Co-operative Society

Buyers who purchase premises on an ownership basis require to

come together to manage the building and for that purpose, one
of the ways is to form a Co-operative Society - Regulated by
Maharashtra Co-operative Societies Act, 1960.

Residential Use . If used for commercial pupose needs a approval

from Co-op Society General Body with additional levies charged.

in the case of ownership flat, the title to the building and the land
vests with Co-operative Housing Society or a Limited Company and
the flat owner is not an owner of the flat in real sense but he has
only a right to occupy the flat. This is a species of property, which is
heritable and transferable.

to form a Society, 10 persons would be required and each of them

is to be from a different family who reside in the area of operation
of the Society and who have purchased premises in the building.

In the case of a Society, the title of the land and the building is
transferred and conveyed to the Society, which becomes the
owner thereof. Buyers, upon purchase of flats, become members
of the Society

Society adopts the Model Bylaws periodically with changes if

required but with subsequent approval from Dy. Registrar of
respective ward.

A Society issues certain shares to its members as per the Bylaws

and the Share Certificate becomes an important title deed, since
the allotment of the premises are related thereto.

affairs of the Society are managed by the Managing Committee

which is elected by the members of the Society. The Managing
Committee elects a Chairman, Secretary and a Treasurer.
Under the Model Bylaws, a Society can charge only Rs. 500/- as
Transfer Fee with a maximum of Rs 25,000/- as a premium

in a Society, permission of Managing Committee including â??

Police Verificationâ?? is required.

In a Society, every member has one vote, irrespective of the area

of his premises.

In a Society, disputes are generally referred to the Registrar

appointed under the Act or to a Co-operative Court, depending on
the nature of the dispute.

A Society can expel its member under certain extreme

circumstances.

In a Society, a member can nominate a person in whose favour

shares of the Society should be transferred upon the members
death.

the assessment of the flats will be in the name of owner of the

land

there will be registration of Co-Op Society or Pvt. Ltd Company as

contemplated under Section 10

If the Society is formed, then upon the transfer and conveyance of

land in favour of the Society, the increased FSI will be owned by
the Society and the builder shall not have any right over it.

in case of Society, the builder cannot retain any right on any of

these areas and has to hand over everything to the Society. The
Maharashtra Apartment Ownership Act also provides for the
ownership of an individual Apartment in a building and to make
such Apartment heritable and transferable property.

Bye-laws and Rules of Society are binding on all the residents and
nobody can act as per his/her whims. Hence, if the Society decides
to ban any objectionable commercial activities in the flats such as
noise-making music classes or using the flat for catering or courier
activities etc or not to rent out to bachelors etc, then all the
residents have to abide by it.
Society disputes are resolved in a separate Court i.e. Co-operative
Court dealing with Society matters and hence they are fast
resolved

Redevelopment after years will call for general consent

Once a person becomes a member of a Co-operative Society, he

loses his individuality qua the Society and he has no independent
rights except those given to him by the Statute and the Bye-Laws
 Association
An alternative to a Co-operative Housing Society was introduced by
the Maharashtra Apartment Ownership Act, 1970, which provides
for the formation of a Condominium. The buyers of premises in a
Condominium are called Apartment owners who form an
association known as an Association of Apartment Owners in our
case Bungalow Owners in case of both i.e. residential as well as
non-residential premises.

The meaning of an Apartment means a part of property intended

for any type of independent use, including one or more rooms or
enclosed spaces located on one or more floors in a building
intended to be used for residence, office, practice of any profession
or for carrying on any occupation, trade, or business or for any
other type of independent use and with a direct exit to a public
street, road or highway or to a common area leading to such street,
road or highway.

in respect of Apartment ownership, the legal title of the flat as an

object, along with a proportionate share in the common areas of
the building and also proportionate share in the land on which the
building stands, vests in the Apartment owner. That means, the
building belongs to jointly but each Apartment owner has an
independent right to his Apartment to the exclusion of others.

in case of Condominium, even one person who owns the entire

building can form a Condominium provided there are at least five
Apartments in the building

In the case of a Condominium, the title of each Apartment rests

with the Apartment owner, who also has a proportionate
undivided interest in the land on which the building stands the
common areas and facilities of the building.

while adopting the Bylaws in a Condominium, suitable changes can

be made so long as the provisions of the Act are not contravened.

not so in a Condominium of Apartments/Buildings No shares are

alloted

the affairs of a Condominium are managed by the Board of

Managers who is elected by the members of the Apartment
Owners Association. The Board also elects a President, Vice-
President, Secretary and a Treasurer.
Bylaws are framed by Association and those can be more flexible
and the amount of Transfer Fee can be provided therein.

In a Condominium, the owner can give his Apartment on lease or

leave and license basis without the approval of the Board of
Managers.

In a Condominium, every Apartment owner has a voting right in

proportion to the value of his premises which is generally as per
the area of the Apartment owned by him and which is defined
while forming the Condominium.

In the case of a Condominium, the Civil Court having jurisdiction

over the area in which the Condominium is located, hears the
disputes.

In case of a Condominium, there is no such provision. However, if

an Apartment owner fails to comply with the Bylaws or the Rules
and Regulations, either damages or injunctive relief or both can be
claimed against him. On refusal or dispute the same to be
cpntested in civil court and that would take ages.

No such facility is available in a Condominium. An Apartment can

be transferred to a person to whom the Apartment owner
bequeaths the same by his will or to the legal representative of the
Apartment owners estate.

there will be separate assessment in respect of each Apartment

and its percentage of undivided interest in common areas and
facilities.

a declaration is required to be made in prescribed form before the

Magistrate as required under the Act.

The builder is interested in using the increased FSI which will be

awarded by the govt. for that area at any time in future. the
builder owns that increased FSI and can use it anywhere. Thus, the
builder will keep taking advantage of every increase in FSI
throughout in the future.

In an Apartment, the builder retains the ownership of the open

spaces which are not included in the saleable area. Example -
Terrace or any open parking/stairs space which is not included in
the saleable area.

if it is an Apartment, then owners can violate the Apartment Rules

and the Apartment Body can just file a case in the Civil Court.
Apartment matters have to be taken to the normal Civil Court and
hence they typically take years and decades to resolve.

Redevelopment will be done based on majority opinion. If Builder

retains even a portion of property he may veto the move.

in case of the Apartment, the decision taking always rests with

each Apartment-owner

Deeds of Apartments
in the case of the first Deed of Apartment the party of the first
part shall be either the sole owner or all the owners of the
property who has or have executed and registered the
Declaration and the party of the second part shall be the
Apartment owner. In the case of subsequent Deeds of Apartment,
the party of the first part shall be the Apartment owner and the
party of the second part shall be his Transferee.