Society transfer, NOC and maintenance dues

Legal & RERA · 5 min read · Reviewed February 2026

When a flat in a registered society changes hands, the society records the transfer: it issues a no-dues certificate and a transfer NOC, collects its transfer fee under its bye-laws, and updates membership and the share certificate. Outstanding maintenance and special levies typically attach to the flat, so a buyer should verify dues in writing before paying.

The documents that matter

The no-dues certificate confirms nothing is outstanding as of a date. The transfer NOC confirms the society has no objection to the transfer. Where share certificates are used, the endorsement in the buyer's name is the record of membership.

  • No-dues certificate dated close to the handover.
  • Transfer NOC addressed to the buyer.
  • Share certificate endorsement or membership record update.
  • Copy of the bye-laws and the latest AGM minutes for planned levies.

Charges you should ask about

Beyond monthly maintenance there is usually a sinking fund for major repairs, and sometimes a one-time special levy for lifts, painting or plumbing. A levy approved but not yet collected is a real cost to a buyer.

Transfer fees are governed by state co-operative rules and society bye-laws, and can be capped in some states.

What to do when dues are disputed

If the seller disputes an amount, keep the disputed sum in escrow or hold back a matching amount from the final payment until the society issues the no-dues certificate. Do not rely on a promise to settle later.

Frequently asked questions

Can a society refuse to transfer a flat?
It cannot unreasonably block a lawful transfer, but it can withhold the NOC until dues are cleared and its documented process is followed.
Do unpaid dues become the buyer's problem?
In practice yes, because societies pursue the flat and can restrict services. Clear them before or at closing and get it in writing.
What is a sinking fund?
A reserve collected from members for major future repairs and replacements, held by the society rather than refunded to a departing owner.

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