Your Housing Problems & Solutions
Share Certificate for
Loan
Q: What is the procedure of incorporating in the original share certificate, the name of the flat owner who purchased the flat recently in resale, by obtaining home loan from a Bank? As you must be aware the original share certificate is deposited with the Bank right at the time of loan disbursement and it remains in its custody till full and final repayment of the home loan. Also the addition of the flat owner's name to the society happens at a much later date. After that happens, what is the procedure for the above mentioned purpose?
Is a request letter on the society's letterhead and signed by the secretary required to be submitted to the bank, for providing the share certificate to the society for a temporary duration, for including the name of the new flat owner in it?
My home loan bank is demanding such a letter while our society says it cannot issue any such a letter, claiming it is the matter between me and the bank and that I should send such a request letter myself to the bank to make the share certificate temporarily available to the society. Please advise what is the legally valid
process. A: Your CHS's Office bearers should go to Bank's loan department with CHS's rectangular seal and round seal, transfer the said share certificate in the bank's custody, and take bank certified copy of such a transferred certificate for CHS's record, with a bank's letter stating that such CHS's share certificate is in the custody of Bank's loan department, for home loan given to such a person. To and fro transport charges from bank to CHS, by signatories on the share certificate has to be borne by the Society's flat lodger, who has mortgaged said share certificate to that Bank.
Share Transfer
Q: My father was owner of our flat. After his death, the society transferred ownership of the flat to my mother and issued share certificate in her
name. My mother then executed registered gift deed in my favour. However, the society is refusing to transfer the said flat in my name. Kindly guide on how I should proceed.
A: Please prepare a file with the following papers:
(1) Form of Application for the Membership of yours, as in Appendix-2. (refer to the CHS Byelaws Book of the year, 2014)
(2) Undertaking on Rs 200 Non-Judicial Stamp Paper by you, as given in form of Appendix-3. (3)If you are not having an independent source of income, then by a relative from your family, will give an undertaking on Rs 200 Non-Judicial Stamp Paper, as given in the form of Appendix-4. (4) Photo copy of your Gift Deed and certified copy (by Sub-Registrar) of its Index-2.
(5) Original Share Certificate of the
flat.
(6) Rs 100 entrance fee by Crossed
Cheque in the name of the CHS. (7) Rs 500 Transfer fee by Crossed
Cheque in the name of the CHS. (8) A covering letter, addressed to the Secretary/Chairman of the CHS giving the description above documents and a request to change the name of the flat in your name on the share certificate of the CHS.
Take photo copies of the documents (1) to (8), and put them in the same order, as you put them in the main file, as directed in following para.Punch documents (1) to (4), and put them in the file in the same order.Put (5) to (7) in a punched transparent plastic folder, and put this folder above these documents. Put covering letter (8), above all the documents.Give this file to the society's Office bearer, and take CHS's stamp and Office bearer's signature on covering letter's photocopy in your file.Wait for 15 days, and give a reminder letter to your CHS, after 15 days, stating that if share certificate is not transferred in your name within 15 days of reminder letter, then under Bye-law No. 174(A)(iii) you will make complaint to Deputy Registrar of CHS. Even if your CHS is not accepting your file, then with photocopies of all the documents in the file meant for your CHS, make a complaint to Deputy Registrar of CHS, asking him to direct your CHS to accept the file and transfer the share certificate in your name.If you find still difficulties, then come to Moneylife Foundation office on Tuesday, between 4pm and 6pm, after you fix your appointment for a free of charge guidance by an expert, on Tel 022 4920 5000, also on Tuesday, 11am to 3pm.
Answers provided by experts of Moneylife Foundation. Send your queries regarding ‘housing woes’ to sachin@fpj.co.in. You can also visit https://www.moneylife.in/lrc