Gujarat Fixes Transfer Fee For 30,000 Co-Op Housing Societies

With no clear legal restrictions, societies freely imposed hefty charges, turning a routine transaction into a nightmare for buyers. Complaints poured in, with homeowners expressing frustration over arbitrary fees and unfair practices.

Recognising the widespread distress, Cooperation Minister Jagdish Vishwakarma spearheaded a major reform. In 2024, the Gujarat government amended the Cooperative Act, setting clear and strict guidelines for transfer fees.

Half Percent Rule

Under the new rules, societies can charge no more than 0.5 per cent of the total transaction value, with an upper limit of ₹1 lakh. The law also explicitly bans additional charges under deceptive labels such as ‘development fees’ or ‘donations.’

Moreover, a crucial relief has been introduced — properties transferred to legal heirs will no longer attract any transfer fee, ensuring that families do not face unnecessary financial strain during inheritance.

This reform isn’t just about financial relief — it’s about fairness, transparency, and accountability. By setting a legal ceiling on transfer fees, the state government has taken a strong stance against arbitrary charges, ensuring that homebuyers are no longer at the mercy of society committees.

The decision is already being hailed as a much-needed step in bringing order to Gujarat’s housing sector. With lakhs of members set to benefit, this move reaffirms the government’s commitment to protecting homebuyers and fostering a more transparent real estate ecosystem.

The message is clear: Gujarat’s homebuyers finally have a fair playing field, and societies must now follow the rules — no more hidden costs, no more unfair demands.