Is Your Builder Fooling You Over Maintenance Charges?
Jan 19, 2018 Home Trading Steps
Most buyers think that after buying the property, there is nothing more for them to worry about. They have had a clean and straight forward deal. Though there are some charges and expenses that may come to haunt the buyers in later stages. Such as maintenance charges are one of them. Even though the charges are mentioned in the agreement, buyers blindly skip them and sign the agreement without knowing much about them.
To ease your worry, we lay down some facts about the maintenance charges that a buyer should know.
Maintenance charges:
All the housing societies provide some common area and services such as include club houses, parks, gym, recreational centres, elevators, fire escape etc. Services like water and electricity supply, air conditioning etc come under the maintenance area. According to the real estate laws, buyers are supposed to pay for them.
The maintenance is transferred to the society’s welfare association once it is formed. The builder no longer can charge the buyer for the maintenance. The association has their own method of providing maintenance.
The buyers are supposed to pay for the maintenance amount without fail, which isn’t disclosed at the time of the purchase.
How is it calculated?
Every society has their own method and way of charging maintenance. Some societies like to keep a fixed amount for all the buyers while others vary the amount based on the floor number and the size of the property.
The maintenance charges may vary from Rs 2 per sq ft to Rs 25 per sq ft. For an apartment of 1500 sq feet with a rate of Rs 2 per sq ft, the maintenance charge will be Rs 3000 per month. The builders may ask for 12 months or 24 month advance payment of maintenance charges. Once the association is formed, the charges are decided by them.
State governments have made the rules so that the builders cannot charge arbitrary maintenance charges. As per the norms, 0.75 percent per annum of the construction cost of each apartment is charged towards the expenses for regular repair.
If the charges are too high then it may come as a shock to the buyer a the time of possession since the maintenance charges are not disclosed at the time of agreement but are notified at the time of possession.
RERA putting efforts:
RERA has come to rescue the buyers from this. They have asked the builders to mandatorily specify the maintenance charges in the agreement so that it does not come as a shock to the buyers. Later, the society association can work it out and charge the buyer’s maintenance costs accordingly.
After possession, the payment of maintenance charges is the buyer’s responsibility. Until a tenant has been found for the property, the owner has to pay the maintenance charges. Later, the tenant can pay the maintenance charges, given it is mentioned in the owner and tenant agreement.
It is always better to have a clear idea of maintenance charges before you buy the property.
To ease your worry, we lay down some facts about the maintenance charges that a buyer should know.
Maintenance charges:
All the housing societies provide some common area and services such as include club houses, parks, gym, recreational centres, elevators, fire escape etc. Services like water and electricity supply, air conditioning etc come under the maintenance area. According to the real estate laws, buyers are supposed to pay for them.
The maintenance is transferred to the society’s welfare association once it is formed. The builder no longer can charge the buyer for the maintenance. The association has their own method of providing maintenance.
The buyers are supposed to pay for the maintenance amount without fail, which isn’t disclosed at the time of the purchase.
How is it calculated?
Every society has their own method and way of charging maintenance. Some societies like to keep a fixed amount for all the buyers while others vary the amount based on the floor number and the size of the property.
The maintenance charges may vary from Rs 2 per sq ft to Rs 25 per sq ft. For an apartment of 1500 sq feet with a rate of Rs 2 per sq ft, the maintenance charge will be Rs 3000 per month. The builders may ask for 12 months or 24 month advance payment of maintenance charges. Once the association is formed, the charges are decided by them.
State governments have made the rules so that the builders cannot charge arbitrary maintenance charges. As per the norms, 0.75 percent per annum of the construction cost of each apartment is charged towards the expenses for regular repair.
If the charges are too high then it may come as a shock to the buyer a the time of possession since the maintenance charges are not disclosed at the time of agreement but are notified at the time of possession.
RERA putting efforts:
RERA has come to rescue the buyers from this. They have asked the builders to mandatorily specify the maintenance charges in the agreement so that it does not come as a shock to the buyers. Later, the society association can work it out and charge the buyer’s maintenance costs accordingly.
After possession, the payment of maintenance charges is the buyer’s responsibility. Until a tenant has been found for the property, the owner has to pay the maintenance charges. Later, the tenant can pay the maintenance charges, given it is mentioned in the owner and tenant agreement.
It is always better to have a clear idea of maintenance charges before you buy the property.
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