THE MAHARASHTRA APARTMENT OWNERSHIP ACT, 1970.pdf

The Maharashtra Apartment Ownership Act, 1970, is a landmark legislation designed to regulate apartment ownership in Maharashtra, India. It provides a legal framework to ensure the rights, responsibilities, and protections of apartment owners are clearly defined and upheld.

1. THE MAHARASHTRA
APARTMENT OWNERSHIP
ACT, 1970
Dr.Nitin S. Chalwadi.
Associate Professor
Yashwantrao Chavan Law College

2. Application of Act
This Act applies only to property,
✓the sole owner or
✓all of the owners of which submit the same to the provisions of this
Act by duly executing and registering a Declaration as hereinafter
provided :
Provided that, no property shall be submitted to the provisions of this
Act, [unless it is used or proposed 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

3. •[Provided further that the sole owner or all the owners of the land may
submit such land to the provisions of this Act with a condition that he
or they shall grant a lease of such land to the apartment owners, terms
and conditions of the lease being disclosed in the Declaration either by
annexing a copy of the instrument of lease to be executed to the
Declaration or otherwise.]

4. Definitions

5. Apartment
meansapartofthepropertyintendedforanytypeofindependent
use,includingoneormoreroomsorenclosedspaceslocatedononeor
morefloorsorpartorpartsthereofinabuilding,[intendedtobeused
forresidence,office,practiceofanyprofession,orforcarryingonany
occupation,tradeorbusinessorforanyothertypeofindependentuse]
andwithadirectexittoapublicstreet,roadorhighwayortoacommon
arealeadingtosuchstreet,roadorhighway;

6. apartment owner
meansthepersonorpersonsowninganapartmentandanundivided
interestinthecommonareasandfacilitiesinthepercentagespecified
andestablishedintheDeclaration

7. apartment number
means the number, letter, or combination thereof designating the
apartment in the Declaration

8. building
means–
✓abuildingcontainingfiveormoreapartments,or
✓twoormorebuildings,
✓eachcontainingtwoormoreapartments,
✓withatotaloffiveormoreapartmentsforallsuchbuildings,
✓andcomprisingapartoftheproperty

9. Common areas and facilities
unlessotherwiseprovidedintheDeclarationorlawfulamendmentsthereto,means—
(1)thelandonwhichthebuildingislocated;
(2)thefoundations,columns,girders,beams,supports,mainwalls,roofs,halls,corridors,
lobbies,stairs,stair-ways,fire-escapesandentrancesandexistsofthebuilding;
(3)thebasements,cellars,yards,gardens,parkingareasandstoragespaces;
(4)thepremisesforthelodgingofjanitorsorpersonsemployedforthemanagementofthe
property;
(5)installationsofcentralservices,suchaspower,light,gas,hotandcoldwater,heating,
refrigeration,airconditioningandincinerating;
(6)theelevators,tanks,pumps,motors,fans,compressors,ductsandingeneralall
apparatusandinstallationsexistingforcommonuse;
(7)suchcommunityandcommercialfacilitiesasmaybeprovidedforintheDeclaration;
and
(8)allotherpartsofthepropertynecessaryorconvenienttoitsexistence,maintenanceand
safety,ornormallyincommonuse

10. common expenses
(1)allsumslawfullyassessedagainsttheapartmentownersbythe
AssociationofApartmentOwners;
(2)expensesofadministration,maintenance,repairorreplacementofthe
commonareasandfacilities;
(3)expensesagreeduponascommonexpensesbytheAssociationof
ApartmentOwners;
(4)expensesdeclaredascommonexpensesbytheprovisionsofthisAct,or
bytheDeclarationorthebye-laws

11. common profits
means the balance of all income, rents, profits and revenues from the
common areas and facilities remaining after the deduction of the
common expenses

12. Declaration
meanstheinstrumentbywhichthepropertyissubmittedtothe
provisionsofthisAct,[asprovidedbysection2],andsuchDeclaration
asfromtimetotimemaybelawfullyamended

13. limited common areas and facilities
meansthosecommonareasandfacilitiesdesignatedintheDeclaration
asreservedforuseofcertainapartmentorapartmentstotheexclusion
oftheotherapartments

14. property
means the land, the building, all improvements and structures thereon,
and all easements, rights and appurtenances belonging thereto, and all
articles of personal property intended for use in connection therewith,
which have been, or are intended to be, submitted to the provisions of
this Act

15. Section 4 Status of apartments.
Heritable and Transferable Property:
1.Legal Status of Apartments:
Apartments, with undivided interest in common areas,
are considered heritable and transferable immovable
property.
2.Ownership Rights:
Full ownership rights allow for the transfer of
apartments and their common areas through various
methods.
3. Methods of Transfer:
1.Sale: Selling the apartment.
2.Mortgage: Using the apartment as collateral.
3.Lease: Renting out the apartment.
4.Gift: Gifting the apartment.
5.Exchange: Trading for another property.
6.Other Means: Any legal method.
4. Legal Provisions:
1.Transfers subject to same rights, obligations, and
liabilities as other immovable properties.
2.Includes investigations, legal proceedings, penalties,
and forfeiture.
5. Succession Laws:
Apartments can be bequeathed under applicable laws
for transfer and succession of immovable property.

