Bihar Apartment Ownership Act

Published: December 5, 2025
Bihar Apartment Ownership Act

The Bihar Apartment Ownership Act defines how apartment ownership works in multi-storey buildings in Bihar. It explains resident rights, promoter duties and how common areas must be managed. Every resident benefits from knowing these rules for safe and fair community living.

What Does the Bihar Apartment Ownership Act Mean for Residents?

The Bihar Apartment Ownership Act gives clarity to everyone living in multi-storey buildings. It explains who owns what, how common spaces should be shared and how decisions should be made in a building or society. The Act treats an apartment as a real, heritable property which can be transferred, sold or inherited the same way as any other property.

This law is important for residents because it prevents confusion about rights, responsibilities and maintenance obligations. Many societies face issues related to unclear ownership, unplanned handovers or incomplete information shared by promoters. The Act sets a uniform system so both owners and promoters follow the same rules.

What Types of Properties Are Governed by this Act?

The Bihar Apartment Ownership Act applies to buildings that meet all the conditions below:

  • Residential or commercial buildings
  • Multi-storey structures with four or more apartments
  • Buildings on freehold land
  • Buildings on land with a lease of 30 years or more

The law covers both newly constructed and older buildings as long as apartment ownership is transferred through a registered Deed of Apartment. This helps residents living in both new and established societies understand how their ownership and common rights are recorded.

Why the Bihar Apartment Ownership Act Was Created?

Earlier, many apartment buyers in Bihar struggled with unclear documents, uncertain possession dates and confusion about common areas. Societies often faced difficulties when promoters did not form an association or did not share full project information. The Bihar Apartment Ownership Act was created to address these gaps. It sets clear rules so that every resident receives accurate details about land use, approved plans, amenities and timelines.

The Act also ensures that residents understand their undivided share in common areas. This share plays an important role in maintenance decisions, voting and cost contributions. The law builds trust between residents and promoters and supports transparent community living.

Read also: A Complete Guide to Forming an Apartment Owners Association

Key Provisions of the Bihar Apartment Ownership Act

Here are the most important parts of the Bihar Apartment Ownership Act that every resident should know:

1. Exclusive Ownership of the Apartment

Each owner has full rights over their individual apartment. This ownership is heritable and transferable and functions like any other immovable property under Indian law.

2. Undivided Interest in Common Areas

Residents share common spaces such as corridors, lifts, parking areas, parks and structural parts of the building. This interest cannot be separated from the apartment unless all owners agree to a change.

Read also: What Is Common Area In Apartment?

3. Deed of Apartment Requirement

A registered Deed of Apartment is compulsory during sale or transfer. This document must include:

  • Property and building details
  • Apartment number and description
  • Percentage of undivided common interest
  • Intended use of the apartment

4. Formation of the Association of Apartment Owners (AOA)

Promoters must help residents form an Association or Cooperative Society. The AOA in a housing society manages:

  • Common area maintenance
  • Building repairs
  • Financial planning
  • Rules for peaceful community life

5. Promoter Duties and Liabilities

Promoters must share:

  • Land ownership or lease details
  • Approved building plans
  • Timelines for possession
  • Status of utilities and certificates

They also need to obtain the required occupancy or completion certificates before handing over.

Read also: Society Handover from Builder

6. Sharing Common Expenses

Common costs are divided based on each apartment’s percentage of undivided interest. If someone fails to pay, it may be collected in the same way as property tax.

7. Dispute Resolution

Residents can appeal to the Commissioner of the Division. The Commissioner’s decision is final.

How the Act Helps Create Safer, Organised Societies

The Bihar Apartment Ownership Act helps societies run smoothly by creating uniform rules for ownership and maintenance. When every resident knows their share of common expenses, it prevents misunderstandings. Clear documents reduce disputes and create a sense of order.

The Act also supports proper planning for parking, building safety and cleanliness. When an AOA is formed early and functions responsibly, it encourages collective decision-making. Residents feel more involved in community welfare. The law helps promote fairness, transparency and cooperation, which are essential for daily living in shared spaces.

