Guide to Change from Condominium to Housing Society
The procedure to convert condominium to society in Maharashtra requires only 51% approval from apartment owners. This significant change was introduced by the 2018 amendment to the Maharashtra Apartment Ownership Act, 1970. It simplified the process for condominium residents wishing to move toward cooperative housing society structures.
The legal situation is crucial to this process. A conveyance deed must be executed, registered with the Sub-Registrar of Assurances, and payment of applicable stamp duty needs to take place. The provisional committee should manage the transfer of dues of the apartment condominium to the cooperative society. This committee is formed through formal elections at a general body meeting. Notably, the builder’s consent is not mandatory. As few as seven members can begin the process to form a cooperative society by withdrawing from the existing association.
Why Apartment Owners Consider Converting to a Society
Apartment owners face several issues in the condominium model that motivate them to convert. Builder control, especially in condominiums, creates relationships with friction.
| Key Benefits | Condominium Model | Society Model |
| Control over Future FSI | Builders maintain ownership over any additional FSI sanctioned by the government. | All the members of the society/association collectively own the FSI that exceeds the original rights to FSI. |
| Ownership of Common Areas | Builders hold every right unless otherwise agreed for open space, terrace area, and parking areas. | The members of the society/association will own all common areas with ownership vested after the conversion. |
| Dispute Resolution | Issues are lawfully dealt with by the Civil Courts which can take years. | Disputes are lawfully dealt with in the Co-operative Courts which provide quicker resolutions. |
| Building Redevelopment | All owners need to be at 100% agreement-creates delays. | Building redevelopment only requires 51% member sign off, allowing for a quicker redevelopment option and a stronger negotiating advantage |
| Financial Management & Transparency | Often no clear governance or rules for financial management | Regulated by positive rules; limits misuse; provides better living circumstances. |
| Property Taxes | In many cases property tax obligations are greater. | Property taxes can be lowered in excess of 40%. |
| Liquidity & Financeability | Difficult to finance or transact on an individual’s unit cleanly. | Easier to finance and transact on an individual’s unit in a registered society. |
Read Also: Condominium Property Management
Legal and Procedural aspects of conversion
Change from condominium to housing society, formally, starts with a general body meeting where 51% of owners must approve the conversion to society by a resolution.
Then a provisional/ad-hoc committee has to be formed. This committee will be responsible for transferring the dues of the apartment condominium to cooperative society, communicating with the builder and drafting all required documents for Society registration, including:
- Deed of declaration (usually prepared by the builder)
- Application to Assistant Registrar of Cooperative Societies
- Consent letters from at least 51% of owners
- Details of provisional committee’s bank account
- Draft of Society’s by-laws for approval
Once documents are prepared, we need to dissolve the condominium arrangement before the new Society can register. To dissolve the condominium arrangement, the committee must file a ‘declaration suit’ in a Civil Court and get a Decree for withdrawal from the Apartment Act, thus facilitating the registration of the Society under Maharashtra Cooperative Societies Act.
A minimum of 10 members from different families are needed for registration. Small groups of 10 members or less must obtain permission from the Competent Authority. The fee for registration is ₹2500 and paid to the Government Treasury.
An important step is to assign common area ownership. Since the shares of land are undivided in the case of a condominium, the group will have to transfer the ownership to the rights of the society. The stamp duty is based on the Ready Reckoner’s estimate of market value.
Apartment owners can start the process without builder cooperation. A notice must be served to the builder and also sent to the Deputy Registrar (copy) asking him to intervene legally.
Step-by-Step Checklist to Change from Condominium to Housing Society
Step 1 – Find Support Within Owners
Assess, informally, whether a majority of owners favor the conversion proposal. At least 51% approval of owners is required.
Step 2 – General Body Meeting
Send out formal notices to all owners. Obtain resolutions approving conversion and record detailed minutes.
Step 3 – Appoint a Provisional / Ad Hoc Committee
Conduct elections at the general body meeting and appoint such a committee which will take up management of the process of conversion.
Step 4 – Send Notice to Builders
Issue a formal notice to the builder. Issue a similar notice to the Deputy/Assistant Registrar for the purpose of taking action against non-cooperative builders.
Step 5 – File a Suit for Declaration in Civil Court
It becomes mandatory for the ad hoc/provisional committee to file a declaration suit in order to obtain a Decree of withdrawal from the Maharashtra Apartment Ownership Act, 1970.
Step 6 – Registration of the Society
Proceed with registration according to the Maharashtra Cooperative Societies Act for a minimum of 10 members. Deposit the registration fee of ₹2,500 at the Government Treasury.
