Conflicts between property owners and builders on issues, such as ownership of common areas in a building, are quite regular in India. In Tamil Nadu, the Tamil Nadu Apartment Ownership Rules, 1997, came into effect to provide a legal framework for managing communities and address ownership rights, responsibilities, association formation and maintenance. The Tamil Nadu Apartment Ownership Act, 2022, passed in December 2022, eliminates the limitations of the previous law and protects apartment owners’ interests.
History of Tamil Nadu Apartment Ownership Act
With the rise of multistorey houses in Tamil Nadu, new problems arose where individual buyers could not obtain effective mortgageable titles to such apartments to secure loans under schemes or from lenders. To address this problem and bring a uniform law about the ownership of undivided interest in the common areas and facilities as heritable and transferable property, the state government introduced the Tamil Nadu Apartment Ownership Bill in the Legislative Assembly in 1981. It was referred to as a Joint Select Legislative Assembly. However, it lapsed due to the dissolution of the State Legislative Assembly in November 1984. The Bill was reintroduced by the state government with modifications in 1994 and it was passed and enacted as the Tamil Nadu Apartment Ownership Act, 1994.
Tamil Nadu Apartment Ownership Act, 1994
However, the Tamil Nadu Apartment Ownership Act, 1994, had limitations and ambiguities. Some of the issues were related to the registration of associations, unclear common space ownership, dispute resolution and antiquated provisions.
There was no authority formed for registration, hence, associations were formed under the Tamil Nadu Co-operative Societies Act of 1961 or the Tamil Nadu Societies Registration Act of 1975. Moreover, other issues were related to deed registration. After a sale deed for an apartment and the proportionate undivided share of land was registered in the owner’s name, they became the absolute owners. Under Section 10(2) of the 1994 Act, the deed must be filed by the competent authority, however, no authority was notified.
The draft Act was revised, consulted with stakeholders and submitted to the Legislative Assembly. The Tamil Nadu Apartment Ownership Act, 2022, repealed the earlier Act in December 2022.
The Tamil Nadu Apartment Ownership Act: Latest changes
- One statement per project instead of separate declarations per apartment.
- Only one legally recognised association represents all unit owners.
- Clearly outlined communal spaces and facilities; clarity on ownership and maintenance.
- Streamlined dispute resolution for faster and more effective conflict resolution.
- Prioritised redevelopment of old housing buildings through streamlined processes.
- The new Act is in the first implementation phase.
- The state government is drafting the regulations.
The Act aims to ensure clarity and efficiency in apartment ownership in Tamil Nadu, protect owners’ rights, maintain common areas and facilitate community management.
Tamil Nadu Apartment Ownership Act, 2022: Purpose and objectives
The main purpose of the Act is to address the limitations of the Tamil Nadu Ownership Act, 1994, and provide practical solutions to existing issues.
The key objectives of the Tamil Nadu Ownership Act, 2022, are:
Protection of owners’ rights
- Ensure suitable care and utilisation of communal spaces and utilities by clarifying ownership.
- Faster conflict resolution and efficient grievance redressal.
- Better financial management and transparency in apartment associations.
Apartment community management streamlined
- Efficient record-keeping and administration using a single declaration mechanism for each project.
- Formation of a legal organisation to represent unit owners and ensure better decision-making and communication.
- Set clear criteria for elections, financing and bylaws within the organisation.
Meeting changing apartment demands
- Supporting redevelopment of older housing complexes through transparent processes and protections.
- Accepting new realities, such as phase-wise development and mixed-use developments, within the legal framework.
- Encouraging energy efficiency and sustainability practices within the apartment complexes.
Better apartment living overall
- Creating a sense of community and collaboration among apartment owners.
- Promote open and accountable governance in apartment associations.
- Encourage a peaceful coexistence in apartment complexes using legal means.
The Tamil Nadu Apartment Ownership Act, 2022, aims to achieve balance concerning individual rights, efficient administration and enhanced living experience for all apartment owners.
Provisions under the Apartment Owners Association Act In Tamil Nadu
The apartment ownership laws provide essential rights to owners in apartment complexes:
- Individual unit ownership: Apartment owners may own and occupy apartments within the residential complex. It pertains to exclusive possession and use of the defined place, as per the ownership deed and rules.
