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Once you are the rightful owner of a residence in a housing society, you are part of a larger, more inclusive, white picket fence community. Homeownership is not only a matter of pride and joy but a lifelong commitment that comes with a regular cost in form of apartment & society maintenance charges. This, however, should not be perceived as a cause for concern but be regarded as an essential investment you make for a comfortable and practical living experience. While a sizeable number of online and offline resources would have you believe that maintenance charges of society are a complex and necessary evil, we’d like to assure you that not only are they easy to comprehend but also mostly justified and in compliance with the law. Let’s find out what are the society maintenance rules.

What are maintenance charges?

It is the fixed amount residents pay monthly to the society for the upkeep of the common areas in a gated housing society.

Types of society maintenance charges

In India, model bye-laws vary from one state to another, albeit the basic anatomy is the same. The most detailed guidelines on maintenance charges are set forth by the state of Maharashtra, permutations and combinations of which may be followed by other states.

The charges can be categorically divided as shown below: (Keep in mind that these are guidelines provided by the bye-laws, however based on different calculation systems, each society determines how much each member pays as maintenance charges… more on that later).

1. Service charges

These include any charges incurred to acquire services and amenities, including but not limited to electricity for common areas, watchmen, lift operators, cleaning crew, and gardeners. Service charges are borne equally by all members.

2. Repair and maintenance charges

These include taking care of all elements of the building such as internal roads, pumps, drainage, lift, tanks, generators, street lights, security equipment, among others. Rates are determined by the society’s governing body; subject to the minimum of 0.75% per annum, of the construction cost of each flat for meeting expenses of normal recurring repairs.

3. Parking charges

Applies to those who own vehicles. Charges depend on the rates fixed by the society (usually vary for two-wheelers and four-wheelers).

4. Water charges

Mandatory for all residents, the charges are based on the basis of total number and size of inlets provided in each flat.

5. Non-occupancy charges

An amount to be paid even if you are not currently residing in the house/flat, however, these charges should not be more than 10% of the service charges.

6. Sinking Fund

Emergency fund for unforeseeable situations is determined by the governing body of the society, subject to a minimum of 0.25% per annum of the construction cost of each flat.

7. Property Tax

Decided by local authority, but not applicable outside Maharashtra since it is directly paid to the government

8. Interest on defaulted payments

If you make late payments, you are liable to pay an interest on defaulted dues. Charges vary from society to society, but are subject to a maximum of 21% per annum on the charges.

9. Insurance charges

Certain expenses for insuring the building and equipment may have to be paid (based on the built-up area of the flat) as part of the maintenance bill. You don’t have to pay the insurance premium for shops/flats used for commercial purposes by others in the building.

10. Lease/rent charges

This is based on built up area of each flat / unit.

11. Other charges

As decided by the governing body of the society as and when needed.

Is it mandatory to pay maintenance charges?

If you are in an independent apartment ownership, every amenity or service you require, you pay out of pocket but are not subject to an annual or monthly maintenance charge. In case of housing societies, it is mandatory to pay society maintenance bills as you are agreeing to be a part of a larger, co-operative construct. As soon as you are a registered member, a maintenance contract is signed by you and the builder, making both parties legally liable to fulfil their respective duties.

Once the builder hands over the affairs to the society, the managing committee takes over the handling of services. Paying maintenance charges is a valid and preferable arrangement as you don’t have to pay for large amounts of money alone in order to avail common services; the cost is shared by all members. Besides, a reasonable amount of flexibility is offered to members in terms of payment options and frequency.

Criteria for charging maintenance

Ideally, maintenance costs are charged per square meter of the unit or apartment. Fees for services such as cleaning, garbage collection, use of equipment, repair and maintenance of common facilities such as elevators are shared equally among all unit residents. However, utility costs (water and electricity) are billed according to individual usage.

How are maintenance charges calculated?

For a number of reasons, maintenance charges is a hotly contested topic in housing societies since there seems to be a general ignorance or discontent about how they are determined. As we perused above, each charge has a calculation based in logic, the details of which can be easily availed from the managing committee. But the law doesn’t concern itself with the issues of fair levying of charges as per the size of the residence and the utility of services. However, since the co-operative is a collaborative effort, every resident’s grievance or discomfort is duly noted and rightly resolved by the use of different calculation systems.

Let’s explore them in detail.

1. Charges based on per square feet

This system of calculation is used when the size of apartments are different. Your maintenance charges will depend on the total number of square feet in your apartment. For example, if the committee decides to levy Rs 2 per square feet and your apartment is 600 sq feet, you will pay Rs 1200. But if your apartment is 1200 square feet, you will pay Rs 2400. The downside of this method is that if apartments with larger sizes end up paying on the basis of square feet, they may have to pay a larger share towards maintaining and repairing common services for which smaller-sized apartments will pay less, even though the utility and access may be the same.

2. Equal Fee

This is the ideal method to calculate maintenance charges when the sizes of all apartments is either exactly the same or approximately the same. In this method, the total maintenance charge to be collected per month is added and then equally divided among all residents, thus ensuring a fair and square deal for all. This is simple to calculate and dispute-free but does not appear as an impartial method if the apartment sizes are largely diverse from one another.

3. Hybrid fee

This method is a combination of the above two types, doing away the need to choose one or the other, thus providing absolutely fair treatment to all members. In such a method, square feet based charges are applied to one clubbed component, say repair and maintenance charges and sinking fund. At the same time, equal fee calculation is applied to the other categories of charges such as service fees, lift expenses. Categories other than that already have specific and precise corresponding guidelines given in the model bye-laws. Applying a hybrid method is highly effective in case of fair and unbiased distribution of maintenance charges.

How often do you have to pay maintenance charges?

There are four payment cycles you can adopt – they are (1) annual (2) bi-annual (3) quarterly (4) monthly payment cycles. Housing societies decide upon one of these payment frequencies at the very initial stage and can make changes later. They have to consider factors such as timely payments of service/utilities, how many members are willing to pay maintenance in bulk amounts and ultimately, which is the easiest payment frequency with respect to collection and record-keeping.

It is always recommended to stay on top of your maintenance charges to avoid late payments, which result in added interest. Paying your maintenance charges on time also establishes you as a responsible resident. However, be sure to examine any expenses that look out of place and bring them to the management’s notice promptly.

How often do you have to pay maintenance charges?

Any society or apartment maintenance charges rules have a direct effect on the life cycle cost of a property. Investors investing in commercial property or MNCs have a good understanding of maintenance charges. The society maintenance charges are higher in commercial properties than in residential ones, as the former will have components such as central air conditioning and larger common areas. But when it comes to people buying homes, not everyone is aware or understands the impact of maintenance charges on flats. This is one thing developers also don’t care to explain or talk about.

