𝐂𝐨𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐯𝐞 𝐇𝐨𝐮𝐬𝐢𝐧𝐠 𝐒𝐨𝐜𝐢𝐞𝐭𝐲: Origin, Types, Merits & Advantages

“Let’s buy a new home in Sector 57 of Gurugram”. While this is hypothetical, it carries a deep essence and a broader dream. We all dream of owning a home and having control over our living environment is a checklist coming true. But this economy with high inflation can have you parting away with a sizable chunk from your pockets, which is definitely a big NO!

A cooperative housing society is an ideal option in that case. A cooperative society presents an exclusive way of living that is a budget-friendly and community-oriented housing option. 

In this piece, you are going to delve deep, gather valuable information regarding a cooperative housing society, its types, characteristics and gauge its suitability for you.

So, without further ado. Let’s dive right into it! 

What Do You Mean by a Cooperative Housing Society?

A cooperative housing society or simply a cooperative society is when a group of people decide to invest their funds in a land piece for construction of a housing society. This, in turn, becomes profitable for members allowing them to have affordable housing. The housing cooperative society uproars as a better option as it provides full control, a better way of living and is community-oriented to its members. Each of the members are allotted flats in the society. 

Features of a Cooperative Society

Some of the crucial features of cooperative group housing society are mentioned below:-

• Unbiased Participation:- Anyone who is having the same orientation or thought of having a controlled and sophisticated housing can invest in a land piece for the construction of a cooperative society.
• Combined Ownership:- Everyone who invests in the construction of cooperative housing society is a joint owner and in turn, has ownership of flat(s) in the society.
• Budget-friendly:- A housing cooperative society presents everyone with a golden opportunity of owning a beautiful home but having control over the budget. 
• Self-governed Leadership:- As each of the investor/ member has ownership right, so any decision regarding any welfare or extra activity about or within the society takes place with equal voting rights allotted to everyone.
• Answerability is restrictive:- All the members have ownership rights, thus they are not answerable to any kind of debt.

What Are the Objectives of a Cooperative Housing Society

A cooperative housing society is democratically community-oriented and exclusively supports each of its members. Some of the major objectives of cooperative societies are mentioned below:-

• A cooperative society is a healthy-environment where like-minded people collaborate and thrive equally like a family keeping everyone’s benefit above all.
• The maintenance facility of a housing society is completely ensured.
• The cooperative society converts everyone’s living style into a sustainable lifestyle making it more worthy and healthy.
• Each member of the cooperative society is given financial support through loans for the construction of the society or any additional structure with the premises.

What Are the Different Types of Housing Societies

There are mainly four types of housing societies briefly explained below:-

• Housing Cooperatives Based on Tenant Ownership

In housing cooperatives where tenants have possession, the organisation either has a leasehold or a freehold interest in the land. The participants are regarded as land leaseholders and home owners. The rules for transferring the property’s ownership and subletting must be followed, even though they are free to build their homes whatever they like.

• Housing Cooperatives Based on Tenant Co-partnership

The cooperative society, also referred to as flat owner societies, is the legal owner of both the building and the land, either freehold or under a lease. Members receive occupation rights after paying the necessary down payment and the monthly rent.

• House Construction Societies

The housing society, also referred to as a house construction society, builds homes on behalf of its members. After they are built, the residences are given to the family members, and the building costs are paid back through loans.

• Housing Mortgage Societies

The housing societies included in this programme function similarly to credit societies. They provide members with loans of money to build homes, and the owners are in charge of organising the building.

How to Register a Cooperative Housing Society?

A Cooperative housing society is registered under the Cooperatives Societies Act, 1912. The steps to do so are mentioned below:

• The application has to first be authorised for registration of the cooperative society by passing a cooperative resolution. In order to pass the resolution, all the proposed members must gather together and elect a promoter. 
• The second step involves reserving a name for the society. For the housing society’s name to be reserved, the cooperative must submit an application along with two other choices. A minimum of 10 members of the housing society must sign the application in order for it to be accepted. After a name has been chosen, a reservation request must be submitted together with the required cost. A reserved name is good for three months.
• The third step is to fill out the application for registration. The mandatory focus is that the name of society must have “limited(ltd.)” in the end, as it reflects the limited liability of the society.
• The fourth step is to open a bank account in the name of the housing society with the deposited capital amount.
• Any extra information or explanation must be sent to the registrar of state within the allotted time frame following the successful registration of the housing society application.
• The government will issue a certificate of incorporation two months after the registration application has been submitted successfully. As evidence of incorporation and registration, this certificate will be used.
• Within one month of the refusal, the registrar must receive an appeal if the registration is rejected.

Don’t miss It!

Documents Required for Registration of the Housing Society

The documents required for registration of the housing society are mentioned below:-

• Application for registration
• Four copies of the application form, each of which must bear the signatures of at least 90% of the promoter members.
• Each and every certificate and statement of bank accounts
• Details of the Promoter member
• A description of how society works
• Copies of the suggested bylaws for the good of society
• Account statement of Form D
• Payment proof of registration charges
• Whatever other paperwork the registrar requires
• Title Clearance Certificate created by an Advocate
• Certificate of non-agricultural land from the authority
• Application of the Land Ceiling Act Order
• The layout of the construction must be approved
• Report of Title search
• Sanction letter
• Construction completion certificate
• A development agreement
• Landlord’s Power of Attorney
• Documents pertaining to stamp duty and registration fees
• Certificate of Architect
• Society’s members
• There must be at least ten members present to register the society.
• Letter of guarantee if the government grants the land
• If the land is held in trust, no objection certificates (NOC) are required.
• Certificate for non-agricultural plots
• Registering a society on Form A
• Form B having details of the society
• Details of the members on Form-C

What Makes a Housing Society Preferable?

There are some key takeaways which will make a housing society more attractive and preferable:-

• Investments are safer:- It is safe and secure to invest in a housing society. These housing cooperative societies are trustworthy since they are separate legal entities with independent sources of support. Laws also control how the housing cooperatives are run. Members of the housing society are free to stay in their homes for as long as they choose without the interference or intervention of any landlord. They will continue to profit from the apartment even after they leave by leasing or renting it. 
• Budget-friendly:- Housing societies are run by its members, and because the price of the services and amenities are shared by everyone, they are far more affordable. A housing society offers down payments that are more affordable than independent ownership, longer mortgage terms, and cheaper pre-closure fees.
• Superior amenities and services:- As the majority of the members live there, they have a sense of ownership over the property and take better care of it. Members’ needs are met, and they are able to express their thoughts in a secure setting.
• Equivalent accountability:- Each member of the housing society is assigned a portion of the organisation’s duties. Maintenance, insurance, repairs, and replacements are handled by the cooperative society. The maintenance fees for the services supplied by the housing society are the responsibility of the members. In the event that the society is redeveloped, the members also have a right to express their ideas. The maintenance fees and other overhead costs are all distributed equally.

Democracy:- Every member of a housing society is an equal shareholder with the same advantages and rights, and the organisation functions as a democracy. The office holders, who run the organisation, are chosen via a fair election procedure.

FAQ’s about Cooperative Housing Society