Hi,
Could someone please let me know the main differences between apartment deed and society? I am looking for a 2 BHK and have come across a small builder who is selling flats in a single building but due to less number of flats in building he is offering apartment deed instead of society. Will having an apartment deed may cause some issues in future? Please provide your valuable inputs.
Regards,
Benarasi
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  • Our builder is pushing for forming of Apartments rather than a Co-op Housing Society.

    What are pros n cons of forming a Co-op Society v/s Apartments?
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  • Originally Posted by sno247
    Our builder is pushing for forming of Apartments rather than a Co-op Housing Society.

    What are pros n cons of forming a Co-op Society v/s Apartments?


    Well , since lot of builders are pushing for apartment deeds , buyers should smell a rat...that rat is that after project completion and society formation builder needs to convey the land and funds to the society , he can't meddle and is not a stakeholder anymore .
    Apartment deed comes with a sugar coating that buyer can sell the apartment without society/builder NOC , but the catch is builder may remain a stakeholder even after project completion . So why give him that right and repent later ?
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  • Originally Posted by suryawork
    Well , since lot of builders are pushing for apartment deeds , buyers should smell a rat...that rat is that after project completion and society formation builder needs to convey the land and funds to the society , he can't meddle and is not a stakeholder anymore .
    Apartment deed comes with a sugar coating that buyer can sell the apartment without society/builder NOC , but the catch is builder may remain a stakeholder even after project completion . So why give him that right and repent later ?


    Is there any difference between the ownership of land if apartment deed is done rather than the Conveyance Deed ?

    What kinds of Right the builder/ owner of land if he does the Apartment Deed ?

    Is there any NOC required from builder/ Society( in case we can form the society ) Resale flat if Apartment Deed is done ?

    Please let us know the pros and cons of Apartment/Conveyance Deed in case of Resale Flats..

    Thanks Everyone.
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  • Can somebody please clarify the legal/operational difference between an 'Apartment' and a 'Society'? I have seen builders always tend to go for 'Apartment' formation and always try to avoid 'Society'. I spoke to some agents and they said that builder has lot of vested interests in doing so. The reasons I came to know are as below. Please let me know if anybody has any details on it -

    1) Using increased FSI in future - The builder is interested in using the increased FSI which will be awarded by the govt. for that area in the future. If the 'Society' is formed, then the increased FSI will be owned by the Society and the builder does not have any right on it. But if it is an Apartment, then the builder owns that increased FSI and can use it anywhere. Thus the builder will keep taking advantage of the FSI increase throughout in the future.

    2) In an apartment, the builder retains the ownership of the open spaces which are not included in the saleable are. Example - Terrace, or any open parking/stairs space which is not included in the saleable area. But incase of Society, the builder cannot retain any right on any of these areas and has to hand over everything to the society.

    3) Rules of 'Society' are binding on all the residents and nobody can follow his/her whims. So if the society decides to ban any objectionable commercial activities in the flats (such as noise-making music classes or using the flat for catering activities etc.) or not to rent out to bachelors etc., then all the residents have to abide by it. But if it is an Apartment, then owners can violate the apartment rules and the apartment body can just file a case in the civil court. And while the society disputes are resolved in a separate court (dedicated to cooperative society matters) and hence they are fast resolved, the Apartment matters have to be taken to the normal Civil Court and hence they typically take years and decades to resolve.

    4) When the buildings go for redevelopment after 25-30 years, the 'Society' decision will be final and hence the society members will have negotiation power with the builder at that time. But if it is an apartment, the consent of every resident is required and hence it goes into an endless delay due to lack of a common decision acceptable to everybody. There are many instances in Mumbai wherein finally the buildings had to be forcefully vacated by court order due to this delay since they became unlivable. Thus while the decisions are taken on a 'majority' basis in society, the apartment goes with an 'acceptable by everybody' rule. So if the builder has retained even one flat in an apartment, he will play a veto card in his favour at the time of redevelopment.

    Experts, please throw some lights on the above points.
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  • Originally Posted by Shriram
    Can somebody please clarify the legal/operational difference between an 'Apartment' and a 'Society'? I have seen builders always tend to go for 'Apartment' formation and always try to avoid 'Society'. I spoke to some agents and they said that builder has lot of vested interests in doing so. The reasons I came to know are as below. Please let me know if anybody has any details on it -

    1) Using increased FSI in future - The builder is interested in using the increased FSI which will be awarded by the govt. for that area in the future. If the 'Society' is formed, then the increased FSI will be owned by the Society and the builder does not have any right on it. But if it is an Apartment, then the builder owns that increased FSI and can use it anywhere. Thus the builder will keep taking advantage of the FSI increase throughout in the future.

