Why Karnataka Apartment Ownership Act Is Important For Home Buyers
Mangaluru : Following a very important meeting by a few apartment owners and buyers (Ref report: https://www.mangalorean.com/conned-owners-buyers-unite-to-fight-flat-builders-who-abused-kaoa-laws-duped-buyers) published in Mangalorean.com on 7 July 2019, Team Mangalorean received a feedback from a bunch of apartment/flat owners, who also wanted to seek help in the issues that they too also have been facing with their builder. In the interest of these people, Team Mangalorean decided to publish this article, and also has included the contact numbers of the concerned people who would guide or give certain instructions to overcome their problems.
Team Mangalorean communicated with Ms Veena Prabhu, who along with her husband have taken an initiative to form an Association of Flat Owners, so that various issues could be discussed- this is what she had to say- “As all of us are aware of the purpose behind forming of this group let’s make a few sets of rules to start with :
1) Only apartment related issues to be discussed no other issue should be posted or discussed on the “Kudla Apartment Solutions” WhatsApp page
2) This group is formed to attend to the larger prospect of public interest and not just on one particular apartment
3) Try to attend the meeting to gain knowledge out of discussion which takes place and spread message what has been discussed for the benefit of all.
4) A person who is added in the group either on self request or on the request received from a friend or relative or known acquaintance. Hence in case, you feel out of place in the group please mention a reason for quitting the group before you just walk out.
5) Very soon we will be forming a registered welfare association to create awareness among flat buyers which is need of the hour and for this, we need guidance from senior and active volunteers. So accordingly we work in that direction in the meet scheduled on 4th August 2019 (Place and Time will be noted later- For more details, flat owners can call me (Veena Shantharam Prabhu ) at 9820758431, 9137376462)
With Real Estate Regulatory Bill coming into action, home buyers have started rejoicing. But, only a few buyers know that before RERA, there was state enabled Legislation and Law that were formed to protect the interest of home buyers. One such legal instrument is Karnataka Apartment Ownership Act (KAOA). Here is more about it-
What is Karnataka Apartment Ownership Act (KAOA)
Due to rise in the apartment culture in the city, to ensure the protection of the residents, apartment owners association is formed to maintain the common area and take decisions which impact the daily life of the buyers. A builder has to get the society registered within four months of the sale of 60 per cent of the total units. There are three acts under which a society can get registered, each of them having different provisions.
Karnataka Apartment Ownership Act deals with apartment societies in the state. According to the act, if an association is formed under KAOA, then each apartment becomes a heritable and transferable unit under separate Khata along with an undivided share of common areas. Moreover, the apartment buyers have to submit the deed of execution, received from the builder. What makes this act important is the provision that equates the ownership of an apartment with the undivided share of the total land including the common areas, unlike the Karnataka Societies Registration Act.
According to the Karnataka Societies Registration Act, 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. This means a buyer cannot mortgage the property as banks do not prefer to offer loan to a property where rights of the common area do not rest with the buyer.
Importance of Karnataka Apartment Ownership Act :
It is important to have registered housing society as it gives a legal stand to the homeowners and can help in the protection of the buyer’s right in the case of future dispute with the builder. According to KAOA, an apartment society should ensure the legal handover of the property from the builder to the owner. The buyer needs to acquire the following set of documents from the builder to get the legal charge of the property- Deed of declaration; Occupancy Certificate; NOC – Airports Authority of India; NOC- Ministry of Environment & Forests; Karnataka State Pollution Control Board – Consent; NOC from BDA for Construction; NOC – BSNLC – BESCOM; RR.No. Of all the Flats; Title Deed; Lift Approvals from Deputy Chief Electrical Inspector; BWSSB Sanction letter/Payment Receipt copy; List of Club House Movable Assets; Hand over of DG, Transformer & Fire Pump Details; and Sump & Tank Capacity Details
The act also regulates the process of construction of new buildings, transfer of the apartment, sale and promotion. KAOA is created to make units transferable and mortgageable and to address the concerns of property management.
ALL YOU NEED TO KNOW ABOUT ASSOCIATION REGISTRATION UNDER KAOA ACT 1972
The Karnataka Apartment Ownership Act of 1972 (KAOA), which came into force in 1975, encourages homeowners to form associations on democratic grounds. These associations ensure a smooth functioning within the housing societies and apartment complexes. Generally, such associations are registered by the developers. However, in case that doesn’t happen, the apartment residents can take a lead and get it registered with the help of a lawyer.
The case in Karnataka
In Karnataka, there is a general confusion about whether apartment associations must be registered under the Karnataka Apartment Ownership Act 1972 or Karnataka Societies Registration Act 1960 (KSRA). By law, the KAOA is the provision. But, the confusion arises because there is no authority specified for it to register the association through the Registrar of Cooperative Societies is regarded as the competent authority in this regard. However, note that you have the provision to tackle issues if you go by the rules of the KAOA. When it comes to the KSRA, the powers are well laid out and therefore, it paves way for such confusion. At this juncture, it is important to mention that while the KAOA deals with apartment complexes, the KSRA’s jurisdiction involves- literary, scientific, charitable and other organisations. As of now, those registering their apartments along with the KSRA guidelines generally put in a ‘welfare’ motive in the clause.
Besides, the KSRA, most apartment owners also get confused with the Karnataka Ownership Flats Act (KOFA). Promotion, construction, sale, management and transfer of the apartment only. On the other hand, KAOA was passed to help make apartments heritable, transferable and mortgageable as also to address the management of the property.
Other key features of KAOA
The homeowner under the KAOA is the absolute owner with a clear title of the apartment and its proportional undivided share (UDS). It is governed by the Transfer of Property Act,1882. It requires a Deed of Declaration that describes the property- bye-laws, the number of units, lifts, generators, gymnasiums, pools, firefighting equipment and such common facilities. The Declaration is made perfectly traceable by giving it a registration number as well.
Owners may also need to sign Form B that states that all home owners/members of the association duly agree to abide by the rules of the KAOA. Other provisions include duties of office bearers, the process of voting, charges, and encumbrances against each apartment. It extends to steps to be taken in case of demolition or destruction due to a natural disaster.
Common concerns:
There is a difference of opinion among lawyers who consider that KAOA has not served its purposefully since the role of the competent authority in this regard is unclear. All stakeholders — developers, buyers, banks must be guided about the right way out. Recently, an activist’s RTI received the government’s response and the latter wasn’t sure as to which department is responsible for KOFA or KAOA.
For more details flat owners can call Veena Shantharam Prabhu at 9820758431, 9137376462)
Source from Various Publications on The Related Topic
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