Legal Archives | ApnaComplex Blog | Apartment Management Platform

apnacomplexnitin
May 4, 2022

10 things to consider before evaluating balance sheet

If you are a Secretary, President, or the Treasurer of a gated community, terms like maintenance dues, late payment charges, reconciliation of the balance sheet are a part of your everyday job.

For a society to run smoothly, maintenance dues have to be paid on time, the accounting has to be precise, and the treasurer must have clear insights on the society’s income and expenses.

However, not every treasurer or secretary comes from an accounting background and for this very reason, ApnaComplex offers a robust, fully automated accounting and billing solution with 100+ financial reports and 30+ audit-ready reports.

When the time comes to reconcile or evaluate a balance sheet, the Treasurer must consider various aspects and pay attention to a handful of factors before evaluating the balance sheet and submitting for audit.

Keep reading to learn about these essential factors and why they can never be overlooked!

Fixed Asset Verification

A Treasurer must ensure that whatever fixed assets physically available in the society’s premises, must reflect on the balance sheet as well. This will help the treasurer keep note of the available assets, depreciated value, etc.

Outstanding receivable confirmation

All outstanding amounts, including maintenance charges, vendor payments, service charge dues, etc are received and updated on the balance sheet. Failing to add even a negligible amount can cause confusion and discrepancies which will cause trouble to the Management Committee during the time of auditing.

Bank Reconciliation

The treasurer must ensure that the bank balance reflecting on the account and bank statement/balance sheet are the same. If it doesn’t match, the treasurer must spend eons of time figuring why the statement and balance doesn’t match and must fix it before auditing.

Thankfully, with ApnaComplex, a treasurer doesn’t have to worry about this, for the solution auto-reconciles the balance sheet. It also gives the comprehensive details of overdue, advance payments, late payment charges, etc, saving a treasurer’s time by more than 80%.

Vendor Payments

Vendor payments, including any loans or advance payments made to or received from vendors, have to be cross checked and recorded along with the date and vendor details. The treasurer must also keep a copy for all the invoices and receipts for future references.

The ApnaComplex system, enables the treasurer to auto-generate receipts and invoices, and maintain digital repository of the same.

Vendor Payable Reconciliation

Payments made to vendors must be recorded and reflected on the bank account and bank statement.

Corpus Fund and Sinking Fund

The Treasurer must confirm that the Corpus Fund (capital amount, or the money provided by the builder to RWA during the formation of RWA), and the Sinking Fund (emergency money) are untouched. They should also ensure that the money in the bank and the amount reflected on the balance sheet/statement are the same.

Fixed deposit and interest

The Treasurer must confirm the money fixed deposit and the interest it generates. It should match the bank statement.

Year ending provision

Any provision such as security services, electricity charges, equipment maintenance services that happened before March has to be incorporated in the provision and reflected on the balance sheet.

Refundable Deposit and Advances

The Treasurer must also confirm the Refundable deposits (if any) and advance payments.

Statutory Payment payable and Compliances

The Treasurer must make sure that the TDS payments, GST payments, ITR payments, etc are done and all the relevant forms are filled and submitted.

We hope you find these quite useful! ApnaComplex’s accounting solution is the only fully-mature solution made for and by gated communities available today. It is GST compliant and fully automated. If you would love to simplify your society’s accounting processes and save your time and energy, visit apnacomplex.com

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apnacomplexnitin
December 1, 2021

Enjoy 100% Data Privacy, only with ApnaComplex

In the year 2017, the Supreme Court of India declared “privacy” a fundamental right of every citizen. Subsequently, the Personal Data Protection Bill was proposed in the year 2019.

The bill proposes a restriction on how personal data are used and prohibits the misuse of the data. How any of this is related to ApnaComplex, society management, and most importantly, residents and their data?

When a society deploys a society management app or software, collecting, storing, and using the data frequently is a part of the process to ensure seamless society operations. However, how the company uses the data entrusted to them sets them apart.

In this article, we bring you why data privacy and protection is a big deal to ApnaComplex and how your data is safe with us.

Your privacy, our priority

To ApnaComplex, residents’ privacy and data protection are of utmost importance. We are the only brand that has prioritised residents’ data security and protection over anything else.

