Hello Sanjay,

This document is really helpful. I like many of the customers have purchased an apartment and it is now in process of getting registered. The lawyer claims that they are using KAO Act and quoted Rs50000/- for the process. Without DoD, i am not sure, how this can happen. Plus, once most flats were sold, builder revealed the fact to owners that this project has more than 50% deviations like pent houses, projections in balcony etc which would lead to non- issuance of NOC from BBMP and thereby Khatha certificate.

With Akrama Sakrama being talked about now, what is the onus and liability on owners now with this kind of problem. I see many apartments across bangalore in the same state now. Your recommendation for corrections to existing apartments and covering them under KAO might apply for us

Regards,

Dr.Ramanujam

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The act of registration of Association under the Karnataka Societies Registration Act, 1960 (in short KSRA) itself is illegal as there is no provision in the said act to register the Apartment Owners Association mainly undertaking the routine maintenance activities, repairs, painting, providing various facilities connected with apartment living. Further, it has been made mandatory by Registrar of Co-operative Society to insert one New paragraph while registering any association under Society’s Act 1960, which makes it evident that Apartment Owners association registration under Society's Act 1960 is not to be undertaken by the Registrar of Co-operative society.

The New Paragraph which to be inserted is :

"Notwithstanding anything contained in the objectives and Rules & Regulations of this association, the association does not manage and control over the property, common areas and facilities of the apartment, since this association is not as that of the association of apartment owners as per Karnataka Apartment Ownership Act 1972 and Karnataka Apartment Ownership Rules 1974 and Karnataka Owners Flats ( Regulation of the promotion of construction, sale, Management and Transfer) Rules 1975. Apartment Owners did not filed their declaration before competent authority as per rule 4 of Karnataka Apartment Ownership rules 1974. "

All, associations which take care of apartments’ maintenance of common areas and facilities are mandatorily to be registered only  under Karnataka Apartment Ownership Act 1972 and all the owners to file declaration before competent authority as per KAO Act 1972 rules to create proper title of the property. According to KAOA, the owners of all apartments form an association. Although the association is not registered, its officeholders are given powers. In fact, the deed of declaration was supposed to be registered by the Builder, much before the conveyance of sale deed to individual owners by Builders and most of the Builders does not do this as the Karnataka Apartment Ownership act is having a lot of lacunae. When, the Builder fail to register the D O D prior to conveyance of sale deed to individual owners then, the Deed of Declaration** is required to be signed by all Owners at the Sub –Registrar’s office. Practically it is impossible to gather all owners to come to Sub- Registrar’s office and for this it is necessary to obtain a special power of attorney on few active volunteers to represent those owners at Sub-Registrar office to register the D O D , Bye Laws , Schedule -1 and Approved Plan / Occupancy Certificate. ** The Declaration shall contain the following particulars, namely:- (a) description of the land on which the building and improvements are or are to be located; and whether the land is freehold or leasehold; (b) description of the building stating the number of storeys and basements, the number of apartments and the principal materials of which it is or is to be constructed; (c) the apartment number of each apartment, and a statement of its location, approximate area, number of rooms, and immediate common area to which it has access, and any other data necessary for its proper identification; (d) description of the common areas and facilities; (e) description of the limited common areas and facilities, if any, stating to which apartments their use is reserved; (f) value of the property and of each apartment, and the percentage of undivided interest in the common areas and facilities appertaining to each apartment and its owner for all purposes, including voting; and a statement that the apartment and such percentage of undivided interest are not encumbered in any manner whatsoever on the date of the Declaration; (g) statement of the purposes for which the building and each of the apartments are intended and restricted as to use ; (h) the name of a person to receive service of process in the cases hereinafter provided, together with the residence or place of business of such person which shall be within the city, town or village in which the building is located:   (i) provision as to the percentage of votes by the apartment owners which shall be determinative of whether to rebuild, repair, restore, or sell the property in the event of damage or destruction of all or part of the property; (j)any other details in connection with the property which the person executing the Declaration may seem desirable to set forth consistent with this Act: and (k) the method by which the Declaration may be amended, consistent with the provisions of this Act. (2) A true copy each of the Declaration and bye-laws and all amendments to the Declaration or the bye-laws shall be filed in the office of the competent authority.  At Sub-Registrar office, all the submitted D O D, Byelaws, Schedule -1, etc., are scanned and indexed in Form Book IV Register along with pictures taken of all SPA holders (Special Power of Attorney) and the serial number is mentioned in the registered documents. With this process the formation or submission of association to the provisions of Karnataka Apartment Ownership Act is completed at Sub- Registrar’s office. Regarding, the voting rights, there are 2 cents of interpretations: 1. As per KAO Act 1972, each and every apartment sold / registered with a sale deed with proportionate undivided share of land is eligible for voting rights as per percentage/value only to the be determinative of whether to rebuild, repair, restore, or sell the property in the event of damage or destruction of all or part of the property; 2. As per bye laws as per provision of KAO Act 1972, each Owner who is a member and submitted the property by way of Deed of declaration, has got a voting right.I am assisting voluntarily all apartment owners to accomplish the formation of association, as per KAO Act 1972.

M.S.SHANKAR.

 

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