RERA: Builder has the duty to make association


The establishment of the Real Estate (Regulation and Development) Act, 2016 has now brought the accountability and responsibility for the Builders which pre-RERA was not in existence at all. In the RERA Act, 2016 there are certain duties and obligations has been casted upon the Builders which they have to comply with. Amongst all the prescribed responsibilities, the formation of the apartments owner’s association is also the onus on the Builder.

In one such dispute before UPRERA Authority, some allottee’s has claimed that the builder was not allowing them to make association. On the other hand, the Builder has claimed that they have applied for the registration and final certificate is yet to come.

As per the provisions of the RERA, the formation of the Association, Society or Co-operative Society shall be enabled by the Builder as per the applicable laws and if it is not so a builder is liable to pay all the outgoings until the transfer of the physical possession to the association of the allottee’s. Having said that, if there are no local laws the Builder has to form an association with in the period of three months after the majority of the home-buyers have shifted to the project.

Further, the officials added that, the consent of the Builder is not mandatory but it is the sole responsibility of the builder to enable the formation of the association and the election of the association should be lawful and transparent.

After the Occupancy of all the allottee’s in the project, the association plays vital role as they represent all the home-buyers as a whole. The formation of such association make it a juristic person and they are empowered to take actions or decisions on behalf of the apartment owners subject to the provision of the bye-laws of the Society. The owners’ association can also file a Complaint before RERA Authority of the State representing the common problems of all the owner’s.

In the light of above it can evidently be concluded that the association is very pertinent to be formed as it has certain role and duties to be followed and this is the responsibility of the Builder to make them enable so that an association can easily be formed.

Disclaimer – Please note that the above articles is based on the interpretation of related laws and judicial pronouncement which may differ from person to person. The reader are expected to take the expert opinion on the matter.

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