- Common areas and facilities: The law states that apartment complex owners have access to some common areas, such as hallways, stairwells, elevators, parking and recreational services. The rights are shared by other owners and governed by the apartment owners’ organisation.
- Maintenance and repairs: Apartment owners have the right to appropriate care of shared rooms and utilities. They can engage in maintenance decisions, pay maintenance costs and seek remedies for non-compliance
- Administration: Apartment owners are entitled to administer their apartment complexes through the apartment owners’ association. This includes attending general meetings, voting on budget approval and association official elections and acting on the board or committees.
- Decision-making: Apartment owners have the right to be informed and advised on critical issues affecting their apartment complexes, such as bylaw amendments, maintenance plans or renovations. They may speak during association meetings and decision-making.
- Quiet occupation: The apartment owners have the right to use their properties and stay in peace and solitude, without undue interference from other residents or the owners’ association, subject to specific laws governing the expected space behaviour and usage.
- Legal recourse: They have the right to legal action in case of disputes or complaints regarding ownership rights, association governance, maintenance or other interests in the apartment complex. They may have rights related to mediation, arbitration or lawsuits.
What is the Association of Apartment Owners?
Section 7 of the Act pertains to the formation of an association of apartment owners. Section 2(e) of the Act specifies the definition of ‘association’, that is, an association comprises apartment owners who are competent to contract in their own name and the association must be formed following the bylaws.
How is an Association of Apartment Owners formed?
The procedure for organising an apartment owner association depends on the local laws, rules and practices. One can approach legal professionals or appropriate authorities to understand the rules and get jurisdiction-specific advice.
The method of formation of the association of apartment owners is as follows:
- Draft bylaws: Drafting of bylaws is necessary for setting up the organisation, which controls its activities. These bylaws specify the association’s objective, membership requirements, voting methods, office bearers’ duties, meeting protocols, financial management standards, dispute resolution systems and other relevant Tamil Nadu apartment ownership rules.
- Initial gathering: The developer or marketer of the apartment complex calls for an initial meeting with all the owners where they introduce the association, discuss the proposed bylaws and gather owner comments. Owners may negotiate bylaw measures so that their collective interests are aligned.
- Registration: The organisation should be registered as per applicable laws and regulations. The bylaws and other papers are submitted to the government body or registrar for registration.
- Election of office bearers: An election is organised to select officers, including the president, secretary, treasurer and committee members, as per the rules. All qualified owners are required to participate in the fair and open election process.
- Establishing committees: The newly elected office bearers may form committees to manage specialised association functions, such as maintenance, finance, legal matters or social events. Committee members are selected for their talents, competence and voluntary participation.
- Beginning operations: The operations can begin once the association is formed and office bearers are elected. These include collecting maintenance fees, managing typical areas, organising meetings, addressing resident concerns and representing apartment owners’ interests.
- Participation and governance: After an association is formed, regular meetings, good communication channels, bylaw adherence, financial transparency and member engagement are key to the proper functioning of the association’s apartment complex management and community building.
Rights of association
An association of apartment owners has the following rights:
- Enforcement of bylaws and regulations: The association has the right to implement the rules and regulations for governing the apartment complex. It sets rules for resident behaviour, common space usage, parking, pet restrictions, architectural principles and other issues impacting community cohesion.
- Common area management: The association is entitled to manage, maintain and control common spaces and facilities within the apartment complex, such as hallways, stairwells, parking, elevators, recreational activities and shared utilities. It is responsible for scheduling maintenance, repairs, renovations and standard area enhancements.
- Maintenance fee collection: The organisation may levy charges upon the unit owners for the maintenance of shared spaces, utilities, facilities, insurance and administrative expenditures. These charges are based on the association’s budget and distributed to owners by unit size or other bylaw criteria.
- Representation of owners’ interests: The association may advocate apartment owners’ interests with external parties, including government agencies, service providers, contractors and adjacent communities. This may include representing the community, negotiating contracts, settling conflicts and participating in critical decision-making.
- Management of association affairs: The association has the right to organise meetings, maintain records, create financial statements, appoint committees, hire staff and be involved in various administrative functions.
- Dispute resolution: The association is entitled to formulate processes for addressing issues among unit owners, between owners and the association or between the association and external parties. It has rights related to mediation, arbitration or legal proceedings under relevant rules and regulations. It can modify the bylaws or regulations per the processes and conditions defined under the bylaws and applicable legislation.