While the top players of the society management industry, who came into existence less than five years ago have landed in controversies due to data-breach accusations, we are proud of the fact that in 11 years since our inception, there have been zero security breaches with ApnaComplex.

Paying – not always a bad thing

Yes, ApnaComplex is a paid app but the privacy and data protection you get while using our app is indeed priceless! With ApnaComplex, you don’t ever have to worry about your personal information being shared with other parties.

If you are not paying for a product, you become the product

By paying for our services, you become our premium customers and we have policies that prohibit misusing or selling resident data for rental and other businesses. The price we charge is so affordable that it does not cost more than a cup of coffee for each household!

And for this price, you not only avoid unsolicited calls and emails but can live in complete privacy and utter peace.

Premium Services with data security

In the ApnaComplex app, we offer a plethora of relevant premium services and offers to the residents, but we have never nor will we ever share any resident data with these third-party services.

These services are primarily offered based on the exclusive discounts they offer to ApnaComplex residents. The vendors are carefully selected and only after vetting them thoroughly.

Role-based access

ApnaComplex inherently supports role-based access. It not only comes with 30+ inbuilt roles but also allows societies to define custom roles to meet any of their work delegation preferences or data access.

Be it an action or a document in the repository, you can control access at not only rudimentary levels of resident/owner/ Management Committee but can define a role for people or groups of people who have access to it.

This adds an additional layer of protection to residents’ data. For example, if a society has a corrupt Facility Manager or staff who is looking to make money by selling user data, they can easily do so in another software by downloading the data.

However, in ApnaComplex, they cannot access the data without getting permission from the respective authorities and this will make it hard for them to download or misuse the data.

Data privacy is one of the core values of ApnaComplex and we 100% agree with the Supreme Court – privacy is the fundamental right of every Indian citizen. In fact, even the employees ApnaComplex do not have access to any sensitive data.

We strongly believe that everyone should have access to technology that simplifies their life without the fear of their privacy being violated. You, the user alone have the power to decide what information you want to share, and to whom you want to share.

ApnaComplex is designed in such a way that users’ privacy is protected and they alone have full control over their information.

To know more about our modules, features, and how we can help you streamline your society’s operations, please visit our website.

GST for Apartment Associations and Housing Societies – Clarifications

In a recent circular, the Department of Revenue has brought more clarity into the GST Calculation of Resident Welfare Associations(RWA). We have put together a comprehensive guide on how this may impact your Society and how ApnaComplex can help your Society adhere to GST regulations effortlessly.

Q: Is our RWA required to collect GST on Monthly maintenance collected from our members?

A: Your RWA is required to pay GST only if both of these conditions are met:

Aggregate Turnover of your RWA > Rs.20 lakh per year
Maintenance charged per member per month > Rs. 7500

Your RWA is exempt from GST even if one of these conditions is not met.

To auto-calculate GST for your RWA, just spend a few minutes and update the tax structure for your Society in ApnaComplex. ApnaComplex automatically generates GST Computation Report which exactly specifies how much GST your Society has to pay for a particular time period.

Q: Can our RWA take an input tax credit of GST for payment of Capital goods and Services towards our vendors?

A: Yes, RWA can claim an input tax credit of GST paid on capital goods (generators, water pumps, lawn furniture, etc.), goods (taps, pipes, other sanitary/hardware fillings, etc.) and input services such as repair and maintenance services.

In the ApnaComplex expenditure module, while entering the bills, you can capture the GST levied by the vendors. ApnaComplex’s GSTR 3B report automatically shows the GST inflow credits on payment made towards your vendors for Goods and Services. This report will exactly indicate how much GST credits can be claimed by your RWA.

Q: If a member owns two or more flats in the housing society or residential complex, will the ceiling of Rs. 7500/- per month per member on the maintenance be applied per residential apartment or per person?

