Everything About Housing Society Share Certificate

September 25, 2019
By Team MyGate
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Societies try to dot the i’s and cross their t’s when it comes to record-keeping and paperwork but there are some hits and misses every now and then. Many societies forget to (or simply don’t know that they have to) issue share certificates to their members on time. While your sale deed is the proof that the property has been legally transferred in your name, a share certificate is a legal proof that you are the rightful owner of the co-operative housing society’s shares. It is the duty of the managing committee to issue share certificates after due diligence. Here’s all you need to know about housing society share certificates.

What is a Share Certificate?

A share certificate is a legal certification given by a housing society that a certain member is the registered owner of shares in the cooperative housing society. It is to be given to the member free of charge. Model bye-laws state that, “Share Certificate, prescribed in bye-laws, bearing distinctive number and indicating the name of the member, the number of shares issued and the value paid thereon, shall be issued by the society to every member for the shares subscribed by him, within a period of six months of the allotment of the shares.” The Registrar decides at the time of the society’s registration the total authorized capital which is divided into Rs. 50 per share and share certificates are thereof distributed to the members. The member is issued 10 shares (worth Rs 500) as the total share capital need not be the same as the actual number of shares issued.

Checklist for issuing the Share Certificate

  • The Share Certificate has to be collected by the member himself in person.
  • The member’s property should be clear of lieu.
  • The conveyance deed from the builder should be in possession of the society.
  • Every Share Certificate should have the seal of the society and be signed by the Chairman, the Secretary and one member of the committee, and authorised by the committee before being issued by the Secretary.
  • The name and the order of names (for primary/associate member) should appear exactly as it is on the original sale agreement between the member and the builder.
  • The member has to indemnify the society against any loans against its name, finish any paperwork and clear any arrears that have to be paid to the society.
  • The society has to ensure that the member provides an indemnity bond stating that he has not transferred the share certificate to anyone else or created any charge or mortgage on the share certificate in favour of any bank, employer, any person or finance agency.
  • The member has to present the original sale agreement while collecting the share certificate.

In case of transfer/resale, the original share certificate has to be given to the society along with the other documents needed. If the share certificate is being transferred to a new member after resale, they have to finished all paperwork prior to handing the share certificate, including the required transfer of shares procedures.

When the ownership of the shares is being transferred to another person, the new member has to pay the transfer premium, produce applications/documents required by the society while it has to be ensured that no dues are pending by the former member. In the event of the death of the original member, the heirs have to apply within 6 months of the death for the share transfer to the nominee along with the issuance of a new share certificate.

Readymade share certificate booklets are available online, housing federation offices or at book printing agencies.

If the members’ arrears are duly paid, and the documents requested by the society are submitted in proper condition, the society MUST issue the share certificate within the prescribed time limit after allotment of actual shares. If not, the member has the right to file a legal notice/injunction against the society.

Issuing a duplicate Share Certificate

It is advisable to keep your original share certificate in pristine condition in a safe place. Getting a duplicate share certificate is not as simple as walking into the society’s office and getting a duplicate copy on the same day. If your share certificate is soiled, misplaced, stolen, destroyed or lost, you can ask your housing society to issue a duplicate share certificate after following the below-mentioned procedure.

  1. File an FIR to the local police station, registering a report that the original share certificate has been lost, misplaced or stolen. Retain the copy of FIR acknowledged by the Police.
  2. Send a written application to the society stating that the original has been lost, misplaced, stolen (is not traceable) and request the society to issue a duplicate share certificate. Also, attach the acknowledged copy of the FIR with the application.
  3. Submit an indemnity bond of Rs 200 to the society, indemnifying the society of all cost/ results of issuing a duplicate share certificate. The Indemnity Bond should be duly notarized and attached along with the application and FIR copy.
  4. Once the society receives the application, it is placed before the managing committee in the next general body meeting. In the same meeting, the society examines the application and attached paperwork and approves the request for a duplicate share certificate.
  5. The society puts out the notice on the society’s notice board and also published notices in two local newspapers (with respect to issuing a duplicate share certificate).
  6. The society waits for 15 days for any objections after putting out the notice on the society’s notice board and the advertisement in the newspapers.
  7. If no objections are raised, the society issues a duplicate share certificate to the member. The cost of publishing notices in newspapers has to be borne by the member.

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26 thoughts on “Everything About Housing Society Share Certificate

  1. Hello,

    I have a query? Hope you can help me.
    I m an owner of a part of twin bungalow in Ahmedabad. The plot was purchased from the existing member of the society holding bungalow no 9. After purchasing the plot was again been divided between two owners. 9/B-1 and 9/B-2

    Here as per the society we (9/B-1 and 9/B-2) are the associate members and we don’t have the rights to the managing committee. That’s not the issue. The issue is being an associate member we don’t have our individual share certificate.

    Now, I m selling my part of bungalow 9/B-1 and the customer wants to buy on loan. Due to me being associate member I don’t have my individual share certificate so the bank is rejecting the loan.

    Please advise what’s to do?

  2. Hi,
    Pls help to understand, whether we buy one BHK (Approx. 400 Sqft) or two BHK (800 Sqft) flat, will get 10 shares of fully paid up of ruppes 50fifty. Pls advise.

