Apartment Owner’s Association

The Formation of a Society for an Apartment

An apartment society is typically comprised of seven members and is governed by a memorandum that states the names, objectives, addresses as well as professions of the members involved. The committee has a set of rules and by-laws governing how the affairs are regulated in the premises of the apartment. These are compiled by the Registrar of Societies and a member of the committee, and registered if they are in compliance with the legal requirements.

Amendments to the Memorandum and Name of the Society

In the case that the name of a society is the same as that of another society, the memorandum and other documents are changed according to a specialised resolution. This will leave societal affairs and other matters unaffected, as the alteration will only occur for the name. Amendments to the by-laws can only be made with approval by the Registrar, if he finds that the amendments are acceptable and for the purpose of bettering the administration.

Common Areas and Facilities in the Memorandum

The columns, foundations, beams, girders, roofs, main walls, lobbies, halls, corridors, terrace, stairways, fire escapes, compound walls, sumps, entrances, wells, exits, basements, gardens, yards, parking areas, and storage spaces that are allotted to the caretakers and maintenance personnel alike are collective called as ‘Common Area’. Facilities that are considered common for the apartment include sewerage, water supply, drainage connections, light, central power, gas, heating, hot and cold water availability, pumps, refrigeration, incineration, ACs, elevators, motors, tanks, and other amenities like compressors, fans, ducts, and fire detection alarms.

Common Expenses for the Apartment Complex

All expenses of the apartment relating to maintenance, administration, repair and replacement of the sections described as common areas and facilities come under ‘Common Expenses’, and all expenses that are legal in nature are sustained by the Society itself. These include lawful claims by apartment owners, like those by statute or by-laws.

The Calculation of Maintenance Charges

According to the undivided percentage of interest, all maintenance expenses and charges in the complex pertaining to the common areas and facilities are calculated for apartment owners. Some charges may also be levied depending on the number of units owned, even if the units are different in size. Owners only accept payments on the basis of the number of units, and these are payable by a tenant or an occupant in his absence.