- Legal procedures: It can start or defend legal procedures for unit owners’ collective interests. It may take legal action for breaking apartment owners association rules in Tamil Nadu.
What is a federation?
Section 10 of the Act deals with the formation of a federation. According to Section 2(o) of the Act, a federation is a body created by two or more societies or associations as per bylaws. As per Section 10, if a building includes more than one project and two or more associations of owners or societies, such societies and associations can form a federation to maintain and manage the common areas and facilities. However, the federation is liable to function following the bylaws.
How is a federation formed?
- Identify common interests: Apartment owners’ groups seeking to form a federation must identify shared problems that may be managed collectively. It can relate to legislative or policy lobbying, property management best practices, collaborative service procurement or community event coordination.
- Networking: They can network with other apartment owners’ groups to understand their interest in joining a federation. Associations can network, discuss and explore cooperation through conferences, networking events or online forums.
- Define objectives: They must define federation goals depending on the shared interests and priorities of the member organisations. These objectives include strengthening government, community amenities, environmental sustainability or legislative change.
- Formulate federation bylaws: They must define the objective, organisation, membership requirements, decision-making procedures and operational elements of the federation in governing papers. Member organisations must support in writing the bylaws that encourage democratic representation and accountability.
- Membership drive: They solicit membership from apartment owners’ organisations aligned with the federation’s aims. Membership must fulfil criteria, such as geographic closeness, association size, property type and willingness to contribute resources or expertise to federation operations.
- Elect leadership: Elections are held for the appointment of federation officials. The leaders must be member association representatives overseeing the federation’s operations and advocating its interests.
- Create committees and working groups: The process involves the creation of committees or working groups for legislative lobbying, property management, community participation or environmental sustainability. The committees may come up with action plans, organise events and coordinate projects.
- Advocacy and collaboration: It involves collaboration with member organisations to promote shared objectives locally, regionally or nationally. This relates to lobbying lawmakers, public discussions or cooperating with stakeholders to achieve goals.
- Communicate and coordinate: They must stay in touch with member associations and the federation through newsletters, websites, social media or meetings to exchange information and ideas.
Penalties applicable for apartment owners
Apartment ownership organisations enforce penalties on those violating the bylaws, rules, regulations or laws. The association’s governing papers specify these penalties, which may vary based on the offence type and severity. Some examples are:
- Financial penalties: Apartment owners and occupants may face penalties for non-payment of maintenance fees, noise violations and architectural violations.
- Suspension of privileges: In case of significant or frequent infractions, the association may limit access to common areas, parking spots or recreational facilities till the issue is resolved or a penalty is paid.
- Legal action: In case of severe non-compliance, the association has the right to take legal action against the offender. One may have to face injunctive remedy, a lawsuit for damages or foreclosure if dues are not paid.
- Loss of voting rights: Apartment owners can lose voting rights for not complying with bylaws or unpaid financial obligations.
- Loss of membership: An owner on the board or executive committee can be removed if they violate regulations or act against community interests.
- Community service: The association can ask the offender to engage in community service or take remedial activities to remedy the infraction and reduce its effect on the community.
- Criminal penalties: Extreme fraud, theft, vandalism or violence can result in law enforcement, criminal charges, fines or incarceration.
Housing.com News Viewpoint
The Tamil Nadu Apartment Ownership Act, 2022, was enacted to address the problems in the earlier Act. The laws are formed to ensure well-managed residential communities while safeguarding the rights of the owners and the owners’ association.
FAQs
What are the responsibilities of the apartment owners’ association?
The apartment owners’ association is responsible for managing common spaces and facilities and implementing the laws.
When are association meetings and who can attend?
As per the association’s rules, annual general, unique and board meetings are held. The frequency and schedule depend on the association’s needs and bylaws. The meetings can be attended by the tenants and other stakeholders.
How do apartment complex problems get resolved?
Conflict resolution happens through informal discussion or mediation between the parties.
How are maintenance costs determined?
Apartment complex maintenance charges depend on the apartment unit’s size, facilities and services and the total maintenance expenditures.
How are maintenance costs utilised?
These costs are utilised for landscaping, repairs, common area utilities, insurance and administration.
(Disclaimer: The logo used on the featured and thumbnail images is the sole property of the Govt. of Tamil Nadu)
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