For projects that are still under construction, the maintenance charges may not be demanded initially and may not be discussed in detail. However, for a property that is ready to move in, all the charges, including apartment maintenance charges and various deposits, are required to be paid upfront and hence, the home buyer learns about it. The disclosure of apartment maintenance charges impacts a buyer’s decision.

GST on Maintenance Charges

On 22 July 2019, the Government issued Circular No.109/28/2019– GST on ‘Issues related to GST on monthly subscription/contribution charged by a Residential Welfare Association (RWA) from its members’ according to which maintenance charges/subscription charges paid by residents to the Resident Welfare Association* are exempt if the amount charged does not exceed INR 7,500 per month, per member (prior to 25 January 2018 the limit was INR 5,000). However, if these charges exceed INR 7,500, GST on annual maintenance charges is chargeable on the entire amount charged.

Maintenance charges/subscription charges paid by residents to the Resident Welfare Association* are exempt if the amount charged does not exceed INR 7,500 per month, per member (prior to 25 January 2018 the limit was INR 5,000). However, if these charges exceed INR 7,500, GST on annual maintenance charges is chargeable on the entire amount charged.

FAQs on society maintenance charges

What if society member is not paying maintenance?

Society may send reminder/notice to the defaulter for the payment of society maintenance. If the dues are still not paid by the defaulter then society can file a case against the defaulter at the office of deputy registrar of cooperative housing society.

Should I pay maintenance if my flat is empty?

It majorly depends on the bylaws set by your society. If as per the bylaws of society states that all members of housing society have to pay maintenance changes weather flat is occupied or empty. Then as a resident of housing society you have to pay maintenance charges.

What do you mean by maintenance charge?

To maintain the services and amenities present in the premises, a cooperative housing society may chanrge a certain amount as maintenance charge.

Can society increase maintenance charges at any time?

The society cannot demand service and other charges which the society charging from the members and similarly contribution of the
expenditure to be incurred for the repairing of society as per resolution in the managing committee meeting only. It is obligatory to take approval of general body meeting in this regard and to take action as per resolution of general body meeting.

Can maintenance charges be waived off?

Under exceptional cases, a society can waive off maintenace charges for a stipulated period of time.

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What are the core duties of the managing committee?

Table of content

Once the registration and selection of the first committee have taken place, the regular functions of the MC include monetary transactions, daily management, obligatory membership servicing and compliance with the laws.

1. Financial Management

Deposit all the monies received by the society to the bank/depository and issue receipts to the payers.
To keep a record of member’s contributions towards maintenance, reparation, common funds, etc, to bring to the Secretary’s notice any late payments or consistently defaulted payments, and to implement a functional due collection procedure that the Secretary/committee members can follow.
Pay all the vendors, service providers, etc through cheques, bills of exchange, etc. by being the signatory of the cheques or (transferer of online payments).
Reconcile member’s ledgers, passbooks, statements, bills received from depositors with respect to the general accounts ledgers and have them reconciled annually too.
To compute maintenance charges, parking charges, premium payable by the transferor, and to compute the contribution amount of the members in any other charges, verify dues by members and interest payable by defaulters.
Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc to be followed by the MC

2. Duties towards the members

To consider and decide resignations from members/office-bearers and record nominations and revocations that may follow after;
To issue allotment letters of flats once a member buys them and make available to members the papers of the society;
To take required action once a membership ends;
To refund shares and associated interest if and when due in case they have been acquired by the society;
To review complaints registered by the members and take necessary actions to resolve them;
To organize events, festivals and special days to encourage camaraderie and friendships among the members.

3. Operational duties

To authorize a Committee member to attest any document that bears the seal of the society, such as lease agreements, deed of conveyance, share certificates, etc.
To look after the lift operations, manage and instruct service staff about their duties and take care of their compensations and accommodation (if any).
To maintain, inspect the property of the society and carry out renovations, repairs as and when needed.
To review and finalise vendor applications for services needed in the society, e.g. produce stalls, dry cleaning services, etc.
To regulate parking
To supervise compliance of bye-laws and society rules by the members and suggest fines or penalties in case if a consistent breach is found
To review the Secretary’s report on inspection of flats
To hold election of a new committee in a timely manner, to elect new office-bearers, consider their resignations and replacements
To organise and recommend general body meetings and hold annual/special general body meetings
To hold a Committee meeting at least once a month

4. Executive duties

To execute a deed of conveyance of the land and building/s;
To approve the audit rectification reports of statutory and internal audits and to forward them to the authorities concerned;
To scrutinise tenders received for construction work and to submit the same along with the committee’s report to the meeting of the General Body and to enter into a contract with the contractor;
To enter into a contract with the Architect of the society in case of redevelopment;
To ensure that the Society is affiliated to Housing Federation and its subscription is regularly paid.

What are the duties of the Chairman?

When the managing committee is elected, the Chairman is at the helm of all affairs for five years and is expected to keep a watch over all activities of the Committee. The chair is accountable and answerable for any malfunction during his term and has the final decision power in all matters. Here’s what the chair does:

He presides over all the meetings of the Committee, determines the quorum and reviews the agenda of every meeting beforehand.
He has the power to allow or bar any issue from being included in the meeting agenda but like a democracy, he has to have a reason for doing so.
When it comes to voting, if there is an equal number of votes for or against a matter, the Chair decides to cast a decisive vote, i.e he has two votes.
He is the Signatory for bank operations out of joint authority.
He is the final authority on ballot decisions, expenditure approvals, acceptance of procedural decisions, committee nominations, proxy attendees in a meeting, and disciplinary actions.
The Chair is responsible for initiating community building activities and maintaining a healthy and progressive environment in a co-operative.

What are the duties of Secretary of housing society?

Society Secretary duties come with responsibilities that can sometimes seem daunting, but once you get to the brass tacks, the role is quite rewarding and engaging.

1. Record-keeping

The role of a Secretary of housing societies is to maintain immaculately the accounts, records and registers of the society, including the Cash Book, Ledgers, Sinking Fund/Investment Register, Audit Register, Nomination Register and The Minutes Book.

Additionally, he is in charge of membership files, plans of construction, bank account statements, society statement of accounts, annual reports, election documents, vouchers for expenses, member applications/complaints, among others.

