Buying a home is the long-cherished dream of many, but in the general excitement of finally getting all the approvals in place, most prospective buyers forget to take into account the charges of owning a property. Whether the house is an independent bungalow or a flat in an apartment block, there are a substantial number of miscellaneous costs that have to be borne by the house-owner.
Here are a few points to help you understand the logic behind the concept of maintenance charges and how you can be free of unpleasant surprises related to these charges after moving into your house.
What are maintenance charges?
Maintenance costs are those charges that homeowners need to pay for the smooth running of essential services in the housing complex wherein they own a home or a flat. These charges include both individual and commonly-owned property areas of the housing society.
General services included under maintenance charges
A modern housing complex provides various service amenities, which require regular maintenance and repairs like parking spaces, lifts, lobbies, fire escapes, and shared entrances and exit gates. Some complexes have extra luxury amenities like swimming pools, gym, children’s park, indoor game centres, jogging tracks, and meditation centres. Since workforce and materials are required to maintain these facilities and maintenance costs are charged to cover all these expenses.
What the law says about maintenance charges
As per Real Estate Regulatory Authority or RERA, “every allottee, who has entered into an agreement for sale to take an apartment, plot or building as the case maybe, under Section 13, shall be responsible to make necessary payments in the manner and within the time as specified in the said agreement for sale and shall pay at the proper time and place, the share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, and other charges, if any.”
How maintenance charges are calculated
Maintenance charges are included in the contractual agreement signed by both parties concerning the said property; hence a buyer is bound by contract to pay these charges. It is mentioned in the allotment letter issued by the builder to the buyer.
Since the exact amount of these charges is not mentioned in the agreement, it is strongly advised that buyers get an estimate of maintenance charges that will be levied upon them on possession of the property to avoid unpleasant surprises.
Details of general maintenance calculation
There are two methods of calculating maintenance charges:
- Per flat basis
- Per square feet area basis
In properties where all flats are almost the same sizes, these charges are flat and fixed. Complexes, which house flats of different sizes charge maintenance on a per-square-feet basis. The usual rate for expenses on repair and maintenance of the building is a minimum of 0.75% of the construction cost of each flat.
The builder takes a maintenance charge of 2-3 years in advance from the buyer at the time of possession. However, after the formation of the society’s Resident Welfare Association (RWA), the onus falls upon this committee to decide the amount of these charges and the frequency of their collection.
If prospective buyers aren’t aware of these factors, it can land them in a financial crunch after possession of the property. Being cognizant of maintenance fees while buying a home is advisable and thus, in a homebuyer’s best interests.
