What are maintenance charges and how to not get fooled by the builder for the same
Jun 03, 2017 Home Trading Steps
After you buy the property, you think your job is done here. Bank to help you buy the property, law by your side. One thing that we do not know is the maintenance charges. There are various charges that are mentioned in the agreement, and buyers tend to skip them and sign them blindly. They all come back to haunt as the possession date nears.
There are some facts about the maintenance charges that every buyer must be aware of. We discuss them here:
Maintenance charges:
Every housing society has some common area and some services. And according to the real estate laws, buyers are supposed to pay for them. The areas 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.
After the society’s welfare association is formed and the maintenance is transferred to them, the builder can longer charge the buyer for the maintenance. The association has their own method of providing maintenance.
The actual maintenance amount is not mentioned in the agreement or disclosed at the time of purchase. But the clause is mentioned in the agreement. All the buyers are supposed to pay the maintenance charges without fail.
How is it calculated?
Every society has their own way of calculating the maintenance charges. Some societies keep it fixed for all the buyers while some charge according to the floor number and size of the property.
The maintenance charges 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.
Since the maintenance charges are not disclosed at the time of agreement but are notified at the time of possession, it might come as a shock to the buyer if the charges are too high than expected.
Efforts by RERA:
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.
There are some facts about the maintenance charges that every buyer must be aware of. We discuss them here:
Maintenance charges:
Every housing society has some common area and some services. And according to the real estate laws, buyers are supposed to pay for them. The areas 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.
After the society’s welfare association is formed and the maintenance is transferred to them, the builder can longer charge the buyer for the maintenance. The association has their own method of providing maintenance.
The actual maintenance amount is not mentioned in the agreement or disclosed at the time of purchase. But the clause is mentioned in the agreement. All the buyers are supposed to pay the maintenance charges without fail.
How is it calculated?
Every society has their own way of calculating the maintenance charges. Some societies keep it fixed for all the buyers while some charge according to the floor number and size of the property.
The maintenance charges 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.
Since the maintenance charges are not disclosed at the time of agreement but are notified at the time of possession, it might come as a shock to the buyer if the charges are too high than expected.
Efforts by RERA:
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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