Formation of association.

(1) After obtaining occupation certificate and within three months of majority of the apartments being allotted, sold, or otherwise transferred, the promoter shall make an application to the competent authority appointed under clause (m) of section 3 of the principal Act for the registration of association, with the persons who have taken apartments as members and if the promoter fails to make such application, the allottees shall make such application. (2) If the promoter or the allottees, as the case may be, fail(s) to make application for registration of the association within the period mentioned in sub-section (1), the competent authority shall by an order, direct the promoter or the allottees, as the case may be, to form an association of residents in respect of the project within such period, as may be specified in the order. (3) The owner or allottee or occupier of any apartment shall be a member of the association from the date he takes possession of such apartment. (4) The promoter of the project shall be an associate member of the association in respect of apartment(s) meant for allotment or sale, but not yet allotted or sold. When such apartment(s) is later on allotted, sold or otherwise transferred, the allottee shall become a member of the association and the promoter shall cease to be an associate member of the association in respect of such apartment from the date of possession. (5) The responsibility for administration and management of the apartments and maintenance and upkeep of common areas, infrastructure and common services of the project shall devolve on the association from the date specified by the competent authority in the order passed under sub-section (13) of section 5 of the Punjab Apartment and Property Regulation Act, 1995 (Punjab Act No. 14 of 1995).