Maharastra Apartment Ownership Act

By Investoxpert | 26 Dec 2023 | Real Estate

One important item of legislation in the Indian state of Maharashtra is the Maharashtra Apartment Ownership Act. The rule increases the amount of control apartment owners have over their homes. It facilitates the purchasing, selling, and inheritance of apartments. However, the owner or owners of the unit must complete and register a certain form in order to profit from this law. Multiple revisions to the Act have resulted from changes in the real estate market and the changing needs of apartment inhabitants.

This essay aims to elucidate the aforementioned rule and facilitate your comprehension of its impact on property ownership in Maharashtra.

When Did The Maharashtra Apartment Ownership Act Start?

The Maharashtra Apartment Ownership Act 1970, which was also known as the Apartment Act, came into effect in February 1971. Its main goal was to grant transferable and inheritable rights to unit owners.

According to the statute, they can now own their units in addition to an equal and undivided plot of land and the common facilities within the apartment complex. A share of common areas belongs to each owner of an apartment. These shared areas consist of hallways, gardens, and parking lots.

What Are The Maharashtra Apartment Ownership Act Key Provisions?

A number of facets of apartment ownership and lifestyle are covered by the Maharashtra Ownership Of Flats Act.

It grants unit owners inheritable and transferable rights. It suggests that owners have the option to leave their home to their heirs or sell it to a third party.

The rights and interests that apartment owners have in common areas and facilities are outlined in the ownership statute. This equal interest is calculated based on how much the apartment is worth in relation to the property.

The Act lays forth each apartment owner's responsibilities to the other and the shared spaces. It comprises lending a hand in maintaining and caring for these shared spaces.

Apartment owners have the ability to encumber their homes with objects. One way they might achieve this is by taking out loans or mortgages on their apartments.

The statute specifies the steps and requirements needed to complete and record the apartment's deed. It ensures that transaction paperwork is accurate.

It describes how to use AOAs to oversee facilities and common areas. The act's goal is to guarantee that apartment owners' associations run effectively and to the benefit of all members.

The AOAs are responsible for maintaining these places through donations from apartment owners.

The Act defines common profits, common expenses, and other related financial problems.

This ensures transparency and equity in the financial dealings of the residential complex.

How Is The Application Of The Act Done?

A few recommendations describe the circumstances and applicability of the Apartment Act. The Maharashtra Apartment Ownership Act applies to buildings that have five or more units (more than four). It is also preferable to have a condominium consisting of two or more buildings, each holding two or more flats (five or more units). These properties can be used for commercial or residential purposes, among others.

The rules may not apply immediately to apartment buildings. For the rules to apply, the owner or owners of the building must take certain steps. To formally comply with the act's responsibilities, they must create and register a Declaration.

How To Remove Property From The Act's Regulations?

For a certain building, apartment owners may choose to waive the act's stipulations. The owners of the apartments may draft a document exempting the building from the act's jurisdiction if more than half of the owners concur. They cannot, however, assign their rights to the entire interest of the apartment owner without the consent of all creditors or holders of encumbrances on the property.

It is important to keep in mind that apartment owners are free to decide to subsequently decide to re-impose the act's provisions on the property.

Share Of Property Owned By Apartment Owners

As per the statute, each owner of an apartment possesses two rights: one concerning their individual apartment and another concerning a segment of the shared areas and facilities. The value of the unit is calculated by dividing its total value by the value of the property. Nevertheless, this area of the shared areas and facilities cannot be purchased, sold, or relocated in isolation from the apartment.

Act-Related Authority

The statute assigns specific authority to implement its rules. Certain people are in charge of the project if it involves a government entity like the Housing and Area Development Authority. If not, the Registrar of Cooperative Societies, as defined by the Maharashtra Societies Registration Act, 1960, takes over as the authoritative entity.

Creating the Association of Apartment Owners

All apartment owners operating in accordance with the Declaration and bye-laws is what the Maharashtra Apartment Ownership Act defines as AOA. With assistance from apartment owners, the AOA's primary responsibility is to maintain common areas and facilities.

The Mofa Act, 1964 does not specify the minimal requirements for establishing an Association of apartments (AOA), despite the fact that it requires a minimum of five apartment owners to file Declarations and Deeds of Apartment to notify the Registrar about the AOA's existence.

Members Of The Association

Anyone who has completed the apartment's deed and purchased an apartment in a condominium is welcome to join the Association of Apartment Owners. As members, they are entitled to utilize all common areas and take part in AOA activities. Members must also pay the agreed-upon fees.

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Conclusion

One important item of legislation in the Indian state of Maharashtra is the Maharashtra Apartment Ownership Act. The rule increases the amount of control apartment owners have over their homes. It facilitates the purchasing, selling, and inheritance of apartments. However, the owner or owners of the unit must complete and register a certain form in order to profit from this law.

Multiple revisions to the Act have resulted from changes in the real estate market and the changing needs of apartment inhabitants. This essay aims to elucidate the aforementioned rule and facilitate your comprehension of its impact on property ownership in Maharashtra.

#Ownership Act

# Maharashtra Ownership Of Flats Act

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