    2) In an apartment, the builder retains the ownership of the open spaces which are not included in the saleable are. Example - Terrace, or any open parking/stairs space which is not included in the saleable area. But incase of Society, the builder cannot retain any right on any of these areas and has to hand over everything to the society.

    3) Rules of 'Society' are binding on all the residents and nobody can follow his/her whims. So if the society decides to ban any objectionable commercial activities in the flats (such as noise-making music classes or using the flat for catering activities etc.) or not to rent out to bachelors etc., then all the residents have to abide by it. But if it is an Apartment, then owners can violate the apartment rules and the apartment body can just file a case in the civil court. And while the society disputes are resolved in a separate court (dedicated to cooperative society matters) and hence they are fast resolved, the Apartment matters have to be taken to the normal Civil Court and hence they typically take years and decades to resolve.

    4) When the buildings go for redevelopment after 25-30 years, the 'Society' decision will be final and hence the society members will have negotiation power with the builder at that time. But if it is an apartment, the consent of every resident is required and hence it goes into an endless delay due to lack of a common decision acceptable to everybody. There are many instances in Mumbai wherein finally the buildings had to be forcefully vacated by court order due to this delay since they became unlivable. Thus while the decisions are taken on a 'majority' basis in society, the apartment goes with an 'acceptable by everybody' rule. So if the builder has retained even one flat in an apartment, he will play a veto card in his favour at the time of redevelopment.

    Experts, please throw some lights on the above points.

    Guys, can somebody please give inputs on these points?
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  • Basic difference in ownership

    Shriram- Yes your views are right

    Please Note the differences in ownership

    In society, Society is the owner of the property and all the flat holders are its members. All the flat holders have equal share in the property of the society. Nothing common is supposed o be reserved for anybody.

    In Apartment, the share of the flat holder is different (proportionate) as per his/her area of Flat occupation. There can be reservations by the members such as parking, common terrace and easement rights. Also, if there is any excess FSI available, or would be available, builder can reserve it for himself and utilise it at any other place.

    Thats why the complications could arise during redvelopemnt of Apartments scheme as mentioned by you.
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  • Originally Posted by vjosh2
    Shriram- Yes your views are right

    Please Note the differences in ownership

    In society, Society is the owner of the property and all the flat holders are its members. All the flat holders have equal share in the property of the society. Nothing common is supposed o be reserved for anybody.

    In Apartment, the share of the flat holder is different (proportionate) as per his/her area of Flat occupation. There can be reservations by the members such as parking, common terrace and easement rights. Also, if there is any excess FSI available, or would be available, builder can reserve it for himself and utilise it at any other place.

    Thats why the complications could arise during redvelopemnt of Apartments scheme as mentioned by you.

    Thanks vjosh2.

    Builders avoid to form 'society' for their vested interests and benefits which they want to reap forever in the future. Ideally all the buyers should insist the builder to form society and should get it clearly stated in the agreement. But due to lack of unity/awareness among buyers, the builders take advantage and mention 'apartment formation' in the agreement.
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  • How can we force builder to go for Society? Even in my case as well builder has mentioned to form Apartment (my agreement is due).

    I have clearly told builder that I am in oppose of this clause. I would rather cancel my flat if he reject this.

    There are 100+ flats in the scheme so in this case cant society be formed?
    Or should I agree at this point and later can app member De-register Apartment and go for Society?

    Plz reply.
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  • Originally Posted by LalaLala
    How can we force builder to go for Society? Even in my case as well builder has mentioned to form Apartment (my agreement is due).

    I have clearly told builder that I am in oppose of this clause. I would rather cancel my flat if he reject this.

    There are 100+ flats in the scheme so in this case cant society be formed?
    Or should I agree at this point and later can app member De-register Apartment and go for Society?

    Plz reply.


