It is Builder responsibility to form cooperative housing society or form condominium of all flat owners 

2) sale deed executed by builder would contain a clause as to whether cooperative society is to be formed or condonium 

3) for registration under KAOA deed of declaration has to be executed by builder and deed of apartment in favour of each flat owner 

4) for registration as society application has to be made to registrar  duly signed by flat purchasers 

5) under KAOA flat owners do not lose their UDS 

6) in case of society conveyance is executed by builder  in favour of society 

7) if builder fails to form society or condonium flat owners can drag builder to court or consumer forum to direct him to form society or condonium 

8) even if builder becomes insolvent flat owners can approach registrar for formation of society 

9) even if flat owner is not staying in complex he is bound to pay equal maintenance as per bye laws approved by association 

10 there are number of lawyers on this website from Bangalore . You can contact any of them after seeking phone consultation from the website 

Dear Sir,

1. This work has to be done by builders related to your apartment, He will help registering under housing society.

2. This will be referred according to the sale deed made by the builder, then it will be dependent on that sale deed that they will loose shares or not.

3. Application has to be signed by the owners of the society and also while registration sign of owner is required.

4. Flat owners will not be able to loose their UDS.

5. You can sue builder under consumer court and send him legal notice to transfer to society or association.

6. you can file a case in court or consumer forum against the builder.

7. legal action can be taken against him directing to complete the sale deed and form association.

8. you can also complain to registrar asking him to form a society.

9. owners have to equally pay maintenance as according to laws

10. It will be good if you register the association, it will help you from any further problems.

11. You can ask each owner to pay maintenance equally and can inform registrar about non-payment of maintenance and send him legal notice to follow rules and regulations of society and can warn them about their eviction.

Thank you

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1. No its not correct.

2. no its not a correct interpretation.

3.yes

4. yes

5.Then association can go to court and appoint a fresh builder if they desire or cancel the DA with earlier builder

6. yes you can continue with same association as the builder's insolvency doesn't affect your separate legal entity

7. No he needs to abide with the DA or MOU and if he goes need to pay for damages

8 as per point no 5

9. maintenance is applicable till the same is not taken over by builder

10. yes it can be collected through legitimate way.

11 complaint to dy registrar and recovery proceedings 

1. The decision about registering the association should be taken collectively and not by an individual.

There is no necessity to be worried about the title under which the association is to be registered, it is just a name.

2. Under KAOA, the property shall be deemed to be owned in common by the apartment owners.

the undivided interest in the property owned in common which shall appertain to
each apartment owner shall be the percentage of the undivided interest previously
owned by such owner in the common areas and facilities

3. The association members do not have any rights to sell the property belonging to other persons.

4. Yes.

 Clause 4- Under this clause, each apartment together with its undivided interest in the
common areas and facilities appurtenant to such apartment is constituted for all purposes a heritable and transferable immovable property. 

Clause 6- This clause specifies the common areas and facilities to which each apartment owner shall be entitled, and prohibits an apartment owner form bringing any action for partition or division of any part of such common areas, unless the property has been removed from the provisions of the Act.

5. Apartment Owners Association is a voluntary organization that is formed by the owners of the apartment. 

Key things to remember while forming the association:

• To form the association, a minimum of seven members are required. This association includes an apartment owner, a general body, associate member, and a management committee that includes a president, vice president, secretary, and treasurer.
• Create a memorandum which states the name of the society, its objectives, name, and occupation of the residents
• By-laws which is used to govern the society
• The by-laws and memorandum should be printed and duly signed by the members. It is filed with the register of the society and should pay a nominal registration fee.

6. The association can settle disputes with the builder regarding poor construction, for violating building codes, etc. The case can be filed at the National Consumer Disputes Redressal Commission (NCDRC).

The insolvency of the builder has nothing to do with the formation of association of apartment owners.

7. .Builders usually allow the apartment owners to form their own association and fix the maintenance charges applicable.

Builder/promoter is duty-bound to form the 'Association of apartment owners' in a time-bound manner. AOA is to be formed mandatorily after hand over is given to 60% flats. In fact, AOA can be formed one year after the completion certificate is issued to the Project.

8. A builder can be sued for cheating, breach of contract, not responding to the grievance and delivery of poor quality construction. While drafting the criminal complaint, the society should highlight specifically the violation of the various provisions. The society should also emphasize that violation of the provisions is criminal in nature. Attention of the criminal court should be drawn to offenses of various sections of the Indian Penal Code – Sections 406, 407 read with sections 415 and 420.

9. Your understanding is incorrect, you may go through the bylaws of the association before concluding on it. 

10. Provisions are made in the by-laws of the association for collecting the maintenance charges. Builders usually allow the apartment owners to form their own association and fix the maintenance charges applicable. The cost of maintaining the amenities needs to be shared by the apartment owners and residents in the apartment. There is a misconception among many residents that the price they pay for the apartment is inclusive of the facilities in the apartment that they enjoy. Maintenance is a fee charged for services provided and maintenance of equipment facilitated by the apartment.

