Sir, if committee member having real estate office in navi mumbai, Maharashtra, I like to know as a committee member can do real estate business of the flat buy or sell dealing of the same bldg flats, where he is a committee member.
I C Naik
Business done by a member of the management committee of a housing society is adversely affected to some extent in view a Bye Law as stated below:
117 “No Officer of the Society shall have any interest, directly or indirectly, otherwise than as such officer: ( a ) In any contract made with the Society.( b ) In any property sold or purchased by the Society. ( c ) In any other transaction of the Society, except as investment made in or loan taken from the Society for provision of residential accommodation by the Society to any paid employee of the Society.”
Although technically (and de jure) entire property of the housing society belong to the Society. So when a flat of the Society is sold technically (indirectly) any brokerage received by a member of Committee has come from the Society. But most of the people miss the true understanding of the transaction, when a member sells his flat. As we all know, the Committee has to approve every sale as required under bye-laws. Lets have a re-look at this Bye Law No 40(a) A member, desiring to transfer his shares and interest in the Capital/Property of the society, shall give 15 days’ notice of his intention to do so to the Secretary of the society in the prescribed form, along with the consent of the proposed transferee in the prescribed form.
When a member sells his flat what he does is “transfer his shares and interest in the Capital/Property of the society” The flat’s ownership is intact, but the present member’s interest changes hands and you get the brokerage for transfer of member’s shares and interest in the Capital/Property of the society” Brokerage is also under an unwritten customery service contract which is deemed to be there between Seller and his broker and Purchaser and his broker the Housing society is no where in the picture so above Bye Law No 117 is not violated.