    1. Dont sign any documents which take your consent to form apartment
    2. Check the minimum number of registrations required in order to form a society (I think it is 60%). In that case if the builder does not agree to form society, people can get together and register the the society themselves.
    3. If you want to defy the builder by step 2, better catch hold of a property lawyer and understand the details.
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  • There are already some threads on this..search with the key words..
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  • As per MOFA (Maharashtra ownership of flats act), the builder can form either 'Apartment' or 'Society', i.e. it is not legally binding on the builder to form 'society'. And due to the vested interests (mentioned in my posts above), the builder will try his best to form 'Apartment'. So you have two options - Either you individually opt out of the deal, or get all buyers united to pressurize the builder to form 'society'. Also I think there is a possibility that the builder will go ahead with some of the buyers (required quorum) to form 'Apartment' and then you (i.e. remaining buyers) will have to abide by it. AFAIK you cannot convert it later into a 'society' once 'condominium of apartment' is formed. But pls reconfirm this last sentence with some advocate.
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  • Originally Posted by Shriram
    As per MOFA (Maharashtra ownership of flats act), the builder can form either 'Apartment' or 'Society', i.e. it is not legally binding on the builder to form 'society'. And due to the vested interests (mentioned in my posts above), the builder will try his best to form 'Apartment'. So you have two options - Either you individually opt out of the deal, or get all buyers united to pressurize the builder to form 'society'. Also I think there is a possibility that the builder will go ahead with some of the buyers (required quorum) to form 'Apartment' and then you (i.e. remaining buyers) will have to abide by it. AFAIK you cannot convert it later into a 'society' once 'condominium of apartment' is formed. But pls reconfirm this last sentence with some advocate.


    This is insane, I am waiting for builders reply on this clause. So much money he earned still having wasted interest to be in the building scheme forever by forming Apartment ...
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  • Originally Posted by LalaLala
    This is insane, I am waiting for builders reply on this clause. So much money he earned still having wasted interest to be in the building scheme forever by forming Apartment ...


    Better go for a resale where society is already formed . You'll regret apartment association later .
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  • Originally Posted by suryawork
    Better go for a resale where society is already formed . You'll regret apartment association later .

    +1 & even worse is the townships, where there is neither society nor apartment.
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  • As per marathi news paper Sakal there is following news
    http://www.esakal.com/Tiny.aspx?K=V9YMFa --- Please see link for details

    करारात ठरलेल्या तारखेला घराचा ताबा न देणे, ताबा देताना "सीसी‘ व "ओसी‘ (कम्प्लिशन सर्टिफिकेट आणि ऑक्‍युपेशन सर्टिफिकेट) न देणे, बांधकामाच्या जागेवर मान्यताप्राप्त नकाशा न लावणे, कराराची नोंदणी न करणे, खरेदीदारांकडून घेतलेली रक्कम वेगळ्या बॅंक खात्यात जमा न करणे, नकाशानुसार बांधकाम न करणे, ठरल्यापेक्षा जास्त मजले बांधणे अथवा जास्त बांधकाम करणे, 60 टक्के खरेदीदारांबरोबर करार केल्यावर चार महिन्यांत सहकारी गृहनिर्माण संस्थेची स्थापना न करणे, सोसायटीची स्थापना झाल्यावर चार महिन्यांत अभिहस्तांतर (कन्व्हेअन्स) न करणे, या सर्व बाबी वरील कायद्यानुसार दखलपात्र गुन्हा आहेत. अशा गुन्ह्यांसाठी एक ते पाच वर्षे कैदेची शिक्षाही होऊ शकते. त्यानुसार फसवणूक, विश्‍वासघात आदी कलमांखाली गुन्हा नोंदविण्याचे अधिकार पोलिसांना आहेत. त्यामुळे अशा तक्रारी आल्यास पोलिसांनी कायद्यानुसार योग्य कारवाई करावी, असे या परिपत्रकात म्हटले आहे.

    Above info says builder has to form society after 60% flats sold & agreement done & within 04 months to do conveyance deed. Does anyone Knows this rule is only applied to new buildings , if not from which date its applicable for this law. Also as most of builders who has done apartment deed have to form society as per this info.
    If anyone knows details about this, Please put more information.
    As I found news in marathi.. putting it as it is..
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    1 Comments
    • nightrider333332 months ago
      My father stays in a apartment complex of 7 flats. Builder has not given any document regarding of formation of apartment, he does not conduct audit or meetings? What document should an apartment owner get from builder assuming apartment is registered? The building is 15 yrs old now.