Gujarat Caps Housing Transfer Fees

Gujarat Assembly approved Related Housing Society Transfer Fee Bill

The Gujarat Assembly is moving an amendment to the Gujarat Manufactured Flats (Amendment) Bill, 2022 to limit transfer fees collected by housing societies. Such an instrument outlines how home buyers should be saved from indefinite demands of the authorities.

Key Highlights:

• The new amendment Bill has stipulated that a Resident Welfare Association (RWA) can charge not more than ₹25,000 in case of transfer of the property (with itself as the transferee).

• It further puts the transfer fee ceiling per square feet of rights assessed at ₹100.

• Therefore, transfer charges will not be more than ₹25,000 or ₹100 per sq ft, therefore the lower of the two.

• The act of the bill chiefly bans any kind of extra fees imposed other than the prescribed transfer fee.

• It means that the number of transfer fees earned will be updated by the housing estate.

• The details are to be illustrated in the society article or the website.

• The transfer fee should be received by the society to enable the transferred member to validate they fully paid up the entrance fee.

• The bill is able to create inbuilt system control towards the societies’ dispute between an overcharge and the consumer.

According to the Gujarat government, the enforcement of cap on transfer charges would make societies benefit from reasonable (transparent) transfer fee copying. It would be equally vital as it would ensure that during the process of acquisition of property, citizens would not be paying exorbitant charges. Then some of the housing neighbourhoods sat down against this idea stating that the way they do this violates their rights and revenue. Nevertheless, it remains difficult to anticipate until the Governor signs the bill in the bill year. However, it is a positive step that will help to make the system of regulations of housing societies better as well as to protect the interests of home buyers.