Rules for an apartment owner’s association

An apartment owner’s association is formed by a volunteer association of the owners of an apartment in India. The association may or may not be registered. By registering the association, members can enjoy legal benefits and the association gets a unique name registered. An apartment owner’s association can be formed under the preferred city government ownership Act. It needs all the owners of an apartment to gather at one place at time of registration. The builder can register the association if all the owners give power of attorney for forming an association.

Requisites of forming an apartment owners association:

• A minimum of seven members are required to form an association.
• A memorandum has to be created. The memorandum will state the name of the society, the objectives, the names, addresses and occupations of each and every member.
• The bye-laws or the rules regulating the conduct of the affairs of the society will be made.
• The memorandum and the bye-laws will be filled with the registrar of the societies concerned by a member of the committee of the society.
• The memorandum will be registered.
• The memorandum and the bye-laws have to be printed or typewritten and have to be signed by the members.
• The registration charges are nominal.

The apartment association rules:

The importance of bye-laws:

Bye-laws are required by the managing committee of an Apartment Owners Association (or Residents Welfare Association) to ensure proper maintenance of the apartment complex and to resolve all the issues that the residents face in a timely and effective manner. Solving the issues is not an easy task and it is quite a difficult task to convince the society to agree to the chosen rules and regulations. All of the related issues are solved through a set of rules known as the bye-laws. Every apartment complex adopts the bye-laws from the moment it is registered. The bye-laws govern the day-to-day functioning of the apartment complex and it is considered as the constitution of an apartment complex.

The registration of the bye-laws:

The apartment societies manage their affairs by registering through the Co-operative Society Act. However most of the states in India have ignored the Co-operative Societies Act and have replaced it with their own co-operative societies act. All of these acts specify the rules and regulations of a residential apartment complex association and and they are free to adapt to these bye-laws completely or they can modify them as per their requirement. This Act thus offers a certain amount of flexibility to the societies.

The bye-laws are considered very important for the efficient working of a society and are important for an apartment complex to approve and submit them.

The contents of the bye-laws:

• The aims and objectives of the society.
• The details of the rules and regulations that apply to the members.
• The specifics of selecting a member and office-bearers of the society.
• The details of how the association aims to help the residents of the society.
• The details of how it will go about getting the co-operation of all members.
• The information on how the society will manage its income and expenses.
• The list of all the office-bearers who will be authorized to issue cheques and monetary transactions on behalf of the association.
• The details about transfer charges, maintenance costs, penalties, etc.
• It contains the time at which the AGM of the society will be held. Mostly, the AGM is held within  six months from the beginning of the financial year.

Amending the bye-laws:

After the adoption of the bye-laws, the society can function with a set of rules. The bye-laws can be amended by the government or the residents if needed. The new approved set of amended bye-laws will come into affect for the association from the date of approval by the registrar.

The guiding principles of an apartment association:

• Harmonious living culture
• Good citizenship.
• Outstanding physical environment

For more information on an apartment owners association follow the link:
http://www.hindu.com/pp/2007/11/10/stories/2007111050030100.htm