  3. What are the document to be submitted for getting membership and share certificate for joint holders in residential society . is it necessary to submit notarized documents. List of documents with form nos etc

  4. If I’m buying a house and the previous owner doesn’t have a share certificate can i get a new certificate or wat is the procedure

  5. If I’m buying a house and the previous owner doesn’t have a share certificate can i get a new certificate or wat is the procedure

  6. Plz help

    My dad was the owner of a flat in building he had purchased from a person who name is on share certificate back side but society members had not sign on it and they have given noc to sell the flat and after that we had paid to soociety the amount for my dad name but they had not mentioned his name and now this has been 11 years now my dad is expired so wht to do plzz help

  7. My husband had purchased house 15 years back but he has share certificate of the name of the owner of the house from whom he purchased the flat.Now he want to sale the flat and society is asking huge amount of money for issuing the share certificate on my husband’s name.What is a correct procedure? Kindly reply.

  8. My grandmother made a registered will nominating her daughter as her sole executor.Now in society share certificate is my grandmother s name what will be legal process to transfer it into my mother s name .My grandmother has expired 20years ago

  9. A member holding share certificate in a housing society wants to add name of his daughter to the share certificate. Can Society allow such transfer on the basis of letter or Society should ask for gift deed/ transfer deed?

  10. My wife had purchased the flat jointly with me from the developer .The sale deed bears initials of both me and my wife on each page of the agreement. Also at the last operative page we both have signed as purchasers.

    However inadvertently the first page of the agreement bears only my wife’s name (and my name is not there) as the purchaser. Owing to this the society issued share certificates bearing only wifes name.

    Actually both myself and my wife are joint purchasers of the flat . The payment receipts of the developer too bear my wife and my names as  purchasers.

    Now we want the share certificate to bear both our names.

    Kindly guide us how we need to go about it?

    Your guidance in the matter would be thankfully appreciated.

  11. Dear sir,

    We are going to issue new share certificate for our society due to wrong registration no.printed and date. Can we issue new certificate with all new numbers.

  12. Can society issue share certificate directly to the buyer for the flat purchased from builder after society formation. Builder is occuping flats in society which was formed 10 years before and now selling the same to buyer. The share certificate is not yet issued to builder as member being conveyance deed is not yet received by society. Please advice if buyer can purchase flat without having share certificate and there is no obligation on the buyer and legal issue later on. Thanks

  13. My society has charged me Rs 5000/- for share certificate. None of the other members yet paid anything for it including Chairman, secratary as well from last 1year. Is it legal?
    Can I take any legal step?

  14. Hi, I need u r help, plz advise me. We second buyer of flat, and the society memeber has made Share Certificate in the previous 1st buyer name at that time society was not form, before society form we already flat purchased still society made share certificate in previous owner. And the second thing is that previous owner has two name means two people and now share certificate transfer to our name only one member will sign on that transfer documents. So my question is to u that , is it legalaised that one member will sign that document but previous owner is two people. Plz help me out as early as possible.

  15. Whether share certificate is to be issued in the name of the original buyer from the builder irrespective of the fact that the society was formed later and transfer took place before that.

  16. Share certificate doesnt have name of 1st Owner since society was not formed at that time. 2nd Owner name is there. Is it ok?

  17. In our society a deceased member had laminated the share certificate when he was live & at the time of transfer of flat in the name of his nominee, how the society can enter the names of the transferee names.

  18. Sir i have Flat in Residential Apartment We both Husband & Wife r Common name on sale Deed First owner is Wife & Second Owner is Me then can i Take Societies Share Certificate on My Name (i become a active member in Management Committee)

  19. I have purchased a flat and seller has given me possession letter and we got registered sale agreement and accordingly both of us submitted flat transfer documents and paid fee to society society has given me noc but now society is notmaking me member and not issuing me sharecertificate as share certificate flat seller has mortgaged with deflation bank and society has given me noc stating that society has no objection that seller can sell the flat to me pl advise me how can I get share certificates and membership my mob no 9969228830 and my email [email protected] pl provide me suggestion iam ihave filed my case in Bandra society rehabilation court pl advice how can I plead with registrar for membership as iam paying maintenance charges in my name and society is issuing bill against flat against my name

  20. Sir My Society has issued 10% share to 1 BHK, 2 BHK, 3 BHK for each flat owner.
    My Enquiry is if area of flat, cost of flat , maintenance of flat every things are different then why share in property will be same 10% for each flat owner.

  21. Hi I ashish Shah my society issued share certificate & mention flat number but its not match with sale agreement with builder is legal or not & it’s not legal then what is punishment for that & member have right to fight with committee member on legal base for issue of wrong mention flat number on share certificate..

  22. माज़्या मिस्टरचा नावे रूम आहे त्याचे nomination सासू चा नावे आहे कायदेशीर वारस मी व माजी मुलगी आहे मजा मिस्टर ची death 25.11.2019 ला ज़ाली आहे तर सोसाइटी मधे शेअर certificate साठी काही objection घेता ये ईल का ?

  23. My mother owns 2 flats in same society. Will she be entitled to 2 separate share certificates or only one.

  24. Hi,

    I need to request my the co-operative housing society of my mother’s apartment in Thane, Maharashtra to transfer the flat as well as society share certificates in my name. I live in Bangalore. What is the procedure and the society has not approached me for this so far? How can I initiate it and what documentation do I need to provide?

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