2. Organizational activities

The Secretary is responsible for organizing meetings and recording the minutes.
He must liaise between the Chair and members with respect to the meeting agendas, check the quorum and ensure that the items on the agenda are carried out completely.
He must issue share certificates to the members on time, deal with resignations, expulsions, and cessations of memberships.
He must carry out the conduct of election thoroughly in the manner prescribed in the bye-laws.
He should produce records of the Society before different authorities concerned with the working of the Society with the consent of the Chairman.
He must bring to the committee’s notice any breach of the rules/laws or default cases and be present at disciplinary hearings.
He must finalise the accounts of the preceding year, prepare the receipts and payments Statement, the Income and Expenditure Statement for the year and the Balance Sheet as at the close of the year.
He is responsible for the functioning, recruitment and compensation of the service staff, including watchmen, lift-operators, cleaning crew, vendors, etc.

3. Communication & correspondence

The Secretary must issue notices and agenda of all meetings of the general body and the committee.
He must issue a letter of allotment of flats, prepare and issue demand notices/bills for payment to the Society’s charges, issue a notice of repairs to be carried out in flats.
He is in charge of all types of communication and applications received by the society from members, vendors and be the go-between for the committee and the members.
He deals with communication with the authorities, including correspondence with the Co-Operative Registrar, correspondence on common electric supply, property taxes including Non-agricultural taxes.
The Secretary must inspect the property of the Society and visit flats for inspection after prior notice to the members.

Even though running a co-operative can be a challenging task,it is by no means insurmountable. A well-integrated and proactive MC is the key to a thriving co-operative.

Roles and duties of a Treasurer in a housing society

1. Financial Management

The Treasurer is required to:

Deposit all the monies received by the society to the bank/depository and issue receipts to the payers.
To keep a record of member’s contributions towards maintenance, reparation, common funds, etc, to bring to the Secretary’s notice any late payments or consistently defaulted payments, and to implement a functional due collection procedure that the Secretary/committee members can follow.
Pay all the vendors, service providers, etc through cheques, bills of exchange, etc. by being the signatory of the cheques or (transferer of online payments).
Reconcile member’s ledgers, passbooks, statements, bills received from depositors with respect to the general accounts ledgers and have them reconciled annually too.
To compute maintenance charges, parking charges, premium payable by the transferor, and to compute the contribution amount of the members in any other charges, verify dues by members and interest payable by defaulters.
Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc to be followed by the MC

2. Budgeting

To prepare an annual budget for the society
Prepare the budget for an ongoing or future activity, such as festival celebrations, repair, renovation, etc.
To prepare a revised financial forecast based on the actual expenses on a project or for the overall year

3. Accounting/Book-keeping

To open and manage the society’s bank account
Keep a detailed and true account of all of society’s financial transactions
To manage and make timely entries in all account books, manage cash flow, securities, vouchers, receipts, invoices counterfoils, bank statements.
To ensure that petty cash doesn’t go over Rs 5000 and any amount over Rs 1500 is paid by cheque
To maintain audit memos and prepare audit rectification reports in response
To produce society’s accounts before the external Accounts Auditor
To prepare monthly, annual account statements and the society’s profit loss balance sheet
To make available any financial records that members want to inspect and to also produce the same for the Registrar, Managing Committee or other government authorities

4. Asset Management/Investment

To ensure that there is an updated inventory and financial maintenance/reparation records of all fixed and moveable assets of the society
To compute insurance on assets and pay regular premiums
To advise the Managing Committee on where and how to invest profits or surplus and alternatively create investment guidelines/policies keeping in mind the suitability of the investment with respect to the society’s needs, considering risk factors, society’s financial capacity, and calculating ROI effectively

5. Fundraising

Recommend and create fundraising strategies for the society
To set forth rules and regulations on how the funds should be utilised
Ensure compliance of fund utilisation as predetermined by policy/plan, observe and report any wrongdoing to the Managing Committee

6. Compliance

To ensure that the society is compliant with the guidelines of the financial institutions such as co-operative, nationalised banks as well as RBI
To stringently review and adhere to any legal, contractual, or builder-related compliances that impact society’s funds and financial management
To be well-versed with the society bye-laws so as to be compliant with internal or external rules that directly affect financial undertakings by members, vendors, or the society

A treasurer is also allowed to appoint a sub-committee of accountants or finance experts from within the society and supervise their work, however, he remains answerable to the managing committee eventually.

The apartment management committee of a housing co-operative is its nerve centre, steering the society towards a wholesome, efficient and harmonious existence. Whether it is financial management, member grievances or day-to-day affairs, the apartment management committee has to run like a well-oiled machine to create the best living conditions for the residents.

We have put together a comprehensive guide with checklists in this article so that you can be well-informed and prepared for the myriad roles you may have to assume as part of the MC.

What are the core duties of the managing committee?

1. Financial Management

Deposit all the monies received by the society to the bank/depository and issue receipts to the payers.
To keep a record of member’s contributions towards maintenance, reparation, common funds, etc, to bring to the Secretary’s notice any late payments or consistently defaulted payments, and to implement a functional due collection procedure that the Secretary/committee members can follow.
Pay all the vendors, service providers, etc through cheques, bills of exchange, etc. by being the signatory of the cheques or (transferer of online payments).
Reconcile member’s ledgers, passbooks, statements, bills received from depositors with respect to the general accounts ledgers and have them reconciled annually too.
To compute maintenance charges, parking charges, premium payable by the transferor, and to compute the contribution amount of the members in any other charges, verify dues by members and interest payable by defaulters.
Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc to be followed by the MC

2. Duties towards the members

To consider and decide resignations from members/office-bearers and record nominations and revocations that may follow after;
To issue allotment letters of flats once a member buys them and make available to members the papers of the society;
To take required action once a membership ends;
To refund shares and associated interest if and when due in case they have been acquired by the society;
To review complaints registered by the members and take necessary actions to resolve them;
To organize events, festivals and special days to encourage camaraderie and friendships among the members.

3. Operational duties

To authorize a Committee member to attest any document that bears the seal of the society, such as lease agreements, deed of conveyance, share certificates, etc.
To look after the lift operations, manage and instruct service staff about their duties and take care of their compensations and accommodation (if any).
To maintain, inspect the property of the society and carry out renovations, repairs as and when needed.
To review and finalise vendor applications for services needed in the society, e.g. produce stalls, dry cleaning services, etc.
To regulate parking
To supervise compliance of bye-laws and society rules by the members and suggest fines or penalties in case if a consistent breach is found
To review the Secretary’s report on inspection of flats
To hold election of a new committee in a timely manner, to elect new office-bearers, consider their resignations and replacements
To organise and recommend general body meetings and hold annual/special general body meetings
To hold a Committee meeting at least once a month

4. Executive duties

To execute a deed of conveyance of the land and building/s;
To approve the audit rectification reports of statutory and internal audits and to forward them to the authorities concerned;
To scrutinise tenders received for construction work and to submit the same along with the committee’s report to the meeting of the General Body and to enter into a contract with the contractor;
To enter into a contract with the Architect of the society in case of redevelopment;
To ensure that the Society is affiliated to Housing Federation and its subscription is regularly paid.

