Provision for people purchasing flat and not paying maintenance
We live in a cluster of apartments having 248 flats. We have formed a Owner's Welfare Committee which is registered. We are yet to take over from builder and now currently all are paying maintenance to the builder only. There are few owners who have purchased flat but do not stay at the complex. They have mainly purchased for investment purpose. They are not paying maintenance to the builder and have long overdues. They are telling that since the do not stay in the apartment, they would not pay any maintenance which are mostly for common area, water etc. Since we plan to take over from the builder shortly, would like to know what is the provision in law in such cases for people who purchased flat and do not stay. How we can collect from them or upto how much we can collect from them. Some of them are even contemplating selling off their flats without paying off their dues. Kindly let us know what can be done in such cases
Asked in Property Law from Bangalore, Karnataka
Hi, Society has to make bye laws stating that all the apartment owners are liable to pay the maintenance charges to association.
2. If the owner of the apartment fail to pay the amount then you can file a suit for recovery money for not paid the maintenance amount.
1. Payments of maintenance isn't connected with the possession of property. So the flat owners are bound to provide maintenance.
2. Since you are forming the association make it a registered body having bylaws so it's rules are binding on all flat owners.
3. Make a penalty clause in the bylaws against defaulting flat owners.
every owner if he is amember of the apartment owners association will have to pay maintenance.
To make a member to pay maintenance the association or the housing society which is supposed t be a registered one can initiate recovery of maintenance proceedings.
The investors who are selling the apartment will have to pay their dues to get NOC to either from the builder or the owners association .
in your case if the owners are members of the association/ welfare committee, first send them notice signed by the society president/chairman and if not paid sue them for recovery .If your association has been registered under society act, you can take this recovery procedure with the deputy registrar of societies.
Registrar will conduct atrial for recovery the erring owners will be summoned and if found the dues pending he can order a recovery certificate.once the recovery certificate /order by the concerned officer, the association can attach the property if the owner fails to pay. This is the legal procedure which can be initiated in a co-operative society where maintenance arrears due.
1)cooperative housing society should be formed of all members . request the builder to form a society
2) the cooperative societies act contain a provision that in the vent member fails to pay maintenance society can charge interest not exceeding 21%[a
3) the society can pass resolution and take recovery proceedings against the defaulters .
4)for instance in Mahrashtra under section 101 of MCS Act society can take summary procedure for recovery of its dues from defaulters
5) society should refuse to give NOC for sale of flats of defaulters
6) further society can refuse to transfer shares of the defaulters unless society dues are paid
1. Such flat owners who are not staying in the complex and not paying the monthly maintenance would have let out the flats for rent and the association may collect the monthly maintenance fee from the tenants.
2. Maintenance money can be collected from the owners at the time of selling their apartment by insisting them to obtain NOC from Owners' Welfare Committee which will be a pre-condition to sell their flat and for obtaining NOC , they have to pay upto date maintenance money without any due and only then they are permitted to sell the flat. By doing this, even if you are not getting maintenance money monthly from the flat owners who are not staying now, in a lumsum the maintenance money will be realised when it is being sold.
If you have formed the apartment owners association properly observing the rules and procedures meant for it and got it registered along with the prescribed bye laws laid down by the government, and the association started functioning, the builder will hand over the entire building to the association for future maintenance and administration of the apartment premises including the common areas which will become the property of the association. Thereby the association register the members and issue share certificate/membership certificate as per the rules envisaged in the bye laws and the laws meant for this. You will find the procedures in the bye laws.
The president/secretary can convene general body or annual meeting and pass resolution on all such issues including any other issue that may draw the attention to the smooth functioning of the association considering the welfare of all the flat owners of the association.
You may initiate action accordingly.
1. Anybody can purchase a property and not stay in it. Keeping the property locked does not diminish the rights which flow out of ownership.
2. Those who do not pay the maintenance charges can be denied the access to amenities which were to be given on the payment of those charges. This is the maximum you may do.
3. They are at liberty to sell the flats without paying the maintenance charges. Their maintenance charges would pass on to the buyers. Rights and liabilities are always transferred.
1.What was the term and condition in connection with maintenance of the flats mentioned in he agreement of sale signed by he buyers?
2. Takeover the maintenance of the complex asking the builder to collect the dues directly from the owners,
3. After you takeover the flats, call for AGM and fix maintenance amount and interest to be charged for late payment and also inform all the members,
4. Your Society can file a recovery suit against the defaulting owners,
5. When those defaulting owners approach you for NOC for seling or letting outb their flats, collect he dues as a precondition for issuing NOC,
6. Most of he Societies even charge heavy amount in he from of donations to the tune of 10% of sale value before issuing those NOCs.