A: As per the general business sense, a person who owns two or more residential apartments in a housing society or a residential complex shall normally be a member of the RWA for each residential apartment owned by him separately. The ceiling of Rs. 7500/- per month per member shall be applied separately for each residential apartment owned by him. For example, if a person owns two residential apartments in a residential complex and pays Rs. 15000/- per month as maintenance charges towards the maintenance of each apartment to the RWA (Rs. 6000/- per month for one apartment and Rs. 9000/- for the other apartment), the exemption from GST shall be applicable on the apartment whose maintenance is Rs. 6000/-.

ApnaComplex’s 100% automated invoicing lets you set up recurring against all or select flats based on formulae or fixed value or both. Our intuitive interface lets you configure maintenance charge calculation methodology yourself without the need to get in touch with our Support. Visit ApnaComplex Portal > Income > Member Income > Recurring Invoice to set up a recurring invoice to your members.

Q: How should the RWA calculate GST payable where the maintenance charges exceed Rs. 7500/- per month per member? Is the GST payable only on the amount exceeding Rs. 7500/- or on the entire amount of maintenance charges?

A: In case the charges exceed Rs. 7500/- per month per member, the entire amount is taxable. For example, if the maintenance charges are Rs. 9000/- per month per member, GST @18% shall be payable on the entire amount of Rs. 9000/- and not on [Rs. 9000 – Rs. 7500] = Rs. 1500/-.

ApnaComplex enables you to easily define the GST calculation methodology in accordance with the above rule. Just select ‘No’ for “Apply Tax on the excess amount” field in your GST tax structure on ApnaComplex.

For your reference: GST-circular-No-cgst-109

If you need any assistance in harnessing the full capabilities of ApnaComplex’s accounting module, schedule a demo here. We would be happy to help.

Leave a comment InApartment Apartment Accounting Software Apartment Association Acts Apartment Management Apartment Management Software Apartment Owners Association Bangalore Chennai Financial GST Housing Society Software Hyderabad Legal Maintenance Charges Pune Society Accounting Software Society Billing Software

apnacomplexnitin
August 22, 2018

A Landlord’s Guide: 4 Things To Consider While Renting Out Your Apartment

As buying land or property is typically an expensive affair, renting an apartment becomes the preferred option for large sections of people, be it the newlyweds or those moving out to live closer to a workplace. In an atmosphere where affordable housing is in high demand, renting out your apartment is beneficial to you. So if you are looking to do so, here are the four important things you should consider

I. Offer a market-competitive rent

Deciding on the rent you will charge is important. Renting out your apartment is a competitive affair. You will need to be aware of the average rents being charged in your area. Once you’re aware of the number, you can set your rate depending on more or less what you can offer to the prospective tenants.

Consider quoting a reasonable rate. If you quote low, you may end up with many tenants, but at an opportunity cost. On the other hand, if you quote too high, you risk not getting approached at all.

II. Draft a water-tight, but fair, rental agreement

There are just a handful of things you need to know about laws, including contracts and insurance. The laws are more or less balanced. They’re neither tilting towards the owner nor the tenant. Verification is made mandatory for signing the rental agreement.

Take professional help if required in drafting the rental agreement. It will make you as well as your tenants confident, as it will protect the interest of either party. Ensure that the agreement contains such information as the description of the entire property, facilities provided, the date on which the rent should be paid every month by the tenant, a clause related to termination, security deposit, maintenance charges, and TDS.

Add anything else you think is important, and state explicitly. Any difficulty in understanding the agreement should be avoided.

III. Ensure you have all documents ready

One of the three important documents, namely lease deed, rental agreement, and license agreement will come in to use while renting out your apartment. If you’re renting out your apartment for a period of fewer than eleven months, you will require the rental agreement. For a period of more than eleven months, a registration is necessary. You then need to issue a lease deed. The expenses will be shared between you and your tenant. The local police should have a copy of all the necessary tenant details.

IV. Get the house ready for the move-in

Renting out your apartment involves a certain amount of commitment on your part as well. It’s your responsibility to ensure that your tenants are provided with a healthy and safe living environment. Consider having the entire house cleaned up and checked for electrical safety. Ensure all leaks and breaks are fixed.

What is more is, you have to provide your tenants with a signed receipt for rent payments. Lastly, at the time of eviction, it is important to serve a notice period (by both you and your tenant.) This notice period should be specified in your rental agreement. Again, this helps safeguard both the parties in the agreement.