What are the duties of the Chairman?

He presides over all the meetings of the Committee, determines the quorum and reviews the agenda of every meeting beforehand.
He has the power to allow or bar any issue from being included in the meeting agenda but like a democracy, he has to have a reason for doing so.
When it comes to voting, if there is an equal number of votes for or against a matter, the Chair decides to cast a decisive vote, i.e he has two votes.
He is the Signatory for bank operations out of joint authority.
He is the final authority on ballot decisions, expenditure approvals, acceptance of procedural decisions, committee nominations, proxy attendees in a meeting, and disciplinary actions.
The Chair is responsible for initiating community building activities and maintaining a healthy and progressive environment in a co-operative.

What are the duties of Secretary of housing society?

Society Secretary duties come with responsibilities that can sometimes seem daunting, but once you get to the brass tacks, the role is quite rewarding and engaging.

1. Record-keeping

2. Organizational activities

The Secretary is responsible for organizing meetings and recording the minutes.
He must liaise between the Chair and members with respect to the meeting agendas, check the quorum and ensure that the items on the agenda are carried out completely.
He must issue share certificates to the members on time, deal with resignations, expulsions, and cessations of memberships.
He must carry out the conduct of election thoroughly in the manner prescribed in the bye-laws.
He should produce records of the Society before different authorities concerned with the working of the Society with the consent of the Chairman.
He must bring to the committee’s notice any breach of the rules/laws or default cases and be present at disciplinary hearings.
He must finalise the accounts of the preceding year, prepare the receipts and payments Statement, the Income and Expenditure Statement for the year and the Balance Sheet as at the close of the year.
He is responsible for the functioning, recruitment and compensation of the service staff, including watchmen, lift-operators, cleaning crew, vendors, etc.

3. Communication & correspondence

The Secretary must issue notices and agenda of all meetings of the general body and the committee.
He must issue a letter of allotment of flats, prepare and issue demand notices/bills for payment to the Society’s charges, issue a notice of repairs to be carried out in flats.
He is in charge of all types of communication and applications received by the society from members, vendors and be the go-between for the committee and the members.
He deals with communication with the authorities, including correspondence with the Co-Operative Registrar, correspondence on common electric supply, property taxes including Non-agricultural taxes.
The Secretary must inspect the property of the Society and visit flats for inspection after prior notice to the members.

Even though running a co-operative can be a challenging task,it is by no means insurmountable. A well-integrated and proactive MC is the key to a thriving co-operative.

Roles and duties of a Treasurer in a housing society

1. Financial Management

The Treasurer is required to:

Deposit all the monies received by the society to the bank/depository and issue receipts to the payers.
To keep a record of member’s contributions towards maintenance, reparation, common funds, etc, to bring to the Secretary’s notice any late payments or consistently defaulted payments, and to implement a functional due collection procedure that the Secretary/committee members can follow.
Pay all the vendors, service providers, etc through cheques, bills of exchange, etc. by being the signatory of the cheques or (transferer of online payments).
Reconcile member’s ledgers, passbooks, statements, bills received from depositors with respect to the general accounts ledgers and have them reconciled annually too.
To compute maintenance charges, parking charges, premium payable by the transferor, and to compute the contribution amount of the members in any other charges, verify dues by members and interest payable by defaulters.
Create a financial transaction policy when paying the vendors and creditors petty cash policy for internal expenses, cash withdrawal policy, etc to be followed by the MC

2. Budgeting

To prepare an annual budget for the society
Prepare the budget for an ongoing or future activity, such as festival celebrations, repair, renovation, etc.
To prepare a revised financial forecast based on the actual expenses on a project or for the overall year

3. Accounting/Book-keeping

To open and manage the society’s bank account
Keep a detailed and true account of all of society’s financial transactions
To manage and make timely entries in all account books, manage cash flow, securities, vouchers, receipts, invoices counterfoils, bank statements.
To ensure that petty cash doesn’t go over Rs 5000 and any amount over Rs 1500 is paid by cheque
To maintain audit memos and prepare audit rectification reports in response
To produce society’s accounts before the external Accounts Auditor
To prepare monthly, annual account statements and the society’s profit loss balance sheet
To make available any financial records that members want to inspect and to also produce the same for the Registrar, Managing Committee or other government authorities

4. Asset Management/Investment

To ensure that there is an updated inventory and financial maintenance/reparation records of all fixed and moveable assets of the society
To compute insurance on assets and pay regular premiums
To advise the Managing Committee on where and how to invest profits or surplus and alternatively create investment guidelines/policies keeping in mind the suitability of the investment with respect to the society’s needs, considering risk factors, society’s financial capacity, and calculating ROI effectively

5. Fundraising

Recommend and create fundraising strategies for the society
To set forth rules and regulations on how the funds should be utilised
Ensure compliance of fund utilisation as predetermined by policy/plan, observe and report any wrongdoing to the Managing Committee

6. Compliance

To ensure that the society is compliant with the guidelines of the financial institutions such as co-operative, nationalised banks as well as RBI
To stringently review and adhere to any legal, contractual, or builder-related compliances that impact society’s funds and financial management
To be well-versed with the society bye-laws so as to be compliant with internal or external rules that directly affect financial undertakings by members, vendors, or the society

How does a Society finance itself? How does it screen potential members? Why does it bill its members maintenance charges? Where and when does the member voice his concerns or opinions?

These questions must have popped in your head time and again as a member of a housing society. Look no further than the inconspicuous little book of ‘ Society Bye laws ”.

What are bylaws for a housing society?

Society Bye-laws are rules formed by residential societies to self-regulate their activities and to control the actions of its members. Housing society bye laws are provided and approved by higher authorities (government bodies, legislative authorities). Society Laws could vary from one state to another in their particulars, yet the basic framework and nomenclature remain the same. Let’s briefly explore distinctive categories for each component of the functioning of a society. These are broad categories that cover every aspect of housing society rules and regulations, be it holding a meeting, issuing shares to members, collecting dues from them, conducting Elections, allotting parking spaces or putting out a circular on the notice board.

