The Maharashtra Apartment Ownership Act was published in the Maharashtra Government Gazette on February 19, 1971. This Act was introduced to facilitate individual ownership, making it both heritable and transferable. It is crucial to recognize that this Act applies exclusively to property.
According to the Act, the owners are required to file a declaration that must be properly executed and recorded.
The Maharashtra Apartment Ownership Act led to the enactment of similar legislation in other states. For instance, the Karnataka Apartment Ownership Act was established in 1972. Under the Maharashtra Apartment Ownership Act 1970, apartment owners are granted full legal ownership of their homes, including a proportionate share of the apartment’s undivided common areas and amenities.
The Act ensures that apartment ownership is transferable and heritable, enabling owners to secure mortgages. This is advantageous for both apartment owners and builders, as they can utilize the funds for new projects.
Additionally, the Act supports the formation of associations among apartment owners, who are responsible for ensuring the welfare of residents and promoting their rights. Although some apartment owner associations may not be registered, it is advisable to secure your association’s legal rights to avoid disputes in the future.
The Act bestows complete ownership of the apartment upon the owner, along with the capacity to organize a group of other apartment owners to establish the building’s bylaws. All apartment owners are legally protected, as any disputes arising within the association fall under the civil jurisdiction of the law.
Key Features of the Act
According to the Maharashtra Apartment Ownership Act, you will be considered the owner of a specific apartment in the building, with a proportional share in the undivided common areas and facilities. Essentially, in addition to having all the rights of an owner, you become the sole owner of your apartment or the entire building.
The apartment also becomes inheritable and transferable, allowing you to raise capital. You possess the right to transfer ownership of your apartment to anyone of your choosing, as long as it complies with the bylaws.
Among various Maharashtra laws, the Cooperative Societies and Companies Act views a flat as part of the building and a unit owned jointly by the company or society. Conversely, the Maharashtra Apartment Ownership Act of 1970 regards a flat as a distinct ownership unit.
Forming an Association with Apartment Owners
All apartment owners willing to form the association must gather in one place to complete the necessary formalities.
The association must have a minimum of seven members, each at least 18 years old.
A Memorandum of Association must include details such as the names and addresses of the organization and the occupations of all association members.
Alongside the Memorandum of Association, the association’s rules, regulations, or bylaws must be submitted.
To qualify for forming an association, one or more buildings must contain at least five apartments.
Understanding Terms Used in the Act
Common Expenses
These expenses include sums of money properly levied against apartment owners for administration, upkeep, and repair, as well as modifications to communal spaces and amenities.
Common Areas and Facilities
Common areas and facilities encompass the land on which the multi-story apartment building is situated, gardens, cellars, parking areas, or other similar structures, as well as all the structural components like lobbies, corridors, fire escapes, beams, and columns.
Memorandum of Association
The Memorandum of Association outlines the name and purposes of the organization, the location of the registered office, the names, addresses, and occupations of the governing body members, and the signatures of those who have subscribed to the document.
Conclusion
The Maharashtra Apartment Ownership Act of 1970 grants apartment owners full ownership of their units, including an equal share of the undivided common space and amenities. Consequently, the apartment owners are responsible for the welfare of the building’s residents and advancing their rights. Additionally, the apartments are inheritable and transferable, enabling the owner to obtain a mortgage for the particular apartment.