Maharashtra Apartment Ownership Act – Complete Resident Guide
The Maharashtra Apartment Ownership Act gives individual flat buyers full legal ownership of their apartment and a share in the common areas. It defines how apartments are transferred, inherited, assessed for tax, and managed through an Association of Apartment Owners (AOA), within a housing society. This helps residents protect their rights, resolve disputes easily, and maintain transparent administration.
What is the Maharashtra Apartment Ownership Act?
The Maharashtra Apartment Ownership Act was introduced to protect flat owners and set clear rules for ownership, rights, and transfers. Before this law, many apartment owners did not have clear legal titles or could not transfer or inherit their property easily. This Act ensures that every apartment is treated as a separate, registered property, similar to an independent house.
Unlike traditional cooperative society rules, this Act makes ownership simpler by allowing a Deed of Apartment, separate assessment of municipal taxes, and defined rights over common areas. It applies across Maharashtra and is commonly used in large townships, redeveloped societies, and modern apartment projects.
Key Provisions of the Maharashtra Apartment Ownership Act
1. Individual Ownership
- Every flat owner gets a Deed of Apartment, which is registered under the Registration Act.
- This makes the apartment a legally transferable and mortgageable property.
- Banks prefer societies governed under the Maharashtra Apartment Ownership Act because titles are clean and traceable.
2. Ownership of Common Areas
The Act confirms that common areas belong to all apartment owners in equal, undivided shares. This includes:
- Staircases, corridors, lifts, lobbies
- Gardens, terraces, clubhouses, pools
- Parking areas are designated as common
These spaces cannot be sold separately by any builder or association. Buyers often face disputes over parking allotment, terrace rights, or clubhouse access. Under this Act, such issues have legal clarity.
Read also: Co-operative Housing Society Parking Rules in Maharashtra
3. Separate Assessment of Taxes
- Every apartment is assessed separately for municipal taxes.
- The managing committee cannot combine or collect taxes as a “group bill.”
- Owners know the exact taxes due and can make payments transparently.
4. Responsibilities of Flat Owners
Residents must:
- Pay maintenance and common expenses regularly
- Maintain their apartment without damaging anything
- Following the bylaws and community rules
- Permit repairs and inspections when required by the association
5. Formation of the Association of Apartment Owners (AOA)
Under the Maharashtra Apartment Ownership Act, the project forms an Association of Apartment Owners (AOA). Its responsibilities include:
- Manage building maintenance
- Keep financial records
- Handle funds for repairs and upgrades
- Maintain insurance for the structure and common areas
- Prepare annual statements
Management is democratic, and all owners have voting rights based on their proportional ownership.
6. Transfer and Inheritance of Property
- Apartments can be transferred by sale, gift, lease, or inheritance.
- Transfer fees cannot be charged arbitrarily.
- In case of inheritance, legal heirs receive ownership through a simple registration process with supporting documents.
- The AOA must update records within a reasonable time after receiving applications.
This prevents families from facing delays or disputes after the owner passes away.
7. Dispute Resolution
If disagreements arise about maintenance charges, parking, repairs and transfer conditions. They can be resolved through:
- The Association
- Competent Authority appointed by the Government
- Civil court for legal matters
- Arbitration (if mentioned in bylaws)
Read also: New Bylaws of Housing Society in Maharashtra
This is different from cooperative societies, where matters go to the Cooperative Court.
Civil courts use standard property laws to make decisions stronger and clearer.
Recent Amendments and Important Changes
Government resolutions and amendments have clarified several points. Over the last few years, the state government has issued updates to solve real problems faced by residents:
Redevelopment of Old or Unsafe Buildings
- Buildings 30+ years old or declared dangerous can go for redevelopment.
- Consent of 51% or more of apartment owners is enough.
- For redevelopment, the AOA must follow standardised tender and bidding rules.
- Earlier, cooperative housing societies often required very high approval, which caused delays.
Eviction in Case of Approved Redevelopment
If a majority has approved the redevelopment, but one or two owners refuse to vacate:
- Authorities can issue a summary eviction
- The owner receives rent or alternative accommodation
- The project does not stop because of one objection
This amendment was made because Mumbai and Pune have thousands of buildings waiting for redevelopment.
Transparency from Builders
Builders must disclose land titles, open spaces, parking count, and amenities in the Declaration. This reduces confusion for homeowners after possession.
Mandatory Registration of the Deed of Apartment
Registration of the Deed of Apartment is mandatory; without it, the ownership is not considered legally complete.
Societies must maintain digital records of accounts and owner details.
Registration and Application Process
Many residents are unaware of how the Act is applied. Here is a simple explanation:
Builder Executes Deed of Declaration
After construction, the builder files a Deed of Declaration describing the building, layout, specifications, number of apartments, and common areas.
Individual Deed of Apartment
Each buyer gets a registered Deed showing carpet area, interior spaces, and a share in common areas.
Formation of AOA
- Owners create bylaws and elect a managing committee.
- Bank accounts and maintenance collections are done under the AOA.
Separate Assessment
Society applies for individual tax assessments for all apartments.
Ongoing Updates
Any transfer, inheritance, mortgage, or sale must be updated in the AOA records.
Difference Between the Maharashtra Cooperative Societies Act and the Maharashtra Apartment Ownership Act
Many residents find these two laws confusing. Both are used for apartment communities, but they have important differences.
| Points of Difference | Cooperative Societies Act, 1960 | Apartment Ownership Act |
| Ownership | Society owns land and buildings. Member gets occupancy rights | The owner has full legal title to the flat + Undivided share in common areas |
| Main Document | Share Certificate | Registered Deed of Apartment |
| Property Tax | Usually billed to society as a whole | Each flat gets a separate assessment |
| Management Body | Cooperative Housing Society | Association of Apartment Owners (AOA) |
| Transfers | More approval-based | Treated like a property sale, a simple update in the AOA |
| Redevelopment | Often requires high or unanimous consent | Can proceed with majority (51%+) |
| Disputes | Co-operative Court | Civil court or arbitration |
Which is better for residents?
The Maharashtra Apartment Ownership Act gives stronger legal ownership than the Maharashtra Co-operative Societies Act because the flat is treated like an independent property. It becomes easier to:
- Take home loans
- Transfer or inherit the apartment
- Sell the flat without delays
- Maintain clear ownership records
Many modern projects and redeveloped societies choose this Act for clarity in documentation and transparency.
Simplifying Society Administration with NoBrokerHood
Society administration under the Maharashtra Apartment Ownership Act becomes much easier when records are clear and transparent. Digital platforms like NoBrokerHood help associations manage everything in one place, from member details, apartment information, and ownership documents to maintenance collections, automated reminders, visitor logs, and facility bookings. With secure digital records and clear communication, societies can reduce paperwork, prevent disputes, and ensure every owner feels confident that their rights and documents are protected and easily accessible.
All Solutions by NoBrokerHood:
FAQs
No. Some societies follow the Cooperative Societies Act, others follow the Maharashtra Apartment Ownership Act. The builder typically chooses at the time of project handover.
It is a registered document that gives the buyer legal ownership of their apartment and a share in common areas. Without this deed, ownership is not fully recognised.
No. Common areas belong to all apartment owners. Builders or committees cannot sell terraces, driveways, or lobbies as private spaces.
Owners submit the transfer agreement and basic documents to the AOA. Records are updated after validation. Transfer fees cannot be arbitrary or excessive.
Yes. Clear titles, voting rights, and defined procedures make redevelopment faster and reduce disputes.