Purpose of housing society bye-laws

The managing committee of an Apartment Owners Association (or Residents Welfare Association) must have bye-laws in order to ensure adequate upkeep of the apartment building and to swiftly and effectively address the problems residents encounter. Escaping the problems is difficult. Convincing the society to accept the chosen laws and regulations is a challenging endeavour. A set of regulations known as the bye-laws provides a solution to all associated problems. The bye-laws are adopted by each apartment building as soon as it registers. The bye-laws are regarded as the apartment complex’s constitution and regulate how it operates on a daily basis.

Why should you know about the model housing society bye-laws?

The answer to any question you have about the functioning of your society can be found in the model bye-laws of housing society . They may seem verbose or cumbersome, but they should be on your ‘essential reading list’ as they are your ‘set in stone’ legal chaperones that cannot be refuted by any society under any circumstances. As part of a society, you’d be remiss if you are not aware of your basic rights and duties, your society’s foundational policies, its management and the guidelines that dictate its decisions. A lot of homeowners harbour an approach of ‘we’ll cross that bridge when we get to it’ with respect to the rules of a society, thinking all is accomplished once they have occupied their residence inside it. Be that as it may, to avoid being misinformed or manipulated by dishonest committee members, to stop the violation of your rights, or simply to be aware of the workings of the community you’re part of, familiarising yourself with model bye-laws of housing society is necessary. Cooperative society bye-laws are easily available online to peruse in your own time. Otherwise, as a member you have the right to ask for a copy from your society.

List of housing society bye-laws

1. Preliminary- name and address

This section informs us about the procedure for naming, change in name, classification, address change procedure and exhibiting the Name Board of the society.

2. Interpretations

The meaning of the nomenclature, i.e the exact definition of commonly used terms (common areas, sinking fund, active member) is given so as to legally distinguish common usage of words in the context of a housing co-operative.

3. Area of operation, objectives, affiliation

To define the locality of the society within a municipality and to define the main objects of the society as well as declare it as Member of the Co-op Housing Federation of the District / Ward / Taluka, the District Central Co-operative Bank of the district.

4. Raising of funds and their utilisation

Cooperative society bye-laws lay down rules on modes of raising money such as issuing shares, taking loans, voluntary donations & deposits, etc. and explains how to issue shares to members and limit of liability for the society. The ways in which the funds are utilised are also described, such as reserve fund, repair and maintenance, emergency fund and training fund.

5. Rights & duties of a member

This section describes the eligibility, conditions, and procedure of obtaining membership in a society distinguishes between active, non-active, associate, and nominal members. The rights of members elaborated under bye-laws of the society include the right to inspect records, get a copy of RWA bye-laws, right to Occupation of Residence, conditions for and acceptance of Resignation by Members, procedure for Nomination by a Member and its revocation / revision, procedure and requisite documents for Transfer of Shares and interest from a member to another in the Capital/Property of the Society, Transfer of Shares and interest of the deceased Member, and rules on Exchange and Sub-letting of residences.

6. Responsibilities and liabilities of members

This section details the duties of the member, including applying for permission to make additions and alterations in a flat, allowing examination of flats and report about repairs, not to cause inconvenience to other members. It also entails the grounds for expulsion from the society and its procedure, circumstances under which a person ceases to be a member and the follow-up action taken by the society, rules on holding multiple flats, liability limited of members to unpaid amount on shares.

7. Society charges

Bye-laws of society describe the composition and break-up of the society charges, including Property Taxes, Water Charges, Common Electricity Charges, contribution to Repairs and Maintenance Fund, expenses on Repairs. Operation and Maintenance of the lifts contribution to the Sinking Fund, Service Charges, Car Parking Charges, Interest on the defaulted charges, Repayment of the Loan, Installment and Interest, Non-occupancy Charges, Insurance Charges, Lease/Rent, Non-agricultural Tax, Education and Training Fund, Election Fund, and any other charges.

8. Duties and powers of the society

These are rules specific to the common seal and incorporation of the society as holding the power to acquire, hold and dispose of the property, to enter into contracts and other legal proceedings. It also pertains to having a charge on the shares and/or interest of a Member, policy for allotment of flats and cancellation of flats, handing over possession of flats, society’s duty to carry out Structural Audit, allotment of parking lots and its restrictions, marking of parking lots and their eligibility, along with payment of charges for parking of vehicles.

9. General meetings (first general meeting, annual general meeting & special general meeting)

This section gives detailed and specific rules on how to conduct society meetings, including general, annual and special body meetings. Rules regarding the agenda of the first general meeting, the duties of provisional committee and its handover to newly elected committee, the functions of the annual general body meeting, rules for special general body meeting, period of notice and quorum of a general body meeting, voting rights of members, recording of the minutes of meeting, holding of the adjourned General Body Meeting, among others are explicitly stated.

10. Management of society affairs

Rules under this category include opening up of bank account for operations, strength (in numbers) of the Managing Committee, guidelines for Election, First Meeting of new committee, duration of holding office, conditions for cessation of membership of the Committee, and Resignation of Committee Member/Office bearer. There are detailed lists of all the required functions of the Managing Committee, Chairman and Secretary of the society.

11. Book-keeping

Detailed lists of maintaining books of accounts, records and registers are specified, including but not limited to cash books, ledgers, Sinking Fund, Investment, Nomination, Loan Registers, Minutes Books, Applications for membership, resignations, correspondences received from within the society or from external agencies related to property tax, conveyance, electricity, vouchers and counterfoils of share certificates and issued cheques, periodical statement of accounts, audit memos, election papers, service staff payment records.

12. Profit distribution

Rules on how to distribute funds (after paying interest on loans/deposits and after making such other deductions) are prescribed clearly in the bylaws of the cooperative society . The allocation includes a percentage of the amount to be deposited in the Reserve Fund, in dividends of shares to shareholders, compensation paid to office-bearers, and towards Common Welfare Fund.

13. Writing off dues

This section prescribes the conditions under which the Society is allowed to write off its irrecoverable charges due from the members, the expenses incurred on recovery and the accumulated losses.

14. Society accounts audit

The basic procedure for conducting an annual financial audit of the society is described in detail, including the appointment of a registered Auditor/CA, the timeframe to conduct the audit and the steps for completing an Audit Rectification Report before Annual General Meeting.

15. Conveyance, redevelopment and repair/maintenance

This section gives details of getting the deed conveyance under society’s name through an advocate and proceeds to list rules on renovation and repair. Member’s contributions towards repair are stated, along with the procedure of inviting tenders from architects/ developers, and a step-by-step guide to the entire redevelopment process is given. Guidelines on emergency planning schemes, disaster management and response machinery are prescribed as well.

