Common FAQs on Society related matters
Q:Under what circumstances can a society collect non-occupancy charges from a member?
A:When a member of Co-op.Housing Society lets out his premises and earns income out of its, the society is entitled to collect non-occupancy charges.
  The Society should charge non-occupancy charges at the rate fixed by the govt. from time to time. The present rate is that the non-occupancy charges should not exceed 10 % of service charges collected by the society.
  The society should not collect non-occupancy charges if the flat is occupied by a family member of the member. The word 'family' includes Husband,Wife,Father,Mother,Sister,Brother,Son,DaughtermSon-in-law,Brother-in-law,Grandson and Granddaughter.
  The society should not collect non-occupancy charges from a flat purchaser who is intending to become a member of the society. Govt. order regarding non-occupancy is reproduced in appendix-32.

Q:What is the salary payable by a society to its employees?
A:The salary payable by a society to its employees is decided by the society. The Minimum Wages Act and Payment of Wages Act are not applicable to a Co-op.Housing Society.

Q:What is the procedure to be followed for alloting parking space to members?
A:A member who has purchased parking space from the builder/transferor can retain his parking space and he can also sell the same.
  The unsold and available parking space should be allotted by the committee on "first come first served" basis. A member who is thus allotted a parking space by the society is not entitled to sell transfer the same.
  A member having a motor vehicle will only be eligible for allotment of parking space. A member is normally eligible for allotment of only one parking space. If the society has more parking spaces even after alloting to all eligible members, the excess parking spaces can be allotted to the existing allottees on year to year basis. Such allotment of additional parking space must be made only if parking space is not required by an eligible member who is not allotted even a single parking space.
  In case the vehicles of eligible members are more than the available parking spaces, the parking spaces should be allotted on yearly basis by "lot".

Q:Who is responsible for repairs of terrace of a building in a Co-op Society?
A:It is the duty of the society to repair the terrace of building in a Co-op Society. Terrace repairing charge are to be shared equally by all members of the society.

Q:What are the provision for sub-letting of flat?
A:A member may sub-let his under the following circumstances:
1)When the member has to go out of station for a long period of time due to personal necessities.
2)When the member is not in a position to occupy the flat due to absence of facilities for education of children.
3)When the member has to reside in official quarters provided by his employer
4)When the member satisfies the managing committee about his inability to occupy the flat due to any other genuine reasons.
  Before sub-letting his flat a member has to submit an application for permission to sublet his flat.

Q:What are the documents a builder should hand over the purchaser at the time of possession or handing over the flat and for stilt car parking?
  For resale of stilt car parking what are the documents I should have? Is it required to register it at the Registrar's office like resale of flat?
  What is a possession letter and key handing over letter?
  The car parking number mentioned in the sale agreement is different at the possession. Is it required to re-register the serial number of parking against registrar office?
A:First of all the builder should give you a copy of the completion certificate of the building before handing over possession.
  Secondly at the time of handing over possession, the builder should issue a letter of possession stating that he is handing over possession of the premises to you and you should accept such a letter.
  You may not be permitted to sell your stilt car parking space to an outsider unless he has purchased a flat in the same building. If you are selling the stilt car parking space to an existing flat owner then you would have to register the document similar to that for a flat.
  Possession letter and key handing over letter is one and the same. Actually it is a letter recording possession being handed over and one of the ways by which possession can be handed over is by handing over the keys to a premises.
  If the car parking number in the sale agreement is different from the one that you have received at the time of the possession, it is better to record the same by a document and register the same.

Q:We belong to a small residential complex having 2 buildings. One is still under construction,
  while in the other around 50% of the flats are sold. The builder is trying to sell all the flats
  and the contracts say that the society can be formed only after 75% of the total flats
  of both the buildings are sold out. The cost of one-year maintenance from all the flat
  owners was taken before giving possession. Now for most of us the one-year period has elapsed
  and the builder has asked the flat owners to run an 'Ad Hoc' committee, since he is not
  interested in maintaining the facilities and wants to concentrate on the second building's
  construction activity. We had no choice and formed an an hoc committee and started
  managing the maintenance of facilities.
  Will an Ad Hoc committee have legal recognition and act as per the Society Bye laws?
  If flat owners do not pay monthly maintenance, can any action be taken?
  What happens if the flats in both the buildings totalling 75% are not sold for a long time?
A:As per the Maharashtra Co-operative Societies Act, 1960, once the builder sells 60% of the
  flats he is mandatorily required to form a co-operative housing society u/s 9 of the said
  Act. An Ad Hoc committee has no independent legal recognition and in reality is working
  in the shoes of the builder. The committee can recover dues on behalf of the builder
  if the builder assigns such a right.

Q:I have decided to purchase a flat by taking a bank loan. The society is a registered
  society since about 12 years but has not got the occupation certificate yet. The property
  selected is on the 4th floor of the building. I initially wanted to take a loan form
  Bank A, but it refused to give a loan as they want the building to have an occupation
  certificate. Alternatively, they asked me to submit the following certificates in absence
  of occupation certificate for loan approval:
  (i)Building plan,(ii)Latest Municipal Tax receipt,(iii)Property Extracts/Property Card,
  (iv)Commencement Certificate.
  When I submitted these documents, the bank said that still they will not be able to
  sanction the loan since the commencement certificate is up to the 2nd floor. The building
  plan, however, shows the 4th floor as well. I later approached Bank B who are willing to
  give me a loan since they have also given a loan to the chairman of the society who
  stays on the 3rd floor of the same building. Please let me know if it is safe to buy this flat.
A:It is advisable that you not only see the latest approved building plan by the
  Corporation showing your 4th floor property, but also approach the Corporation and find out
  the main reasons why the occupation certificate is not issued. Occupation certificate is
  normally not issued when the builder has failed to comply with the mandatory requirements
  required as per law. After meeting with the concerned authority if you have doubts, do not
  purchase such a property.
DISCLAIMER: The above related Q&As are collection of articles which have appeared in various newspapers and as such author of this website should not be held responsible for any damage/harm done on account of reliance on the above Q&As.
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