Take Over Maintenance from Builder

Increasing land cost discourages middle or low income people to own an individual house in a prime locality.  The growing apartment culture in cities and increasing property value encourage property buyers to invest in apartment or flats. Every apartment complex has its own apartment owners association or housing society to maintain the apartment and its amenities. But before the formation of apartment owners association, builder or property developer maintains the apartment and its amenities. The developer collects maintenance fund from each buyer and deposited as corpus fund. The interest or dividend is used to maintain the apartment and its amenities. Once the apartment owners association is formed, the builder handover the maintenance fund and audited statement of accounts.

Handover from Builder to Apartment Owners Association

The builder and the owner of the site develop the property on a joint venture basis. The land owner enters into a joint development agreement with a builder. The owner may also decide to retain his share of the built-up area, or may sell it off at a later stage without any involvement of the builder. The other flats are sold by the builder directly.  Apartment owners can form an apartment owners association (with minimum 60% of owners) and apply to sub-registrar for registration of apartment owners association.

“Ignorantia juris non excusat” means “ignorance of the law excuses no one”. An apartment owners association or housing society cannot escape from liability because they were unaware of its content. Therefore, an apartment owners association or housing society must have legal expert for legal advice and verification of documents relating to apartment complex and use of its amenities.  Following are important documents required for take over maintenance from builder.

• Occupancy Certificate: Occupancy Certificate evidences the completion of the building as per the approved plan and compliance of local laws. If the builder unable to obtain the occupancy certificate, either builder has violated building law or deviated from Construction Plan. It is illegal to occupy in a building or apartment that doesn’t have an occupancy certificate.

• Conveyance of property: A conveyance deed is a document that conveys the title of ownership of a property from the original owner to the ultimate purchaser. Obtaining free and marketable title of the property is the most important objective of obtaining a conveyance deed. After the conveyance deed is executed in favor of the society, the office bearers must apply to the Revenue Officer or the city survey office for making necessary changes in the revenue records. Once this is done, the society becomes the complete owner of the property.

• Audited Statement: Audited statements and details of the bank account are vital for handover of apartment to housing society or apartment owners association. A builder should provide audited statements of accounts for the amount collected and details of incomplete works to the society.

• Architectural and structural drawing: STP Drawing & certification by Architect/Pollution Control Board, Waste Disposal system with approval from Pollution Control Board and should include electricity power supply, cables layout, water supply connection, underground tank to overhead pump drawings.

List of Documents required

• Documents executed between the Landowners and Builders
• Approved Construction Plan & Completion Certificate
• Occupancy Certificate from competent authority
• NOC from Fire Department, Pollution Board & Electrical Inspector
• Property Insurance Document (if any)
• Copies of the Power of Attorney given by the owners in favour of the developers along with the copy of the registration receipt
• Chain of documents through which the vendor acquired the right, title and interest in the property
• Search report for the last 30 years with the search fees paid receipts
• Proof of Ownership of all Owners
• Car Parking Allocation Record
• Receipts like electricity, water and deposits to municipal authorities
• Audited statements of accounts & details of the bank account opened
• List of amenities and incomplete works
• Details of Contracts with Vendors, contractors with the unpaid bills, advance paid and whose contracts have not yet expired