16. Other miscellaneous matters

Minor yet important rules regarding day-to-day operational activities are mentioned in the bye-laws of residential society . These include sending and displaying notices on general meetings and their resolutions, how to fix the Notice Board and what to display on it, penalty amounts for member breaches against the society, regulating the services, amenities as per members’ convenience, fixing timings and rules for use of common areas such as parks, staircases, etc, making available spaces for members to install solar energy electrical systems, making copies of the documents required by the members and the charge per page.

17. Committee redressal of member complaints

Based on the complaint type, the society bye-laws give a list of relevant authorities to approach. They describe the types of complaints handled at the Society’s General Body Meeting. Other than that a variety of complaints are handled by the Registrar, Co-operative Court, Civil Court, Municipal Corporation/Local Authority, Police or the District/State Federation, depending on the nature of the grievance.

Differences between old & new housing society bylaws

Do I have to adopt a new set of housing society bylaws if my society is newly registered? True, your society would adhere to the old model bylaws. If it was previously registered, the year is 2009. Bye-laws have been newly modified following the 97th Constitutional Amendment and the MCS Amendment Ordinance, 2013. This includes cash on hand limits, active member provisions and duties, maintenance rates, AGM, society election tenets, and so on.

Several MCs look for the procedure for adopting new bylaws, while others simply look for bylaw amendments.

Societies try to dot the i’s and cross their t’s when it comes to record-keeping and paperwork, but there are some hits and misses every now and then. Many societies forget to (or simply don’t know that they have to) issue share certificates of society to their members on time or use the housing society share certificate transfer form at the time of resale.

Here’s all you need to know about the share certificate of housing society format and the society share certificate transfer procedure.

What is a housing society share certificate?

A society share certificate is a legal certification given by a housing society that a certain member is the registered owner of shares in the cooperative housing society. It is to be given to the member free of charge. Model bye-laws state that, “Share Certificate, prescribed in bye-laws, bearing distinctive number and indicating the name of the member, the number of shares issued and the value paid thereon, shall be issued by the society to every member for the shares subscribed by him, within six months of the allotment of the shares.” The Registrar decides at the time of the society’s registration the total authorized capital, which is divided into Rs. 50 per share, and share certificates are distributed to the members. The member is issued 10 shares (worth Rs 500), as the total share capital need not be the same as the actual number of shares issued.

Why do you need a society share certificate?

While your sale deed is the proof that the property has been legally transferred in your name, a share certificate is legal proof that you are the rightful owner of the co-operative housing society’s shares. The managing committee must issue share certificates after due diligence. According to the society share certificate rules, in the case of a transfer, the share certificates should be issued to transferee within a period of one month of receipt of the instrument of transfer by such Company.

Checklist for issuing the society share certificate

The society share certificate has to be collected by the member himself in person.
The member’s property should be clear of lieu.
The conveyance deed from the builder should be in possession of the society.
Every housing society’s share certificate should have the seal of the society and be signed by the Chairman, the Secretary and one member of the committee, and authorised by the committee before being issued by the Secretary.
The name and the order of names (for primary/associate member) should appear exactly as it is on the original sale agreement between the member and the builder.
The member has to indemnify the society against any loans against its name, finish any paperwork and clear any arrears that have to be paid to the society.
The society has to ensure that the member provides an indemnity bond stating that he has not transferred the share certificate to anyone else or created any charge or mortgage on the share certificate in favour of any bank, employer, any person or finance agency.
The member has to present the original sale agreement while collecting the housing society share certificate.

Transfer of share certificates in case of a resale

In case of a resale, if a person needs to transfer the share certificate, all of the paperwork and necessary requirements pertaining to the transfer of shares must be completed on time. It is the new member who needs to pay the transfer premium and ensure that all the dues are cleared by the previous homeowner.

In case of transfer/resale, the original share certificate has to be given to the society along with the other documents needed. If the share certificate is being transferred to a new member after resale, they have to finished all paperwork prior to handing the share certificate, including the required transfer of shares procedures.

When the ownership of the shares is being transferred to another person, the new member has to pay the transfer premium, produce applications/documents required by the society while it has to ensure that no dues are pending by the former member. In the event of the death of the original member, the heirs have to apply within 6 months of the death for the share transfer to the nominee, along with the issuance of a new share certificate of the society.

Readymade share certificate booklets are available online, from housing federation offices or at book printing agencies.

If the members’ arrears are duly paid, and the documents requested by the society are submitted in proper condition, the society MUST issue the share certificate within the prescribed time limit after allotment of actual shares. If not, the member has the right to file a legal notice/injunction against the society.

Issuing a duplicate housing society share certificate

It is advisable to keep your original housing society share certificate in pristine condition in a safe place. Getting a duplicate society share certificate is not as simple as walking into the society’s office and getting a duplicate copy on the same day. If your share certificate is soiled, misplaced, stolen, destroyed, or lost, you can ask your housing society to issue a duplicate share certificate after following the procedure.

File an FIR at the local police station, registering a report that the original share certificate has been lost, misplaced or stolen. Retain the copy of FIR acknowledged by the Police.
Send a written application to the society stating that the original has been lost, misplaced, stolen (is not traceable) and request the society to issue a duplicate share certificate. Also, attach the acknowledged copy of the FIR with the application.
Submit an indemnity bond of Rs 200 to the society, indemnifying the society of all cost/ results of issuing a duplicate share certificate. The Indemnity Bond should be duly notarized and attached along with the application and FIR copy.
Once the society receives the application, it is placed before the managing committee in the next general body meeting. In the same meeting, the society examines the application and attached paperwork and approves the request for a duplicate share certificate.
The society puts out the notice on the society’s notice board and also published notices in two local newspapers (with respect to issuing a duplicate share certificate).
The society waits for 15 days for any objections after putting out the notice on the society’s notice board and the advertisement in the newspapers.
If no objections are raised, the society issues a duplicate share certificate to the member. The cost of publishing notices in newspapers has to be borne by the member.

FAQs on housing society share certificate

What is the importance of share certificate in housing society?

The ownership of a share certificate is extremely important for a property owner in a cooperative housing society. It acts as a legal document for your rights as well as proves the allotment of shares of that society on your name.

How do I get a share certificate from society?

As a resident in your cooperative housing society, you have to apply for share certificate as per Cooperative Housing Society Act of your state.

What happens if society does not transfer share certificates?

If the housing society refuses to issue a share certificate to member, then he/she can file a legal notice against the housing society if there is no pending bill.

When can society issue share certificates?

After verification of all the submitted documents, society has to issue society share certificate with in 6 month from the date of shares allotment.

