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How To Form An Apartment Owners Association in Chennai?

Apartment owner association is an authority that protects the rights of the apartment owners, maintains the amenities in the apartment and works for the welfare of the residents of the apartments by conducting events or awareness programs. A person owning an apartment in a society has an undivided interest in facilities and common areas of the society. All the owners are the members of the association by default; however, the people who are residents but not the owners need to have a letter in writing from the owner to get a right to vote.

Why is it important to register an Apartment Owners Association?

When you live in a community petty disputes are bound to rise. If a court is approached for such small issues it might take several months or even years to resolve such disputes as the court will have a hundred other bigger disputes to take care off. If you have a registered apartment owner’s welfare association, it will help work as a mediator and helps in resolving the dispute without any legal interference. Even if there is a need for legal affairs to be involved, only a registered association enjoys the legal benefits and has the authority to sue or defend any legal action.

How to register the Apartment owner’s association?

Apartment owners association can be registered under Tamil Nadu Societies Registration Act, 1975 (to find the Pdf please click here) and Tamil Nadu Co-operative Societies Act, 1983. Previously, the minimum number of seven persons was needed to form an association; however the number has been brought down to five persons as per the provision of the Tamil Nadu Apartment Ownership Act, 1994. The registration involves the drafting of memorandum and bye-laws.

  1. A memorandum should contain the name of the Society, objects of the Society, names, addresses and occupations of the members of the Committee. The memorandum has to be signed by at least five members of the committee.
  2.  Byelaws are a set of rules containing provisions for subjects relating to the Association.

Details:

  • The byelaws have to contain the basic particulars relating to the Association, like the name of the Association, date of formation, address, jurisdiction aspects, etc. along with particulars like the objects and the activities of the Association and the business hours of the Association.
  • The name and other particulars of the person who can sue on behalf of association or can be sued are to be mentioned in the byelaws. The particulars of the persons who can be enquired regarding the business issues are also to be mentioned.
  • Clause regarding qualification of members, restrictions and enrolment of member, the entrance or any other fee to be collected from the members is to be included.
  • It is important to mention the rights and privileges of members. Another important clause is regarding the circumstances under which a member can be removed and other penalties to be posed in case of delay in payments etc.
  • A clause regarding the business of the association should be included. It should state the maintenance fee and other charges to be collected from the residents and how the funds of the association are to be used. The qualification of the officer and the term and conditions of their service can be included.
  • Clause regarding how amendments could be done in the byelaws and particulars relating to dissolution or winding up of the Association is advisable to be included.

Records:

  • It is important for every association to maintain records of accounts, transaction of day to day affairs, particulars relating to employment of staff etc. The members discuss the issues in the general meetings of the Association, so particulars regarding General Meetings have to be kept in records for reference.

Transparency:

  • To maintain the transparency of the whole process it is important to keep a set of books containing byelaws, books containing details of account, minutes of meetings etc. in the registrar’s office of the association during business hours. These books can be referred by the members if required.

What are the Duties and Powers of Apartment Owners Association?

The members other than owners are known as associate members and owners are known as members. General body consists of both members and associate members and elects the management committee which consists of a President, Vice-President, Secretary, Treasurer and members.

Management Committee works for the welfare of the residents. It is responsible for organizing social and cultural facilities, for protecting the rights and interests of the residents, for managing accounts and keeping all the documents related to land, building and license issued safe in its custody. The management committee should be addressed by conducting meetings regularly to discuss problems and provides adequate solutions.

President: She/he is the one who can be sue or defend any legal action against the association. So, it is his responsibility to keep a check on records and work for the welfare of the members of the association.

Treasurer: She/he is responsible to operate income and expenses of the association by maintaining funds and the bank account. It is his duty to maintain all the records regarding day to day transfer of money and to maintain cash in the account required for maintenance of the apartment.

Secretary: Secretary plays a very vital role in the functioning of the association as she/he is responsible for conducting meetings, taking and maintaining a record of the minutes of meetings and collecting and analyzing the information from members.

Members: Members have the right to vote and should attend meetings. Their duty is to bring the issues in light and pay their dues on time.

 

5 Responses to “How To Form An Apartment Owners Association in Chennai?”

  1. Swapnil says:

    The best part of the article is “What are the Duties and Powers of Apartment Owners Association?” Thanks a tonne for the post friend. Will be looking forward for other writing of yours.

  2. Santhosh.m says:

    I am a Member of the Apartment Owners Association. Can you please justify what role as a member should we play ???

  3. vswami says:

    It is observed that the write-up fairly covers inter alia some of the basic points on -as to why it is important to register an AOA in accordance with the State enactment.
    However, so far as one knows, no official data or statistics is available on, – as to how many of the apartment buildings have thus far really done so. Further, especially from the viewpoint / rights and interests of the buyers, on – as to how some of the areas which do not seem to have been adequately covered in the enactment have been duly taken care of, that too in a foolproof manner. For some guidance/ clues, one may look up the information available in public domain, including published articles.
    An inquiry of this nature assumes greater significance and importance having special regard to the fact that the Central government, having mooted the idea of a regulatory regime for the realty sector a couple of years ago, if one were to go by present indications, may bring about a legislation for that purpose in the foreseeable future.
    In this context, it also requires to be specially noted that, as is commonly known, and understood, it is mainly with a view to meeting and bringing the extant state enactment in line with the regulatory law in the offing that the State of Maharashtra is lately working on a fresh /revamped legislation.
    All said but nothing done, for obvious reasons, this is a matter which the TN government, in public interest, needs to take a serious note of and take appropriate steps in the desired direction, on a timely basis.

  4. ganapathy says:

    we are a complex of six apartments with four owners (one owner owns three apts). when we took posession in 2002 the builder told us that we could nto form an asociation as were only four members.i now find from your article that five members are enough to form an assocaition. we are presently five members with one apt having been sold to a new owner.can we now form an assoc. is there any time frame within which we should have formed an asoc etc as it is almost 10 years since we took posession. pls also enlighten what are the provisons in the law (without the existence of an ssoc) to deal with a owner who refuses to pay the monthly maintenance charges.

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