Legal eagle Real Estate

Like a tenant in my own home

Photo: R. Ragu  

I have purchased a property (house) from a member of a housing association registered under the TN Societies Act 1975. The seller has transferred the same in my name and the documents are registered. The Association is demanding ₹1 lakh from me (for the corpus fund) as an entry fee to become a member as per the bye-laws. As per TN Apartment Ownership rules of 1997, the membership also gets transferred to the buyer on resale. I need your advice on the following:

1. Is it legal for the Association to demand a corpus fund from buyers on resale? Can the amount for the corpus fund be collected any number of times as the number of transactions for the same property?

2. Can the Association deny membership and services/ facilities because of non-payment towards a corpus fund?

3. I purchased this house in 2019. Since then, I have been living in the same house and paying maintenance and other charges regularly. However, the demand note/ receipts are still made by the society in the name of the previous owner/ seller.

G. Raju, Coimbatore

As stated in this column earlier, the corpus fund relates to the apartment and not the owner. On resale, the deposit should be deemed as transferred to the new purchaser, unless the bye-laws of the association provides otherwise. If there is lack of clarity, this issue can be discussed and decided by the general body.

An Association cannot deny membership or services/ facilities to any apartment owner. However, if any member is in violation of the bye-laws, the association can take action against such member as per the bye-laws and as per the laws and rules governing associations.

Please make a written application to the association enclosing a copy of document evidencing your purchase. The Association has to substitute your name in place of the earlier owner.


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Printable version | Jan 17, 2022 1:48:22 AM | https://www.thehindu.com/real-estate/like-a-tenant-in-my-own-home/article37338726.ece

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