As a landlord, these are the aspects you need to address. Eventually, we are sure your apartment will be a popular choice among tenants.

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ApnaComplex
August 8, 2018

The Indian Flag Code: everything you need to know this Independence Day

“A national spirit is necessary for national existence. A flag is a material aid to the development of such a spirit.” -Mahatma Gandhi.

With the 72nd Independence Day just around the corner, members of most apartment complexes will be gearing up to organise their own flag hoisting ceremony. The Indian Flag, or the tricolour, is a symbol of our country. As such, it should be treated with great respect. The Government of India has put down the code to ensure its proper construction and handling. Here is a reminder of the dos and don’ts of the National Flag etiquette.

The Flag

The Indian Flag Code specifies the dimensions of the flag and how it should be constructed. This is a measure taken to ensure that the flags used everywhere are uniform.

First, the Indian Flag should be a perfect rectangle, with a ratio of 3:2 between the length and the width. The flag’s size should be one among these (in mm):
150×100
225×150
450×300
900×600
350×900
1800×1200
2700×1800
3600×2400
Pick an appropriate size for display.

It should be made of handspun khadi, or of cotton, silk or wool. Avoid plastic flags because these are difficult to dispose of.
The flag should be split into three equal panels – saffron (not orange) panel at the top, a white panel in the middle and a green panel (described as India green) at the bottom. Be careful with the colours.
A navy blue Ashoka Chakra should adorn the centre of the white panel, with 24 spokes that are equally spaced.

The Display

The Indian flag hoisting rules also cover instances of the flag’s misuse and specify the proper procedure to hoist the flag.

During an Indian flag hoisting ceremony, the saffron panel should always be on top. The flag should never be hoisted upside down.
It should be displayed from sunrise till sunset, irrespective of weather conditions.
The flag should always be positioned to the far right.
There should be no other flag or emblem to its right or above it.
The Indian flag should hold no lettering or inscriptions of any kind.
During ceremonies, it is common practice to use flower petals within the unfurled flag. The Indian flag code prevents the use of any confetti or decorative materials other than flower petals.
In a procession, the Indian flag should either be carried to the right or in front of the central line.
It should never touch the ground or water.
There should be no other flags on the same masthead as the Indian flag.
The flag should never be flown at half-mast unless the government specifies.
The National Flag should not be used to cover any speaker’s desk, platform or monument.
Paper flags can be used during days of national importance. However, care should be taken that they do not touch the ground.
The national anthem should be sung once people salute the flag. (It is essential to follow the etiquette specified for the national anthem as well).
A damaged flag should never be displayed, and such flags can be disposed of in private, preferably by burning or in a method consistent with its dignity.

To read about the rules for the national anthem click
http://www.ncert.nic.in/announcements/oth_announcements/pdf_files/NatinalAnthem.pdf

When planning to hoist the Indian Flag in your apartment complex, it is the duty of every Indian citizen to ensure that these rules are followed. Start a discussion on your ApnaComplex forums to raise awareness among the residents. The managing committee can take things a step further by printing out such rules and handing out copies. It is important to make sure that no misuse occurs, either deliberately or by accident.

The tricolour represents the Indian community. So this Independence Day, as you come together in your apartment complex remember to bask in this spirit of community. From everyone at ApnaComplex, we wish you all a Happy Independence Day!

Jai Hind!

Disclaimer: This information is offered as a public service. While we try to make it accurate as possible as on the date of publication, the laws change and more importantly the way we interpret laws could also change. We cannot promise that this information is always up-to-date and correct. We strongly recommend you to always consult appropriate professional advisers for your society to ensure compliance.

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apnacomplexnitin
August 1, 2018

Pets in Apartments: the Rights and Responsibilities of Pet Parent

Many people love the idea of having a four-legged furball at home. They tend to have a therapeutic presence. Animal lovers will do anything for their furry friends. But others consider them a nuisance. Pet-related activities are disapproved of and even opposed. Often, people forget that other species on the planet also need a place to live. Sheltering a few homeless animals, newborn or aged, is not a bad idea.

