How a Co-operative Housing Society Works
When a builder completes a project and hands it over, the flat owners come together to form a Co-operative Housing Society. The society is registered under the state's Co-operative Societies Act. Once formed, the builder must transfer (convey) the land and building title to the society through the Deemed Conveyance process.
Each flat owner becomes a member of the society and receives a Share Certificate proportional to their flat's share in the common property. The society manages day-to-day operations through an elected Managing Committee.
Share Certificate — Why It Matters
Why Share Certificate is Critical
- Primary proof of society membership and flat ownership
- Required by banks for home loan approval against the flat
- Must be transferred to buyer's name when flat is sold
- Required for society NOC for resale or renting
- Must match name on Sale Deed — any mismatch needs rectification
CHS Charges Explained
| Charge Type | Purpose | Notes |
|---|---|---|
| Maintenance Charges | Monthly building upkeep — security, housekeeping, lifts, common area maintenance | Mandatory for all members |
| Sinking Fund | Long-term capital reserve — major repairs, structural work | Typically 0.25% of flat construction cost per year |
| Repair Fund | Routine building repairs | Separate from maintenance charges in some societies |
| Transfer Charges | On flat resale — charged by society for transferring membership to buyer | Capped by state law (Maharashtra: ₹25,000 max) |
| NOC Charges | For bank loans, letting, or subletting — society issues NOC | Cannot be unreasonably withheld |
Related Terms
Frequently Asked Questions
A Co-operative Housing Society (CHS) is a registered body formed by flat owners in a residential complex to jointly manage common areas, collect maintenance charges, and hold legal title to the land and building. Each flat owner becomes a member and receives a Share Certificate. The society is governed by an elected Managing Committee.
A Share Certificate is issued by the housing society to each flat owner, confirming their membership in the society. It specifies the flat number and share value. It is a critical ownership document — required by banks for home loans, needed for sale or transfer of flat, and necessary to get NOC from society. Losing it requires a formal duplicate certificate process.
Deemed Conveyance is the legal process by which the land and building title is transferred from the builder to the registered housing society. In Maharashtra, if the builder delays conveyance, the society can apply to the competent authority for deemed conveyance. Without conveyance, the society does not have clear legal title to the land.
A society cannot unreasonably withhold NOC for sale of a flat. However, they can withhold NOC if there are unpaid maintenance dues, pending legal matters relating to the flat, or violations of society bylaws. Clear all dues and resolve any pending matters before initiating a flat sale — society NOC is essential for smooth property registration.
A housing society is managed by an elected Managing Committee — typically comprising a Chairman, Secretary, and Treasurer, plus committee members. Elections are held every 5 years (or as per state rules). The committee manages day-to-day operations, collects maintenance, approves accounts, and represents the society in legal and government matters.