Chapter VI Common Profits, Common Expenses and Other Matters

No apartment owner may exempt himself from liability for his contribution towards the common expenses by waiver of the use of enjoyment of any of the common areas and facilities, or by the abandonment of his apartment.

1. (1) The common profits of the property shall be distributed among, and the common expenses shall be charged to, the apartment owners according to the percentage of the undivided interest of the apartment owners in the common areas and facilities.
2. (2) Where the apartment owner is not himself in the occupation of the apartment owned by him, the common expenses payable by such apartment owner shall be recoverable from the person in the occupation of the apartment.
3. (3) Common expenses shall be due from the expiry of seventh day from the date of service of demand notice on the apartment owner or, as the case may be, the occupant of the apartment, by the Association and an interest at such rate, not exceeding fifteen per cent per annum, as may be determined by the Association, shall be payable on the arrears of common expenses.

Every promoter shall render an account to the Association for the amount collected by him, from the apartment owners before the formation of the Association, towards common expenses, sinking fund for replacement of fixed assets and payment of State Government and municipal taxes and shall transfer the balance, if any, with him to the Association within three months of the formation of the Association and in case of an Association deemed to be registered under this Act, within three months from the commencement of this Act.

All sums assessed by the Association, but unpaid for the share of the common expenses chargeable to any apartment, shall constitute a charge on such apartment prior to all other charges except only-

1. (a) the charge, if any, on the apartment for payment of Government and municipal taxes;
2. (b) all sums unpaid on a first mortgage of the apartment; and
3. (c) arrears of ground rent and other charges relatable thereto payable to lessor.

Notwithstanding anything to the contrary contained in any law relating to local authorities, each apartment and its percentage of undivided interest in the common areas and facilities appurtenant to such apartment shall be deemed to be separate property for the purpose of assessment of tax on lands and buildings leviable under such law and shall be assessed and taxed accordingly; and for this purpose a local authority shall make suitable regulations to carry out the provisions of this section.

1. (1) If an apartment owner,-
   • (a) either wilfully violates or evidently threatens to violate the provision of subsection (6) of section 4, or
   • (b) fails to pay the common expenses, which are payable by him under this Act for a period of more than six months, the general body of the Association may, after giving notice of not less than seven days to such apartment owner, may pass a resolution to cut off, withhold or in any manner curtail or reduce, any essential supply or service enjoyed by such apartment owner : Provided that Association shall not take any action in furtherance of the resolution referred to above unless a certified copy is sent each to the Competent Authority and the concerned Apartment owner by registered or speed post and one month expires from the date of its being sent and its copy is displayed at some conspicuous place of the building. Explanation.- It is clarified that the power to take action under this sub-section shall not prejudice the other rights and remedies of the Association available under this Act or under any other law for the time being in force.
2. (2) If an apartment owner is aggrieved by an action under sub-section (1). he may prefer an appeal to the Competent Authority within a period of fifteen days from the date of the receipt of the copy of the resolution, and the Competent Authority shall after affording sufficient opportunity to the parties pass such orders most expeditiously as he deems fit.

1. (1) Upon the sale, bequest or other transfer of an apartment, the purchaser of the apartment or the grantee or legatee or the transferee, as the case may be, shall be jointly and severally liable with the vendor or the transferor for all unpaid assessments against the vendor or transferor for his share of the common expenses up to the time of the sale, bequest or other transfer, without prejudice to the right of the purchaser, grantee, legatee or transferee to recover from the vendor or the transferor any amount paid by the purchaser, grantee, legatee or transferee therefor.
2. (2) Any purchaser, grantee, legatee or transferee referred to in sub-section (1) shall be entitled to a statement from the Association setting forth the amount of the unpaid assessment against the vendor or transferor, as the case may be, and such purchaser, grantee, legatee or transferee shall not be liable for , nor shall the apartment be sold subject to a charge for any unpaid share of common expenses against such apartment accrued prior to such sale, bequest or other transfer, in excess of the amount set forth in the statement.