Homeowners base a lot of their buying decisions on the availability of good amenities, car parking being one of the top priority needs. With the proliferation of high-rise buildings, parking spots in residential societies are an everyday battle. The lack of uniform parking laws across the board concerning parking rules in societies has created an epidemic of unwritten rules and indiscriminate behavior by everyone at stake. How does one maintain sanity and ensure fair treatment when there are too many cars and not enough space? This is why societies have bye-laws for parking. Read more to find out the car parking rules in housing society.

Apartment car parking problems & their solutions

1. Unofficial parking

If you own a 4-wheeler vehicle, you’re eligible for a parking space or stilt (usually one or two according to your BHK size) at your apartment car parking. Members park more vehicles than allowed in their allotted space/s. For example, the husband already owns a car and parks in his usual spot. When the wife buys a new one or a relative/friend visits for an extended period, they park theirs in the open space or guest parking without permission.

Solution: If you’ve been allotted a car parking space/spaces (according to your BHK size) which you’re already using, and even if it is big enough to allow an extra two-wheeler parking, consult the MC before permanently parking it. Extra cars/ scooters cannot be parked in spaces not allotted to you unless approved by the MC. You have to pay parking charges for an additional four-wheeler parking. A fine may be placed by society for violation of vehicle parking laws in society.

2. Guest parking

A common occurrence is that even though there’s space inside the building for guest parking, security guards, at the behest of MC or out of their own volition, instruct delivery personnel, guests, and visitors to park their vehicles out on the streets. Sometimes such unnecessary measures lead to vandalism and theft of vehicles.

Solution: A building has to keep at least 25% space for visitor parking as per BMC though it recently dropped it to 5%. Give strict instructions to guards regarding visitor parking rules as per your apartment by-laws.

3. Unmarked spaces

Open parking spaces lead to confusion among members if there is no structure or markings for them to follow. Unabiding members can inconvenience the rest regularly.

Solution: Bye-laws require a society to mark and number parking spaces (for bicycles, 2-wheelers/ 4-wheelers separately).

4. Unfair allotment

In societies with limited parking spaces and where some residents own second and third vehicles, they occupy more parking spaces (albeit while paying for it) even though other owners who may own just the one vehicle are not given a parking space and some are made to park outside the building.

Solution: The MC allows parking on a ‘first-come, first-served basis for eligible members who own a vehicle. If unoccupied spots are at society’s disposal, the same member may be allowed second and third stilts/parking spaces on an annual basis, except there are no other eligible members who haven’t even been assigned one spot.

5. Tenant parking

Tenants are sometimes not allowed to park inside the society premises if there is an excess of permanent resident vehicles.

Solution: If the landlord is already eligible for a parking spot, then the tenant should get access to it legally. It is the responsibility of the landlord to ensure that the tenant gets a spot. Only if the landlord isn’t eligible for parking, the tenant may be asked to pay for parking charges, unless the landlord decides to pay it on his behalf.

6. Limited number of parking spots

Due to the parking space deficit and excess of vehicles (especially 4-wheelers), residents are required to park outside in the building vicinity regularly.

Solution: If there are way too many vehicles belonging to eligible members, the society draws a lot every year. Another option is to provide spots on a rotating basis. Everyone is given an equal opportunity to park inside even though they may have to take turns.

Apartment car parking laws in India

According to RERA Act (2016), covered garage space can be sold separately by the builder, however, open or stilt parking spaces are clearly defined as part of common amenities such as lobby, stairs, elevator, garden, etc. Therefore, it is illegal for a builder to charge a buyer for a separate parking space. These become the property of the society as soon as it’s registered, an Occupation Certificate is issued by the municipal corporation and the builder arranges a handover (http://mohua.gov.in/cms/rera.php)

This is per the Supreme Court decision that upheld Bombay HC’s verdict in 2011 in the case of Nahalchand Laloochand Pvt Ltd vs Panchali Cooperative Housing Society. The builders agreed that they can sell parking spaces to outsiders as independent units, to which the society residents disagreed later. The builder approached the court so that the society members don’t object to 25 stilt spaces sold to buyers who weren’t society residents. (https://indiankanoon.org/doc/1359331/)

Model building by-laws developed by the Ministry of Housing and Urban Affairs dictate that permissible ECS ( Equivalent Car Space) per 100 sq meter of floor area in residential premises is 2. This can be translated to 1 space per 3BHK and 2 per 4 BHK. Development Control Regulations of every state mandate that the builder provides parking space to buyers albeit parking provisions may vary state-wise. (http://mohua.gov.in/cms/model-acts.php)

Various apartment acts (e.g. Maharashtra Ownership Flats Act, Delhi Apartment Ownership Act) allow MC to constitute their own parking rules including a parking fee which is decided in the General Body meeting, varies from types of vehicles, and is to be mandatorily paid by members (https://housing.maharashtra.gov.in/Sitemap/housing/housingactnrules.htm)

Types of parking in apartments

Let’s check the types of parking generally available in residential complexes. Different types of parking which you can choose according to your parking lot construction:

1. Angle parking

When cars are parked at an angle, a technique used in open parking where spreads are manageable. The vehicles usually face the same direction (any one direction) and sliding in and out remains easy if all the vehicles are parked with rules and required spaces between all four sides are maintained.

2. Perpendicular parking

This is a type of parking in which the vehicles are parked at a 90° angle and perpendicular to the curb up front, similar to angle parking. In this, the driver needs to ensure that the tires are facing straight ahead. This is a commonly used style in garages and parking bays and in apartment complexes with limited spots.

3. Parallel parking

This is what you commonly see on the roads on the side of the curb where the driver parks between two cars, between the one in the front and one in the back. This type is used when a residential complex has a long pathway with enough space to accommodate cars and bikes without obstructing the path.

4. Tower parking system

This is a fully automated car parking system in which come equipped with parking lifts for cars to move up and down to the designated spot. There must be a lift operator along with the entire set-up since this is used in large complexes in urban areas with narrow spaces.

Role of RWA in parking rules in residential areas India

RWA (Residential Welfare Association) is the managing committee that is registered under the Societies Registration Act, 1860. This means that if you face a parking issue as a resident of a housing society, they are the ones who could come to your help. Since this association is such an important one, RERA ((Real Estate Regulatory Authority) Act emphasises on establishing an RWA within the first 90 days of when the flats are booked.

However, there are some important factors you would need to be aware of, before booking a complaint. You must know that:

Any Shared/Common Space in the society belong to the apartment complex/housing society.
Parking spaces are not owned by the RWA members or residents.
The MC (RWA) or General Body could allocate parking slots to residents who’ve done their registration, since parking allocation comes under the jurisdiction of the housing society’s managing committee.
Homeowners, their families and associate members could all be registered members.
The parking spaces in your area are all numbered using the LOP (Lay-Out Plan) that the civic body has approved.
If you have a sticker on your vehicle, provided to you by the managing committee of the RWA, you would be exempted from security checks when you enter/drive inside the society premises.

