Sale deed registration must for coop housing society properties in Punjab

All property transfers in Punjab’s cooperative housing societies will now require fresh registration of a sale deed. The state government has barred societies from charging any transfer fee or premium for such sales, except for a fixed Rs 10,000 fee to facilitate record verification.

An amendment to Section 37 of the Punjab Cooperative Societies Act, 1961, has been notified. Under the new rules, every future sale, membership transfer, or change in property possession in any cooperative housing society in the state must be carried out through a registered conveyance deed between buyer and seller.

With 630 cooperative housing societies in Punjab and around 60,000 properties, the government expects immediate additional revenue of up to Rs 200 crore, besides securing a steady future revenue stream.

For the first allottee (of flats or plots), there will be zero stamp duty on the initial allocation. Existing property holders, who have bought property in resale or wish to sell it in the future, will have a 120-day window to register the property in their name, availing 50 per cent rebate on stamp duty and normal registration fee. Stamp duty is 4 per cent for women buyers and 6 per cent for men.

A senior government official told The Tribune, “This is not mandatory for current property holders if they purchased the property in resale, as the amended Act applies prospectively. But those who want clear property title in their name could opt for it. In disputes with societies, a registered title will secure members against being debarred.”

“If property holders do not use the 120-day window, they must first register the property in their name before selling it in the future,” he added.