Guide to Apartment Owners Association: Formation and Functioning

Today apartment owners association is vital part of a community living. Apartment owners association is association where all owners of the apartment are members and association maintains facilities or amenities available in apartment. Apartment owners association works for welfare of residents in apartment, conduct events or awareness program and protects the right of apartment owners. Apartment owners association may or may not be registered but registered association can sue or defend any legal action and enjoy legal benefits.

Apartment Flat Owners Legal powers of Home Owners Association

Apartment owners association is not only have right to maintain facilities available in apartment but also legal powers to protect its members and defend legal action raised against association.

Apartment Owners Association as Arbitrator

Arbitration is a technique of resolution of disputes among members of association or residents in apartment. There may be internal matters in apartment or apartment owners association which may end in dispute or approaching court. In this case, apartment owners association can act as arbitrator between members or residents in apartment and association can help to solve disputes outside the court. Approaching court is not always recommended as it may take months or even years for resolution of dispute. Association can either hire a legal advisor or appoint an advocate for affairs of association.

Power to Recover the Maintenance Fee

Provisions are made in the by-laws of the association for collecting the maintenance charges. The builders allow the apartment owners to form their own association and fix the charges. The cost of maintaining the amenities needs to be shared by the apartment owners and residents in apartment. There exists a convenient misconception among residents that the price they pay for the apartment is all-inclusive. Maintenance is a fee charged for services and maintenance of equipment.

In most association meetings, the issue of maintenance charges is often debated in overstretched sessions. The maintenance charges are calculated either on the basis of provisions made in the bye-laws of the association or on the basis of method agreed by majority of members of apartment owners association. Acceptance of maintenance charges can at least help maintain peace and harmony. In the event of default by any member, the apartment owners association has right to charge interest and penalty from the defaulter and the power to recover this amount. The apartment owners association has right to sue defaulting members but the apartment owners association cannot cut or terminate any facility enjoyed by the owner. The apartment owners association can only initiate legal proceedings for recovery of the outstanding and can seek other relief as may be permissible under the law.

Legal action against members guilty of offense

Apartment owners association consist general body consisting of all the members of association who are owners of apartment complex. 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. Any members in apartment owners association, who steal, forge or make any loss to association shall be liable to be punished and association has right to take legal action against the members guilty of offence.

File case against Builder

Today demand for residential property is increasing and number of builders who come up with attractive price also increasing. There are number of property buyers who often complaints that their builder has cheated by offering low quality work, not responding for property buyers query and fails to keep their promise. Apartment owners association can file case against builder for compensation of losses, lodge police case and even file criminal case against builder.

  • Notice to builder: It is always recommended to issue notice to builder before approaching the court or taking any legal action. Apartment owners association can issue notice to builder for delay in project, compensation of losses and in case of poor quality construction. Send the notice by registered post or Under Postal certificate. Retain the proof of sending.
  • Lodge Police case: If builder fails to respond the notice, apartment owners association can lodge police complaint against builder. The police authorities to begin with call upon the parties to remain physically present at the Police Station. The Police authorities invoke Section 107 (Security for keeping the peace in other cases) of the Code of Criminal Procedure, 1973. Proceedings under this section may be taken before any executive magistrate.
  • Consumer Case: It is observed that that the builders do not comply with their statutory obligations. In such circumstances the options available to the flat purchasers / society include filing a complaint in the Consumer Court. Apartment owners association can file single case against builder on behalf of all its members as consumers having the same problem. Write your complaint with preferably date-wise facts. Refer to the page numbers of the attached documents where ever required (like bill, agreement, service report, etc). Mention what relief you are looking for against your complaint. You can either file your case in direct or send registered post.
  • Criminal case: A builder can be sued for cheating, breach of contract, not responding the grievance and delivery of poor quality construction. While drafting the criminal complaint, the Society should high-light specifically the violation of the various provisions. The Society should also emphasize that violation of the provisions is criminal in nature. Attention of the criminal court should be drawn to offenses of various sections of Indian Penal Code – Sections 406, 407 read with sections 415 and 420.
  • Section 406 Punishment for criminal breach of trust
  • Section 407 Criminal breach of trust by carrier, etc
  • Section 415 Cheating
  • Section 420 Cheating and dishonestly inducing delivery of property

