Keeping agreements confidential

Your property-related legal queries answered by S.C. RAGHURAM, Partner, RANK Associates, a Chennai-based law firm

October 30, 2020 12:57 pm | Updated 12:57 pm IST

HYDERABAD, 07/02/2011: Real estate business in the twin cities of Hyderabad is going slow. The city is still in a wait-and-watch period, waiting for the Telangana Bill to be introduced in Parliament and few companies that had entered into real estate agreements are going slow on deals.
Photo: Nagara Gopal

HYDERABAD, 07/02/2011: Real estate business in the twin cities of Hyderabad is going slow. The city is still in a wait-and-watch period, waiting for the Telangana Bill to be introduced in Parliament and few companies that had entered into real estate agreements are going slow on deals. Photo: Nagara Gopal

I live in an apartment complex comprising 18 flats with various UDS land sizes. You have discussed charging maintenance according to UDS in your earlier responses. One particular answer (from November 2019) states that the Tamilnadu Apartment Ownership Act ‘has partially come into force’. The response to another question (December 2019) mentions ‘maintenance charges can also be fixed in the bye-laws in accordance with the provisions of The Tamilnadu Apartment Ownership Act, i.e., on the basis of the UDS owned by each of the owners’.

I would like to know if the clause, dealing with the charging of maintenance according to UDS in The Tamilnadu Apartments Ownership Act, has come into force. If so, since when?

S Balasubramanian

Chennai

The Tamilnadu Apartments Ownership Act 1994 came into force in 1997. However, some provisions of the said Act are yet to be implemented. For instance, the Act contemplates a ‘Deed of Apartment’ and requires the same to be registered with the competent authority constituted under the Act. However, the said authority has not been notified yet.

Moreover, when the sale deed for undivided share of land and construction agreement for the apartment are duly registered by paying the prescribed stamp duty and registration fees, another stipulation for registering a Deed of Apartment was felt as superfluous by the industry.

We reliably understand that the Government is reconsidering the provisions of this Act in the light of The Real Estate (Regulation & Development) Act [RERA], Tamilnadu Combined Development and Building Rules 2019 and Tamilnadu Societies Registration Act 1975.

Presently, collection of maintenance charges has to be done as per the provisions of Tamilnadu Apartments Ownership Act and there is no other law on this aspect.

We have registered our Apartment Owners Association as a society with well-defined bye-laws. The copy of the tenancy agreement submitted to the Association by the flat owners (who let out their units) is available in the bye-laws.

One of the flat owners says it is a private document between him and the tenant, so the agreement copy cannot be given to the association. Is he right?

D Rajendran

Chennai

If a flat owner wishes to keep the financial terms with the tenant confidential, the same has to be respected.

The Association can instead seek details/information on the personal particulars of the tenant and family members/other occupants along with copies of government issued identity proof and particulars of the period of lease for the records of the association.

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