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Difference between society and appartment

Last updated: April 25 2017
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  • Difference between society and appartment

    Dear All,

    I have booked a flat in Baner, its a standalone building of 10 flats.
    Builder is saying that he can not form society over there.. only apartment can be formed.

    So could you please let me know the difference between society and apartment? what are the advantages and disadvantages?
    can 10 members form society?
    Shall I go ahead with this project or cancel it? I am so confused
  • #2

    #2

    Re : Difference between society and appartment

    According to Society Registration Act, a society can be registered by 7 members or more. So 10 people can form a society.

    I am not sure of difference between Society and Apartment and providing answer according to my understanding. If other posters find something wrong, please correct it.

    Major difference between Society and Apartment is that a flat can not be sold to anyone untill unless intersted buyer obtains membership of the society and there may be some restriction on entering somebody into membership of the society. For example, a society may be formed for the welfare of Govt. Employees only and a condition may be there that a non-govt. employee can not be made member of the society. In such a case, a flat can not be sold to non- government employee. Therefore, in a a flat belonging to a society, a flat can not be sold untill unless the intersted buyer fulfills the eligibility of the society.
    Last edited May 24 2011, 02:05 PM.

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    • #3

      #3

      Re : Difference between society and appartment

      • The difference between the society and apartment is that in society, it is the owner of the property and all the flat holders are its tenants. All the flat holders have equal share in the property of the society. Nothing is reserved for anybody. While selling a flat, owner needs get NOC from society.
      • In Apartment, the share of the flat holder is different as per his area of 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. No NOC is required while selling...
      Hope above helps...

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      • #4

        #4

        Re : Difference between society and appartment

        Dear stpdcomonman,

        Thanks for your reply. But builder is saying that there should atleast 11 members for society formation. I will also check it with lawyer. Can you please provide any link or document which can give more details?

        Dear Abhi,

        thanks for your inputs.

        Actually I am confused whether I should go with this project or not

        Comment

        • #5

          #5

          Re : Difference between society and appartment

          Originally posted by tushky View Post
          Dear stpdcomonman,

          Dear Abhi,

          thanks for your inputs.

          Actually I am confused whether I should go with this project or not
          Assuming, you've considered all other things while finalizing flat in this project and decision is pending on just "Society vs Appartment" thing.

          My take will be:
          Once a society is formed all the flat owners has the final right on the open space in the project and builder can't intervene afterwards. So if there is any open space in your project, builder cannot construct anything if FSI is available. Now a days i seen builder rent terrace to cellular cos for towers.. ... In this case, i'll go for flat...

          In case of an apartment builder has the right on the open space and in future he can contsruct any shops or any other contruction without bothering about the flat owners in an apartment. If this is the case, and future construction is NOT blocking my view or not creating any problem to me, then only i'll go for this flat....

          Also, yes, you can form the society as 10 members are available with you.

          Comment

          • #6

            #6

            Re : Difference between society and appartment

            Pasted below is relevent section of The Socities Registraiton ACt, 1860.

            1. Societies formed by memorandum of association and registration.-


            any seven or more persons associated for any literary, scientific, or charitable purpose, or for any such purpose as is described in section 20 of this Act, may, by subscribing their names to a memorandum of association, and filing the same with Registrar of Joint-stock Companies from themselves into a society under this Act.

            You can quote the section to the builder and ask him for the reason why 11 members are required to register the socieity.


            Originally posted by tushky View Post
            Dear stpdcomonman,

            Thanks for your reply. But builder is saying that there should atleast 11 members for society formation. I will also check it with lawyer. Can you please provide any link or document which can give more details?

            Dear Abhi,

            thanks for your inputs.

            Actually I am confused whether I should go with this project or not

            Comment

            • #7

              #7

              Re : Difference between society and appartment

              In Apartment you are the complete owner of the flat. you can make any changes or can sell it as per your requirement. However in Society you have to take permission for everything. But in society, it is the owner of the entire area however in apartment the open areas are under the builder and it can build anything there as per their requirement.

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              • #8

                #8

                Re : Difference between society and appartment

                thank you all

                Comment

                • #9

                  #9

                  Re : Difference between society and appartment

                  Hello Everyone, I needed view of experts on this forum on below issue.
                  We have a building constructed with 4 Row houses bought by 4 different families. Which deed will be done in this case? as far as I know 5 different members are required for Apartment Deed and 10 are required for Society Formation.

                  Apart from this, I also need suggestion on ways to take complete ownership of Land as well as Construction. Few people told me that in case of Apartment deed, Land is not transferred on Apartment Owner's name. Also Open space is help by builder. Is it true? as far as I understand, Open space gets allocated to all members In equal percentage.

                  Comment


                  • Pune_residence
                    Pune_residence commented
                    Editing a comment
                    As per my information, Deed of Declaration is needed to transfer the ownership of the land on apartment owner's name. I have seen many discussions on IREF where people talk about Deed of apartment but no one talks about Deed of Declaration.
                Have any questions or thoughts about this?
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