1. Our agreement contains a clause for condominium formation. However, majority of residents in Phase II want to go for a society, not a condominium. If builder does not cooperate and still wants to force a condominium, what is the recourse available to us? Can we still form a society if majority residents sign a representation?
There may be a clause for condominium formation but it will depend on the apartment/flat owners decision.
The builder cannot hrust his decision on people for his own benefits.
However, to form a society, generally 10 persons, each from a different family who reside in the area of operation of the society (within the same city) and who have taken premises in the building, would be required.
However, even one person who owns the entire building can form a condominium, provided there are at least five apartments in the building.
A society adopts the model bylaws in which little can be changed. While adopting the bylaws in a condominium, suitable changes can be made, so long as the provisions of the Act are not contravened.
A society issues certain shares to its members, as per the bylaws and the share certificate becomes an important title deed, since the allotment of the premises are related thereto. This is not so in a condominium.
Under the model bylaws, a society can charge only Rs 500 as transfer fees and a maximum of Rs 25,000 as a premium. In case of a condominium, the bylaws can be more flexible and the amount of transfer fees can be provided therein.
In a condominium, the owner can give his apartment on lease or leave and license basis without the approval of the board of managers, while in a society, permission is required.
Thus formation of condominium is always a beneficial matter to the owners when compared to the society.
2. There are total 17 buildings. Can we form a separate society of each building or club few buildings into one society? Builder says that we need to form a uniform condominium of both Phase I and Phase II, not a society
To form a society, generally 10 persons, each from a different family who reside in the area of operation of the society (within the same city) and who have taken premises in the building, would be required.
Thus every building can have their own society if the above condition satisfies. It ultimately depends on the decision taken jointly by all the residents where the builder cannot enforce his own thoughts.