16. Section 5 Ownership of apartments
Entitlement to Ownership
•Each apartment owner is entitled to exclusive ownership and
possession of their apartment.
•Must be in accordance with the Declaration executed and registered as
required by Section 2 of the Act.
Deed of Apartment
•Each apartment owner must execute a Deed of Apartment.T he Deed
must be executed in the manner prescribed for this purpose.

17. Sec. 18 Separate Assessment
Separate Property for Tax Purposes:
Each apartment and its undivided interest in common areas are considered separate properties for tax
assessment.
•This means that taxes on lands and buildings are assessed individually for each apartment rather than the
entire building.
Local Authority Rules:
• Local authorities must create suitable rules to implement this provision.
•These rules ensure that each apartment is taxed appropriately as a separate entity.
Common Areas Not Separately Taxed:
• Common areas and facilities (e.g., lobbies, gardens) are not taxed separately.
• The tax assessment is focused solely on individual apartments and their share of common areas.
Implications for Owners:
• Owners receive individual tax assessments for their apartments.
• They are responsible for paying taxes on their specific unit and its proportional share of common areas.

18. Declaration
• The Declaration is a legal document required by the
Maharashtra Apartment Ownership Act.
• It is executed and registered to establish and detail the
ownership and structure of the apartment and its common
areas.

19. Section 11 Contents of Declaration
•Land Description
•Specify land location and type
•Mention if any lease is to be granted per the second proviso to section
•Building Description
•Number of storeys and basements
•Number of apartments
•Principal construction materials

20. Section 11 Contents of Declaration
•Apartment Details
•Apartment number, location, approximate area, number of rooms
•Immediate common area access
•Additional identification data
•Common Areas
•Describe common areas and facilities
•Limited Common Areas
•Describe limited common areas and facilities
•Specify apartments with reserved use

21. Section 11 Contents of Declaration
•Property and Apartment Value
•Value of property and each apartment
•Percentage of undivided interest in common areas
•Statement of no encumbrances on the date of Declaration
•Usage Purposes
•State purposes for building and apartments
•Include intended use and restrictions
•Service of Process
•Name and address of person to receive service of process
•Residence or business location within the city, town, or village

22. Section 11 Contents of Declaration
•Voting Provisions
•Percentage of votes by apartment owners for rebuilding, repairing, restoring,
or selling property in case of damage
•Additional Details
•Any other relevant details consistent with the Act
•Amendment Method
•Procedure for amending the Declaration

23. Filing Requirements )
•File a true copy of the Declaration and by-laws, including all
amendments, with the competent authority

24. Registration and Formalities
✓Registration Requirement
•The Declaration, amendments, Deed of Apartment, and floor plans must be registered
under the Registration Act
✓Floor Plans Submission
•Along with the Declaration, floor plans showing layout, location, apartment numbers,
and dimensions must be filed
✓Architect Verification
•If the initial plans lack verification, an amendment to the Declaration must include an
architect’s verified statement before any apartment is conveyed
✓Register of Declarations and Deeds
•A special register and index titled "Register of Declaration and Deeds of Apartments
under the Maharashtra Apartment Ownership Act, 1970" must be maintained in all
registration offices

25. •Manager's Duty
•Managers or Board of Managers must send certified copies of the Declaration,
Deed of Apartment, and a memorandum with required particulars to the
relevant Sub-Registrar or Registrar
•Registrar’s Duties
•The Sub-Registrar or Registrar will register the Declaration, floor plans, and
Deed of Apartment in the special register and index
•Application of Registration Act
•The provisions of the Registration Act, 1908 apply to the registration process,
and terms not defined in the Maharashtra Apartment Ownership Act, 1970 will
have meanings as per the Registration Act
Registration and Formalities
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26. Sec. 9 Encumbrances against apartments;
removal from encumbrances, effect of part
payment.
•No New Encumbrances:
•Encumbrances on Individual Apartments:
•Partition and Sub-Division Restrictions:
•Labor and Material Charges:
•Common Area Charges
•Removal of Encumbrances:

27. Sec. 14 Removal of Property from the Provisions of
the Act
•Undivided Interest in Common Ownership
•Common Ownership Post-Removal
•Consent from Encumbrance Holders
•Removal of Property from Act

