Mumbai: New family arrangement law to simplify flat ownership transfers

Family Arrangement a term introduced in the Maharashtra State Cooperative Societies MSCS Act 2019 will provide a faster remedy for transferring the share rights title and interest in a flat when the original member expire intestate without leaving a will and this will avoid the ageold practice of approaching the court to claim testamentary rights which usually takes anywhere between six months to few yearsHousing experts have informed and made suggestions to the state authorities to incorporate the process of family arrangements in the yettobepassed MSCS Rules and its bylawsmidday in its article titled lsquoNeed clarity on ownership rights in CHSrsquo highlighted State Housing Federations calls for an explanation in housing society rules pertaining to nomination to clear misconceptionEarlier practiceAdvocate Shreeprasad Parab expert director Maharashtra State Housing FederationldquoBefore the insertion of the new chapter of housing societies upon the death of the member the person named in the nomination form was admitted as a nominee member who holds the flat in lsquoTrustrsquo till all the legal heirs are brought on record as per the testamentary documents succession certificate or legal heirship certificate from the court of competent jurisdictionrdquo said Advocate Shreeprasad Parab expert director Maharashtra State Housing FederationThe New Housing Chapter XIIIB which was inserted in the amended MSCS Act of 2019 under Section 154 B has provided a separate provision for the transfer of share right title and interest in the property of the deceased memberWhat is Family ArrangementldquoThe term Family Arrangement can be explained by first defining what is Family ie family means a person related to each other by blood law or affinity and thus the term Family Arrangement is an agreement that is made by the members of the family to distribute the property in the manner other than what is provided in the existing lawrdquo said ParabProvisional memberldquoOn the death of the member the nominees shall apply to the society along with the death certificate within six months of the death of the member for the provisional membership of the society If there is more than one nominee they shall make a joint application to the society and indicate the name of the nominee who should be enrolled as a provisional member of the society If no person has been nominated then the society shall admit such a person as a provisional memberrdquo said ParabIn case of sole legal heirldquoIf there is a sole legal heir as per the personal succession laws then there is no family left out to execute the agreement therefore such sole legal heir has to proceed with the other three remedies earlier practice such as testamentary documents succession certificate or legal heirship certificaterdquo said ParabMandatory registrationWhen asked whether Family Arrangements need to be Registered Parab said ldquoIn Cooperative Housing Society if the share right title and interest is transferred through a deed named as Family Arrangement then such deed shall be executed and registered under the provisions of the Registration Act 1908rdquoLandmark judgementCiting a recent landmark judgement CA Ramesh Prabhu founder chairman of Maharashtra Societies Welfare Association MahaSEWA said ldquoIn a recent landmark judgment of the Bombay High Court in the case of Ms Bima Nagar Cooperative Housing Society vs The Divisional Joint Registrar CoOperative Soc And Ors the Honble Court has held that as per Section 154B13 of the MSCS Act of 2019 a release deed executed between the legal heirs is considered as ldquoFamily Arrangementsrdquo This ruling has clarified the process of membership transfer in housing societies under Section 154B13 of the Maharashtra Cooperative Societies Act in the case of a members demise by executing the Release deedrdquo