As Bangalore draws housing demand from all across the country; growing number of multi-storey
apartments and high rises are dotting the Bangalore city scape. Formation of apartment association is a vital task
and apartment owners or residents need to be aware of all the related laws and regulations as they would ensure
the future protection of their rights.
Apartment Owners Association is a statutory body that manages and operates all common resources and
amenities. The onus lies on the residents that they enroll themselves as members of their apartment owners
association or cooperative housing society to safeguard their rights and titles.
As per norms, builders are supposed to form the Association or housing society within 4 months of the sale of 60
per cent of flats in the complex. The apartment ownes association is then to be handed over from the builder.
However, if the builder fails to form and register a society, then the residents can form the association on their own.
Registering the Apartment Association
There are three Acts for registering an apartment or a housing society.
1. Karnataka Apartment Ownership Act, 1972
The Act exclusively deals with residential apartments in Bangalore. If an association is formed under the Act,
then each apartment becomes a transferable and heritable property with separate khata and specific undivided
interest in land. The apartment buyers need to submit their apartments to this Act by executing a deed of execution.
Disadvantage in forming an association under this Act is that it is often difficult to gather all the owners of the
apartment all at the same time for the registration of the association. The builder can obtain the power of attorney
from all apartment owners and subsequently can submit the entire property to this Act.
2. Karnataka Societies Registration Act 1960
In Bangalore most of the associations are formed under this Act. The societies formed under this Act are for the
promotion of charity, educational, science, art, literature or for the promotion of sports. The Act does not bind
anybody who is not a member.
The advantage of the Act is that it can be formed with a minimum of seven members who are not less than 18
years. Both residential and commercial building owners can become members of the society.
The flat owners society formed under this Act can be effective for the limited purpose of managing the day to day
affairs of maintenance.
The flat owners society formed under this act can be effective for the limited purpose of managing the day to day
affairs of maintenance.
3. The Ownership Flats Act and The Companies Act:
Under this Act, a private company can be formed for the maintenance of an apartment, both residential and
commercial. All the owners will be issued shares and rules for governing the allotment and transfer of shares would
be formulated. It may not be very effective in Karnataka because undivided interest in land is sold off routinely in
Bangalore and the co-operative societies may not have companies as its members. In Mumbai, London which the
buildings are built are owned by a company or co-operative society, making this Act effective.
Any type of association has to hold Annual General Body meetings and elect its office bearers. It also has to file
audited balance sheets before the concerned authorities every year.
Legal aspects of KAOA
Apartments in Bangalore seem to be following the route to register themselves under the Karnataka Societies
Registration Act, 1960. However, as has been witnessed, the Societies Registration Act is unlikely to safeguard
the owners’ rights. 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.
Due to this, many legal tussles have been going on between builders and apartment owners in Bangalore. An
apartment association can be formed under two acts – the Karnataka Ownership Flats Act (KOFA)
and the Karnataka Apartment Owners Association (KAOA). KOFA regulates the process of promotion,
construction, sale, management and transfer of the apartment. KAOA was created with a view to make apartments
heritable, transferable and mortgageable and to address issues related to management of the property.
In a Cooperative Society setup, the building, common area and land is vested with the Cooperative Society and
the allottees of the flat are deemed as “tenants” in legal parlance. It implies that a member has all rights to occupy
his or her flat, but does not own an undivided share as is commonly understood. This is because all common
property is vested with the Society. Hence, if your Society is registered under the Societies Act, 1960, then you
would not be able to claim a mortgaged loan against the apartment you own. The reason being that banks may not
be willing to sanction a loan against a mortgaged property (the flat) which you do not wholly own.
It was under these circumstances that the Karnataka Apartment Owners’ Association came up in 1972. In India,
the sale and purchase of immovable property is governed by the Transfer of Property Act of 1882, which does
not cover apartments. The KAOA equates the ownership of an apartment with undivided share in land and common
areas with ownership of immovable properties under the Transfer of Property Act.
Apartment Owners Association
Apartment Association is pivotal in legal handover of an apartment to the owner from the builder. Before the
property can be legally handed over to the owners, the builder has to register the Society within four months of sale
of 60 per cent of the flats. In case the builder fails to do so, residents can themselves form an apartment
association. Following are the requirements for formation of apartment owners association:
(I) Need seven or more members who must be above 18 years.
(II) Memorandum of association with name and objects of association, details of members of governing body with
name, address and occupation.
(III) By-laws (rules and regulations) of the association.
(IV) Fee for registration
Legal hand over from builders
Memorandum of Association and By-laws of the Association are pivotal while forming an association or housing
society. Ensure that builder has obtained Occupancy Certificate for the apartment. Occupancy Certificate
evidences the completion of the building as per the approved plan and assures its compliance to local laws. Here
are all the documents for legal handover from the builder.
