The apartment owners association plays vital role in maintaining apartment and its amenities. But before the formation of apartment owners association, it is duty of builder to maintain the apartment and its amenities. Most developers provide a corpus fund for maintenance of apartment and its amenities. The builder collects maintenance fund from each buyer which will not be shown in basic sales price of an apartment. The maintenance fund collected from each apartment owners is deposited as corpus fund.
Corpus Fund for apartment maintenance
 |
 |
Corpus fund is also known as maintenance fund. The term “Corpus” literally means main part or organ of body. It is also known as capital of organization. Normally corpus fund or maintenance fund denotes a permanent fund kept for the basic expenditure needed for survival of organization. Corpus fund is generally not allowed to be utilized for the attainment of the purpose but interest or dividend on such fund can be utilized.
An amount of say for example Rs 1.5 lakhs for 2 years will be collected from each Apartment buyer as Building Corpus Fund and the interest earned on this Fund will be utilized for payments to the Facilities Management company. Many mid size builders collect fund to manage the maintenance fund till the society is formed. The Builder shall transfer the corpus fund to the Association after its formation.
Handover from builder
The builder completes project within 24 moths or 2 yrs from the date of booking or allotment of apartment. The buyer pays the apartment price in installment depending on the progress of project. When the contractual obligations of the builder have been completed, buyer will receive a notice of completion and a final payment claim. In case possession of the flat is not offered to the Buyer within a period, the Buyer shall be entitled to receive compensation. In case the Buyer fails to clear his account and take possession of the apartment, the Buyer shall be liable to pay holding charges.
Before handover of the flat, builder has to get completion certificate and No objection certificate from concerned department. The certificate is issued by the municipality only if the project complies with the approved plan. A completion certificate is necessary to register your house, get utility connections and even resell the flat. However, while handing over the possession of the apartment, complete list of fitting & fixture shall be handed over to the Buyer. Once payment has been made the builder will give the client possession together with keys and warranties.
Documents required for handover from builder
Following are important list of documents required for handover from builder to Apartment Owners Association
- Copy of Building plan and approval plan
- NOC from pollution board, electricity, water and fire department
- Completion certificate
- Proof of approved floor plans
- Transfer utility connection (electricity, water connection from builder to apartment owners association)
- Handover of Office room, departmental stores, function hall etc. to the association.
- Handover of original registration documents, parental documents, drawings, CMDA/BBMP or concerned authority approvals etc. to the association.
Apartment owners association
The maintenance will be carried out by the Builders till the formation of Apartment Owners Association. Apartment owner’s association is voluntary association of apartment owners residing in apartment. All the owners of apartment complex are members of the association forming general body. General body elects members by and from general body as Management committee. Management committee represents association before all official and non-official bodies concerning building and other member’s rights and interests.
In many cases, builder keeps all income generating areas with themselves though the flat owners have paid for these areas. The builder has to handover the corpus fund and all common facilities to apartment owners association. The Act gives apartment owners alone the right to generate income from common areas and facilities in apartment. After formation of RWA or apartment owners association, builder has to handover maintenance fund or corpus fund to apartment owners association. Please contribute your knowledge of handling corpus fund at your apartment.
Did you like this Article? Share it with others!Tags: handover from builder after construction, handover from builer, maintenance handover from builder to association, propety handover
What action we can take if Builder has not given accounts for the funds colleced as part of maintenance advance?
Builder has also not given any accounts for the funds collected.
Already the builders have delayed more than 18months for handing over the apartment.What we should do now?
Dear Dattaram Sharma,
In case possession of the flat is not offered to the Buyer within a period, the Buyer shall be entitled to receive compensation.
at the time of booking of flats the told all faclities will be provide very soon like club house , swaning pool, etc but till no deploupment. no good maintence in building .
Any discrepancies relating to money matters not fulfilled by the Builder like rendering accounts for maintenance fund collected, corpus money etc, will tantamount to misappropriation and the best route is to make a criminal complaint. Civil complaint for recovery of money from a builder is something next to impossible. Next is to post blogs on all websites about the affairs of the builder in your complex so that the builder gives some attention to solving such matters.
I must appreciate for giving such type of information to the owners of flats and asociations. Most of the people knows tha th printed agreement signed by the owners and builders is the final and no such changes can be made and its as per the legal ways. Pl note that no single builders are preparing the agreement as per the MOFA ACT. so all the agreements are nul and void. Therefore this type of forum or associations’ moral duties to provide awareness of such type of games play by the builders. I m not blaiming all the builders but only fews are there which we can count by the fingers are good and and they believe to provide good ameneties and good construction. People should come forward and so some works for our members . Once again thanks to common floor to provide such type fof qwreness.
