Maharashtra Ownership Of Flats Act, 1963
The Maharashtra Ownership of Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 1963 (MOFA) and The Maharashtra Apartment Ownership Act, 1970 (MAOA), are independent laws that serve different stages of property ownership. The former regulates the promotion of construction, sale, management, and transparent flat sales, while the latter enables individual apartment ownership and shared rights in common areas.
Together, these acts protect flat buyers by ensuring transparent sales, timely possession, and legal ownership, while regulating builders’ obligations towards ownership. They also provide a framework for apartment management and shared responsibilities, creating a secure housing ecosystem in Maharashtra.
Key Provisions of the Maharashtra Ownership of Flats Act, 1963
- Registration Agreement: As per the Registration Act, 1908, the builder or promoter must execute a written agreement with the buyer before collecting any payment. The agreement should disclose the carpet area, total price, amenities, limitations, approvals, and possession date.
- Promoter Obligations: As per the guidelines of the Maharashtra Ownership of Flats Act, promoters must disclose the land title, project approvals, layout plan, and construction timeline. They should hand over the flats only after obtaining a completion certificate and ensuring that the construction follows the specifications in the agreement. Promoters must also facilitate the formation of a cooperative housing society or apartment owner association.
- Formation of Cooperative Societies: Once the minimum number of buyers required to form a cooperative society or company is reached, the promoter must apply to the relevant authority to register the organisation. The society then takes over management of common areas, maintenance, and shared responsibilities, and the promoter must transfer ownership of common areas.
- Rights and Duties of Flat Owners: Every person who has signed an agreement to purchase a flat must pay the price, their share of municipal taxes, and other public charges as per the agreement. Flat owners have individual ownership of their flats, a share in common areas, and must participate in society management, pay maintenance, follow rules, and help manage shared facilities.
- Rules on Sale, Possession, and Transfer of Flats: All the details related to the property should be disclosed to the buyer. Promoters cannot collect more than 20% of the total price before registering the agreement with the sub-registrar. All flat sales must be executed through a registered agreement, and flats can be handed over only after obtaining a completion certificate from the local authority.
- Penalties for Non-Compliance by Promoters: Any promoter who fails to comply with the responsibilities mentioned in the Maharashtra Ownership of Flats Act without any reasonable excuse may face imprisonment, a fine, or both. If the promoter fails to deliver possession of a completed flat by the agreed or extended date, they must refund the amount with added interest and are also subject to legal charges.
Maharashtra Apartments Act Overview
- Applicability and Scope Of The Act: The Maharashtra Apartment Ownership Act, 1970 (MAOA) applies to all buildings declared under the Act in Maharashtra and governs the ownership, management, and transfer of residential, commercial, and mixed-use apartments.
- Governance and Management of Apartment Properties: Once flats are sold, owners must form a society or association to serve as the legal body responsible for managing the building and representing all owners. They are responsible for maintaining common areas, performing repairs and upkeep, managing utilities and services, and managing finances.
- Rights and Responsibilities of Apartment Owners: Owners have individual ownership of their flats and allocated ownership of common areas and facilities. They must pay maintenance charges and society dues, follow society rules, and cooperate in managing shared facilities, and are not allowed to seek partition or division of any common amenities.
- Maintenance of Common Areas and Facilities: Each apartment owner may use common areas and facilities only for their intended purpose, without interfering with the rights of other owners. The cooperative housing society or managing board has the right to access apartments during reasonable hours for maintenance, repairs, or emergency work.
- Dispute Resolution and Legal Provisions: Disputes between owners or with promoters are resolved through the cooperative society or the courts. The Act also provides mechanisms to enforce owners’ rights and penalties for non-compliance.
Impact on Flat Owners and Societies
Flat owners and societies often face challenges such as delayed possession, non-payment of maintenance charges, misuse of common areas, and disputes among owners. These issues are addressed through legal remedies under the Maharashtra Ownership of Flats Act, ensuring smooth management, accountability, and protection of owners’ rights.
By disclosing project details, agreements to be registered, and ownership of common areas, flat owners are ensured legal ownership, transparency, and accountability in sales and apartment management. The formation of apartment societies simplifies maintenance, repairs, finances, and rule enforcement, while providing a structured forum to resolve disputes.
Role of Digital Management Tools
Managing multiple maintenance requests, emergency alerts, staff, and amenity bookings manually can lead to discrepancies and disputes. Digital management tools help apartment societies streamline administration, ensure compliance, and enhance transparency.
They simplify tracking of maintenance, repairs, finances, and legal documents, while enabling efficient communication with residents. By adopting such software, societies gain automated accounting, digital record-keeping, better facility management, and improved accountability, reducing conflicts and ensuring smooth, compliant operations.
Simplify Society Management with NoBrokerHood
NoBrokerHood, as a society management platform, enables housing societies to streamline communication, security, maintenance, and finances from a single unified platform.
The platform comes packed with features that simplify society management and streamline communication.
- Automated Records: The platform digitally tracks residents, flat ownership, and society documents, eliminating paperwork and errors.
- Payment Tracking: With automated reminders and monitoring maintenance dues, NoBrokerHood keeps track of all the finances.
- Maintenance Scheduling: From planning and tracking repairs to upkeep of facilities, is efficiently managed by the platform.
- Communication Tools: NoBrokerHood enables instant updates, announcements, and alerts to residents via chat, notifications, and emails.
NoBrokerHood brings transparency, convenience, and efficient society management by streamlining communication, automating daily operations, and ensuring complete visibility in financial and administrative processes.
By applying digital management tools like NoBrokerHood, designed to streamline operations, enhance transparency, and ensure efficient communication, societies can create a smarter, more secure, and professionally managed community environment.
All Solutions by NoBrokerHood
The Maharashtra Ownership Flats Act, 1963, is a law that regulates flat sales in Maharashtra, ensuring transparency and protecting buyers’ rights.
Promoters must disclose project details, register agreements, deliver flats on time, obtain completion certificates, and facilitate the formation of the society.
The Maharashtra Apartments Act, 1970, provides legal recognition for individual flat ownership and shared management of common areas through societies.
Flat owners have ownership of their flats, a share in common areas, and the right to participate in society management. They can receive timely possession and benefit from regulations and laws.