Maharashtra, India · property

Can a Nominee Sell a Flat in a Housing Society in Maharashtra?

Under Maharashtra law, a nominee does not own the flat and has no legal authority to sell it. A nominee acts solely as a temporary trustee holding the unit until the rightful legal heirs claim it under succession law. If a nominee or cooperative housing society attempts an unauthorized sale, legal heirs can immediately halt the transaction through statutory objections and civil remedies.

The Legal Status of a Nominee Under Maharashtra Law

In Maharashtra, the law is unequivocal: a nominee cannot sell a flat in a cooperative housing society. Following the Maharashtra Co-operative Societies (Amendment) Act, 2019, Section 154B-13 of the Maharashtra Co-operative Societies Act, 1960 governs the transmission of flats upon a member's death. The proviso to Section 154B-13 explicitly states that a society may only admit a nominee as a 'provisional member' until the rightful legal heirs—established under succession law, a will, or an heirship certificate—are formally admitted.

The Supreme Court of India in Indrani Wahi v. Hari Sadhan Pandey (2016) and Shakti Yezdani v. Jayanand Jayant Salgaonkar (2023) affirmed that nomination merely provides an administrative arrangement so the society has a point of contact for dues. Nomination does not alter the general law of succession or confer beneficial ownership. The Bombay High Court reiterated this principle in Ramdas Shivram Sattur v. Rameshchandra (2009), ruling that beneficial ownership rests entirely with the legal heirs, not the nominee.

Why Society Share Certificates Do Not Grant Title to Sell

Managing committees often mislead families by treating a nominee whose name appears on the society share certificate as the absolute owner. This practice violates Model Housing Society Bye-Law 34, which bars a provisional member or trustee nominee from alienating, mortgaging, or creating third-party rights in the flat. The society share certificate records membership for administrative purposes; it is not a title deed.

To pass marketable title to a purchaser, a transfer deed must be executed by all legitimate legal heirs, or supported by a succession certificate, probate of a will, or a registered family settlement deed. If a nominee attempts to sign an agreement for sale without the written concurrence and registered release deeds of all legal heirs, the title remains defective, rendering the sale voidable and subject to cancellation by civil courts.

Protecting Your Inheritance and Halting an Illegal Transfer

When an unauthorized sale is threatened, immediate intervention is essential to prevent third-party buyer rights from complicating the dispute. Housing societies that facilitate an illicit sale or issue a No Objection Certificate (NOC) to a nominee without verifying legal heirs can face disciplinary proceedings before the Deputy Registrar under Section 154B of the Act.

You can lodge formal objections with the society, register a caveat, and approach the competent civil court for an urgent temporary injunction against both the nominee and prospective purchasers. You can use Caunsel to research statutory society bye-laws, organise and store death and succession documents inside a secure case file, or consult an independent property lawyer to serve a legal notice.

Steps

• Issue an immediate written objection and formal dispute notice via registered post to the housing society secretary and managing committee, citing Section 154B-13 of the Maharashtra Co-operative Societies Act, 1960 and warning them against issuing an NOC or transferring shares.
• Submit an application to the jurisdictional Sub-Registrar of Assurances putting them on notice regarding the lack of clear title, requesting that no sale deed, transfer deed, or development agreement executed solely by the nominee be registered.
• File a complaint with the Deputy Registrar of Co-operative Societies if the managing committee ignores your objections, colludes with the nominee, or attempts to endorse the share certificate without proof of heirship.
• Institute a civil suit for declaration and temporary injunction under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure in the competent Civil Court to restrain the nominee from creating any third-party rights, disposing of the flat, or parting with possession.

Common mistakes

• Assuming that having one's name on the society share certificate or electricity bill equates to legal ownership.
• Waiting for the nominee to execute an agreement for sale before lodging formal objections with the housing society and Sub-Registrar.
• Failing to initiate proceedings for a Legal Heirship Certificate under the Bombay Regulation VIII of 1827 or a succession certificate while disputing the nominee's actions.
• Relying solely on verbal warnings to the managing committee instead of delivering formal, documented objections with postal acknowledgment.

Questions people ask

Can a nominee sell the flat if all other legal heirs provide a signed No Objection Certificate (NOC)?

A simple NOC on plain paper or an affidavit is insufficient for real estate transfer. For a nominee to lawfully sell the property, all legal heirs must either execute and register a formal Release Deed/Relinquishment Deed or join as co-executants/confirming parties in the registered sale deed.

What happens if a buyer purchases a flat from a nominee without checking succession documents in Maharashtra?

The buyer acquires a defective title. The excluded legal heirs can file a civil suit for cancellation of the sale deed, recovery of possession, and a declaration of their ownership shares. Prospective buyers who ignore heirship records cannot claim protection as bona fide purchasers.

Can the housing society expel a nominee who attempts to sell the flat?

The society cannot summarily expel the nominee on its own, but under Model Bye-Law 34 and Section 154B-13, the managing committee is legally obligated to reject any transfer or sale application submitted solely by a provisional nominee member without legal heir consent.

General information only, last updated 2026-10-10. Caunsel is not a law firm and does not practise law. AI answers and this guide are not legal advice. Verify filings, deadlines, and statutes with a licensed lawyer in Maharashtra, India.