The perpetual debate of whether pets must be allowed in apartment complexes, or not, has made us realise that there is a need for a clear understanding of the situation (especially before we jump to conclusions about the rights and wrongs).

Authorities within residential areas often send out circulars that have rules and regulations about pet ownership. These circulars contain ‘vital’ information about whether or not they can be allowed to live with their human caretakers. What people are unaware of is there is no law enacted by the Parliament, or any State Legislature, that bans animal friends. At most, you may have to register your pet (In many parts of the country you are legally required to register your pet). More often than not people end up having to choose between their home or their animal companion. This violates a fundamental right of being a citizen of this country. The right to make personal choices is protected by the constitution of India.

Following are the issues faced by pet owners:

Pets being banned on society premises on account of being noisy.
Prohibiting homeowners from using parks, lifts and other facilities if they are accompanied by pets. Also, being charged for the same.
Being charged ‘pet rent’.
Forced usage of muzzles (on calm pets).
Discrimination as per the size and breed of pets allowed in the housing society.
Being asked for a pet resume before being given the flat on rent (A pet resume contains the pet’s basic details, previous rental experience, health, behaviour, references, etc).

To make matters clear:

No bans can be imposed on usage of facilities (like lifts and parks) by pets.
RWAs cannot impose any extra charges for this, either.
Pets and resident owners of the pets not violating any Municipal Sanitary Bye-Laws or Regulations are permissible to stay in the society or community.
Size of pets cannot be a valid reason to ban them from society premises.

Such rules are highly discriminatory and might lead to friction among the members of the society. But, it must be kept in mind that these objections have risen due to certain behaviours of pet animals that have inconvenienced people in some way or another in the past.

As has always been, rights come with responsibilities. Pet owners must come forward and offer to adhere to simple, implicit rules and mannerisms. This will eventually resolve the issues that lead to discriminatory circulars.

So, to make things fair:

The pet owners must make sure that there is no nuisance caused in the society due to their furry pals.
When out of the house and in the premises of the complex, the pets must be accompanied by their owners or anyone who has them under careful observation.
Since there is no central law regarding cleaning pet excreta, RWA can request pet owners to do the same.
Training must be provided to the pets in apartments on identifying people walking in and out of the apartment wing. This will help prevent them from getting provoked when neighbours and children are around.
The animals should be taken to an obedience class/training class as well. A certificate is generally provided once the animal recognises behaviour signals.
Crate/kennel training is another way of training the pet to stay in one place as it provides a feeling of security to the animal.
The pets must also be trained, through positive reinforcement, to not get aggressive around other animals and prevent matters from going downhill.
Pets must undergo regular vaccinations and medications required to stay healthy.
The owners should take responsibility for their pets.
Children and residents must be asked to not provoke or tease the animals.

In conclusion, the society representatives and pet owners, must organise regular meetings and address the issues each party faces, and meet each other halfway. Non-pet owners must be sympathetic and flexible towards pets and their owners. The latter must take precautions to ensure that they and their furry friends continue to behave like responsible members of the community.

(The Governing Body in India Concerning Animal Welfare- The Animal Welfare Board of India, 1962, was the first of its kind to be set up in the world, by any Government. It was established as a part of the Ministry of Environments and Forests, Government of India, in accordance with Section 4 of the Prevention of Cruelty to Animals Act 1960 (No.59 of 1960). It has a list of bye-laws for pets, and was created to advise the Government on matters concerning animal welfare and preventing the infliction of pain on animals.)

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Goods and Services Tax - Real Estate - ApnaComplex

ApnaComplex
May 5, 2017

Impact of GST on Co-operative Housing Society and Real Estate

Basic Introduction of GST and its Perspective as a Contractor and a Developer
GST (Goods and Services Tax) is one indirect tax for the whole nation, which is meant to be a unified indirect tax across the country on construction services and will make India one unified common market. The present structure of Indirect Taxes is very complex in India. There are so many types of taxes that are levied by the Central and State Governments on Goods & Services. It has been long pending issue to streamline and subsume all the different types of indirect taxes and implement a “single taxation” system called “GST”.

