Housing Society Issues

1.    Am I liable to pay maintenance charges for a period where the possession letter was issued by the builder but I refused to take the keys as the flat was not ready to move in?

2.    What actions can I take if the municipal tax is not being paid by the builder?

3.    What is the procedure to get the share certificates issued for the property?

4.    What are the documents that I will need to collect from various sources to be the legal owner of the flat?

5.    How do I proceed to make a Will for my flat and what are the criteria to make a Will?

LRC’s Reply:  (1) & (2) If your building has not received an occupancy certificate (OC) from the concerned municipal authority, the builder cannot ask you to pay any dues for your flat, such as taxes or cooperative housing society’s (CHS’s) maintenance (if the CHS is formed before completion of construction of the building), under Section 6 of Maharashtra Ownership Flats Act, 1963 (MOFA).

It is the builder who has to pay all the applicable taxes, like municipal taxes, property tax, ground rent, water and electricity expenses, and any other expenses, as applicable, before he gets OC, as per MOFA.
 
For asking you to pay taxes and dues of the flat, which has not received OC, you can make a complaint with the consumer forum or in a competent civil court for violation of Section 6 of MOFA, 1963, against the builder.

(3) & (4) Once your building gets the OC, and 60% of the flats in the building are sold, the resident buyers of the flats can form a CHS, following which share certificates of your flat will be issued by the CHS.

The builder does not lose his rights to sell the unsold flats to buyers independently, even after the CHS is registered.

If the builder does not allow you to form a CHS when 60% of the flats are sold,  you can make a complaint to the consumer forum or to a competent civil court, for violation of Section 11 of MOFA, 1963.

(5) If you get possession of your flat and the share certificate is issued, as stated above, you can make a Will for your flat. This Will has to be attested by two witnesses who are not beneficiaries of the properties stated in your Will. As such, a Will need not be registered, but if it is registered with the sub-registrar of assurances, it will carry more weight.

Also, it is recommended that your Will should be certified by a physician whose education is not below MBBS or BAMS, stating that you were of sound mind at the time of signing of your Will, and that you were not under the influence of any intoxicants or drugs.

Have a legal question? Try  Moneylife Foundation’s Legal Resource Centre. Check out
http://lrc.moneylife.in and register at http://moneylife.in/lrc.html

User

Issue with Cibil

In the instance of a consumer loan which has not been repaid for 3-4 years, which shows up in the CIBIL database. The issue is that the bank sent the details of only the principal amount instead of the total outstanding amount. Why is the bank not sending details of the total outstanding amount including the late fees and interest components to CIBIL?

LRC’s Reply: First, it is necessary to understand that CIBIL is not your lender; it only displays an individual’s credit-worthiness depending on his/her financial transactions. Therefore, to know your liabilities and outstanding at any given time, you need to approach your lender and not CIBIL. Secondly, all lenders send their respective data to CIBIL or any other credit bureau, on a periodic-cycle basis and not in real time. Therefore, it is not possible for the lenders and credit bureaus to show the ‘late fee and interest’ components in real time as
these keep changing with the time/ tenure.

Have a legal question? Try  Moneylife Foundation’s Legal Resource Centre. Check out
http://lrc.moneylife.in and register at http://moneylife.in/lrc.html

 

NOTE: If you are facing similar issue, you may want to get help from Moneylife Foundation's free Credit Helpline http://www.freecredithelp.in/

 

User

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