11. In the event of default by any member, the association has the right to charge interest and penalty from the defaulter, and the power to recover this amount. The apartment owners association has the right to sue defaulting members but it cannot terminate any facility enjoyed by the owner. The apartment owners association can only initiate legal proceedings for recovery of any outstanding payments besides seeking relief, as may be permissible under the law.

You can sell the flat after association is formed 

2) you may need NOC of association for sale of flat

3) if society is registered then society becomes owner of land once conveyance is executed by builder in favour of society 

4) you can mortgage your flat after obtaining NOC of association 

5) association owners cannot sell the entire property without consent of members 

6) they cannot sell any flat 

Dear Sir,

1) Yes, you can sell your flat after the association is formed.

2) You may need to ask permission, but its not always the case. Regardless the association has no power to deny or stop owner from selling his flat.

3)  No you will not loose your share to UDS.

4) Yes you can get mortgage over your flat after handover to association. Noc may be required as per bylaws of the association.

5) No the association cannot sell the property without consent of all owners.

6) No association cannot sell flat of any owner either. 

7) Yes registration under KSRA  is allowed, The promoter has a legal duty to allow  formation of society/ association by the allotee  under RERA .

8) Societies under their by laws have power to fix maintenance charges and they can do it in two ways either fix maintenance per sq ft of house or equal maintenance from all owners. In the first case the owners with larger facts will have to pay more maintenance.

the draw back will be the society will have power to make decisions as per by laws and certain times they do misuse the same and make arbitrary notices. You may need to need to the NOC from society for construction selling etc of your flat.

9) Societies are taken as consumers and thus society can move  to consumer court against builder

10) Societies have to registered with the registrar you as owner will have power to file complaint against society to registrar. 

11) Registering under KSRA will also enjoin a lot of additional responsibilities on the Managing Committee, like filing of annual returns along-with certified copies of Income & Expenditure statement, Balance Sheet.

12) it is generally difficult to find competent people to take up office (generally honorary positions) in such associations, and adding more burdens.

Thank you

1.  You can sell your property whenever you may decide to do so, there is no restrictions for that. 

2. You may have to obtain NOC from association.

3. If the registration of the association is under society then the Association would be the owner of all the common areas and UDS.

4. Yes, you can.

5. No.

6. No.

7. The flat owners can decide about it.

8. 

It turns out that if the correct process as required by the law is followed, KAOA registration will flow smoothly. An apartment as defined in Karnataka is a property of a residential nature where the owner owns the apartment and holds a percentage share in the land and common areas and amenities. There are two laws that govern this process in Karnataka.

One is the Karnataka Ownership Flats Act (KOFA) and the other is the KAOA. KOFA regulates the process of promotion, construction, sale, management and transfer of the apartment. KAOA was written with the view to make apartments heritable, transferable and mortgageable and to address aspects related to management of the property.

9. Section 3 of the societies act defines the various types of societies that can be registered under the act and none of them meet the definition of an apartment association.

Unfortunately, the ground reality today is that very few builders do things the right way. Most apartments have associations registered under the societies act. Banks continue to give mortgages despite the fact that clear title is not passed on to the buyers due to the manner in which transactions are conducted. The registrars and sub-registrars continue to register any document that purports to be an apartment sale deed without paying heed to the requirements placed on them by the KAOA.

As of now, those registering their apartments along the KSRA guidelines, generally put in a 'welfare' motive in the clause.

However if the association decides to re-register the association with the Karnataka apartment owners association Act, 1972, in a general body meeting, it may be decided by passing a resolution.

If President / other office bearers misappropriated funds complain to registrar 

2) file police complaint against president and other office bearers  for cheating, criminal breach of trust under section 406 , 420 of IPC 

3) you can seek appointment of administrator for society 

1. The existing model bylaws itself would have provisions for actions to be taken on different occasions as per the necessity.

 You do not have to add new ones except if at all there is a resolution passed to frame new bylaw, approved by majority of members.

2. The complaint can be made before the Registrar of Societies. If needed, amendments to the Memorandum of Association and Rules of the RWA are allowed under sections 12 & 12A of the Societies Registration Act,1860.

An RWA can become a nuisance to residents when the Governing Body, or one of its members, interferes with the rights of others by causing damage, inconvenience, or annoyance.
In extreme cases of misfeasance, the Governing Body could also be corrupt and engage in extortion, bribery and theft of funds. Like for example, overcharging residents for services like repairs to illegally profit from the service provider

You can file criminal complaint also in the said case for criminal breach of trust and misappropriation

Dear Client,

You can add to the bylaws and make appropriate clauses to remove the president. Rather you can also have a clause to limit the actions of the president so that he is prohibited from mishandling money, misbehaving and conducting unlawful activities.

Thank you