As per existing Bye-laws, the person whose name does not stand first in the share certificate becomes an ‘Associate Member’. In case of death of the person named first in the share certificate, the Associate Member retains the right on his/her flat since his/her name exists in the Sale Deed of the flat as a joint buyer.
In ownership types where survivorship works, it continues until the last surviving owner owns the entire property. When the last surviving owner dies, the title is passed to the ownerÕs heirs.
When flats are bought jointly, the joint owner can make a will bequeathing his/her part of the flat to the other joint owner. Thus, in case of death of anyone of them, the one surviving joint owner will get an absolute right on the jointly owned flat (provided, the due process of the law is followed).
Transmission of flats happens in the following two ways:
When the flat owner has made a nomination before death.
When the flat owner has not made any nomination before death.
The word nominee means a person who holds or acquire right, property or any other kind of liability incurred on behalf of others. Nominee means a trustee. A nominee holds a property on behalf of other legal heirs.
Thus, the simple meaning derived from above proposition is that a nominee cannot be a real owner but, in fact a trustee who has legal control of property that is kept or invested for another person, company or organization.
Reference: Procedure for nomination:
The procedure for nomination by a member of co-operative society is provided in bye laws of the cooperative Housing society, bye law no. 32, which runs as under:
ÒA member of the society may by writing under his hand in the prescribed form, nominate a person or persons to who the whole or part of the shares and /or interest of the members in the capital/property of the society shall be transferred in the event of his/her death.Ó
Further no fees shall be charged for recording the first nomination.
A members may revoke or vary his nomination, at any time, by making an application, in writing under his hand to the to the secretary of the society.
Every nomination made, shall be recorded in register of nomination Òwithin 7 clear daysÕÕ from the date on which resolution to accept the nomination was recorded in minutes of managing committee.
Every fresh nomination shall be changed a fee of Rs100
Transfer of shares/of interest on event of death of member to a nominee:
It is clearly provided in section 30 of the Maharashtra co-operative societies act, 1960 (Act no. XXIV of 1961 Mah) that, on the death of a member of society, the society shall transfer the share or interest of the deceased member to person or persons nominated in accordance with the rules and byelaws.
Analysis of section 30
A nominee comes into picture only on death of the member. The society shall transfer the shares of the deceased member to nominated person.