Our builder has collected corpus fund from few buyers and has not mentioned it in any document. When asked he says its not collected as a separate amount and its used for ameneties in the building. Since the corpus fund is not there in any agreement, can we claim for it?
Dear Sir,
Builders usually collects corpus fund for the maintenance of apartment and its amenities until an apartment owners association is formed. After formation of apartment owners association, it is duty of builder to handover the documents and corpus fund to association. Corpus fund collected will not be shown in agreement or sales price of your flat. you cannot claim corpus fund from your builder individually but once apartment owners association is formed for your apartment, association can claim for the same to handover from builder.
Dear Mr. Sundar,
Once the Association formed with the consent of the Builder, subsequently your association can ask for the title related documetns to handover to association formerly and maintanance also been transferred to the Association in th same time after the completion of the all works in the premises as agreed upon
Feel free to call or mail us. if there is any clarifications required
Regards,
Nagendra AS
Advocate
9164001353
nag1250@gmail.com
We at Ahlcon Apartment Resident Welfare Association (AARWA) facing the same problem as faced by Aditya in that”
1. What action we can take if Builder has not given accounts for the funds colleced as part of maintenance advance?
2. Builder has also not given any accounts for the funds collected.
3. Building condition is very bad and there pillars (2 no.s) are badly damaged due to non-maintenance of buidling, and few accidents have also reported due to poor material used in the building.
What we (Association) can do for the above queries. ????
Kuldeep Kr Singh
General Secretary - AARWA
Dear Mr. Kuldeep,
Firstly If you’re paid maintanance charges as advance means there your not able to get the details from the Builder and he was not bound to give the details in case if your paid as deposit along with the supporting Agreement ( Maintainence Agreement) then you can able to get the money
In case your apartment complex damaged within 12 months you can file case against the builder on behalf of the Association in the Consumer Court for seeking the repairs for the same and compensation for the same
Feel free to call or mail us. if there is any clarifications required
Regards,
Nagendra AS
Advocate
9164001353
nag1250@gmail.com
The Builder received the OC of the building in May 2009. He collected 6 months advance maintenance from all owners from 1st July to 31st Dec. He has not kept any corpus fund or left any money. He has submitted accounts for the said period. Now he refuses to maintain the society nor is he handing over the society to the owners, Bills are mounting and we are in a danger of our electric supply and water supply being cut off.
WHAT DO WE DO IN SUCH CIRCUMSTANCES ?
Dear Caesar,
Do you have anything in writing from the builder saying that He will maintain for six months, let us know about the fact briefly so that we can advice in a better way
Feel free to call or mail us. if there is any clarifications required
Regards,
Nagendra AS
Advocate
9164001353
nag1250@gmail.com
As there are 280 flats in our apartment, how many members shall be there in the management committee and what all posts shall be there?
Is anybody a part of the MetroCorp “Nirvana” project, we booked in Oct 2006 and still the project is far from being completed. Any information from any of the home owners will be appreiated as we are not in a position to communicate or go and visit the site for ourself.
Debjani,
you can join the following yahoo group ortem_proc_leela. There are a bunch of other people in the same boat.
Can someone please reply to my queries.
1. Is there a policy on the compensation.. Like min amount per square ft. or max amount per square feet..
2. How long can the builder keep giving compensation.
3. The compensation our builder has mentioned in the contract does not carry a period until it is valid.. Should this contract be considered void. Otherwise it is possible that he continues just with compensation for a longer period.
Pls let me know…
1. Will the builders (ROHAN BUILERS) ever hand over the complex to the association ever and if so when?
2. If no sign of this, it is about time we take it up with the authorities. They are going ahead and building more complexes and fooling the public. At least let us do a service to the public by advertising in the newspapers about the incompetency of the builders. On this subject give a notice to Rohan Buliders.
3. What is happening to the Khata Transfer? Last time when I talked to one of the committee members he advised me to go slow on that since the ad-hoc committee is working on that.
4. Pls let me know when will the owners have to start paying the Maint. Charges and approx. how much it will be. Since I have let out my flat, I need to know how much I should collect from my tenant ot adjust the rent accordingly so that the tenant pays the maint. charges directly to the association.
5. It is about time these issues are sorted out at the earliest.
Rgds.. Gopinathan Unni, Owner of E-10-01, Rohan Vasanta