FAQs – Parking issues in apartment complexes

How do I keep a track of vehicles allowed in parking space?

You can ask for a copy of the RC book from members and provide them with parking stickers for each vehicle.

Is the parking area considered as FSI?

Open/Stilt parking, visitor parking, and basement parking are not included in the FSI calculation.

Can I cover my parking space or use it for storage?

According to the apartment acts, you are not allowed to cover or repurpose parking spaces.

How much space is allowed for parking?

As per the National Building Code, one car parking space must not be less than 13.75 sq meters. For a 2-wheeler, it must not be less than 1.25 sq meters.

Can a society sell members parking spaces?

No. But they can allot a space for a fee.

What can I do if society doesn’t abide by parking bye-laws?

An appeal in consumer forum or cooperative court.

Can a builder allot open parking space?

No. Society allots parking spaces.

Can a member sell or transfer parking slots?

According to model bye-laws, a member shall have no right to sell or transfer parking slots allotted by the society.

Can the society collect parking deposits?

No. Bye-laws restrict society to raise such funds.

How much does parking space cost typically?

Most societies charge between Rs 100 and Rs 500 for a single vehicle, increasing with second and third vehicles.

When dealing with buying or selling property, the possession certificate of that property is extremely important. It is essential that the seller of the property hands over the possession certificate to the buyer of the property, which will state the date of possession. In rural areas, the possession certificate is usually issued by the Tahsildar. In urban areas, the possession certificate is issued by the RDO (Revenue Divisional Officer).

The possession certificate has many uses besides confirming the ownership of the property and the date of possession. It is used as proof when securing a home loan from a bank. It is also important when entering the property in the land revenue records.

Without the proper issuance of a possession certificate, it becomes unclear whether the possession of a property has in fact been transferred from one party to another. This can lead to complicated legal issues regarding possession and ownership.

If you are planning to buy property, it’s essential you know how to obtain a possession certificate, what it contains and all the documents required to obtain it to ensure your purchase is hassle-free.

What is a possession certificate?

A possession certificate is a legal document that hands over the possession of land from the owner to the buyer. Once the land has been bought by the buyer for a sum of money, the possession certificate is given to the buyer by the previous owner to signal the transfer of the property.

The possession certificate is extremely important when it comes to buying a home or property as it proves that the property has been sold legally to the buyer and that they (the buyer) own all the rights to the concerned property.

When it comes to buying property from a builder or developer, the possession certificate is usually issued within 30 days. It is important that a resident obtains it as, without a possession certificate and registration documents, the buyer cannot prove to have rights to the property and the builder still owns it by law. This is problematic as the builder can then vacate the buyer (resident) lawfully.

The possession certificate will be issued only if the building has been constructed according to the proposed plans and adheres to the design rules and fire safety rules. It will also need to have a certificate of completion. The laws regarding this may vary from one state to another so it is best to check with your local authorities about how to go about getting the possession certificate in your area.

What are the contents in a possession certificate?

The possession certificate indicates the change in ownership – it is issued by the buyer. The ownership certificate will show that the property ownership has been given to the buyer. This ensures that the buyer has full interest in the property. Both parties have to register for the property. So, the developer has to sign the declaration that the property is no longer his and the buyer signs to take over the property. The possession certificate also includes the additional features of the property (parking area, garage, etc) that have been mentioned in the sales agreement.

What is a conditional possession certificate?

A conditional possession certificate or a conditional possession letter is a document that is used when the buyer of a property is not completely satisfied with the conditions of the property.
For example, reasons for dissatisfaction could include things such as repairs needed, low-quality construction, the wrong materials used or even a delay in the occupancy certificate. When the buyers are not happy with certain aspects of the property, they can send their concerns to the seller or builder along with the possession letter so that the seller or builder makes the needed changes that we agreed upon.

If the project happens to be delayed, the buyer can also ask for compensation from the builder for the losses incurred due to the delay.

Documents required

If you need to get the possession certificate of a property, you need the following documents:

Sale deed agreement copy
Identification proof of the applicant
Signature proof of the applicant
Encumbrance certificate
Registered sale agreement copy

What are the rights of the holder of the possession certificate?

The person who has the possession certificate has certain rights with regard to the property. These are listed below.

It gives the purchaser complete authority on the property. They can decide to do as they wish with the property.
They have the right to sell the property.
The purchaser can do enhancements to raise the value of the property.
They have the right to rent out the property and take the rent money.
The seller of the property has no rights and cannot claim any benefits regarding the property.
The buyer has rights to the details of the property plans by the regulatory authorities in charge, as well as the schedule, the structure plan and other documents that may be relevant.

Differences between possession certificate, occupancy certificate & completion certificate

1. When are each of these certificates issued?

Possession certificate: After the initial paperwork has been submitted and a down payment has been made.

Occupancy certificate: The builder applies for this document (the occupancy certificate) after obtaining the completion certificate.

Completion certificate: The completion certificate is issued when the property has been constructed and is by the state’s regulations and norms.

2. Which authority issues each certificate?

Possession certificate: The possession certificate is issued by the RDO (Revenue Divisional Officer) in urban areas. In rural areas, it is issued by the Tehsildars.

Occupancy certificate: The municipal body of the area where the property is in will issue the occupancy certificate.

Completion certificate: The authority that is in charge of declaring that the construction process of the property has ended will issue the completion certificate of that property.

3. What are the key contents of each certificate?

Possession certificate: It includes all the timelines that the new owner has to adhere to regarding making the final payments of the property.

Occupancy certificate: It states that the property follows all the necessary building codes and is ready to be occupied.

Completion certificate: It will state that the project has been finished according to the building plans that were submitted. It also states that the property adheres to the state norms and lists the clearances that the property has.

4. What does each of these certificates signify?

Possession certificate: It shows that the property rights have been transferred from one party to the other party.

Occupancy certificate: It signifies that the property can be occupied by the buyer.

Completion certificate: Completion certificate implies that the property is constructed fully according to the building plans that were proposed and agreed upon.

Checking the status of the possession certificate online

It is easy to track the status of the possession certificate of your property online through these ways:

1. E-district portal

Go to the E-District portal from the state you are from. Click on “Transaction History” and enter the application number. You can then see the status of your possession certificate.

2. Meeseva portal

You can see the status of the possession certificate of your property on the Meeseva portal. Log in to your Meeseva account. Click on the option to track your application status – this will be on the homepage. Fill in the application number and click “Track Application Status” to see the status of your application.