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The Gujarat government has introduced new rules to regulate transfer fees in co-operative housing societies, making property transactions more transparent and affordable. Under the Gujarat Co-operative Societies (Amendment) Rules, 2025, societies cannot charge more than 0.5% of the sale value or INR 1 lakh, whichever is lower. Additional charges like development fees, donations, or contributions to funds are also banned. If a property is inherited, no transfer fee applies. The move addresses concerns over arbitrary charges and aims to protect homebuyers. Experts have welcomed the reform, calling it a crucial step in ensuring fair and transparent property transfers.
Homebuyers in Gujarat have long faced high and arbitrary transfer fees when purchasing or inheriting homes in co-operative housing societies. Many societies charged excessive amounts under various pretexts, including development charges, donations, or contributions to society funds. This led to financial burdens on buyers and sellers, prompting the state government to step in with regulatory measures. Advertisement
The Gujarat government has now officially notified new rules under the Gujarat Co-operative Societies (Amendment) Rules, 2025, which cap transfer fees and ban extra charges in housing societies. This comes a year after the Gujarat Co-operative Societies (Amendment) Bill, 2024 was passed on February 29, 2024.
Under the new rules, the maximum transfer fee a housing society can charge is capped at 0.5% of the property's sale value or INR 1 lakh-whichever is lower. Additionally, societies can no longer demand extra amounts under development charges, donations, or any other contributions from new members.
Previously, there was no fixed limit on transfer fees, allowing societies to charge lakhs of rupees at their discretion. This often became a financial hurdle for homebuyers and sellers. The amendment aims to make the process more transparent and cost-effective by preventing societies from exploiting homeowners.
A key provision in the new rules states that if a property is transferred to a legal heir without any financial transaction, no transfer fee will be applicable. This ensures that inherited properties can be transferred smoothly without unnecessary costs.
Minister of State for Cooperation Jagdish Vishwakarma explained that every year, around 1,500 new housing societies are registered in Gujarat, and the absence of a clear rule allowed societies to impose arbitrary charges. The new law empowers the government to regulate transfer fees and ensures that society management committees cannot impose excessive costs on homeowners.
Real estate experts and homebuyers have welcomed the move, calling it a much-needed reform. Many believe that these regulations will protect homebuyers from unfair fees and make property transactions within housing societies more transparent and affordable. A real estate consultant noted that societies had long taken advantage of legal loopholes to charge hefty amounts, but this new rule will put an end to such practices. With these new measures, the Gujarat government aims to bring fairness to property transfers within co-operative housing societies, benefiting both buyers and sellers.
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