It is anticipated that the new rules on the Apartment Ownership Act that are being proposed will be of assistance to homebuyers who are experiencing difficulties in organizing associations and obtaining the rights on common spaces transferred from promoters to flat owners’ groups.
For homebuyers, the delay in implementing the Karnataka Apartment Ownership Act has been generating several difficulties.
Understanding the Proposed Apartment Ownership Act:
In February it was announced in the Assembly that the government is working on a new uniform law across Karnataka to safeguard the rights of apartment buyers and owners.
The Karnataka Apartment Ownership Act, 1972, which was in effect, will be repealed by the new law, which will concurrently incorporate the Karnataka Real Estate Regulation and Development (RERA) Rules, 2017.
The construction of an apartment is currently beginning on a single PID number(Property Identification Number). This is what is happening currently. Thereafter, the same PID number is divided according to the number of flats that are present. As an illustration, the PID number 1 is changed to 1/2, and so on. The owner (of the property) continues to keep some of the land for themselves. The person in question continues to be the owner of the land.
According to the new rules in the Apartment Ownership Act, ownership of land ought to be transferred to existing resident associations.
Previously, after thirty to forty years, the land will still be in the name of the original owner, which means that redevelopment opportunities will no longer be available. Some landlords are also taking advantage of this situation in order to secure loans from cooperative banks.
According to the new law in the Apartment Ownership Act, the registered association should get ownership and only they should be the owner.
Buyers Struggling Due to the Delay in Enactment of the New Rules:
Homebuyers who are having difficulties organizing associations and acquiring rights on shared areas passed from promoters to flat owner’s associations should gain from the proposed new Act.
Although the promoters are the ones who are responsible for forming organizations, there are not a lot of promoters who are actually taking the necessary steps to organize associations of flat owners.
Veteran Naval Commander Surendra remarked that no governmental agency is prepared to assume responsibility.
He asserted that it is imperative for the government to eliminate obstacles in the transfer of common areas from the promoters to the flat owners, stating, “The promoter has a duty to establish an association of flat owners.”
Dhananjaya Padmanabachar, Sanchalak of the Karnataka Home Buyers Forum, articulated that homebuyers are enduring significant challenges due to the absence of timely interventions from the authorities.
He added, “We urge the state government to implement the new Act promptly. It is our request for the government to create a distinct department dedicated to overseeing the registration of apartment owners’ associations and to streamline the process of transferring common areas to these associations,” he articulated.
In the interim, the Karnataka State Human Rights Commission (KSHRC) has issued a notice to the Real Estate Regulatory Authority (RERA) to investigate a complaint filed by Padmanabhan.
He lodged a complaint with the KSHRC regarding the RERA’s failure to implement measures addressing the transfer of common areas in apartment complexes and the registration of associations for apartment flat owners.
The RERA, in response to the complaint, articulated that the promoter is obligated to facilitate the establishment of an association, society, or cooperative society, as appropriate, for the allottees, or a federation thereof, by the relevant laws. “If local laws are not in place, the collective of allottees, regardless of its designation, must be established within three months following the majority of allottees securing their flat, apartment, or building, as applicable to the project,” the response from RERA stated.
The RERA has indicated that the Urban Development Department is in the process of enacting the Karnataka Apartment Ownership Flats Act, 1972. It is noteworthy that the RERA has refrained from issuing any guidelines or circular regarding the registration of apartment owners associations, as the draft of the new Act is nearing completion. The RERA will contemplate the issuance of guidelines or circulars if deemed necessary, solely after the new Act is enacted.
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