Transfer fees is just 2.5% of difference

Transfer fees is just 2.5% of difference
Although Bye-law clearly says that the amount of transfer fee should not exceed Rs. 25000/-. Many housing societies in Maharashtra are still charging ad-hoc transfer fees. Sometimes it goes in lakhs.
The sum Rs. 25000/- is the maximum limit a society can charge transfer charges. Many society are charging the same but it can be much less than the maximum limit.
As per Bye-Law no. 40(d)(vii) the Society should collect transfer charges 2.5% of the difference between the book value of the flat and the price realised by the transferor on Transfer of the flat OR maximum Rs. 25,000/- whichever is less.
Supposed difference between purchase and sale of the flat is Rs. 4,00,000/- hence the society cannot charge transfer fee more than Rs. 10,000/-. But not many society know the provision of charging 2.5% on the difference, instead they directly jump to maximum limit of Rs. 25,000/-.





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2 thoughts on “Transfer fees is just 2.5% of difference

  1. If any society charges more will it be illegal. Can we pass any resolution for higher transfer fee. Is it legal. Kindly advise

  2. I have just entered into an agreement to sell my apartment in Kandivali-Mumbai. The difference of SALE – PURCHASE price is around 32,00,000. The builder, at the time of purchase in 2004, had allotted me a stilt parking letter, for which I had paid to the builder.

    Now the society is asking for Rs. 55000 for the transfer – 40,000 for apartment, and 15,000 for parking.

    Can you please tell me if this is legal…and if not, what recourse do I have against the society.

    Thanks,

    Rajeev

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