28. Contribution to common expenses
1.Mandatory Contribution
2.Apportionment of Expenses
3.Collection of Contributions
4.Enforcement of Payment
5.Use of Funds
6.Special Assessments
7.Reserve Funds

29. Section 19 Charge for property of common
expenses
1.Joint and Several Liability
2.Right of Recovery
3.Entitlement to a Statement
4.Limitation of Liability
5.Protection for the Purchaser

30. Rights, duties, liabilities and disabilities of
an apartment owner, tenants and users

31. Rights, duties, liabilities and disabilities of
an apartment owner, tenants and users
1.Ownership
2.Common Areas
3.Participation
4.Voting Rights
5.Privacy
Apartment owners have a legal right to the
apartment unit they have purchased,
including the exclusive use and possession
of their apartment.
They have the right to access and use
common areas and facilities within the
apartment complex, such as corridors,
parking areas, and recreational spaces.
Owners have the right to participate in meetings
and decision-making processes of the apartment
owners' association, which is responsible for
managing the common areas and facilities.

32. •Duties of Apartment Owners
•Payment of Common Expenses
•Compliance with Bylaws
•Maintenance
•Liabilities of Apartment Owners
•Financial Liabilities
•Liability for Damages
•Rights of Tenants
•Occupancy
•Use of Common Areas
•Duties of Tenants
•Lease Compliance
•Respect for Neighbours
•Liabilities of tenant
•Rent Payment
•Damages
•Disabilities of Users
•Limited Rights
•No Voting Rights
•Duties of Tenants
•Lease Compliance
•Respect for Neighbours

33. Bye-laws

34. Essential Matters Covered by Bye-Laws
•Election of Board of Managers
•Powers and duties of the Board
•Compensation of Board members
•Method of removal from office
•Engagement of Secretary, Manager, or Managing Agent
•Method of calling meetings and quorum
•Election of President, Secretary, and Treasurer

35. Specific Matters Addressed by Bye-Laws
•Maintenance, repair, and replacement of common areas
•Payments for common expenses
•Designation and removal of maintenance personnel
•Adoption and amendment of administrative rules
•Restrictions on the use and maintenance of apartments and common
areas
•Percentage of votes required to amend bye-laws

36. Additional Matters Covered by Bye-Laws
•Regulation of apartment transfer or partition
•Percentage of undivided interest in common areas
•Board's authority to lease areas for commercial purposes
•Distribution of proceeds to apartment owners
•Other provisions related to audit, accounts, and administration
•Annual and special general meetings, annual report, and related
matters

37. Management
of
Apartments
Condominium

38. Sec. 22 Disposition of property ;
destruction or damage
•Context and Timeline
•Determination by Association
•Consequences of No Determination
•Common Ownership
•Undivided Interest
•Transfer of Encumbrances
•Action for Partition
•Net Proceeds Distribution
•Charges and Purpose

39. Distinction between ownership of apartment and
ownership of share in joint property

40. Distinction between ownership of apartment and
ownership of share in joint property
Ownership of apartment
Nature
Specific
Unit
Exclusive
Rights
Specific Unit: Ownership of an
apartment typically involves
owning a specific, individually
defined unit within a multi-unit
building or complex.
Exclusive Rights: The owner has
exclusive ownership and control
over the specified unit, including
the right to occupy, use, and make
alterations to that unit.

41. Distinction between ownership of apartment
and ownership of share in joint property
Undivided Share: Ownership of a
share in joint property refers to
having an interest in the entire
property rather than a specific unit.
Collective Ownership: The
property is collectively owned by
multiple individuals, each holding
an undivided share.
Ownership of share in joint property
Nature
Undivided
Share
Collective
Ownership

42. Distinction between ownership of apartment and
ownership of share in joint property
Ownership of apartment
Legal Structure
Condominiums
or Flats
Strata Title
Condominiums or Flats: This
form of ownership is commonly
found in condominiums, apartment
buildings, or similar structures
where each unit is separately
owned.
Strata Title: The legal structure
may involve a strata title system,
where individual units are owned
as separate entities

43. Distinction between ownership of apartment
and ownership of share in joint property
Jointly Inherited Property: This
form of ownership is often
associated with properties
inherited jointly by family
members.
Undivided Share: Co-owners
have an undivided share in the
entire property.
Ownership of share in joint property
Legal Structure
Jointly
Inherited
Property
Undivided
Share

44. Distinction between ownership of apartment and
ownership of share in joint property
Ownership of apartment
Rights
Exclusive
Use
Common
Areas
Exclusive Use: Owners have
exclusive rights to their apartments
and can use, lease, or sell them
independently.
Common Areas: Depending on
the legal structure, apartment
owners may also have shared
ownership or access rights to
common areas such as hallways,
elevators, and recreational spaces.

