Share Certificate of Housing Society: Meaning, Importance, & How to Get It

A share certificate of a housing society is a legal document issued to a member of a cooperative housing society any type of building that is registered as a housing society can issue the share certificate to the purchaser. 

For instance, Mumbai is home to many of the tallest buildings that are built each year and then registered as cooperative housing societies after they are finished.It represents the member’s ownership stake or share in the society and is an essential piece of documentation in the context of cooperative housing societies.

Meaning of share certificate of cooperative housing society

A share certificate of a housing society is a formal certificate of membership issued by a cooperative housing society to its members. It certifies that the member holds a certain number of shares in the society, corresponding to their ownership interest. The share certificate is proof of membership, ownership, and financial participation in the cooperative society.

Source: Dear society

Importance of share certificate

In a housing society, share certificates are necessary for proving ownership, making transactions easier, guaranteeing rule compliance, and upholding transparent and orderly community operations. They support the housing society’s general management and operation.

Legal Document of cooperative society and ownership

The share certificate of a housing society is a legally recognized document that provides evidence of your ownership in the cooperative housing society in any state of the country, for example, if you are dreaming of buying a property in one of the best properties in Haryana, it’s a mandatory document because this certificate will show that the person is the owner of that property.

Transfer of ownership requires a share certificate

It is essential for any future sale or transfer of another housing unit, as potential buyers or transferees will require this certificate as proof of your ownership in any part of the country for example if you are purchasing a property in Delhi from the seller, you should ask for share certificate from the seller to transfer the ownership on your name 

Voting rights to members in cooperative society

In cooperative societies, members often have voting rights based on the number of shares they hold. The share certificate determines voting power.

Needed at the time of financial transactions 

It may be needed for financial transactions related to a housing unit, such as applying for loans against shares or participating in society’s financial matters.

Membership Verification in cooperative society

The share certificate of a housing society is required for membership verification, eligibility for housing society benefits, and participation in general meetings.

For the best guidance on the share certificate of the housing society, consult with a PropertyCloud expert and simply get valuable advice.

How to obtain a share certificate from the housing society

When you become a member of a cooperative housing society, you will typically receive a share certificate from the society’s management committee.

Apply in writing to the management of the cooperative housing society

Submit a written application to the management committee or the secretary of the housing society requesting for a share certificate of a housing society.

Source: Letters In English

Verification of membership by the housing society

Before granting the request, the society may check membership information and shareholding, particularly if one’s goal is to purchase real estate in Mumbai, where there are numerous planned projects in Mumbai.

The processing fee should be paid 

Pay any applicable processing fees, which can vary from one society to another.

Issuance is done by the cooperative housing society

Once the request is processed and approved, the society will issue a share certificate.

Do collect the share certificate from your respective society

Collect the share certificate of a housing society from the society’s office or as per the procedure specified by the society.

The procedure of issuing a society share certificate

Here are some crucial points that will help society in issuing a society share certificate:

Verify Membership

Confirm that the member requesting the share certificate of a housing society is indeed a registered member of the cooperative housing society. Check the membership records and ensure all dues and fees are up-to-date.

An application for a share certificate

Obtains a written application from the member requesting the share certificate of a housing society. The application should include

• Full name of the member
• Membership number
• Address
• Number of shares held
• Reason for requesting the share certificate
• Processing Fee

Determine the processing fee for issuing the share certificate. Ensure the fee is by the society’s rules and regulations. Provide the member with information on how to pay the processing fee, including payment methods and bank account details if applicable.

Verification of shares done by cooperative society 

Verify the number of shares held by the member. Cross-check this with the society’s records to ensure accuracy.

Share certificate format of the housing society

Society prepares the share certificate of a housing society in the format prescribed by the society’s bylaws or relevant regulations.

Approval by management committee:

Submit the request for share certificate issuance to the management committee or the appropriate authority within the society for approval.

Printing and filling of share certificate

Once approved, print the share certificate of a housing society, with the following details:

• Name of the cooperative housing society
• Member’s name and address
• Member’s share certificate number
• Number of shares held by the member
• Date of issuance
• Signature of the authorized chairman, secretary, and one committee member of the society
• Society’s seal or stamp
• Distribution of share certificate:

When the share certificate is prepared for collection, let the member know.

