Apartment Association

In Karnataka there are two legislations that deal with registration of apartments’ associations. One of them is a special legislation, the Karnataka Apartment Ownership Act, 1972 and the other is the Karnataka Societies Registration Act 1960.
Although Karnataka Apartment Ownership Act, 1972 (KAOA) exists as a special legislation governing the registrations and functions of residential apartments’ associations, most of the residential associations in Bangalore are registered under The Karnataka Societies Registration Act 1960 (KSRA).
Simple reason for such a trend is perhaps because of the easier process under the KSRA as opposed to the tedious one under the KAOA.

ELIGIBILTY

In case of KSRA, only 7 members above the age of 18 years are required to form the association. Whereas, under the KAOA every member of the building has to come together to form the association; and it might not be possible to have all the members present at the same time for the purpose of registration or to have a unanimous consensus at the same time.

DOCUMENTATION

Under the KSRA the set of documents to be submitted is far simpler and easier to obtain than in the case of KAOA. However, this is not the same under the KAOA as most of the documents required are dependent on clearance from the authorities. For instance, the change in the Khata no. is one such document which has to be submitted for the purpose of registration, the issue under KAOA is that the documents required to be submitted under the KAOA requires time to process and obtain and unless it is made available, the association cannot be registered.

Analysis

Therefore, from the point of view of ease, it is advisable to get the association registered under the KSRA but from the scope of right in the common property it is advisable to register an association under the KAOA as it:

  • Exclusively deals with residential apartments unlike the KSRA which does not contemplate or even directly bring apartment under its ambit;
  • Most important to note is that associations formed under KAOA make each apartment a transferable and heritable property with separate Khata and specific undivided interest in land which is not the case with the KSRA as it does not provide, principally in law, any undivided share in land and all common property of the association is vested with the registered society or such matters needs to be explicitly captured in the bye-laws of the society; and
  • Unlike the KSRA which provides for mandatory annual compliance (s) there are no such requirements under the KAOA. For the aforementioned, and for the share in common land, the KAOA should be preferred over the KSRA. However, for the ease of process of registration, as mentioned above, KSRA is generally used for registration of apartments.

Apartment Association

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