother and two sons (Hindu family). The sons have no interest in the property and wish to give the mother 100% ownership. However, the Society is asking for a succession certificate and a registered deed of relinquishment. We believe it is not that complicated. Please advise.
Answer: Since the flat was jointly purchased and one of the two joint owners has expired, the surviving joint owner (mother) can become the sole owner of the flat.
There is no need to obtain a succession certificate or execute a release deed. The following documents should be submitted by the surviving joint owner (mother) to the Society to transfer the flat in her sole name. The relevant forms are as per the bye-laws book of the year 2014.
1. Original share certificate of the flat which will be transferred in the sole name of the surviving joint owner and returned to her by the Society.
2. Copy of the death certificate of the deceased joint owner.
3. Modified indemnity on ₹500 non-judicial stamp paper, in the form as per Appendix-19, executed by the surviving joint owner to claim full rights over the deceased member’s share in the flat.
4. Index-II of the sale deed of the flat.
5. A covering letter addressed to the secretary and chairman of the Society, stating that the above documents are being submitted to transfer the flat into a single name by deleting the name of the deceased joint owner.
Keep photocopies of all documents submitted to the Society. Arrange them in the same order in another file. Place the original share certificate in a transparent folder and arrange the remaining documents accordingly. Submit the file to the Society and obtain acknowledgement on a copy of the covering letter with the Society’s seal.
The Society should transfer the flat into a single name in accordance with this application. Once the flat is transferred in her sole name, she can nominate any person by filling out the nomination form in triplicate, as per Appendix-14.
Resignation of Office-bearers: How To Reconstitute the Managing Committee
Question: The treasurer and chairman of the managing committee have resigned. What is the process to elect a new chairman and treasurer, considering that elections are two years away for the current managing committee to complete its term?
Answer: If elections are due in the near future and elected representatives on the managing committee (MC) resign or die, up to two members may be co-opted for the remaining term of the MC.
If the treasurer and chairman have resigned from their posts but not from the managing committee, the Society’s MC can elect other MC members to these posts. After restructuring the MC, you can inform the deputy registrar (DR) for cooperative societies and the bank(s) accordingly and change the signatories at the bank(s).
If they have also resigned from the MC, you can restructure your MC by co-opting two new members. In restructuring your MC, co-opted members can also be elected to MC posts.
NOTE
We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question
Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever.
(Shirish Shanbhag has an MSc in Organic Chemistry, a Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)