Indicate the time, date, and place where the member can pick up the share certificate. For instance, if you buy any kind of property in real estate and you need to show proof of ownership, you must have a share certificate.

Housing society should maintain a record of the certificate

Maintain a record of all share certificates of a housing society issued, including member details, and the date of issuance.

Housing society should take the sign of members on acknowledgment

Ask the member to sign an acknowledgment of receipt when they collect the share certificate. This serves as evidence of delivery.

Communication

Communicate any changes in the share certificate issuance process, fees, or other relevant information to members through official channels such as notices or circulars.

Compliance with legal requirements

Ensures that the issuance of share certificates complies with the legal and regulatory requirements of jurisdiction and the cooperative housing society’s bylaws.

Security

Safeguard blank share certificate of a housing society forms and issued share certificates to prevent misuse or unauthorized access.

Member education

Educate members about the importance of keeping their share certificates safe and using them appropriately in any future transactions or dealings related to the cooperative society.

Audit trail

Maintain a clear audit trail for all share certificate issuance and related financial transactions.

Transferring the housing share certificate at the time of selling the property

Here are some essential points that you should keep in mind at the point of selling the property and transferring share certificate:

To inform the housing society

The seller (current member) should inform the housing society about their intention to sell their unit. This is typically done by submitting a written notice to the society’s management committee.

Clear outstanding dues of the housing society

Ensure that there are no outstanding dues, charges, or penalties owed to the housing society. This includes maintenance fees, outstanding loans, or any other financial obligations.

Ensure to obtain a no objection certificate (NOC)

The seller must request a No Objection Certificate (NOC) from the society. This certificate indicates that the society has no objections to the resale and transfer of the shares.

Payment of transfer fees to the housing society

Pay any applicable property transfer fees to the housing society. The society’s bylaws or regulations will specify the amount and process for such fees.

Agreement to Sell 

The seller and buyer need to draft and sign an Agreement to Sell, which outlines the terms and conditions of the sale, including the sale price, possession date, and other relevant details.

Due Diligence by the Buyer to verify ownership

The buyer should conduct due diligence to verify the seller’s ownership and the legal status of the property. This may include checking property documents and ensuring there are no legal disputes or encumbrances.

A Share Certificate Transfer Request

The buyer should submit a formal share certificate of a housing society transfer request to the housing society. This request typically includes:

• Buyer’s membership application
• Copy of the Agreement to Sell
• Proof of payment for the unit
• Identity and address proof of the buyer
• Any other documents required by the society
• Transfer of Shares:

Once the housing society approves the share transfer request and verifies all documents, they will update their records to reflect the new member (buyer) and issue a new share certificate in the buyer’s name.

Payment of Stamp Duty and Registration:

Depending on local regulations and laws, the Agreement to Sell may need to be paid stamp duty and registration charges with the relevant government authority. Ensure compliance with local requirements.

Possession and Handover

After the share transfer is complete, the seller should hand over control of the unit to the buyer as per the terms of the Agreement to Sell.

Update Records in housing society

Both the seller and the buyer should ensure that the housing society updates its records to reflect the change in ownership and the new share certificate details.

Legal Assistance from lawyers or any legal advisor

Consider seeking legal advice or assistance from a qualified lawyer or legal expert to ensure that all legal and procedural aspects of the resale and share transfer are properly handled.

Speak with a PropertyCloud home loan professional for the best advice on real estate investing.

It’s an important document that establishes who owns the property

Make sure to keep your share certificate of a housing society in a safe place, as it is a valuable document that proves your ownership in the housing society. If you ever plan to sell one unit or transfer your property and membership, you will need to produce an occupancy certificate and share a certificate with a housing society.
It’s also crucial to abide by any guidelines established by your particular housing organization regarding the upkeep of share certificates. When purchasing a home, you must abide by all the rules and laws of how to buy a new house. You can rely on our team members to assist you in relocating to a warm, inviting, and opulent location.