Why Karnataka Apartment Ownership Act Is Important For Homebuyers
With Real Estate Regulatory Bill coming into action, home buyers have started rejoicing. But, only a few buyers know that before RERA, there were state enabled legislation and law that were formed to protect the interest of home buyers. One such legal instrument is Karnataka Apartment Ownership Act (KAOA). Here is more about it-
What is Karnataka Apartment Ownership Act (KAOA)
Due to rise in apartment culture in the city, to ensure the protection of the residents, apartment owners association is formed to maintain the common area and take decisions which impact the daily life of the buyers. A builder has to get the society registered within four months of the sale of 60 per cent of the total units. There are three acts under which a society can get registered, each of them having different provisions.
Also Read: Key Features of KAOA
Karnataka Apartment Ownership Act deals with apartment societies in the state. According to the act, if an association is formed under KAOA, then each apartment becomes a heritable and transferable unit under separate Khata along with an undivided share of common areas. Moreover, the apartment buyers have to submit the deed of execution, received from the builder. What makes this act important is the provision that equates the ownership of an apartment with the undivided share of the total land including the common areas, unlike Karnataka Societies Registration Act.
According to Karnataka Societies Registration Act, the building, common area and land is vested with the Cooperative Society and the allottees of the flat are deemed as “tenants” in legal parlance. This means a buyer cannot mortgage the property as banks do not prefer to offer loan to a property where rights of the common area do not rest with the buyer.
Importance of Karnataka Apartment Ownership Act
It is important to have registered housing society as it gives a legal stand to the homeowners and can help in the protection of buyer's right in the case of future dispute with the builder. According to KAOA, an apartment society should ensure the legal handover of the property from the builder to the owner. The buyer needs to acquire the following set of documents from the builder to get the legal charge of the property-
- Deed of declaration
- Occupancy Certificate
- NOC – Airports Authority of India
- NOC- Ministry of Environment & Forests
- Karnataka State Pollution Control Board – Consent
- NOC from BDA for Construction
- NOC – BSNLC – BESCOM
- RR.No. Of all the Flats
- Title Deed
- Lift Approvals from Deputy Chief Electrical Inspector
- BWSSB Sanction letter/Payment Receipt copy
- List of Club House Movable Assets
- Hand over of DG, Transformer & Fire Pump Details
- Sump & Tank Capacity Details
The act also regulates the process of construction of new buildings, transfer of the apartment, sale and promotion. KAOA is created to make units transferable and mortgageable and to address the concerns of property management.
Also Read: Karnataka Apartment Ownership Act Clauses