Property rights and membership rights need not go together

My wife wants to be a joint member of the society along with me in respect of my flat in a CHS.  This flat is mortgaged with my employer. Do I need permission to do so? What is the difference between associate membership and joint membership in terms of ownership rights? Can the society raise any objection for admitting my wife as an associate member? My sister’s husband recently passed away without making nomination in favour my sister in his landed property. They have a plot and bungalow in Thane and society is formed for all these bungalows. What is the best course to get this property transferred in the name of my sister without much legal hurdles? — Sanjeev Aras 
Your wife can certainly become an associate member along with you in the co-operative housing society (CHS) in which you own a flat. The procedure for acquiring associate membership in a CHS would include submission of an application with prescribed fee of Rs10 or Rs100 depending upon bye laws of your society. Also, enclose share certificate in original for the purposes of endorsement of the name of your wife on the reverse thereof.
Since your flat has been mortgaged, the share certificate would be in custody of the lender. In all fairness, the lender should not mind adding your wife’s name in the share certificate, as ultimately an associate membership confers no property rights and it only entitles the associate member to attend, participate, vote at the general body meetings and be a part of the committee of the society but all these rights are at your consent and at your pleasure.

However, the society will be justified in taking a stand that unless the lender consents, the society will not effect any changes in the share certificate. By adding your wife as an associate member she would not be a party to property rights in respect of your flat. If your wife contributes for acquisition of flat or if you release your property rights partly in favour of your wife in that case she would become a joint owner also of the property and that will be the case of joint membership. However, even by becoming joint owner and joint member, her membership rights would not increase beyond those of an associate member as stated herein before. To get title of the bungalow in her name, your sister would have to obtain a succession certificate from a competent court. However, at the time of death, if your brother-in-law was already a member of the society but had not filed a nomination, then the model bye laws permit transmission of name from the deceased to your sister with consent of other legal heirs, on your sister executing an indemnity bond and affidavit and on satisfying the society that your sister is the only legal heir or that all other legal heirs have consented to her membership.

However, please note that the society granting your sister membership in place of your deceased brother-in-law does not necessarily mean transmission of property in her favour. Property rights and membership rights do not go together always.

The writer is a chartered accountant and can be reached at ghiatarun@rediffmail.com