Implementing the GST will ease the compliance, uniform the tax rates and structures, remove the cascading effect of taxes levied by States & Centre, will improve the business competitiveness and will benefit everyone doing trade in some or the other form whether as a contractor or as a developer.

In the current system in India, tax is levied at each stage separately, by the Centre and the State, at varying rates i.e. 10.5% / 6% / 4.5% for service tax and different rates by different States, on the value of construction services. But under the GST system that is set to be introduced, tax will be levied only on the value added at each stage by the sub‐contractors, main contractors and developers or builders. It is a single tax collected at multiple value additions with a full set‐off for taxes paid earlier in the value chain by sub‐contractors and main contractors. It is pertinent to note that the inter credit of different taxes paid in the current regime be a service tax, VAT, CST, etc. to Centre or States are not allowed and thus becomes a part of the cost on the suppliers. Thus, under GST the final buyer / client will bear only the GST charged by the last person i.e. developer or builder or the contractor.

Structure of GST in India

In India, a dual GST is proposed whereby a Central Goods and Services Tax (CGST) and a State Goods and Services Tax (SGST) will be levied on the taxable value of every transaction of supply of goods and services.

The Dual GST is expected to be a simple and transparent tax with one or two CGST and SGST rates. The structure of the model law comprises of CGST Act, SGST Act and IGST Act. The dual GST model would give adequate flexibility to the States to levy taxes on a comprehensive base of goods and services at all points in the supply chain. Thus, financial liberty of the States would be maintained. GST is a consumption based tax. It is based on the “Destination principle”. GST is applied on goods and services at the place where actual consumption materializes.

The Centre and the States would have parallel jurisdiction for the entire value chain and for all taxpayers. The administration of GST under the three components will be as under:

Central GST (CGST) – to be levied on intra state trade and administered by the Centre
State GST (SGST) – to be levied on intra state trade and administered by the State Governments
Inter‐State GST (IGST) – to be levied on inter‐State trade and administered and collected by the Centre.

To the extent feasible, uniform procedure for collection of both Central GST and State GST is prescribed in the respective legislation for Central GST and State GST.

It can be noted that IGST will not be a Tax in addition to the SGST and CGST so one should not presume that IGST is a third tax but it is only a mechanism to monitor the interstate trade of Goods and services and further to ensure that the ultimate SGST is gone to the consumer state since the GST is a destination based tax.

Impact of GST on Co-operative Housing Society as well as Real Estate Sector
Implementation of the GST law will have a positive impact on the Co-operative Housing Society and on the real estate sector with expected reduction in its tax burden. The law will single‐handedly solve many of the challenges faced by the real estate sector. Heavy taxes that are being borne in a non‐transparent manner are expected to be very transparent in GST. It is unclear what would be the rate of GST applicable on construction services, hence it would be difficult to confirm the exact impact on GST on the Co-operative Housing Society. However going by the informal discussion, it is learnt that the rate is expected to be something between 18‐20%, which is what the current rate directly and indirectly being borne by the construction sector. Besides the simplicity in taxation, GST would bring in other advantages like transparency, seamless credits, ease of business by lack of border controls, promoting economic efficiency through a destination based taxation system. Overall Construction costs would be reduced to some extent which would benefit the end consumer. Apart from the advantages, the complexities in the compliance and assessments shall also be greatly reduced as the tax laws would also be unified.

There would be lesser burden of tax on purchases of major inputs like cement and steel, as tax credits would be available for set off at various stages which are currently restricted. The restrictions on credit utilization would be eliminated, thus strengthening the credit chain in the system. If this so happens, there will be increased credits available in the procurement chain and hence better utilization of input tax costs towards output GST Liability.

Since GST may be levied on a single value, the current issue of levying tax on tax (VAT on central excise duty) is likely to be removed. Hence the cascading effect of taxes shall be removed with the resulting transparency which will significantly reduce tax evasion through more efficient transaction‐tracking methods, and improved enforcement and compliance. Hence the implementation of GST will enhance the investment in Housing Societies & real estate sectors.

It is widely expected that GST would reduce the construction cost in the hands of developer and thereby aid in reducing or at least maintaining the current level of prices in the housing societies as well as in the real estate sector.

