Housing co-operatives are one of the unique and most liked types of housing options across the whole world. With the kind of security and advantages it offers, many are likely to choose them as the primary option for residence.

And on the other side of the table…as the demand for living in these housing co-ops is increasing, so is the number of societies being formed is also on the rise. Now, every lane or street has at least one such society. Do you think forming such societies is necessary? Why do you need to? What does it offer? Answers to all these questions are below.

Pros of forming a co-operative housing society

• It’s less expensive when compared to a condo, many people are likely to choose and move into housing co-ops, therefore increasing the occupancy rate
• Housing co-ops are financially stable, as it offers great returns
• The safest housing option so far, one of the many reasons why a lot of people, especially families move into co-ops
• The responsibilities of maintaining the society are shared among all the members living in the society, hence, no burden on individuals.
• The tax rules aren’t that stringent
• It eliminates the need for any middlemen as everything is handled by the board

Cons of forming a co-operative housing society

• If one of the members withdraws his position, then the whole operations of the society are lagged behind
• If one member of the board doesn’t perform his/her duties then there occur disputes within the board which leads to failure of functioning of the society
• Requires people who are voluntarily interested in managing the society and not for the sake of doing it

Since the pros outweigh the cons, it is evident that forming a housing society is a great choice to think of!

Don’t you know how to form a society? We got it covered for you, below is the procedure for the same.

Procedure to form a co-operative housing society

Listing down a step by step procedure to form a co-operative housing society

Step 1: Initiation of the process

According to the laws, a minimum of 10 members who have the same intention to form a housing society is required to initiate the process.

Step 2: Formation of the provisional committee

Once the group of individuals has the same desire to form a society, the next step is to form the provisional committee. By mutual consent and majority, everyone in the provisional committee has to elect a Chief Promoter for the society.

Step 3: Selecting a name for the society

Once the Chief Promoter is elected, the next step is to select a name for the society they wish to form.

Step 4: Application submission

Once the name is selected, the committee has to then send an application to the Registration Authority which states the intention of forming the society and the name of the society. Once the name is confirmed, the authority then issues a confirmation certificate to the members.

Step 5: Opening a Bank Account

Once the application is approved, the Chief Promoter needs to collect entrance fees and share capital from all the members. Later, a bank account has to be opened on the name of the society the above-mentioned fees have to be deposited. This step has to be completed within 3 months of approval.

Step 6: Apply for registration

Once the bank formalities are done, the application has to be submitted to the registration authority with the following documents

• Four copies of bye-laws and bank balance certificate
• List of promoter members declaring share capital and entrance fees paid by each
• Information about the working of the society
• Declaration form regarding compliance with the laws
• Statement of accounts
• Affidavits and certificates from architect and advocate
• Indemnity binds
• 7/12 extract
• other documents if required

Step 7: Acknowledgement of application

After the submission, the Registrar issues a receipt as a token of acknowledgment and assigns a serial number to it.

Step 8: Verification process

After which the Registrar does a clear verification and decides if the final certificate should be granted to the applicants.

Step 9: Notification of registration

The Registrar then issues a notification of registration in the Government gazette and issues a registration certificate to the Chief Promoter of the society. All this process is completed within 2 months from the date of approval.

Step 10: First general body meeting

After this, the first general body meeting is called to discuss the functioning of society, elect a Chairman, appointing Auditor, etc.

Now the society is all good to go!

A well-run society is a boon to the residents as well as the managing board, creating happier communities and possibly, higher valuations too!