“Unlock the significance of share certificates in housing societies. Learn the issuance process, its importance, and how to obtain a duplicate. FAQs answered for property owners.”
Maintaining the records properly are a major concern that society poses. Housing societies managing committees secure the major obligation of ensuring that all the proof of sale for the property has been issued in the correct way. A share certificate is legitimate documentation that the owner of the aforementioned property must have, much as a sale deed.
Certainly, the members of the housing society skip or miss issuing such share certificates to the members which could be an issue if in case a property-related issue gets emerged.
While the sale deed serves as confirmation that you are the actual owner of the property, a share certificate serves as legal documentation and is required. The management committee must guarantee that you have this, but if you do not, you may easily get one.
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A share certificate would be the statute document or certification furnished via the cooperative housing society to the registered flat owner. It shall be provided to the member at zero cost and ideally, it must be furnished within 6 months from the period of shares allotment in the housing society according to the number of shares subscribed by him or her.
The name of the relevant housing society, a distinguishing number, the number of shares granted to the member, and the amount paid after that should all be included on this share certificate, which is active evidence of ownership.
The registrar determined the entire authorized value at the moment the society was registered, and the share certificate is free. The refusal of a share certificate may allow the member to pursue legal action against the cooperative housing society provided the member has paid all outstanding debts and there are no other issues.
A share certificate is a necessary document that serves primarily as legal confirmation of property ownership and shareholding within the society. The selling deed is likewise crucial, but the share certificate takes precedence in the event of formal demand. This clarifies what a share certificate is and why you need one.
What to look for before and after acquiring a share certificate is detailed below and should be kept in mind.
- The share certificate should get collected via the member in person himself/herself.
- There must be no dues and penalties on the property of the member. For the case when there are any then it must get paid.
- The critical document known as the conveyance deed would get provided via the builder and must be in possession of the housing society.
- The Secretary, chairman and any additional member of the managing committee including those with the official seal of the housing society must sign the share certificate.
- The managing committee must authorize the share certificate and then the same shall get issued via the secretary.
- The housing society will need you to sign an indemnification bond, which states that the assigned shares must never be transferred to any individual or company for any reason.
- The names on the share certificate must be in the precise order that they appear on the original selling agreement between the builder and the member. This covers both primary and secondary members.
- Before the share certificate may be granted, the member must indemnify the cooperative housing organization against any loans and complete any outstanding documentation.
- There should be no typos or spelling mistakes in the name or any text on the selling deed. You may avoid any problems that may arise in the future by doing so.
- The member must produce the original selling deed while getting the share certificate.
- Verify that once you obtain the share certificate, it has all of the requisite signatures, official seals, and so on.
In the case of a resale, certain rules must be observed. In this case, the original share certificate, as well as any other papers required, must be presented to the housing society.
If the share certificate is transferred in the name of the new member of the housing society following the resale, all processes pertaining to the transfer of the share certificate must be completed prior to any finalization. In such a case, the following considerations should be kept in mind.
- If the new member wants to transfer the share certificate, payment for the premium is required.
- The new member will need to make certain that all the remaining payments are paid by the former property owner.
- The new member will be required to present all the relevant paperwork with the application before the housing society. The documents should be updated with accurate information.
- When the original member dies then his or her consequent heirs shall be required to create the application for the share transfer to the hired nominee and the new share certificate shall require to get received.
- The cooperative housing society would furnish the new share certificate in the mentioned duration a lack of which could permit the member to avail of the required statute action.
- A readymade share certificate booklet would be available online. You are enabled to obtain the same at book printing agencies and housing federation offices.
A Duplicate Certificate of Ownership Is Issued
Just like any other document, the original copy of the share certificate should also be kept in a safe and proper condition because, in the event of damage or loss, it is a tough task to make a duplicate copy. But it is not impossible to duplicate one.
You can request a duplicate share certificate from the housing society members. They will issue a new one for you. Here are the few steps you need to follow to do so:
Step 1. The first thing you must do is go to the neighbourhood police station in your jurisdiction and file an FIR. If the certificate is lost, damaged, misplaced, stolen, etc., you will need to submit all the information in a registration report. After doing this, you must keep the police’s acknowledgment of your FIR because you will need it for communication and reference in the future.
Step 2. After the filing of the FIR, you should inform the members of the housing society about the matter. To do this, you have to send them a request in an application in which you ask them to provide you with a new duplicate share certificate.
What happened to the original certificate should also be included with relevant reasons in this application. For example, it got untraceable, damaged, lost, stolen, or misplaced. The acknowledgement paper of the FIR that you have received after filing the FIR must also be attached to the application.
Step 3. You will have to provide an indemnity bond to the cooperative housing society, which is 200 rupees. The company will reimburse all expenses related to the issuance of the new duplicate share certificate. Any expenses associated with further processing will be covered by the member personally. Attach a copy of the FIR acknowledgement and make sure to notarize the indemnity bond properly.
Step 4. After the completion of all the procedures, the managing committee will examine your application and all the documents you have provided in the attachment at the next general body meeting, and then they will decide whether to approve or deny your request.
Step 5. If your request gets approved, it will be notified to all the other members of the society’s notice board. Moreover, it is also the responsibility of society to publish the notice in at least two local newspapers. The cost will be paid by the applicant since all the procedures will be done for issuing a new share certificate.
Step 6. After this, you will have to wait for a minimum of 15 days with the society to see if any objections are made.
Step 7. If the situation is in your favour, you will not face any objections. After this, it is the responsibility of the housing society to issue a new duplicate share certificate. You have to collect it in person.
Therefore, if you have misplaced or lost your original copy and are distressed about whether you can get a duplicate or not, you do not need to worry. It can be issued again by following the simple steps mentioned above.
For a property owner in a cooperative housing association, having a share certificate is important. It works as legal proof of your rights as well as the allotment of shares in that society in your name.
It is expected that you have gone through the complete article and have understood how you can issue a new share certificate. It is a prominent proof of paper without it, you may face many barriers like transferring the property to legitimate heirs, participating in social events, getting police help in cases of crime, and many other cases.
Fortunately, you can now get this share certificate from them at any moment, even if the housing society forgets to give it to you. Therefore, If you still have your original copy, be careful to keep it secure. If not, go acquire it right away with the above-mentioned steps.
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