Once the project of building or buildings is completed and units are handed over to the respective purchaser; it is necessary to transfer the total ownership of the land to a common body, constituted by the unit holders. Usually the promoter or a builder is supposed to execute the final conveyance of the land title in the name of the common body.
As per the Maharashtra state ownership flat act, a legally consolidated body of the members of that buildings is required to be formed.
Such a common body can be formed as apartment or as a co-operative society. Usually co-operative societies are preferred over apartments.
To form a co-operative society minimum 7 to 11 members are required. A procedure to form a co-operative society of unit holders is as follows:-
- The builder initiates the process as the chief promoter alongwith the proposed members of the society.
- The chief promoter shall submit an application to the registrar of co-operative societies of the respective jurisdiction with following documents.
- Title search report of land
- N.A. order
- U.L.C. order
- 7/12 extract
- Power of attorney or land purchase agreement
- Y form and Z form
- Commencement certificate
- Completion certificate
- Approved Drawings set
- List of members
- Bye- laws book duly signed by proposed members
- Four alternative suggestive names for the societies.
- After scrutinizing the application and the documents the Registrar of the co-operatives issue the Registration certificate mentioning the Registration number and the name of the society.
- Alongwith this registration certificate the Registrar issues the permission to open a bank account in district center co-operative bank for depositing the share amount collected from members.
- After collecting the share certificate amount in the bank, share certificates are issued in the proportion of five numbers per members.
- At this stage, the First Annual General Body Meeting is organized for electing the Managing Committee members; chairman, secretary and treasurer are elected from this Managing committee.
- In case, if a builder is chief promoter of society; he can withdraw from the society after completing the above formalities.
- The final conveyance of the land title is now executed between the builder and the legally formed co-operative society