Our gated society is made up of 2 phases, Phase-1 and Phase-2. Both the phases share the same common area i.e., club, facilities, lawns, etc. As of now, only Phase-1 has received OC and flats have been handed over to residents, but the occupation is barely 1/3 of the total, i.e., around 110 residents. Phase-2 flats' construction has been completed only a few months earlier, and will be handed over only by this year end or next year beginning onwards. The builder has taken advance maintenance for 1 year from Phase-1 residents, and is going to take the same from Phase-2 residents too. Presently, the builder is working on the construction and quality issues being faced by Phase-1 residents, and the work is still in progress. The builder is now telling that the RWA has to be formed by March 2022, which will represent both Phase-1 and Phase-2 residents. The builder has already hired a consultant for the same, without informing the residents. How could we go about tackling this problem? Because it seems the builder is just trying to push everything on the residents' head, and get out.
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Once construction has been completed and OC issued by authorities builder will form housing society and hand over management to flat owners
he will submit audited accounts for maintenance collected by him and call meeting of flat owners to elect managing committee to manage the affairs of society
builder is not going to continue managing affairs indefinitely
According to Real Estate (Regulation and Development) Act, 2016, a residents welfare association (RWA) must be established in a housing society, within three months from the time that a majority of the houses there have been booked. If a developer does not take steps to form an RWA for such a society, the legal owners can themselves form such a body.
Either the builder or the residents can mutually call for an annual general body meeting of residents to form the RWA and an ad hoc committee. .
If many residents are interested in becoming a part of the management committee, then usually elections have to be conducted.
During the process of possession, the developer facilitates the management of common areas by managing the site till the RWA is formed.
This allows apartment owners to settle down before taking charge of running the project. There is a Common Area Maintenance charge taken from residents to run the development during this period.
The RWA is a democratic set-up constituted under the Societies' Act. The residents have to unite to thwart any unilateral move by the builder-promoter. You may take up the issue with the registrar of societies concerned. As for the issues in quality of construction, please complain to the RERA authority in the State.
This is common issue faced by the residents. The consultant of builder will charge you a lot. First try to get your own consultant through RWA to save money and corruption. Builder can't force you to take there Consultant.
As per RERA, the builder has to form the Society /association within three months of most owners shifting to the flats.
- Further, a builder’s consent for formation of Association/society not mandatory, but as it is the responsibility of the builder to enable the formation of society and its registration.
- Further, a builder will pay all outgoings until the transfer of physical possession of the real estate project to the association of allottees.
- Hence, the builder cannot charge from the flat owner for his own wrongs.
- You can file a compliant against the builder before the RERA or Consumer Court.
So as per RERA, the builder has to form the association(RWA) within three months of most owners shifting to the flats. What exactly would be the definition of 'most'? Is it mentioned anywhere legally? Suppose if X number of flats are there, does majority mean that 50%, 60% or 70% of the X flats which are currently occupied?
Once flats are sold by registered sale deed and OC issued builder can form RWA not necessary that flats be occupied
It's 70 percent of total flats in the building
There is no particular quantity mentioning the'most', it is an understood concept.
If more than half of the flats have been delivered possession, then it can be construed as most of the members.
You may concentrate on your problem and not the numbers here.
The RWA is a voluntary association of the residents, and the promoter has no say in its formation. The residents form the association of their free will in order to manage their own affairs, such as maintenance of common amenities in a gated community. The residents have to join together, call for a plenary, get the bylaws drafted by a lawyer, register the RWA under the Societies Act, elect the office-bearers and start managing the common amenities. Only if you register the RWA will you get a legal entity and status. Your RWA can then legally demand that the promoter hand over all the common amenities such as lifts, car-parks, generators etc., together with the corpus collected and a true, up-to-date statement of account to it for future maintenance. Don't let the promoter dictate terms to you. You need not wait for all flat-owners to occupy; form the RWA first.
Dear Client
Most means the "majority of allottees" who booked their flat. Majority means simply exceeding half of the number of allottees.
Thank You
Majority in simple words means more than half of the numbers
But once OC is issued then RWA can be formed.
to answer "push everything on the residents' head, and get out" needs to be understood in detail.
1. What is the actual problem? Most of the people would like to take control from the Builder by forming RWA.
2. Once the possession of flats are handed over to the owners, the Builder is expected to handover total responsibility of the constructed site to the RWA including maintenance.
3. If some work remains incomplete then it can be taken up by the RWA separately and appropriately with the Builder.
1. The statement 'most of the owners shifting to the flats' will be presented differently by either side lawyers.
2. The Builder's lawyer will argue that after receiving possession of the flat, the owner chose to shift therein alone without any furniture.
3. The number to be qualified for becoming 'most of the owners' will certainly be more than 50%
- At least 10 flat owners are needed to form a society.