Ways to form an apartment owner’s association
An Apartment Owners Association (AOA) is an authority that protects the rights of the apartment owners, maintains the amenities in the apartment and works for the welfare of the residents of the apartments by conducting events or awareness programs.
Apartment associations in India are formed by a voluntary association of the owners of a particular apartment in India.
In almost every case the goal of the Apartment association is not to make a profit but merely to take the best care of the residents of the apartment and prevent them from suffering from discomfort.
Therefore, you will commonly find Apartment Owners Associations (AOA) performing tasks like ensuring running water supply, providing power back-up facilities, preventing disputes between the apartment residents and having cultural activities and fests to foster good neighborly relations.
Does the Association have to be registered?
It is not necessary for the association to be registered but having the association registered will get legal benefits.
If a court is approached for such small issues it might take several months or even years to resolve such disputes as the court will have a hundred other bigger disputes to take care off.
If you have a registered apartment owner’s welfare association, it will help work as a mediator and helps in resolving the dispute without any legal interference. Apart from central laws like the Societies Registration Act and the Apartment Association Act, there are local legislations in different cities. For example, in Mumbai you would have to form the apartment owners association under the Maharashtra State Apartment Association Act of 1970.
What are the important points for forming an Apartment Association?
There are a few important points to keep in mind while forming an Apartment Owners Association.
These points are as follows:
• A minimum of seven members are required to form an association. Out of these 7 members, you need to appoint office bearers and others to ensure that the Association is managed properly. The office bearers are accountable to the rest of the Association and to the members of the Apartment as a whole (something we shall touch upon soon)
• A memorandum has to be created. The memorandum will state the name of the society, the objectives and the names, addresses and occupations of each and every member of the Association. This is for creating transparency in the operation of the organisation.
• The bye-laws or the rules regulating the conduct of the affairs of the society will be made. These bye-laws are crucial in the management of the society. The memorandum and the bye-laws have to be printed or typewritten and have to be signed by the members.
• The memorandum and the bye-laws will be filled with the registrar of the societies concerned by a member of the committee of the society. Regular filings help to prevent any questions being raised as to the correctness of the operations of the society.
The memorandum and bye-laws of an apartment association are crucial to the operation of the Association. Please ensure that you create these documents with due care and caution.
Additionally make sure that all members of the apartment association are made aware of the existence of the association and the maintenance charges payable, if any. Most disputes arise because the residents are not made aware of the rules and charges.
Finally, make sure that the association meetings and activities are conducted regularly. Consistency plays a big role in ensuring the success of an apartment association.
Courtesy: Economic Times