A Co operative Group housing society is basically a group of people interested to make a property and then go ahead to register that society. The main features if CGHS property are :
- The group housing society elects office bearers like head and management of society.
- The members of the society pool in the capital and then distribute share certificates among members.
- The society applies for land to Development Authority like DDA in Delhi.
- The development authority allows the land based on land availability and seniority of application.
- After the land allotment the society appoints an Architect and contractor for construction.
- The society after that applies for a completion and occupancy certificate.
- After the necessary certificates are issued a lottery is taken out for distribution of flats.
- Then the society gives allotment letters and possession letters to the members.
- The society basically remains the main owner of the land but the flat ownership rights remain with the members and the rights are also transferable.
How To Buy A CGHS Flat and The Steps Involved :
Step 1 : Due Diligence And Document Check :
- Check the exact Built Up Area Of The flat like Sale Deed, Property Tax Receipts etc.
- The property should be clear title and free from encumbrances through registered sale deed, conveyance deed, share certificate, society agreement or possession/occupancy certificate.
- Check the complete chain of documents.
- Check for No dues and NOC from society which you need to collect from the owner.
- No dues and list of documents from the Bank if the owner of the flat has taken a loan.
- Always take the previous maintenance and property tax receipts.
Step 2 : Negotiation And Agreement For Sale
- Negotiate with the owner the right price
- You will need to pay an advance to the owner which is generally 10 percent of the agreed price.
- Agreement For Sale will be made which will have the detailed terms, the agreed price, the agreed default penalties, payment schedule, etc.
Step 3 : Sale Deed Registration
After you complete the payment within 2-3 months you will need to Register the Sale Deed at the Sub Registrars Office after the payment of stamp duty and Registration charges.
Step 4 : Membership Transfer
This is an additional step in case of a CGHS flat where you will need to submit an application along with the Sale deed copy and the membership fees and get the share certificate in your name.
Step 5 : Name Change In Municipal Records
This is basically for the purpose of property tax that you need to get the flat on your name and is a simple process.