I was searching for the concrete evidence and rules for time frame for taking over of the apartment from the builder of the apartment while the builder is inordinately delaying for their vested interest OR otherwise, time frame for handover of completed apartment to the Resident Welfare Association by the builder.
Few statement & search result says that builder has to handover the apartment to association on completion of 80% sale of flats , few says 60% of sale of flats and magicbrick article says 50% occupation of flats..etc
Though there is no specific time frame is available to authenticate & state to state it is differing, I found some references and direction from RERA to builder to handover the apartment to association.
The RERA Chapter III, sections 17, clause 1 and 2 says about hand over of the completed apartments to the resident welfare association as below
17. Transfer of title.—(1) The promoter shall execute a registered conveyance deed in favour of the
allottee along with the undivided proportionate title in the common areas to the association of the allottees
or the competent authority, as the case may be, and handover the physical possession of the plot,
apartment of building, as the case may be, to the allottees and the common areas to the association of the
allottees or the competent authority, as the case may be, in a real estate project, and the other title
documents pertaining thereto within specified period as per sanctioned plans as provided under the local
laws:
Provided that, in the absence of any local law, conveyance deed in favour of the allottee or the
association of the allottees or the competent authority, as the case may be, under this section shall be
carried out by the promoter within three months from date of issue of occupancy certificate.
(2) After obtaining the occupancy certificate and handing over physical possession to the allottees in
terms of sub-section (1), it shall be the responsibility of the promoter to handover the necessary
documents and plans, including common areas, to the association of the allottees or the competent
authority, as the case may be, as per the local laws:
Provided that, in the absence of any local law, the promoter shall handover the necessary documents
and plans, including common areas, to the association of the allottees or the competent authority, as the
case may be, within thirty days after obtaining the 1
[completion] certificate
Hence it is clear that the builder must handover the common amenities to RWA in 30days from date of completion certificate or in 3months from the date of occupancy. Transfer of title can be interpreted as handover.
If it doesn't happen, check your agreement. Builder would have charged you for maintenance of the apartment and would have indicated time frame like 6 months and so on. That stands good in worst case
How to approach the builder who didn't handover?
Association formation With Builder's consent
While most of the builders wont involve, they will facilitate the situation to form a Residents Welfare Association(RWA).
Read your construction agreement whether builder has to give his consent to form association. Though it is not legal, getting a consent will have transparency. Reputed & good builders may come forward to call all flat owners in a set date to facilitate the association formation. In that meeting, RWA will be formed and volunteers will be nominated by whoever take the lead, probably the builder .
In the above circumstance, builder will do all formalities on the request and handover will be done based on mutual discussion with association members
This is IDEAL condition
However, if the association is formed without builder's consent, how can the association take over of finished flats
How to form Resident Welfare Association Without Builder's consent
This is the general condition of almost all the apartments in India. Builder may not handover to association due to the following points.
- Most of the flat buyers are investors and don't bother about handing over
- Very less owners occupied the flats and hence no pushing power
- No volunteers or none is interested in welfare of community
- Builder has vested interest ; either may do some business or may enjoy benefit like corpus interest, construction pending activities at owners MMC cost
- Complicate agreement clause which prevents association formation (Read how to check construction agreement by yourself)
- Volunteers effort on association formation & active involvement of other owners were not seen and builder is taking advantage of it (which should be avoided whoever reads this article & spread the awareness among your owners group)
The following is the step by step process to form the association without builder's consent & not required too
- If your builder didn't kick start association formation for the period indicated above; that is, 50% of the flats occupied or 80% of the flats sold or 3months from the date of completion certificate from respective authority, affected/residing owners can gather together & form the association
- Minimum 7-10 volunteers are available to represent welfare of owners (This depends based on the act in your state, Example 10 members required as per Societies Registration act 1860 in Maharashtra, 7 required as per TN Societies Registration Act 1975)
- Organize a whatsapp group for residing owners & non-residing owners may also be added if known to get support
- Call all owners for a meeting with agenda, discuss among yourself about the Executive Committee Members (President, secretary..so on). Make a minutes of meeting, this is a basic & mandatory document
- Draft your bylaw, take the help from established associations bylaw for drafting your apartment bylaw as established apartments would have made several revisions based on Registrar of Societies & Auditor observation
- Register your society with Registrar of Society (Registration authority may change state to state) & obtain certificate (2-4 weeks)
- After receipt of certificate, intimate your owners, Builder, Local Panchayat, Police station..etc stating that you formed & registered and will be taking charge from builder in stipulated time frame (tentative)
- Send series of reminder letter till builder come forward with a plan of handing over. Worst case, send a lawyer notice indicating RERA sections with take over target month & inform it to association notice board
- Meanwhile, apply for PAN in association name (mandatory to open bank account) and open a bank account in nationalized bank
- Appoint a Manager 2-3 months prior to taking over and insist builder to pay his salary; worst case his salary can be diverted from residing owners Monthly Maintenance Charges (MMC)
- Request and instruct all residing & non-residing owners to start paying MMC account from the target month you set to the builder
- Appoint a facilities management contractor to take are of Maintenance, Security, Housekeeping in phased manner to match with your taking over of collection of MMC
It may not be that easy from the observation we did across various Welfare associations but this cannot be avoided. As soon as the formation of RWA, recruit a team to not to make tired of existing RWA Executive Committee Members. Owners must support fully without conflict to the association EC members
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