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ApnaComplex
November 24, 2016

Occupancy Certificate and Partial Occupancy Certificate – All you need to know

When one purchases property to move into, or for investment purposes, its pros and cons come along with it. Formalities need to be completed and documents, such as an occupancy certificate or a partial occupancy certificate, need to be procured before one transports their belongings all the way across the country or hires movers to move them from the opposite building. These two documents are just as important as the rest, if not more.

On completion of a building / project, the builder must apply for OC to the local authority in charge. An occupancy certificate is issued to him, stating that the residences in the buildings constructed by him are fitted with all the facilities and utilities as promised at the time of construction. This means that the premises are fit for occupancy.

But when does the need for a partial occupancy certificate arise?

A partial occupancy certificate comes into the picture when there are blocks or phases of large projects to be developed with varying completion dates. When the construction of one phase is completed, the concerned authority grants a Partial OC to the builder after thorough inspection of the building. Similarly, phases that are completed after that are given a Partial OC as well.

A Partial OC is replaced by a consolidated document called the OC (Occupancy Certificate) stating that the entire project has reached its completion point and is now deemed fit for occupancy. All the Partial OCs for that particular project become invalid once the Final OC has been granted. Until then, they act as the OC for that particular phase. The concept of Partial OC has always existed but it is becoming increasingly significant nowadays, since townships and other residential areas are being built in phases.

An OC and a Partial OC certify compliance to –

Fire Service Department
Ministry of Health and Family Welfare
Pollution Control Board (including Sewage Treatment Plant)
Forest Department
Parking regulations
Electricity Board (including elevators)
Waste Disposal and Management facilities
Rainwater harvesting facilities
Airports Authority clearance, if the project is within the range of an airport

How does an OC come into the picture at the time of redevelopment?

If there is redevelopment taking place or there are additional floors to be built, the developer obtains a Partial OC for every flat on every floor that is constructed and ready for possession. This Partial OC is also replaced by a final OC at the time of completion of project. If, for whatever reason, the project has not been completed or was unable to be finished within the specified duration or permissible time limit, construction should be stopped. After that, an inspection will follow, based on which a final OC will be granted to the residents.

Importance of OC and Partial Occupancy Certificate:

Legal and immediate possession of a flat is valid only if there is the OC or Partial OC to show for it.
Builders cannot hand over flats to buyers without receiving the OC from the concerned authority in charge.
Without an OC, buyers / owners are not eligible for any insurance or compensation claims.
Possession of a Partial OC lets one apply for sanitary, water and electricity connections. Even if these facilities have been made available without an OC, they are liable to get disconnected.
OC is generally required to get a home loan sanctioned by a financial institution. With a Partial OC, one may not get an approval for their home loan.
Application for Partial OCs and OCs need to be submitted within 30 days of completion of the project / phase. The local authority, in turn, must respond within 30 days of receipt of the application, providing an acceptance or rejection and reasons for the same. The OC is a necessity when one wishes to sell their flat.
An OC or Partial OC tells you about the extent of deviation from the sanctioned plan and acts as an assurance to its regularisation, if the violations are within 5 percent of –
(1) the setback that is to be provided around the building
(2) plot coverage
(3) floor area ratio
(4) height of the building.
The deviations are regularised after the modified plan is approved by the authority in charge.

If you have purchased a flat that is under the phased development plan, insist on getting a Partial OC. This is valid until the project is under construction. Then make sure you replace it with an OC once it is completed. Keeping these important documents safe and available whenever they are required is of utmost importance. These are synonymous with other necessary compliance that ensures the safety of the flat and the quality of facilities that are being provided. The amenities and services that a flat owner receives must live up to the quality that was promised by the builder. Getting an OC / Partial OC helps to acknowledge this.

Thoughts and comments

If you have any thoughts on the partial occupancy certificate, please do share them with us by commenting below.

Visit http://www.apnacomplex.com for more.

