Sunday, November 27, 2011

A much-needed residents association

A friend staying in a Mantri-built apartment complex in Bangalore for the past decade has sent a mail in response my request.He shares with us his experience as resident of a Mantri apartment complex in Bangalore.
1)More often than not developers tend to sell the non-occupied parking space to owners of residential complexes and make money—that should actually come to the association concerned .
2)For this it would be prudent to form an association without delay.In normal course, the developer has to be present at the first meeting ( at least as per the Karnataka Apartment Ownership Act). In the event a reasonable number of owners have already shifted in your complex,you could start working on forming an association.
3)Once the association is formed, it could take control of the revenue that can be generated by letting out the club house or related facilities for family functions, exhibitions and the like. Otherwise, this could be done by the developer with the revenue thus generated also going to him instead of the association. In the absence of an association the developer cannot give the money generated from the club house facilities to anyone in the complex.
4)It is worthwhile,prudent as well,for the apartment owners to ask the developer to provide them with the khatas (for individual flats).These are provided by the civic authorities of the area concerned. Likewise, owners would need to get an encumberance certificate, again from the civic authorities of the area.
4)At some time in the near future,it would be worthwhile for the association to collect what is normally termed as ”Sinking Fund.” Till the time the maintenance contract runs with the developer its fine. Later, however, the association would need to raise this fund to meet emergencies — including repairs of lifts and related common facilities.
5)The amount could be collected on a quarterly/monthly or bi-monthly basis.The Annual General Body has to decide the quantum.
6) The association also needs to collect a) legal fees and b) an annual association membership fee that could range from Rs 100 and above.Legal fee could come in handy in the event flat owners have to fight a case with the developer for any inadequacies. Of course, it is up to individual complexes to take the call on the collection of legal fees.Some do it, others don’t.

We could also look into this: An FAQ on apartment owners association.

1 comment:

  1. Dear Mr GVK

    Good timing. Hope this is done & may I add that I had written to Mantri on one of their Senior Employees attending the meeting but got no response. It is also important that ONLY RESIDENTS form & run this Association & not those who have a legal tangle with Mantri as they may win the argument & may never reside in Synergy. Hope good sense prevails over emotions & issues of residents addressed. Sriraj.