Transfer of common amenities -space from Builder to RWA

Dear Sir,

On the issue of relinquished lands (roads, parks, civic amenity sites): once transferred to planning authorities (like BBMP/BDA/KPTCL), your RWA cannot claim ownership over those portions. Your ownership will only extend to non-relinquished assets like clubhouse, STP, internal facilities, etc.

Dear client,

From a legal standpoint, the current position is not secure, as an unregistered transfer deed does not convey valid title in immovable property, and therefore ownership of the clubhouse, STP and other common facilities still legally remains with the builder. In a villa/rowhouse gated layout such as this, the most appropriate and practical course is to have a properly registered conveyance deed or gift deed executed by the builder in favour of the RWA registered under the Karnataka Societies Registration Act, 1960, rather than relying on the apartment model under the Karnataka Apartment Ownership Act, 1972, which is better suited to apartment structures. A registered deed will ensure clear and marketable title, enabling the RWA to legally undertake future modification, demolition or reconstruction of facilities like the clubhouse or STP, subject to municipal approvals. It is also essential to first verify which portions have already been relinquished to statutory authorities (such as roads, parks or civic amenity sites), as those cannot be transferred again. A mere possession letter will not create ownership rights and should be avoided as a substitute for a registered instrument. While stamp duty implications will arise under the Karnataka Stamp Act, the priority should be securing valid title before the builder exits India; cost minimisation can be structured depending on the nature of the instrument. Further, once such assets are transferred, property tax liability may arise in the name of the RWA depending on how the local authority assesses such common amenities, though in some cases concessional or common-area treatment may apply.