Maharashtra Ownership Flats Act, 1963

Article XVI

SHORT NOTES ON

THE MAHARASHTRA OWNERSHIP FLATS ACT, 1963
(As Modified up to 28th May 1998)

BY: SUDHAKAR DOKHANE
(Past President PEATA (I)
The Act regulates the promotion of construction, sale, management and transfer of flats purchased on ownership basis, in the State of Maharashtra. The general liabilities of Promoter (Builder/Developer), and Flat purchasers as defined are reproduced in short:-

General Liabilities of Promoter (Builder): -

The promoter who constructs or intends to construct a building of flats, on
demand or on 7 days notice from flat purchaser, shall:-

Make full disclosure of the marketability of title of the property / land on which the flats are constructed or proposed to be constructed, including any encumbrances, rights, claims, interest by any third party, in or over such land.
Give inspection of the approved plans of the building, and development permission granted by the local planning authority.
Disclose the specifications of building, agreements entered in to with other component agencies viz. architect, contractor etc. particulars of design and materials to be used etc.
Execute the agreement as per the terms and conditions of model agreement prepared by the State Govt. under above act.
Disclose the list of amenities, fittings and fixtures proposed to be provided.
Specify the date of handing over the possession.
Not to allow to enter or to give possession of premises without completion certificate or occupation permission issued by the local planning authority.
Give information of all maintenance out goings including taxes, charges etc. till handing over of the accounts to the society.
Give following particulars: -
Carpet area of flat including balcony area.
Nature, extent & description of common areas and services / facilities.
Purchase price and schedule of payment payable by the flat purchaser at every stage.
Attend for the registration of agreement before registration authority in time limit.
Display copy of approved plans & specifications at site.
Give certified true copies of documents to flat purchasers.
Not to make any additions or alterations to the premises without the consent of the flat purchaser.
Attend and rectify the defects at own cost, if noticed within 3 years from the date of handing over of possession.
Refund the total payment so received to the flat purchaser with 9% simple interest, in case the promoter fails to deliver possession of flat due to reasons beyond his control.
Submit application to appropriate authority for formation of registered co-op. housing society.
Convey the title of property together with the building there on to the registered housing society or such body, formed by the purchasers of flats.

Liabilities of Flat Purchasers

The purchaser who intends to purchase flat on ownership basis from the promoter
(builder) shall:-

Pay adequate stamp duty & registration charges as per the provisions incorporated in the agreement before execution of the document, and lodge the same for registration with appropriate registration authority.
Pay the payments to the promoter as per the schedule of payment as prescribed in the agreement, in time.
Pay the payments of municipal taxes, water and electricity charges, ground rent (if any) and other public charges, levies, maintenance charges etc. to the promoter in accordance with the provisions incorporated in the agreement, to the promoter till the management is taken over by the society, and there after to the society, strictly in time.
Observe and discharge all the obligations incorporated in the agreement according to which the purchaser has agreed to purchase the flat.
Join as member in the formation of co-op. housing society of flat purchasers in a building and for registration of such body thereof.

Notes:
The above text is based on the provisions incorporated in the Maharashtra Ownership flats (Regulation of the promotion of construction, sale, management and transfer) Act 1963, as modified up to 28th May 1998.

The flat purchaser should consult legal expert and take his advice and get satisfied before entering in to agreement with the promoter.

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