Legal Question in Real Estate Law in India

Sale of property in a Housing society

I own a flat in housing society which was formed by employees of my previous employer (a PSU). At the time of inception of this society, a clause was inserted in the constitution prohibiting sale of property to anyone who was not an employee of the organisation (the PSU). in the last 8 years, quite a bfew owners have changed jobs. Hence the members list has employees and non-employees as on date. However, the prohibitory clause is still in force. This is not allowing owners to sell their property at even 50% of market rates, since buyers are few ( because of the restriction) and their low salaries do not allow them to take up big home loans. Need to know:- Is it legal to prohibit owner of a flat from selling his own property at market rate by creating such bottlenecks and through such clauses?


Asked on 6/10/07, 4:40 am

3 Answers from Attorneys

Shrichand Nahar S.V.Nahar, Advocate

Re: Sale of property in a Housing society

In case of a housing society, owner of land with building, including all the flats therein is that housing society and a member has only right of use and occupation thereof. If you and other members of the society can convience other members to change this bye-law restricting membership only to the employee of a particular PSU, then only transfer is possible. Please also check whether this society got the land from Govt. and if so, whether similar restriction is also imposed by Govt while giving the land. In that case, the society is required to apply to and obtain relaxation of condition from Govt.

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Answered on 6/11/07, 1:26 am
Vivek Mapara Mapara Law Firm

Re: Sale of property in a Housing society

Generally there could not be any restriction on tranfer and alienation on immovable property.

In case of housing society, term and conditions for allotment bye laws etc. are required to be seen.

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Answered on 6/11/07, 9:28 am

Re: Sale of property in a Housing society

Being absolute owner you have every right to sell the property as per your wishes,hence, any clause resticting your right as owner is illegal.

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Answered on 6/10/07, 1:15 pm


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