How to form an apartment owners association in Mumbai?

Having an apartment owners association in Mumbai is a vital part of a community living.  An apartment owner’s association is formed in order to maintain facilities or amenities available in apartment by the owners of the apartment as well as the members of the association.

An apartment owners association works for the welfare of the residents in an apartment and conducts events or awareness programs as well as protects the rights of the apartment owners. These associations can be registered or unregistered. It is always better to have a registered apartment owners association as they can sue or defend any legal action and enjoy all the legal benefits.

Requisites to form an apartment owner association in Mumbai:

The Apartment Owners Association Act in Mumbai was formed in 1983 has been working with a view to protect the apartment owners against the exploitation by some of the dishonest promoters, builders and other persons.

Mandatory aspects to be considered before forming an apartment association:

• An association in Mumbai can be formed by a volunteer association of owners of the apartment.
• Getting the association registered will help the group get a unique name other than just enjoying the legal benefits.
• The association can be formed under the Maharashtra Apartment Ownership Act, (MAO) 1970.
• It is mandatory that at the time of the association formation all the owners of the apartments should be present at one place.
• It is mandatory that 7 or more members who are above 18 years are required to form an association.
• A memorandum of association with name and objects of association, details of members of governing body with name, address and occupation should be precisely given.
• The Bye-laws (rules and regulation) of the association should be instructed to all.
• A certain amount of fee has to be paid as the registration charges.
•  The builder can register the association if all owners give power of attorney for forming an association.
• The builder or the promoter submits the property to the purview of the MAO through the Deed of Declaration.
• The builder sells the property (in parts) and has all the agreements registered.
• The builder or the promoter conveys the respective parts of the properties & share of common areas to each purchaser through the Deed of Apartment.

Henceforth, the builder forms an Apartment Owners’ Association. And in case if the builder hasn’t registered his apartment, the owners can form the association.

The duties and the roles:

• The Duties of a member: A member of an apartment association will have to attend all the general body meetings, he has to pay the dues decided by the general body on time and abide by the Bye-Laws.

The Rights of a member:

• He has a complete right to vote during the elections irrespective of the apartment type & size; every member can cast a single vote at the annual general body meeting or in any official meeting and election of the association.
• Each member of the association has the right to inspect all records, books of accounts of the association with 3 days prior notice to the Management Committee.
• If the member has an ownership of more than one apartment, the number of votes shall be in proportion to the number of apartments owned. Also the member has a right to authorize a proxy to vote in his absence.

Duties of the management committee:

• The management committee will organize social, cultural and recreational facilities for all the members of the apartment.
• They will conduct meetings, discuss the problems and provide adequate solutions to the members.
• They will open and maintain the bank accounts of the association.
• They will represent the members of the association and protect the rights and interests of the owners.
• They will ensure that the funds are used for the maintenance of the building and promoting charitable feeling among members.
• They will also encourage religious, social, cultural and educational activities.
• They will work for the welfare of the residents in association and co-operate with other associations for common and mutual benefits.
• They will keep safe custody of documents relating to the land and buildings, license issued and many others.
• Henceforth, an apartment owners association in Mumbai can function well if it is registered properly and is abides by all the bye laws.

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