Share Certificate In Housing Society & Its Importance

What Is A Share Certificate?

A housing share certificate or society share certificate is a legal document that is provided by a housing society to certain members to authorize them as registered owners of the housing society. The Share Certificate In Housing Society is given to the member without any charge.  

Importance Of Share Certificate

A share certificate in a housing society or property share certificate is important because it works as legal proof of transferring cooperative housing society shares to a member. 

The member will become the rightful owner of the shares. However, it is important to note that the managing committee should issue the share certificate to a member only after due diligence. 

The regulations governing society share certificates state that, during the process of transfer, the share certificates must be issued to the transferee within one month of the Company receiving the document of transfer.

Checklist For Issuing Share Certificate

• The member must pick up the society share certificate in person.
• The member’s property must be relieved of liens.
• The society should have custody of the builder’s conveyance deed.
• A housing society’s share certificates must be issued by the secretary and approved by the committee after being signed by the chairman, secretary, and one member of the committee and bearing the society’s seal.
• The names should be written exactly as they appear on the sale agreement between the builder and the member, including the order of names.
• The member is responsible for filing the necessary paperwork, paying any arrears owed to the society, and protecting the society from any debts incurred in its name.
• The members must give the society an indemnity bond certifying that they did not assign the share certificate to anyone else or create a charge or mortgage in favour of a bank, employer, financial institution, or another individual.
• The original selling contract must be provided by the member before they can pick up their share certificate.

Share Certificate Format For The Housing Society

The share certificate for the housing society will include information about the name of the owner, authorised share capital, the name of the housing society, the date on which the shares were given, etc. 

Check The Share Certificate Format For The Housing Society

Request Letter To Society For Share Certificate

 To,

The Managing Committee,

_________ (Name/ RWA),

_________ (Address)

Date: __/__/____ (Date)

Subject: Request for share certificate

Respected Sir/Madam,

Most humbly, my name is ________ (Name) and I am a resident of _________ (Address). I am writing this letter to request a share certificate.

Respected, I bought a flat/ house bearing flat/ house number _________ (Flat number/ House number) and for which I was supposed to receive a share certificate.

I request you to kindly issue the certificate at the earliest. I shall be highly obliged.

Thank you,

_________ (Signature)

_________ (Name)

_________ (Contact Number)

Letter Format For Change Of Name In The Society Share Certificate

The letter format for the change of name in the society share certificate is provided in the document below. 

It is important to note that the shareholder who is requesting the name change must be a registered member of the society where they hold share(s). 

Check The Letter Format For a Change Of Name In The Society Share Certificate

Transferring Share Certificate In Case Of Resale

If a registered owner wants to transfer the share certificate, then all the paperwork and other important requirements should be completed on time. 

The new member will pay the transfer premium. However, it is to be ensured that the previous owner has cleared all the dues. 

During the process of resale, the actual owner will have to present the original share certificate provided by the society along with other required documents. 

Suppose the share certificate is being transferred to a new member after being sold. In that case, all paperwork, including the necessary transfer of shares processes, must be completed before transferring the share certificate.

When the ownership of the shares is transferred to another individual, the new member is required to pay the transfer premium and provide any applications or documentation requested by the society. 

It is also necessary to confirm that the previous member has no outstanding dues. 

If the original member passes away, the heirs must request a share transfer to the nominee and the issue of a new share certificate of the society within six months after the death.

When all the arrears are paid, and the documents submitted are in proper condition, then the share certificate will be issued within the provided timeframe after the allotment of the actual share. 

However, if the share certificate is not issued within the provided time, then the member has the right to file a case against the society. 

Issuing A Housing Society Duplicate Share Certificate

It is always advisable to keep the original housing certificate in proper condition because the process of issuing a duplicate housing society share certificate is not convenient. 

However, if your original certificate is soiled, misplaced, stolen, destroyed or lost, then you can apply for a duplicate housing society share certificate.  

You can follow the below procedure for the same to ask your housing society to issue a duplicate share certificate. 

Step 1: Report the loss, theft, or misplacement of the original share certificate by filing an FIR with the nearest police station. Retain the FIR document that the police have acknowledged receiving. File FIR on loss.

Step 2: Send a formal request application to the society seeking the issuance of a duplicate share certificate, saying that the original has been lost, misplaced, stolen, or otherwise rendered untraceable. Include the FIR’s recognized copy with your application as well. Apply for a duplicate share certificate.

Step 3: Send the society a Rs 200 indemnification bond, holding it secured from any expenses or consequences resulting from the issuance of a duplicate share certificate. Along with the application and a copy of the FIR, the indemnity bond needs to be properly notarized and attached. Send Rs 200 indemnification bond to the society.

Step 4: The application is presented to the managing committee at the following general body meeting after the society receives it. The society reviews the application and any supporting documents at the same meeting and grants the request for a duplicate share certificate. Review of application & documents.

Step 5: Then the society will put a notice on their notice board and also in two local newspapers regarding the issuance of duplicate share certificates. Notice and advertisement on the issuance. 

Step 6: The society will wait for 15 days for any objection from the notice board and advertisement in the newspaper. Wait for 15 days.

Step 7: The society gives the member a duplicate share certificate if there are no objections raised. The member is responsible for covering the expense of publishing notices in newspapers. Final issuance of duplicate share certificate.

Download The Format Of A Housing Society Duplicate Share Certificate

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