If you are planning to buy Apartments in Sarjapur any sooner, it is important to update on the apartment laws. The buyers are confused with the maintenance, handover issues and other issues that need clarity before making an investment. Sometimes the builder registers the association making things simpler, but if the case is otherwise it is important to approach a lawyer to register owners association. This falls under the Karnataka Apartment Ownership Act.
An apartment is residential in nature; here the owner has the access to a certain percentage of the land share and also amenities and common areas. Two laws can govern apartment associations in Karnataka, the Karnataka Ownership Flats Act (KOFA) and Karnataka Apartment Ownership Act (KAOA). While KOFA governs the construction, promotion, sale, transfer and management of the apartment, KAOA is created to give clarity on transfer, mortgage and inheritance of the property.
The apartment communities can be divided into three types in Karnataka. One is a the promoter floating the cooperative society with KOFA or promoters forming association under the preview of KAOA. It is defined that the land and common area will lie with the cooperative society and the flat allottees are called tenants. Here the word tenant has an expansive connotation. It means the member has the rights to live in the flat but may not own the undivided share since the common area is with the society. This again raises issues while mortgaging the property, as bank will not give loan on something that is not owned in whole.
Features of KAOA subscribes to the Transfer of Property Act of 1882. Since the concept of common area arises here, the undivided share is considered to be equal to immovable property. The owner of the flat has clear title to the apartment and the undivided share.