The complainant should also bring out irregularities committed by the builders while executing the constructions of the building. Once a complaint is lodged, the matter is kept for verification wherein the statement of the Complainant is taken. On the basis of the evidences either of the both the parties Honorable Metropolitan Magistrate’s Court office passes proper order. Builder has to prefer an appeal in the Sessions Court. In the event the accused is aggrieved by the order as passed by Sessions Court then in that circumstances either of the parties can approach High Court.

Apartment owners association can be sued by members or parties if association fails to meet its statutory obligation. A well-drafted bye-law should enable any flat owner to raise issues and mandatory require the managing (or executive) committee to address these issues in one form or the other. The common problems complained of by many flat owners pertain to the association to be unresponsive to their concerns. Some find that the association is actively working against their interests. The member of apartment owners association has right to raise the issue and demand the meeting for the same. If the association still fails to take action, then, member can, as a last resort, approach the courts for relief. If an association persistently commits default in fulfilling its statutory obligations or if there are huge disputes over the management of the association the member can consider complaining to the concerned Registrar of Societies in this behalf. The registrar has right to cancel registration of the apartment owners association which fails to meet statutory obligation and there are huge disputes over the management of the association.

References:

How to register Apartment Owners Association
Methods to Calculate Maintenance in Apartments




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88 Responses to “Guide to Apartment Owners Association: Formation and Functioning”

  1. Raghu says:

    I have a 3 years apartment which is to be sold and one of the walls has cracks from outside which is leading to leakage of water in the rainy season. Is it the responsibility of the association to repair this as i have already started repairing it from inside the apartment or can i go ahead an repair it myself and then claim this from the association? Please advice

  2. Raghu says:

    I have a 3 years apartment which is to be sold and one of the walls has cracks from outside which is leading to leakage of water in the rainy season. Is it the responsibility of the association to repair this as i have already started repairing it from inside the apartment or can i go ahead an repair it myself and then claim this from the association? Please advice

  3. Brunelli says:

    Fantastic blog thanks so much for the information :)

  4. kalkulator ciazy says:

    I enjoy your piece of work, appreciate it for all the informative articles .

  5. Thanks for the great article. Look forward to reading more of them.

  6. gaucho says:

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  8. Hallum says:

    Magnificent website. Lots of useful information here!

  9. Arvind says:

    Sir, I had leased my apartment to a family since 2009, which was vacated by them by mid Jan-12 after providing one month notice. The tenant has left country with the keys (they changed the main door lock without informing me), stating that i had not paid the balance from security deposit (they left on 19 Jan). Now am not able to open the apartment, please advise what is my legal rights.

  10. Rayees ur Rahman Khan says:

    dear sir,
    I have a 1RK flat in a CIDCO apartment owners association at nerul new mumbai, which is rented out. Managing Committee is charging Rs 2500/- as non occupancy charge per annum which has been passed in the AGM. But this amount is very higher against the order of Govt of Maharashtra and the Bombay High Court order. The order says that non occupancy charges can not be more than the 10% of monthly maintenance. The monthly maintenance is only Rs 75/- Managing committee is not ready to accept the above order and denying to do the same. I have already given notice to the president of the association, but their response is nil.
    Kindly advise me to what action can be taken and where i can approach for my greivances.
    My Mail Id: raishasratkhan@yahoo.in

  11. Samir says:

    I agree consumer courts are proper authority. We should file a case at nearest Consumer Forum, see this latest judgment @chsguru.com
    chsguru.com/2012/02/lokhandwala-construction-company.html

  12. prabhu says:

    hi all,

    i need a small help regarding the tenant rights to live in appartment. I recently moved to a new appartment in Hyderabad, India. after two months of stay the association is formed and are now asking me for the personal details of me and my family. They want me to fill a form where they are asking me for my personal details like,
    my name, a photo, occupation, previous address of where i lived, car registration number, my phone number, details of the people who live in my family, their photos, their occupations, age, sex, date of birth etc.

