AHMEDABAD: Selling or inheriting a home in a housing society in Gujarat will now be more transparent and cost-effective, as the state govt has capped transfer fees and banned extra charges.
A year after the Gujarat Co-operative Societies (Amendment) Bill, 2024 was passed, the Gujarat govt notified rules for maximum transfer fees for housing societies and banned development charges. As per the new rules notified, the transfer fee is capped at 0.5% of the consideration value or Rs 1 lakh, whichever is less. The rules also barred societies from demanding development charges, donations or contribution to any other funds from new members.
The move aims to prevent housing societies from imposing arbitrary levies on property transfers, a common grievance among homebuyers and sellers.
According to the Gujarat Co-operative Societies (Amendment) Rules, 2025 notified in the gazette notification published on Thursday, the transfer fee in case of housing or housing service co-operative societies has been capped at Rs 1 lakh. “The housing or housing service co-operative society, subject to the provisions of the bylaws, shall not collect a transfer fee more than the rate exceeding 0.5% of the consideration value of the transferred property or Rs 1 lakh, whichever is less.”
In cases where a property is being transferred to a legal heir without financial consideration, no transfer fee will be applicable, the notification stated.
The rules also ban collection of any additional amount under development charges. “No additional amount towards development charges, donation, or contribution to any other funds or under any other pretext shall be recovered from the transferor or transferee at the time of transfer.”
The Gujarat Co-operative Societies (Amendment) Bill, 2024, was passed on Feb 29 last year. Minister of State for Cooperation Jagdish Vishwakarma had said that there was no specific provision about the transfer fee collected by societies from the new owner of a residential unit.
“Every year, 1,500 new housing societies are registered under this Act. In the absence of a provision, the management of a society collects transfer fees from the new owner as per their discretion. The transfer fee at times goes up to several lakh rupees and the society forces the new owner to pay it,” he said in the House.
“That is why we are inserting a new provision which will empower the govt to frame specific rules for the fixation of transfer fee. Once this amended Act comes into force, the chairman or secretary of a society will not be able to collect transfer fees in an arbitrary manner,” he added.
Real estate experts and homebuyers have welcomed the move, calling it a much-needed reform. “For years, societies exploited loopholes to extract hefty fees. This regulation will protect homeowners and make the process more transparent,” said a real estate consultant.