Documents Residents Should Keep Ready

Residents should keep the following documents for compliance with the Bihar Apartment Ownership Act:

  • Registered Deed of Apartment
  • Copy of building plans approved by the authority
  • Proof of the undivided interest percentage
  • Share certificate from the Association (if issued)
  • Payment records for maintenance
  • Occupancy or completion certificate shared by the promoter
  • Any agreements or circulars issued by the AOA

Keeping these documents helps residents handle legal queries, resale processes or society issues easily.

Responsibilities of Apartment Owners Under the Act

Owners have certain responsibilities that they have to follow under this Act:

Follow building rules

Residents must follow guidelines established by the Association for the upkeep and safety of the community.

Pay common expenses on time

Each owner must contribute their share of maintenance according to their undivided interest.

Maintain their apartment

Internal repairs, water fittings, tiles and similar work fall under the owner’s responsibility.

Allow access for essential repairs

If a pipe, wiring or structural issue affects more than one flat, the owners should allow access for repair teams.

Participate in meetings

AOA meetings decide important matters such as fund usage, safety steps and service provider selection.

Following responsibilities ensures respect for the law and smoother community operations.

Practical Tips for Residents and Committees

Residents can make better use of the Act by following a few simple steps:

  • Ask for a registered Deed of Apartment
  • Keep copies of approvals and certificates
  • Form an AOA as early as possible
  • Create clear rules for common areas
  • Use digital tools for payment and communication
  • Record decisions taken during meetings
  • Review building plans when taking possession
  • Maintain transparency in service provider selection

These steps help societies stay organised and build strong cooperation among residents.

How Promoters Should Support Residents Under the Act

Promoters hold an important role in the initial stages of an apartment project. Under the Bihar Apartment Ownership Act, they are expected to provide accurate project information and ensure proper handover. They must:

  • Share approvals, layout plans and certificates
  • Provide a schedule of possession
  • Form or help form the AOA
  • Record the percentage of undivided interest clearly
  • Complete all promised services before handover

When promoters follow these rules, society members start their journey with clarity and trust.

Digital Tools for Society Management by NoBrokerHood

NoBrokerHood supports organised living by providing residents a single place to manage daily operations. These tools help societies record documents, track payments and share notices from the AOA in a simple format.

NoBrokerHood also helps committees maintain clarity in financial decisions through digital payment records, maintenance calculations, visitor management logs and complaint tracking. These features reduce confusion and help residents work together. The platform supports calm, transparent and well-structured community living, which aligns with the intent of the Act.

All Solutions by NoBrokerHood:

Society Management Software
Visitor Management System
Society Accounting Software
Apartment Management System
CCTV Cameras for Apartments
Boom Barrier for Society
Housing Society
EV Charging in Apartments
Vendor Management System
Utility Billing Software
Digital Visitor Management System
Biometric Visitor Management System
Parking Management System
Visitor Registration System
Apartment Security Management System

FAQs

1. What is the main purpose of the Bihar Apartment Ownership Act?

The Act defines the rights and duties of apartment owners and sets rules for shared spaces. It ensures that residents receive proper documents and that societies follow a transparent system for maintenance and management.

2. Do all buildings need an Association of Apartment Owners?

Yes, multi-storey buildings covered by the Act must form an Association. The AOA manages maintenance, safety, budgets and community decisions.

3. Is the Deed of Apartment compulsory?

Yes, it is required for registering ownership. It records apartment details and common interest percentage, which is important for legal and financial matters.

4. How are maintenance charges decided?

Charges are shared based on each apartment’s undivided interest. This ensures a fair distribution of common costs, such as lift maintenance, lighting, and repair work.

5. What can residents do if there is a dispute?

Residents can appeal to the Commissioner of the Division. The Commissioner reviews the issue and gives a final decision.

6. Can an apartment be sold freely under the Act?

Yes, the apartment is treated as immovable property. Owners can sell or transfer it once the paperwork is completed.

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