The Obligation of Promoters to Form Association of Allottees: Empowering Apartment Buyers
For those aspiring to own an apartment in a housing project, understanding their rights and the obligations of the developer or promoter is vital. One such crucial obligation is the formation of an Association of Allottees, commonly known as a society, once 51% of the total number of allottees have booked their apartments in the project within three months. This legal requirement aims to empower apartment buyers and create a cohesive community within the development. In this article, we will explore the significance of forming an Association of Allottees and the benefits it offers to homeowners.
What is an Association of Allottees? An Association of Allottees is a collective body comprising all the buyers (allottees) who have booked apartments or units in a particular real estate project. It serves as a representative organization for the homebuyers within the development.
Legal Obligation to Form an Association: As per the Real Estate (Regulation and Development) Act, 2016 (RERA), it is mandatory for the promoter to form an Association of Allottees once 51% of the total number of apartments or units have been booked or allotted in the project. The promoter is required to facilitate the formation of the association within three months from the date of reaching the 51% threshold.
Key Responsibilities of the Association:
- Representing Buyers: The association acts as the voice of the homebuyers and represents their interests and concerns to the developer, local authorities, and other stakeholders.
- Maintenance and Amenities: It takes charge of managing the common areas, amenities, and facilities within the project, ensuring proper maintenance and upkeep.
- Resolving Disputes: The association plays a vital role in resolving disputes between homebuyers and the developer, promoting a harmonious living environment.
- Financial Management: It manages the funds contributed by the homebuyers for the maintenance and upkeep of the project.
Benefits of Forming an Association of Allottees:
- Collective Bargaining Power: With the formation of an association, homebuyers gain more bargaining power while dealing with the developer or builder on various issues, including changes in project specifications or timelines.
- Transparency and Accountability: The association fosters transparency in financial matters and ensures the developer is accountable for adhering to project timelines and delivering as per the agreed-upon specifications.
- Quality Living: By taking charge of maintenance and facilities, the association ensures a high standard of living and quality of life for the residents.
- Legal Protection: In case of any legal disputes or issues with the developer, the association can collectively pursue legal action, providing a stronger case in court.
Forming the Association: The process of forming an Association of Allottees involves electing members to various posts and drafting a constitution that outlines the rules and regulations governing the association. This constitution is submitted to the Registrar under RERA for approval and formal registration.
Conclusion: The formation of an Association of Allottees is a crucial step towards safeguarding the rights and interests of homebuyers. It empowers them to actively participate in the decision-making process, ensures transparency and accountability from the developer, and fosters a sense of community within the housing project. As an integral part of RERA, this obligation strengthens the position of the homebuyers and promotes a more organized and harmonious living environment in the real estate sector.
