APARTMENT OWNERSHIP AND ITS BENEFITS
What is apartment Ownership?
It is the onwership over each apartment, with an undivided interest in the common areas and facilities auxiliary to it, which constitutes heritable and transferable immovable property. The apartment owner may transfer his apartment ownership to the apartment like any other real property.
What is the law governing Apartment Owneship in Kerala?
The Kerala Apartment Ownership Act 1983.
is Kerala Apartment Ownership Act 1983 being implemented? If No, why?
No. The Kerala Apartment Ownership Act 1983 suffers from an legislative error. The regulatory powers of the Competent Authority to compell the application of the Act, by execution and registration of declaration, before the sale of individual apartments, was mistakenly omitted.
Whether there is any orders/directions for the implementation of Kerala Apartment Ownership Act 1983?
Yes, the Kerala High Court as per interim order in Anandapadmanabhan Vs Union of India and Others has directed the Housing Secretary, Government of Kerala to implement the Kerala Apartment Ownership Act 1983. The said order was passed by the High Court, as the Kerala Real Estate (Regulation and Development) Rules 2018 created an obligation on the Promoter/Builder to assure that the project is entirely in accordance with the provisons of the Kerala Apartment Ownership Act 1983. Therefore, the project to which Real Estate (Regulation and Development) Act 2016 is applicable, the Kerala Apartment Ownership Act 1983 has to be enforced
Judgement of the Kerala High Court Anandapadmanabhan Vs. Union of India and Others
What are the benefits to the apartment owners by the application of the Kerala Apartment Ownership Act 1983?
- The apartment owner become entitled to exclusive ownership and possession of his apartment, like a plot or villa. If the Act is not applied, the nature of ownership shall be (deemed to be owned in common by all the apartment owners, together). Meaning that every other apartment owner will have ownership right over all the apartments and common areas and facilities.
- The percentage of undivided interest of each apartment owner, assumes a permenant charecter, and is included in the registered Declaration. The discrepton and measurements of the private apartments, common areas and facilities of the apartment building are preserved through registration, to perpetuity. Without application of the Act, no data of the apartment buildng would be available for future use, especially when such data may be most needed after the life time of the apartment building.
- Method of computation of percentage of undivded interest of each apartment owner is prescribed in the Act. The percentage of undivided interest of each apartment owner is computed by taking as a basis the value of the apartment to the value of the property. Value does not mean the market value, and the Property includes land, buildings, improvements and structures in the project.
- The common profits shall be distributed among the apartment owners on the basis of their percentage of undivided interest, expressed in the registered declaration.
- The apartment owner shall contribute towards the common expenses on the basis of the percentage of undivided interest expressed in the registered declaration.
- No apartment owner can claim exception from contribution towards the common expenses by waiver of use or enjoyment of any of the common areas or facilities, or by abandonement of his apartment.
- All sums assessed by the Association of Apartment Owners but unpaid for the share of the common expenses is charegeable to the apartment of the defaulter and constitute a legal charge. The recovery of common expenses in default would be easy, when compared to current situation, where the liability to contribute to the common expenses has to be proved by the Association.
- On the sale of the apartment, the purchaser shall be jointly and severally liable with the vendor for any unpaid assessment against the latter.
- The percentage of undivided interest of each apartment owner, details of the private apartment and common areas and facilites, and the floor plans and title deeds are preserved through registration, reconstrcution or rebuilding of the apartment building after its life time, would become easy.
- The relationship between the Association and the Apartment Owners is clearly defined and therefore the possibility for disputes would be comparitively less.
