Association formation for Villa community
We, a group of 160 villa owners in a residential complex would like to form as an association. This complex is located in Sarjapura, Bangalore. Complex will have 360 villas in total and out of which 280 villas are currently constructed. And construction on other villas is in progress. It has phase -1 and phase -2. In Phase-1 land is owned by builder and each villa registration is done between builder and Villa owner. Phase-2 land is not owned by builder and thus became joint venture between builder and lanowner. But BBMP is given for entire complex with 360 villas as one project. Now ther are close to 50 villas occupied in phase-1 and 36 villas in phase-2.
Complete project is only for villas and has some common amenities like clubhouse, STP, Water tank, parks, roads, generators, water pumps, swimming pool etc.
What kind of association is advisable? All villas have common elevation. As an association we would like to retain it that way and be in position to legally enforce it. While lawn of individual villa is not a common area, we would like to have a regulation on common maintainanace of lawns, walkways etc.
Our complex didn't have any association so far.
Should this be Residents Welfare Association or Owners Association? Should it be registered under KAOA or KSRA?
What is the procedure to register and where to register?
What kind of annual activities we need to follow up further on?
Asked 1 year ago in Property Law from Bangalore, Karnataka
It is advisable to register the association under the Karnataka Societies Registration Act, this is much simpler and less complex.
it is sufficient to register the association with just 7 members, contact any advocate in Bangalore who has expertise in registration of such associations, who will then guide you with the framing of bye-laws and rules and regulations for the functioning of this association.
You should register association under provisions of Karnataka apartment ownership act and not under Karnataka societies registration act
2) apartment owner shall be entitled to the exclusive ownership and possession of his apartment.
(2) Each apartment owner shall execute a Declaration that he submits his apartment to the provisions of this Act and a Deed of Apartment in relation to his apartment in the manner prescribed for the purpose.
3) apartment owner shall be entitled to an undivided interest in the common areas and facilities in the percentage expressed in the Declaration. Such percentage shall be computed by taking as a basis the value of the apartment in relation to the value of the property and such percentage shall reflect limited common areas and facilities.
(2) The percentage of the undivided interest of each apartment owner in the common areas and facilities as expressed in the Declaration shall have permanent character, and shall not be altered without the consent of all of the apartment owners expressed in an amended Declaration duly executed and registered as provided in this Act. The percentage of the undivided interest in the common areas and facilities shall not be separated from the apartment to which it appertains, and shall be deemed to be conveyed or encumbered with the apartment even though such interest is not expressly mentioned in the conveyance or other instrument.
When villas are built and eventually occupied, a few questions do the rounds within the new community. There are always common issues to be coordinated with the builder regarding teething troubles, maintenance, handover and several such issues. Normally, a group of owners comes together to coordinate on behalf of the community.
In India, the sale and purchase of immovable property is governed by the Transfer of Property act of 1882. The 1882 act does not cover the concept of an apartment along with its undivided share in land and common areas. So a fundamental step that KAOA does is that it equates the purchase of an apartment with its proportional undivided share as equivalent to an immovable property bought under the transfer of property act. The purchaser is the absolute owner with a clear title to the apartment and its proportional undivided share.
There are two laws that govern this process in Karnataka. One is the Karnataka Ownership Flats Act (KOFA) and the other is the KAOA. KOFA regulates the process of promotion, construction, sale, management and transfer of the apartment. KAOA was written with the view to make apartments heritable, transferable and mortgageable and to address aspects related to management of the property.
Though the forming of an Association or Society is voluntary in nature generally, there is a difference in so far as ownership of apartments is concerned. The difference is primarily due to the inevitable need of a body or committee to oversee the maintenance, upkeep and proper usage of common amenities and facilities which are provided for the benefit of all the apartment owners/occupants.