Buying a home is not a piece of cake. You have to go through a lot of documentation process before and after buying the property. From the sale deed to the share certificate, you have to secure all your documents to prove that you are the legal and rightful owner of the property. Therefore, today we will be discussing one such legal document, which is a share certificate.
What is a share certificate?
The share certificate is an important legal document that establishes the owner's ownership of the society's shares. It is issued within six months to all the members of the housing society, with the total authorised share capital confirmed by the registrar. The housing society is responsible for providing each homebuyer with a free share certificate. This share certificate consists of the details of the member and the number of shares they own. According to the model byelaws of the state, the share certificate has a unique number.
Why do you need a share certificate?
A share certificate is an essential document among the slew of legal documents that you must obtain within six months of taking possession. It is legal evidence that you are the rightful owner of the cooperative housing society. While the sale deed and share certificate look similar, there is a thin line between the two. The sale deed makes you the legal owner of the property, while the share certificate makes you the rightful owner of the property. The managing committee is the authorised authority to issue the certificates with due diligence. The share certificate usually has the society stamp with the secretary’s signature.
Transfer of share certificate
The process to transfer the share certificate is followed either on selling the property or on demise of the property owner. If you are selling your property, you need to transfer your shares to the person taking over. However, in the event of the death of the property owner, the property will be transferred to the nominee. The process to transfer the share certificate should be initiated within six months, while in the case of selling, it should be transferred within one month of receipt of the instrument of transfer. The cooperative housing society should be informed of this for their records. You may also have to pay a premium while serving fifteen days of notice. There should not be any mistake in the share certificate, especially about the name of the owner. Nowadays, real estate brokers take care of these things on behalf of the seller and the buyer of the property.
Can I obtain a duplicate share certificate?
Like any other document, you can obtain a duplicate share certificate only if you have lost your original. All you need to do is file an FIR at the police station, get a copy of the same, attach it, inform the society member about the loss, and make a new request for the issuance of the duplicate share certificate in writing. You also must keep in mind that the indemnity bond of INR 200 must be borne by you for the issuance of a duplicate share certificate.
However, the members of the housing society have the authority to approve or reject the application. Post approval, the housing society will share the information on the noticeboard and may also get it published in the local newspaper. A fifteen-day window is now required to determine if any objections are raised within fifteen days. If no objections are raised, society will process your request and get you a duplicate share certificate at the earliest.
To know more about the homebuying documents, you can read Homebuying Process and Legal Checklist to understand when and why should you obtain the documents from the developer.
