Can society charges maintenance for unsold flats?

Yes, a society can ask for maintenance charges for unsold flats. Although builders or developers are usually responsible for these costs until the apartments are sold, housing societies have the authority to impose maintenance fees on unsold apartments. In spite of some units remaining empty, this guarantees the upkeep of all common areas and services.  

What is the Supreme Court Ruling on Society Maintenance Charges for Unsold Flats?

The Supreme Court ruled that each and every unit buyer was responsible for paying the maintenance fees. The fee is due regardless of how they are occupying the space. Until they are sold, the developer is responsible for paying the maintenance costs for unsold apartments.

1. Legal Framework: According to the Real Estate (Regulation and Development) Act (RERA), the builder or developer is responsible for paying the maintenance charges for unsold flats until they are sold. This ensures that the upkeep of common areas and facilities is maintained.

2. Builder’s Responsibility: The builder must cover the maintenance costs for unsold flats, which includes expenses for common areas, security, amenities, and other shared facilities.

3. Transition to Buyers: Once the flats are sold, the responsibility for maintenance charges shifts to the new owners. They then contribute to the maintenance fund as per the society’s rules.

4. Purpose: This arrangement ensures that the society has sufficient funds to maintain the property, regardless of the occupancy status of the flats. It prevents any financial shortfall that could affect the quality of maintenance services.

5. Enforcement: Societies can enforce this by including specific clauses in their bylaws and agreements with the builder, ensuring compliance with RERA regulations.

This system helps maintain the overall quality and functionality of the residential complex, benefiting all residents.

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You as a property owner in residential units are required to pay monthly maintenance fees in the amount of a specified amount. Your personal finances can be impacted by the monthly expense for maintenance fees. And you must be aware of the fact about the maintenance charges of unsold flats.  So this guide is all about can society charges maintenance for unsold flats.

Can we charge maintenance to builder against unsold flats?

According to Section (4) (d) of the Real Estate (Regulation and Development) Act, 2016, the builder must provide and maintain the necessary services at reasonable costs. The builder must make sure the building is leak-free for 5 years after it is turned over to society. As part of the sale agreement, builders typically require a one- or two-year maintenance fee as an advance payment. They are required to disclose to buyers all costs projected at the time of the sale. 

According to RERA, the builder is responsible for paying the maintenance fees for unsold apartments until they are sold, after which the buyers are responsible. In addition, society is not required by law to pay the stated maintenance fee for unsold flats. The society may issue a notice to the builder or landowner demanding payment for the care of unsold apartments. It is possible even though RERA does not apply after establishing a society.

What are the builder's responsibilities for the maintenance charges?

1) The builder is not allowed to transfer the earnings or maintenance fees collected from tenants to his account with the company. Because they do not in any way reflect his income. There is a specific reason that seems to be. It is that a builder can only act as a guide for a specified amount of time.

2) The residents' welfare organisation (RWA) is responsible for maintaining the apartment and its grounds.

3) The developer needed to open a different bank account in which the contributions from homeowners can be transferred.

4) We all know a lump sum would generate some interest. The builder is not permitted to use this money for personal expenses. The same account will keep receiving interest payments.

Can society charges maintenance for unsold flats must be clear to you now.