Step 7 – Transfer of Ownership of Common Area
Register the conveyance deed with the Sub-Registrar of Assurances. Stamp it according to the Ready Reckoner value.
Obstacles and Solutions in the Conversion Process
Even after the 2018 amendment to the law, there will still be obstacles in the procedure for converting from condominium to society. Here are some key obstacles and their respective solutions:
Builder Non-Compliance
Often, developers do not co-operate and there are various reasons they may not comply, but mainly if they have signed the deed of declaration under the Apartment Act. So, what can owners do?
- Give the builder a legal notice
- Notify the Deputy/Assistant Registrar
- Submit Form 6 (Rule 12) to the authorized officer
In the case of the builder not complying, owners can take legal steps to complete the process on their own
Legal Documentation Delays
- Some apartments may still have registered deeds under the old legal structure.
- Converting requires cancelling these existing documents and starting fresh legal paperwork.
- This process can create concerns regarding stamp duty payments.
- As per a ruling by the Bombay High Court, a 10% penalty applies only to transactions completed before December 2018 for deficient stamp duty.
- This ruling offers relief for newer transactions during the conversion process.
Managing Day to Day Operations
While the society is being registered, the provisional committee must manage the apartment condominium to cooperative society account. The new provisional committee must:
- Collect maintenance charges
- Keep common facilities kept up
- Keep the books open
- Maintain any and all participants documentation required.
Dispute Resolution Mechanisms
For internal disputes:
- Maintain thorough documentation
- Use arbitration over litigation
- Regularly review bylaws
- Approach the Registrar of Cooperative Societies only as a last resort
With just 51% owner approval, the majority rule empowers determined residents to succeed.
Difference Between Condominium and Cooperative Housing Society
Comparing a Condominium and a Cooperative Housing Society:
| Basis | Condominium | Cooperative Housing Society |
| Ownership | You own your flat + share common areas. | You own shares, not the flat directly. |
| Legal Status | Governed by Apartment / Condo laws. | Registered under Cooperative Societies Act. |
| Property Rights | Clear individual ownership. | Society holds property, members have occupancy rights. |
| Decision Making | Individual owners have more freedom. | Society decisions are collective. |
| Transfer/Sale | Easier, fewer restrictions. | Needs society approval. |
| Maintenance | Managed by association of owners. | Managed by a society committee. |
| Control | Less interference from others. | More rules and regulations. |
Read also:
Difference Between Apartment and Housing Society in India
Difference Between Apartment and Condominium
Simplify Condominium to Housing Society Conversion with NoBrokerHood
The process of change from condominium to housing society consists of getting member approvals, preparing legal paperwork, handling financial transactions, and coordinating between the residents. This can turn out to be a very complicated task in the absence of effective communication. NoBrokerHood helps make the entire process much simpler.
| NoBrokerHood Feature | How It Helps in Conversion Process |
| Communication Tools | Inform residents about conversion plans, meetings, and consent requirements (like 51% approval) clearly. |
| Announcement & Notice Board | Share official notices, resolutions, and updates related to conversion transparently. |
| Meeting Management | Organise General Body Meetings and record decisions required for legal conversion. |
| Document Storage | Store important documents like conveyance deeds, consent letters, bye laws, and registration papers securely. |
| Member Database | Maintain an updated list of owners and track consent status for a smooth approval process. |
| Accounting & Finance Tracking | Manage transfer of funds, dues, and financial records from condominium to society. |
| Voting & Polling System | Conduct digital voting for approvals and decisions during conversion. |
| Audit Trail & Records | Keep a complete history of resolutions, approvals, and transactions for legal compliance. |
| Task & Workflow Management | Assign responsibilities to committee members for handling legal and administrative steps. |
All Solutions by NoBrokerHood
FAQs
A condominium means that you own each unit as well as share common amenities, and a cooperative society owns the property as a whole. A society typically has votes on a one-member/one-vote basis, and a cooperative society would have a more stringent governance process.
The Condominium Apartment Ownership Act is allowing people to own particular apartments in a building, in addition to owning common facilities such as corridors, lifts, and car parks.
Advantages include FSI rights, tax, redevelopment, decision-making as a community, and control.
The change to the Maharashtra Apartment Ownership Act in 2018 now allows 51% of apartment owners to complete registration and convert the apartment model to a Cooperative Housing Society.
Yes – the owners can send notice to the builder, and also include the Registrar, and potentially seek relief through the courts.
Start with at least 10 members, by drafting bylaws, naming the society, appointing the office bearers, and finally applying for registration along with the required documents and fee.