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Condominium Vs Society

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Condominium Vs Society

Last updated: September 26 2014
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  • Condominium Vs Society

    our's is two building (15 + 6 ) = 21 flats in total. All flats owners wants to form society, But builder insisting on Condominium formation. He even sent legal notice for the same.
    We have started procedure for this society formation. But builder strictly wants it to be condominium.

    Does anyone know the exact difference between condominium and society and what could be the reason behind builder's objection to the society formation. our's is 6 years old apartments.
  • #2

    #2

    Re : Condominium Vs Society

    ref Condominium vs. Housing co-operative society

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    • #3

      #3

      Re : Condominium Vs Society

      In a housing complex, a co-operative society is formed, with all the flat owners as members, to maintain and manage the affairs of the entire complex. Formation and functioning of such societies is governed by Maharashtra Cooperative Societies Act,1960.
      Condominium, is a group of housing units where owner of each home owns individual unit space and ownership of common areas is shared by all. Every unit is called “apartment” and owners the apartment owner(s). A condominium is formed under Maharashtra Apartment Ownership Act, 1970.
      Differences:-
      1. Management:- Members of a society elect a “Managing Committee” which in turn elects it’s chairman, secretary, treasurer and other office bearers to manage the day to day affairs. In condominium, members of the apartment owners association elect a “Board of Managers” which in turn elects President, Vice-President , Secretary and Treasurer to manage day to day affairs.
      2. Letting out:- In society flat owner has to obtain permission from the “Managing Committee” to let out his flat, but in a condominium apartment owners can give their apartment on lease, leave and license without approval from the “Board of Managers”
      3. Voting Rights:- In Society every member has one vote, irrespective of the area of his premises, while in a Condominium every apartment owner has voting right in proportion to the value of his premises, which is generally as per the area of the apartment and is defined while forming the Condominium.
      4. Disputes:- In Society disputes are referred to the Registrar appointed under the Act or to a Co-operative Court depending on the nature of dispute. In Condominium the Court having jurisdiction over the area in which the Condominium is located hears the disputes.
      5. Expulsion:- A Society can expel its member under certain extreme circumstances. In case of Condominium there is no such provision. If an apartment owner fails to comply with the byelaws, rules and regulations, either damages or injunctive relief or both can be claimed against him.
      6. Nomination:- In a Society a members can nominate a person to whom shares of the Society could be transferred upon his death. No such facility is available in a Condominium and an apartment can be transferred to a person whom the apartment owner bequeaths or to his legal heir(s).

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      • #4

        #4

        Re : Condominium Vs Society

        I read the above link and I am even more confused. I don't see any particular advantage that builder stand to gain by insisting on condominium instead of society.
        Please throw some light on it.

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        • #5

          #5

          Re : Condominium Vs Society

          Originally posted by Prashantgd123 View Post
          our's is two building (15 + 6 ) = 21 flats in total. All flats owners wants to form society, But builder insisting on Condominium formation. He even sent legal notice for the same.
          We have started procedure for this society formation. But builder strictly wants it to be condominium.

          Does anyone know the exact difference between condominium and society and what could be the reason behind builder's objection to the society formation. our's is 6 years old apartments.
          Strictly go for co-operative housing society formation as this will ensure that land is transferred to society and builder does not retain any future rights once project is completed - all other types of associations are beneficial for builders . Flat owners have absolute right to form co-operative society .

          Comment

          • #6

            #6

            Re : Condominium Vs Society

            In a co-op theoretically you are not an individual owner.....you own a pre-determined amount of share in the total.

            This key difference is important.....in many aspects of your ownership.
            For Ex....in a co-op you are not allowed to sell your unit to just anyone you want.......
            Society members can theoretically reject the buyer of your liking on any ground ( price that you have agreed to, being one ) and reject the sell.

            Condos are meant for more independently minded occupants.......and co-op for more of "we all will always live in love, peace and harmony" kind of folks.

            Not sure of India but in USA….condos are typically priced higher than co-ops due to crystal clear ownership structure and less headaches.
            Last edited September 26 2014, 01:47 AM.

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