Forming an association

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

August 24, 2018 03:29 pm | Updated 03:29 pm IST

COIMBATORE, TAMILNADU, 22/08/2014: A stall at 'Fairpro 2014', a property exhibition organised by the Confederation of Real Estate Developers of India (CREDAI), at CODISSIA Trade Fair Complex, in Coimbatore, Tamilnadu.
Photo: M. Periasamy

COIMBATORE, TAMILNADU, 22/08/2014: A stall at 'Fairpro 2014', a property exhibition organised by the Confederation of Real Estate Developers of India (CREDAI), at CODISSIA Trade Fair Complex, in Coimbatore, Tamilnadu. Photo: M. Periasamy

As part of a joint development, a builder constructed eight flats: five for the land owner’s family and three for himself (which he sold to outsiders). There is no apartment association as the three additional buyers had given in writing that they aren’t interested in forming a body. One flat owner has not occupied the flat nor has he rented the premised since two years. Major expenses such as security, common area cleaning need to pain once in 3-4 years and expenses on pump replacement, etc, are shared equally by all 8 owners. But there are differences in respect of sharing the revenue expenses for certain amenities that are not being used by the vacant flat’s owner.

R.S. Raman

Chennai

The Tamilnadu Apartment Ownership Act has partially come into force and is applicable to every building containing five or more apartments or three or more floors. The provisions of the Act require forming of an Association of Apartment Owners for maintaining the common areas and facilities. The Real Estate (Regulation & Development) Act (RERA), also envisages that the developer shall enable formation of an Association for the projects registered under the Act.

Hence, it is a requirement to register an Association and frame your bye-laws for dealing with various aspects of common use and enjoyment of amenities and facilities provided in your building. As per the provisions of the Act, common expenses should be charged to the apartment owners according to the percentage of undivided interest of the apartment owners in the common areas and facilities. The Act does not provide for differential maintenance between vacant and occupied flats.

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