Answer By law4u team
The Real Estate (Regulation and Development) Act, 2016 (RERA) addresses issues related to maintenance charges and common area management to ensure transparency, accountability, and fair practices in the real estate sector. Here’s how RERA handles these aspects: 1. Maintenance Charges: Obligation of the Developer: Under RERA, developers are required to hand over the common areas of a project, including amenities and facilities, to the residents’ association or society once the project is completed and the possession of flats is handed over. This includes the maintenance of common areas such as elevators, gardens, parking areas, and more. Reasonable Charges: The maintenance charges, which are typically collected by the builder or society for the upkeep of common areas, should be reasonable and based on actual costs incurred. Builders cannot charge exorbitant or arbitrary fees for maintenance and must adhere to the terms agreed upon with buyers. Transparency: The developer must maintain transparency in the calculation of maintenance charges. The breakdown of charges must be provided to the homeowners, and these charges should be fair and not excessive. Homebuyers are entitled to a detailed explanation of how the maintenance fees are being utilized. 2. Common Area Management: Handing Over of Common Areas: Once the majority of the units in the project are sold and possession is handed over, the developer is required to transfer control of the common areas to the residents' association or society. The developer must also ensure that the association is functional and capable of managing the common areas. Formation of a Society: RERA encourages the formation of an apartment owners’ association or residents’ welfare association to take over the management of common areas. These associations are responsible for the day-to-day upkeep of the common spaces, resolving disputes, and managing maintenance funds. Maintenance Fund: The funds collected for maintenance must be deposited in a separate bank account, and they must only be used for the maintenance of the common areas. The association or society must keep proper accounts of these funds, and periodic audits should be conducted to ensure transparency. Legal Framework for Disputes: If there are disputes over maintenance charges or common area management, residents can approach the RERA Authority or RERA Appellate Tribunal for redressal. RERA empowers state authorities to resolve issues between builders, developers, and buyers related to the handover and management of common areas. 3. Builder’s Responsibility Post-Handover: Defects Liability: Under RERA, developers are responsible for maintaining the quality of construction for a specified period (usually 5 years for structural defects and 2 years for non-structural defects) after handing over possession. If there are defects in the common areas or amenities during this period, the builder must rectify them at no extra cost to the buyers. 4. Right of Homebuyers: Right to Information: Homebuyers have the right to receive information about how their maintenance charges are being spent. They can request transparency regarding the usage of funds and demand an audit of the accounts. Consumer Protection: RERA also provides protection for homebuyers, allowing them to approach consumer courts or RERA authorities if they feel that the maintenance charges are unfair, or if the common areas are not being maintained properly. 5. State-Specific RERA Rules: Each state in India may have specific rules and regulations regarding the management of maintenance charges and common areas. These rules are created to address the unique needs of the residents in different regions, but the overarching guidelines are consistent with RERA’s objectives of transparency, fairness, and proper management of common spaces. Conclusion: RERA addresses maintenance charges and common area management by ensuring that builders follow transparent processes, hand over control of common areas to residents' associations, and set up mechanisms for dispute resolution. The law encourages the fair use of funds collected for maintenance and guarantees that homebuyers have a say in the management and upkeep of their residential complexes.
