Jul 14, 2011

Formation of Apartment Owners Association in Bangalore

Bangalore apartment owner’s association is voluntary association of apartment owners residing in Bangalore. The association may or may not be registered. The registered association can enjoy all the legal benefits.

Act for Registration Apartment Owners Association

An association in Bangalore can be registered under Karnataka Act. There are mainly three Acts which you can register your association. The following are Karnataka Act for registering an association.

  1. The Karnataka Apartment Ownership Act 1972: Act exclusively deals with residential apartment. Law makes each apartment a transferable and heritable property with separate katha and specific undivided interest in land. Disadvantage in forming an association under this Act is that it often difficult to gather all the owners of the apartment one at time for the registration of association. If the owners of apartment give the power of attorney to builder he can submit the entire property to this Act. Find the pdf of act here :Karnataka Apartment Owners Act 1972

  1. The 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 it can be formed with minimum 7 members who are not less than 18 years. The association formed under this Act to maintain day to day affairs of maintenance. Both Residential and commercial building owners can become member of the society.
  2. The Ownership Flats Act and The Companies Act: Under this Act a private company can be formed for the maintenance of apartment, both residential and commercial building. All the owners will be issued shares and rules for governing the allotment and transfer of share. This is not effective in Karnataka because the co-operative societies may not have companies as its members.

An association of apartment can be formed by volunteer association of owners of apartment. The association may or may not be registered. By registering the association members can enjoy legal benefits and association gets unique name registered. An apartment owner’s association can be formed under Karnataka Apartment ownership Act 1972 but it needs all the owners of apartment gather at one place at time of registration and it is difficult to gather all owners at one place at a time. The builder can register the association if all owners give power of attorney for forming an association. Most of associations are formed under Karnataka Societies Registration Act 1960.

The following are requirement for formation of an association under Karnataka Societies Registration Act 1960.

  1. Need 7 or more members and must be above 18 years.
  2. Memorandum of association with name and objects of association, details of members of governing body with name, address and occupation.
  3. Bye-laws (rules and regulation) of the association.
  4. Fee for registration

All the applicants need to sign the document in front of Registrar and if the Registrar is satisfied that all the requirements of this Act and the rules made he shall certify that the society is registered and issue a certificate of registration. The Association of apartment owner’s is successfully formed.

Object of Apartment Owners Association

In an apartment there will be common maintenance charge and it has to be meet proportionately by all flat owners. One of the objects of formation of association is to collect these charges and work for welfare of owner’s of apartment. The association formed under Karnataka societies registration Act 1960 is promotion of charity and organize a non-profit organization for welfare of owners in apartment.

Duties and Powers of Apartment Owners Association

All the owners of apartment complex are members of the association but people other than owners who reside or occupy an apartment will have to pay maintenance charges for enjoying common facilities but does not have right to vote unless authorized by owner of apartment in writing. The members other than owners are known as associate members and owners are known as members. All the members of association form general body.

General body consists of all the members of association who are owners of apartment complex. General body elects members by and from general body as Management committee. Management committee consist a President, Vice-President, Secretary, Treasurer and other members. Management committee represents association before all official and non-official bodies concerning building and other member’s rights and interests.

Each and every member has his own duties and rights in an association. Here are some duties of each member.

  • Management Committee
  1. Organize social, cultural and recreational facilities for the members or people in the apartment.
  2. Represent members of association and protect rights and interests.
  3. Open and maintain bank accounts of association
  4. Work for welfare of residents in association and co-operate with other association for common and mutual benefits.
  5. Ensure the monies are used for the maintenance of building and promote charitable feeling among members. Encourage religious, social, cultural and educational activities.
  6. Keeping safe custody of documents relating to land and buildings, license issued etc.
  7. Conduct meeting, discuss the problems and provide adequate solutions.
  • President
  1. He/She is the person who has can sue or defend any legal action against association.
  2. Ensure the income and expense of association is for welfare for members of association.
  3. Enters into contracts approved or assigned by the committee.
  • Treasurer
  1. Maintain funds and documents relating to association in safe custody.
  2. Operate income and expenses of association and empowered to operate bank accounts of association.
  3. Maintain petty cash to meet expenses and maintenance of apartment.
  • Secretary
  1. Organizing and conducting general body meeting of association members.
  2. Attending meeting representing association
  3. Taking and maintaining minutes for meeting.
  4. Collecting and analyzing information from members.
  • Members

Following are important rights and duties of members of association.

1.Attend general body meeting

2.Right to vote

3.Pay the dues decided by the general body and abide by the bye-laws.

PS: Sample of Byelaws for formation of apartment association

*Data gathered for information purposes, use of same is at readers discretion, author claims no liabilities for the same.

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