45. Distinction between ownership of apartment
and ownership of share in joint property
Shared Ownership: Co-owners
collectively own the entire
property, and each has a right to
the property as a whole.
No Exclusive Unit: Unlike
ownership of an apartment, there
is no exclusive ownership of a
specific unit within the property.
Ownership of share in joint property
Rights
Shared
Ownership
No Exclusive
Unit

46. Distinction between ownership of apartment and
ownership of share in joint property
Ownership of apartment
Responsibilities
Maintenance
Association
Fees
Maintenance: Owners are
typically responsible for the
maintenance and upkeep of their
individual units..
Association Fees: In some cases,
owners pay association fees to
contribute to the maintenance of
common areas and shared
facilities.

47. Distinction between ownership of apartment
and ownership of share in joint property
Shared Responsibilities: Co-
owners typically share
responsibilities for property taxes,
maintenance, and other costs
associated with the property.
Joint Decisions: Major decisions
regarding the property may require
agreement among all co-owners
Ownership of share in joint property
Responsibilities
Shared
Responsibilities
Joint Decisions

48. Distinction between ownership of
apartment and Holding of a Flat in a
Cooperative Housing Society

49. Distinction between ownership of apartment and
Holding of a Flat in a Cooperative Housing Society
Ownership of apartment
Nature
Specific
Unit
Exclusive
Rights
Specific Unit: Ownership of an
apartment typically involves
owning a specific, individually
defined unit within a multi-unit
building or complex.
Exclusive Rights: The owner has
exclusive ownership and control
over the specified unit, including
the right to occupy, use, and make
alterations to that unit.

50. Distinction between ownership of apartment and
Holding of a Flat in a Cooperative Housing Society
Membership in a Society: Holding a
flat in a cooperative housing society
involves membership in a
cooperative society that collectively
owns the entire property.
Occupancy Rights: Members hold
shares in the cooperative society, and
the right to occupy a specific flat is
granted through a lease or occupancy
rights.
Holding of a Flat in a Cooperative
Housing Society
Nature
Membership
in a Society
Occupancy
Rights

51. Distinction between ownership of apartment and
Holding of a Flat in a Cooperative Housing Society
Ownership of apartment
Legal Structure
Condominiums
or Flats
Strata Title
Condominiums or Flats: This
form of ownership is commonly
found in condominiums, apartment
buildings, or similar structures
where each unit is separately
owned.
Strata Title: The legal structure
may involve a strata title system,
where individual units are owned
as separate entities

52. Distinction between ownership of apartment and
Holding of a Flat in a Cooperative Housing Society
Cooperative Housing Society: This
form of ownership operates under
cooperative laws, where the society
owns the property, and individual
members have occupancy rights.
Occupancy Rights: Members hold
shares in the cooperative society, and
the right to occupy a specific flat is
granted through a lease or occupancy
rights.
Holding of a Flat in a Cooperative
Housing Society
Legal Structure
Cooperative
Housing
Society
Occupancy
Rights

53. Distinction between ownership of apartment and
ownership of share in joint property
Ownership of apartment
Rights
Exclusive
Use
Common
Areas
Exclusive Use: Owners have
exclusive rights to their apartments
and can use, lease, or sell them
independently.
Common Areas: Depending on
the legal structure, apartment
owners may also have shared
ownership or access rights to
common areas such as hallways,
elevators, and recreational spaces.

54. Distinction between ownership of apartment and
Holding of a Flat in a Cooperative Housing Society
Occupancy Rights:Members
have the right to occupy a specific
flat based on their membership in
the cooperative society.
Limited Transferability: The
transfer of occupancy rights is
often subject to approval by the
cooperative society.
Holding of a Flat in a Cooperative
Housing Society
Rights
Occupancy
Rights
Limited
Transferability

55. Distinction between ownership of apartment and
Holding of a Flat in a Cooperative Housing Society
Ownership of apartment
Responsibilities
Maintenance
Association
Fees
Maintenance: Owners are
typically responsible for the
maintenance and upkeep of their
individual units..
Association Fees: In some cases,
owners pay association fees to
contribute to the maintenance of
common areas and shared
facilities.

56. Distinction between ownership of apartment and
Holding of a Flat in a Cooperative Housing Society
Participation in Governance:
Members actively participate in the
governance of the cooperative
society, attending general meetings,
and having a say in decisions.
Participation in Governance:
Members actively participate in the
governance of the cooperative
society, attending general meetings,
and having a say in decisions.
Holding of a Flat in a Cooperative
Housing Society
Responsibilit
ies
Participation in
Governance
Share Common
Expenses

57. The End