    I want to know, being a tenant to a house owned by someone else, should i give all these details to the association? my house owner never told me anything like that to give. but these association people are asking all the tenants to give these details,

    Please let me know if i can give or not or it is a right for the owners assiciation to ask me all these details.

    a reply is much appreciated.

  13. Kates says:

    Hi! Extremely interesting read and well designed blog !
    Will definitely return, thanks!

  14. Ramesh kumar says:

    Hi ,

    I have 2 doubts.
    1. I own a 3 bed room flats which means i have more square feet than 2 bedrooomers. Here in this useless association , they charge 1.75 rupees /sq feet. so i should pay more. I understand i should pay maintanence but why is that people who have big flats should pay high maintanence ?. Singe bed roomers, double bedroomers and triple bedroomers enjoy the same common area. nothing more or less, then why should we pay more ?.

    2. Now the drainage, recyling plant needs a repair. Now they are asking for Rs.3 /sq.feet .

    Will this work the same way in all associations ? . Why should i pay more than others for repairing the drainage – if one bedroomers pay 2500 . I should pay 5000.
    Why is this happening ?. Is this the law . How can i go about this. Help me

  15. Judith Obbink says:

    Thanks for the update on Guide to Apartment Owners Association

  16. P Kishore Kumar says:

    We are living in a four 2BHK ( G+1 ) flats housed in a compound and I am the owner of two of the ground floor flats. My tenants staying in the first floor. The first floor flats have lot of problems like water leakage and other issues which affects my flat in the down and spoilt the appearanc of the flat. The top flat owners not in the mood to undertake any repairs or resolve the issue. I would like to know how to resolve the issue legally and what the are the forum to address this kind of things where the flat owners are 2 to 4.

  17. pankaj kumar says:

    i have a flat in dhanbad but not ragisterd asocition we have water problem how can i solve

  18. pankaj kumar says:

    i have a flat in dhanbad here is not ragisterd association but here is water problem lots of owner take direct connectio from water tank thats why i am facin water problem how can i solve please reply.

  19. nisar shaikh says:

    I am thinking of buying an apartment in association of apartment. My query is whether it is possible to change the use of apartment from residential to commercial. if the D. C. rules of the local body so permit. What sanctions/NOCs are to be obtained from the association. thank you.

  20. Sakthi kumar says:

    Hello Sir,

    Can you please help me to register my apartment owners association formally with the registrar office. Any one help us on this. please mail me your details at sakthikumar.subramanian@gmail.com

  21. Sakthi kumar says:

    Hello Sir,

    Can you please help me to register my apartment owners association formally with the registrar office. ( its in Navalur, Chennai) Any one help us on this. please mail me your details at sakthikumar.subramanian@gmail.com

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  23. Seema Prasant says:

    I would like to know whether any resident can stop paying maintenance charges of his flat if he has any grievance with the association. In such cases what action should the association take? If the grievance is against the previous committee and beyond rectification, can the resident stop paying maintenance and still enjoy all facilities?

    • Vijay says:

      Hi Seema, what do you think should be the case? If what you ask for is possible, then every body will file a grievance of one sort or other without giving any maintainance and still enjoying all facilities. And this can go on for years.
      I am in no way an authority upon this but I am sure this cannot be done. Paying monthly maintainance and solving issues are two different things and should be kept seperate. I maintained this rule very strictly when I was managing the association.
      Of course the association here should also be willing to solve the issues a resident is complaining of. Even if wrong doings have been done by a previous association, the new one has assumed all liabilities from it. There’s no way they can say we are not responsible for solving this.

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