ASSOCIATION OF OWNERS OF APARTMENT
9 months ago
1. what is the correct procedure to form an association of owners of apartment in karnataka? please specify the act and provision for the same
2. Under which act the association of owners of apartment in karnataka can be formed? Please specify the provision for the same
3. Under which act and which authority the Bye-laws can be registered in Karnataka? please specify the act and provision for the same
Also, Please give some recent year case laws and their facts and judgements with their citation to support your arguments.
A.Dear client,
1) Form an ad hoc committee of owners
2) Register the association: The options available were the Karnataka Societies Registration Act (KSRA),1960 or Karnataka Apartment Ownership Act (KAOA),1972.
Builders typically insist on registration of the Resident Welfare Association (RWA) under KSRA 1960 as this is very simple:
Any seven owners can come together to form and register the society.
Even the documentation required is minimal.
However, to register under KAOA 1972, the builder/developer needs to:
Prepare a Deed of Declaration (DoD) i.e., Form A as per KAOA 1972
Register the same at the Sub-Registrar’s office. Since this is a registered document the builder needs to be very transparent and declare the project details in totality. Any discrepancy in the DoD and the actual constructed project will lead to a legal tangle.
Over and above this DoD, builders need to execute the Deed of Apartment including Form B (as per KAOA 1972) whereby the buyer/owner assigns their flat to become members of the Owners Association by default, whenever it is formed and registered.
A society registered under KSRA 1960 mentions it as a welfare society and not a housing society, therefore it has no legal binding. As owners, we insisted on KAOA 1972, as it was devised specifically for apartments.
KAOA says that each apartment owner is liable to pay local taxes for his or her apartment and proportional undivided share which includes the common area. So that resolves the question of who pays property tax on the common areas. However, now as per RERA, the builder needs to provide separate UDS for common areas and transfer the same to the Owners’ Association. Thereby the Owners’ Association pays the property tax for this part of the property.
1) Form an ad hoc committee of owners
2) Register the association: The options available were the Karnataka Societies Registration Act (KSRA),1960 or Karnataka Apartment Ownership Act (KAOA),1972.
Builders typically insist on registration of the Resident Welfare Association (RWA) under KSRA 1960 as this is very simple:
Any seven owners can come together to form and register the society.
Even the documentation required is minimal.
However, to register under KAOA 1972, the builder/developer needs to:
Prepare a Deed of Declaration (DoD) i.e., Form A as per KAOA 1972
Register the same at the Sub-Registrar’s office. Since this is a registered document the builder needs to be very transparent and declare the project details in totality. Any discrepancy in the DoD and the actual constructed project will lead to a legal tangle.
Over and above this DoD, builders need to execute the Deed of Apartment including Form B (as per KAOA 1972) whereby the buyer/owner assigns their flat to become members of the Owners Association by default, whenever it is formed and registered.
A society registered under KSRA 1960 mentions it as a welfare society and not a housing society, therefore it has no legal binding. As owners, we insisted on KAOA 1972, as it was devised specifically for apartments.
KAOA says that each apartment owner is liable to pay local taxes for his or her apartment and proportional undivided share which includes the common area. So that resolves the question of who pays property tax on the common areas. However, now as per RERA, the builder needs to provide separate UDS for common areas and transfer the same to the Owners’ Association. Thereby the Owners’ Association pays the property tax for this part of the property.
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