• Can we form an Association of Apartments if we have already executed sale deeds with builder/ owner?

We are 8 flat owners in a building with 2 other building in the same scheme. We have all got possession of flats in 2016 and executed sale deed with builder/ first owner and paid stamp duty etc. We have been living in these flats since possession and the builder has been completing work in the 2 other buildings. He has now completed and since one more building is completely occupied he has proposed to form 3 individual societies for each of 3 buildings and a Federation of these societies that will look into common facilities and conveyance. In this situation can-
Only 1 building choose to form Apartment Owners Association instead of CHS and still be part of Federation and will share certificates be issued to them?
Will owners of that building have to execute a Deed of Apartments?
Can the disputes of Apartment Owners Association be taken to CHS courts?
Asked 5 years ago in Property Law
Religion: Other

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9 Answers

In case of condonium title of each apartment vests with apartment owner who has proportionate share in land on which building stands and in common areas 

 

2) builder has to execute deed of apartment 

 

3) suit has to be filed in civil courts 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Either all buildings can go for Apartment Owners Association or CHS because both rules and laws are different.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

Builder should sub divide the land so that condominium , 2 CHS can be formed 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

this is not possible

a CHS is a juristic person having a legal identity with perpetual succession

thus a CHS can act independently of its members 

however an apartment association is NOT a juristic person and does not have any independent legal identity nor any perpetual succession

an apartment association is comprised of all the apartment owners 

the apartment owners are the owners of their respective flats alongwith an undivided share in the land and common areas in proportion to the area of the apartment

thus a society can be a member of another society, for instance a federation which can consists of several societies or companies or LLPs

however an apartment association cannot become a member of such a federation because the association does not have any legal identity

it is to kept in mind that if a federation is being formed then the land and the common areas will be conveyed to that federation while the individual buildings would be conveyed to the individual societies 

if there is an apartment association then it would mean that the apartment owners have an undivided share in the land beneath the building containing the apartments

however the conveyance of the entire land with common areas will be effected in favour of the federation

thus the right of the federation in respect of the entire land on which the buildings of several societies stand would be in conflict with the right of the apartment association in respect of the land [out of the entire land] in which its apartment owners would have an undivided share 

so in my view there cannot any federation consisting of societies and apartment associations

however there can be a federation of companies, societies and LLPs since all these entities are juristic and legal persons having an independent legal identity  

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

Dear sir/ma'am,

 

Please note that an apartment association is different from a CHS in nature and they both have different rules. 

Also, the deed of apartment has to be executed by the builder and he must divide the land accordingly.

 

Thank you

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

The distinction between an Apartment and flat in respect of apartment ownership, the legal title of flat as an object, along with a proportionate share in the common areas  of the building and also proportionate share in the land on which the building stands, vests in the apartment owner. That means, the building belongs jointly  but to each apartment owner has an independent right to his apartment to the exclusion of others. Whereas in the case of ownership of flats the title to the building and the land vests with the cooperative housing society or a limited company and the flat owner is not the flat owner in the real sense but he only a right to occupy the flat. This is a species of property which is heritable and transferable. 

The difference between Maharashtra  ownership flat Act, 1963 and the Maharashtra ownership Apartment Act, 1970 is that in case of MOF Act, 1963 there should be at least 10 members  for forming a Cooperative Housing Society  and in Apartment ownership act there should there should be 5  apartments in one or more building. 

The recent Campa Cola episode shows that co-operative housing societies (CHS) must exercise due caution, when it comes to maintaining and ensuring that their buildings comply with the law. Sometimes, there are infractions between housing societies and individual apartment owners, as well as outsiders. However, many individual apartment owners are at a loss as far as grievance is concerned and do not know how to proceed with their complaint. There are several issues in a CHS, like car parking, leakages, fraudulent auditing, unauthorised construction (ala Campa Cola), and many other issues. Home owners need to know the right recourse to take action to ensure that their rights are maintained and upheld.

With respect to section 12, Apartment ownership Act, 1970, Contents of Deeds of Apartment shall include the description of the land as mentioned in Section 11 above, post office address where the property is situated, date of declaration, apartment number as mentioned in the Declaration and other date which would be required for its identification, percentage of undivided interest appertaining to the apartment in the common areas and facilities and a true copy of the said Deed of Apartment which is required to be filed with the Competent Authority.

 

 

The Maharashtra Apartment Ownership Act 1970 authorizes the apartment owners to complete ownership of their apartment which shall consist of an equal share of the undivided common area and facilities which thereby entrusting the apartment owners with the responsibility for ensuring the welfare of the citizens of the said building and thereby promoting their rights. The apartments are competent to be transferred and heritable, thereby enabling the apartment owner to secure a mortgage of the said apartment. It is pertinent to note that a registered owner’s association is recommended at all times as it shall enable the association to defend their case legally in the future.

 

Thsi facility is not available to the flats registered under ownership of flat act, 1963 or under CHS. 

 

Thus it is advisable that all the buildings may be registered under apartment owners act 1970 itself to avoid conflicts and to protect your interests in the property.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

In order to avoid conflict of interests among all the owners of the apartments, it would be better that a common association may be formed either under Flat ownership act, 19673 or under apartment ownership Act, 1970.

The builder may come out with plenty of such fancy ideas in order to just pass on the baby now and to settle the issues, but it would be a temporary arrangement, whereas  insofar as the future litigation is concerned this will remain a constant bottle neck therefore you people can gather together and take a decision to form a common association involving all the buildings  and putting them together., 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

It's always advisable to form association under Apartment ownership Act than under CHS Act.

For 3 buildings three separate association can be formed. 

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

Under the Maharashtra Apartment Ownership Act,  an alternative to a cooperative housing society was introduced, which provides for the formation of a condominium.

- Further, the buyers of premises in a condominium are called apartment owners who form an association known as an 'association of apartment owners. 

- Further, even one person who owns the entire building can form a condominium provided there should be at least 5 apartments in the building.
- Further, in a Condominium, the owner can give his apartment on lease or leave and license basis without the approval of the board of managers.

- Hence, you can form Apartment owners association of one building as well. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

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