1. Deed of Declaration under 1972 Act.
2. Occupancy Certificate
3. NOC – Airports Authority of India
4. NOC- Ministry of Environment & Forests
5. Karnataka State Pollution Control Board – Consent
6. NOC from BDA for Construction
7. NOC – BSNL
8. NOC – BESCOM
9. BESCOM Approvals for Transformer & LT Panels.
10. BESCOM Sanction letter and Deposit Receipts
11. NOC- Karnataka Fire & Emergency Services & Conditional
12. Gas Approvals From Oil Corporations & Allotment Order
13. BDA Approved Plans & Modified Plans
14. Lift Approvals from Deputy Chief Electrical Inspector
15. BWSSB Sanction letter/Payment Receipt copy
16. List of Club House Movable Assets
17. Hand over of DG, Transformer & Fire Pump Details
18. Sump & Tank Capacity Details
19. Hand over -STP Pump Details
20. Hand Over – Pump Room Asset Details
21. Hand Over – Swimming Pool Room with List of Assets
22. Hand Over – Sewage Treatment Plant ……….KLD
23. Hand Over – Play Area Assets
24. Hand Over – Basement Fire Hydrant Equipment Details
25. Hand Over – All Block Yard Hydrant Equipment Details
26. Hand Over – Fire Hydrant Details Block wise
27. Hand Over – Fire Extinguisher Details
28. Hand Over – Security Room Main Gate
29. Hand Over – Gas Bank Equipment Details
30. Hand Over – Gym Room Equipment
31. Hand Over – Club house Key List Details
32. Hand Over – Common Area Key list Details
33. Hand Over – List of Manuals & Service Report Files
34. Hand Over – Fire Pump Details
35. Hand Over – List of Architectural Working Drawing
36. Statement of Maintenance Deposit or Corpus Fund
37. Renewals – Annexure – E
38. Address Book of all the Flat Owners.
39. RR.No. Of all the Flats
40. Title Deed
What is a by-law in an Apartment Society?
By-laws are the guidelines, which have provisions relating to the affairs of the apartment association. It
refers to a local/private law made by an organisation for its own government.
The role of by-laws:
Each apartment association will have an apartment bye- law which contains certain details like the name
of the association, the address, the date of formation, jurisdiction aspects and so on. The bye-laws contain
various particulars which relate to the business hours of the association along with the objects and activities of the
association.
The importance of by-laws:
Bye-laws are required by the managing committee of an Apartment Owners Association (or Residents
Welfare Association) to ensure proper maintenance of the apartment complex and to resolve the issues
that the residents face in a timely and effective manner. Solving the issues is not easy. It is quite a difficult task
to convince the society to agree to the chosen rules and regulations. All of the related issues are solved through a
set of rules known as the bye-laws. Every apartment complex adopts the bye-laws from the moment it is registered.
The bye-laws govern the day-to-day functioning of the apartment complex and it is considered as the constitution
of an apartment complex.
An apartment by-law will include:
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An apartment owners association can be registered under the society act or a Flat Owners Act.
An apartment association must consist of at least 10 people, over 18 years of age.
All the owners are obliged to pay monthly assessments imposed by the association and abide by the
rules of conduct.
The registration of an association involves the drafting of memorandum and bye-laws.
The memorandum shall contain the name of the association and the objects of the association apart
from the names, addresses and occupations of the members of the committee which is the governing
body.
The names of persons or officers who can sue or be sued on behalf of the association.
Particulars of the person or officer who can give directions with regard to the business of the association.
It is mandatory that the bye-laws should have details about the enrollment of members, qualification for
membership, restrictions and other conditions along with the entrance fee.
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The deadline date for the payments and the fee.
A list of delayed payments and penalties.
Rules about eviction of members and the circumstances under which members can be evicted along
with the particulars of rights, obligations and privileges of the members.
The bye-laws should have the particulars relating to the manner in which the business of the association
has to be carried out.
A list of qualifications of members to hold office, the term and other conditions for
appointment/reappointment should be mentioned.
Every apartment owners association shall make own bye-laws at its first meeting for the administration
of the affairs in relation to the apartments and the property relating thereto.
People who have purchased apartments and executed a deed of apartment shall automatically be the
members of the association and will pay the membership fee. Each apartment owner shall receive a
copy of the bye-laws.
The affairs of the association shall be governed by a board and elected by the members by simple
majority in the general body meeting.
The principal office bearer of the association shall be a President, a Vice-President, a Secretary and a
Treasurer, all of whom shall be elected by and from the board. The board may appoint an Assistant
Secretary and an Assistant Treasurer.
One third of the members of the board retire annually.
The office bearers shall hold office until their successors have been elected and hold their first meeting.
The first meeting of a newly elected board shall be held within ten days of election.
The administration of every property shall be governed by bye-laws, a true copy of which shall be
annexed to the declaration.
How can one make a model By-law?
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Make a draft or model bye-law for the association.
Getting it approved from the general body.
Proceed for the registration of the association.
On successful registration of association bye-law becomes effective for association.
Why does an apartment association need a by-law?
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The primary responsibility of the managing committee is to ensure proper maintenance of the apartment
complex and to resolve related issues which residents face.
Convincing the members to act in the interest of the society is no less a challenge either as almost
every resident is aware of their rights but few accept their responsibilities.
They are needed for the smooth functioning of a society and many consider them to be the constitution
of an apartment complex.
They are critical for the efficient working of a society and are mandatory for an Apartment Complex
Association.
Amending by-laws:
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Bye-laws may be amended by the association in a duly constituted meeting. An amended bye-
law will be effective if it is approved by the owners representing at least two-third of the total
number of units in the building.
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A modified or an amended bye-law shall be valid only if an amendment to the declaration is made.
Procedure for amending a by-law:
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Conduct a general meeting on an annual basis.
A resolution will be passed by a majority of the 3/4th of the members who are present.
The two-third of members should not be less than one-third of the total members in the society.
Every change in the memorandum of the association as approved shall be filed with the registrar
within 30 days. Such change shall not have effect until it has been registered.
The committee should also submit four copies of the existing bye-laws along with the resolutions passed
by the annual general meeting.
The registrar will register the amendment upon satisfaction that the amendment does not contravene
any act or rules that guide the functioning of a co-operative society.
The Registrar will issue a certificate of registration along with the certified copy of the amendment.
By-laws for keeping pets
According to the Constitution of India, an apartment should not ban the keeping of animals in an apartment, with
Section 11 (3) mentioning about the Prevention of Cruelty to Animal Act, 1960. It is also against article 51 A (g) of
the Indian Constitution wherein, it is the duty of every citizen to have compassion towards animals, living creatures
and improve the natural environment.