1 Comment InApartment Apartment Security Buying Property Housing Society News Legal Real Estate Selling Property

ApnaComplex
September 20, 2014

5 Things you Should ask your Real Estate Agent Before Zeroing your Apartment

Be smart, question your real estate agent before buying a apartment and stay worry free

Owning a home is like a dream come true as the property squeeze has forced many prospective buyers to look at a relatively affordable accommodation. With busy lifestyles, people are looking out for accommodations which require low-maintenance and are complete value for money. The boom in the real estate sector has led to the emergence of several home developers who offer a decent standard of living to its potential buyers.

However, before purchasing any property ensure that you have gone through the following checklist. There would be some notable points that only you can collect information and your broker/real estate agent won’t tell you. These are –

CHECK LEGAL PAPERS & STATUS OF THE PROPERTY –

Before settling for any property, do a background study of the developer and make sure that property which you will be buying has no legal issues. Consult a legal adviser for the same who can analyze the financial status of the developer better. As soon as you receive the confirmation from the adviser, you can proceed to the next level of putting in your hard earned money into the property.

KNOW YOUR NEIGHBORHOOD –

Unless and until you won’t spend a considerable time at a particular place, you will not get a proper idea about the locality. Knowing your neighborhood is really crucial. You will get the idea about the crime rate, basic amenities and traffic snarls, if any. Speak to people in the locality and gather as much information as possible.

PROPER VENTILATION –

The increasing levels of pollution in metro cities has forced some people to move out from the place and settle in the vicinity. If you are one among them, check out that the building has allocated enough space for natural light and ventilation.

ARE THE MAINTENANCE COSTS INCLUDED? –

There might come a time, when the agent won’t tell you the ‘actual’ cost and take hidden charges in the form of maintenance. Find out whether the charges for car parking and using other amenities are inclusive of the price quoted. Apart from it, check with the association about the security measures that are in place.

DOES THE BUILDING NEED RENOVATION? –

Check with the agent or an expert architect to estimate the age of the building. Also, consult the developer if anything needs repair or replacement.

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1 Comment InBuying Property Legal

ApnaComplex
September 21, 2013

Land Patta And Its Importance As A Legal Document

Land patta is a legal document that states that the person in whose name it is registered is the owner of the land. The revenue record is maintained at the office of the concerned Tahsildar, and is issued by the Registrar of land holdings. A patta signifies the lawful possession of the land, and is therefore an essential document required property transactions.

How To Obtain A Land Patta?

Application in the form of a simple requisition to issue the patta has to be made to the concerned Tahsildar, along with necessary documents and relevant details. If the officer concerned feels that additional details are required, he or she may ask the applicant to provide those details in a particular format. Additionally, an enquiry or survey may be conducted before granting the patta.

Why Is It Necessary?

Patta establishes the lawful ownership and possession of a property. In case of disputes between the government and a land holder, or a third party and a land holder, the patta acts as a safeguard for the interests of the legal owners in whose name it is issued.

Further, in case the government acquires the land, the patta holder receive a compensation as he or she holds the first right over that property.

Patta also bears important details regarding the extent of the property and its measurements.

Should My Property Have A Patta?

Properties with buildings or structures clearly demonstrate their physical occupation and possession. In case of empty plots or vacant lands, a patta is the main document that establishes legal ownership and possession. In either case, an owner of a landed property must ensure that he or she possesses the required patta for the land.

Should My Apartment Have A Patta?

Patta is a legal document pertaining to land and not buildings, though it may include details about buildings on the land. In case of apartments, the land is generally registered in the names of co-owners who own the land as undivided shares. Patta is not issued for undivided shares of land. It is however possible to get the patta in the names of the co-owners jointly, but the patta will not specify the shares of the individual owners.

When Can A Patta Be Transferred?

Pattas are normally transferred in instances of sale of property, gift, or death of the patta holder(s).

In the case of death of the owner, the legal heirs of the deceased person are entitled to transfer the land patta in their names. If the deceased has left a will, the patta can be transferred to the beneficiary, provided that the immediate heirs of the deceased person do not object.

A patta is one of the most important legal documents pertaining to land. Make sure that your patta papers are in order to ensure that you don’t face any hassles or complications when conducting any land related transactions.

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1 Comment InApartment Management Legal

Category Legal