Category Archives: Housing Society By-Laws

Housing Society defaulters

Procedure To Recover Dues From Housing Society Maintenance Bill Defaulters

Procedure To Recover Dues From Housing Society Maintenance Bill Defaulters

In current situtation running a society smoothly depends on how much cash reserves the society has in its bank. Few socitities doesn’t feel that much heat as members are cooperative and paying maintenance bills on time,check .Regular payment from members makes easier to run society as it doesn’t feel cash crunches.

However few socities are expcetion to this as default by members are keep on increasing, which make committee members work more deficult to manage. Recovering the dues from members is complicated task as it also harm the personal relation with the committee members and defaulter members.

Under Section 101 of Maharashtra Societies Act (MCS), society can fight the legal battle to recover due from defaulters.

Society Committee can follow below procedure to recover dues from defaulter society member:

1) Issue a simple letter to defaulter (there is no specified format for this) which should have the amount dues, period for payment and also a warning mentioned about “Failuer to make payment, society will make application to society registrar under Maharashtra Societies Act section 101 to recover the outstanding dues”.

2) After the completion of given period on notice to defaulter, committee should pass a resolution to take action against the defaulter.

3) Under the section 101, Society chairman and secretary can take action against the defaulter and has rights to sign all the requried documents which they need to submit to society registrar who will issue the recovery certificate.

4) After the submission of all the papers from society to registrar. Registrar may ask for hearing with defaulter member and verify the records. After verifying and hearing if registrar find the appeal truthful he will issue recovery certificate to society.

5) Once the recovery certificate received by recovery officer, he will prepare the demand notice which will send to Sale Officer and same notice will be attached to property of defaulter member of society.

6) Sale officer will visit the flat of defaulter to prepare and submit the list of inventory of all his moveable property. If defaulter member is still not paying out standing dues even after receiving Demand notice, Sale officer can seize the moveable property and can hand them over to Secretary or Chairman of society for custody.

7) After the seizing auction date is fixed for auction of seized movable property. If the amount received from auction is less  as compared to dues then Sale officer has right to auction the flat of defaulter member.

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Disclemair : Please note that the contents of this blog have been provided for informational purposes only and are not intended to replace legal advice.

Society Maintenance Charges

How To Calculate Maintenance Charges For Your Housing Society?

How To Calculate Maintenance Charges For Your Housing Society?

You bought an apartment and you moved in with your family and household items. But have you given a thought about maintenance? Though you own the apartment, you are a resident of the apartment complex, which means you are required to pay monthly charges for the maintenance of the common areas in addition to plumbing and electrical repairs inside your apartment. The expenses incurred in the common area are shared by all the residents and is collected by the residents’ association.

To arrive at the monthly maintenance fee https://acfa-cashflow.com/merchant-cash-advance/for-business/ for the apartment, you have to take into account the monthly expenses and an additional amount for maintenance and repairs. Though every residents’ society decides on the method to arrive at a fair and reasonable monthly maintenance fee, there are some general guidelines that one can follow.

You can find some of the popular methods to calculate the maintenance fee for your apartment along with their advantages and disadvantages below:

  1. Equal Fee for All

This is perhaps the simplest of all models where a fixed amount is charged on all apartments. However, it is also one of the most unfair. It works very well in apartment complexes with same sized flats. In most modern complexes, that is not the case and the small apartment owners end up paying an unfair amount of maintenance.

       2. Pay According to Area

The most commonly used and popular method to calculate the apartment maintenance fee is paying according to the area. A rate is fixed for one square feet and then multiplied by the total square feet area of your flat in this method. This means that if you have a larger home, you will end up paying more. The popularity of this method comes from the fact that it is easier to calculate. However, since the common facilities such as lift, garden, club, security services, swimming pool etc. are shared by all members, it is slightly unfair for the large apartment holders to pay more.

        3. Partially Equal Fee

In this method, a particular amount of money is charged on the area up to a predetermined square feet value. Beyond that, any increment in area is charged according to a unit decided by the apartment association.

          4. Hybrid Charges

In order to be fair on the large apartment owners, a hybrid method is implemented by some residents’ societies. The method involves splitting the charges into two with the first part including all the common expenses incurred on lifts, security staff salary, stationary, property taxes, conveyance, audit fees, meeting charges, common electricity etc. The second part includes the area based charges that are specific to the apartments such as water charge and electricity usage.

There is also a non-refundable sinking fund which is charged by the society for major repairs. Every member is supposed to contribute to the sinking fund, which grows over the years. It is conventional to collect at least 0.25% of the construction cost of the apartment excluding the cost of land as sinking fund charges. This also depends on the size of the apartment and the amount stays with the society until repairs are undertaken.

Though it aims to be fair on all parties, there is still a difference in opinion on which items should be charged as per apartment size. For financial advice online check out OakParkFinancial.com

Conclusion

As you have now understood, there is no perfect way to calculate the maintenance fee that an apartment owner should pay the residents’ association. Every model has its own advantages and disadvantages and depending on the apartment complex, the residents’ society should decide which model works best for them and implement it accordingly. Further, a half-yearly meeting should be held to discuss the feasibility of the plan and also to cut down any charges that are imposed unnecessarily.

Source: Artechrealtors (Link)