Society Handover from Builder- RERA Rules, Steps and Checklist

The society handover process is a crucial phase where control, management, and responsibilities transfer from the builder to the residents or the newly formed Resident Welfare Association (RWA). Understanding this process is key to ensuring smooth society operations and legal compliance.

When Does Builder Handover Society?

The builder typically hands over the society to the residents after construction completion, obtaining the Occupancy Certificate and other legal clearances. This handover marks the shift in maintenance and management responsibility from the builder to the homeowners.

Builder Responsibilities After Handover

Post-handover, the builder is responsible for:

• Providing all legal documents like completion certificates and approved plans
• Clearing any pending dues or liabilities
• Ensuring utilities and services are properly transferred
• Rectifying defects identified during inspection

RERA Rules for Society Handover

RERA mandates that the builder must hand over possession of the property, including all common areas and facilities, within the timeline approved by the regulator. The handover must be accompanied by all necessary legal documents and clearances, ensuring complete transparency and accountability.

Key RERA Provisions for Society Handover Process

• Timely Possession: Builders are required to deliver possession of the apartment and common areas within the deadline registered under RERA. Delay attracts penalties and compensation to buyers.

• Transfer of Ownership: Builders must transfer ownership of common areas, amenities, and apartment units to the Society or Residents Welfare Association (RWA) within a reasonable time after obtaining the occupation certificate.

• Handover Documentation: Builders are legally obligated to provide all documents, including completion certificates, approved plans, warranties, and maintenance-related agreements.
• Defect Liability Period: Builders must address defects identified during the defect liability period, which is usually 1-2 years after possession as per RERA guidelines.

• Financial Transparency: Builders need to hand over all funds collected for maintenance and deposits related to the society and provide transparent accounts.

Builder’s Obligations Under RERA for Society Handover

Obligation	Description
Handover of Completed Property	Transfer fully completed units and common spaces
Provide Legal & Technical Documents	Completion certificate, plans, and statutory clearances
Facilitate Transfer to RWA or Society	Officially handover management to residents or society
Settle Pending Dues and Taxes	Clear all pending bills before handover
Respond to Defects During Liability	Repair defects during warranty period

Steps for Society Handover Under RERA

• Register Complaint: Buyers can approach RERA if possession is delayed or handover documents are incomplete.
• Formation of RWA: Residents must form a legally registered society or RWA for formal takeover.
• Verification of Documents: Thorough checking of builder-provided documents post-possession.
• Snag List Preparation: Note defects and ensure builder’s liability to fix within the defect liability period.
• Financial Audit: Ensure builder hands over proper accounts including maintenance funds

4 Handover Documents from Builder to Society

Builders may occasionally utilise the credentials mentioned below in promotional materials to establish credibility for the construction project and win over potential buyers’ confidence. They should be the priority while making preparations for the society handover process.

1. Licensed construction drawing: The contractor must submit a copy of the approved building design broken down by the floor.

2. Certificate of completion: This certificate attests that the building was constructed following all applicable regulations and is issued by the relevant municipal authority.

3. Occupancy certificate: This document certifies that the building meets the code and is safe for occupants.

4. No objection certificate (NOC):  The NOCs come from the water, fire, pollution, and electricity departments.

Also Read: How to get NOC from Society

Legal Documents List for Society Handover

During society handover, the builder must transfer all legal and financial documents to the society. Engaging an auditor or tax expert is advisable to avoid any financial mismanagement.

Key legal documents include:

• Building insurance policy
• Property and construction tax receipts
• No-due certificates for utilities (water, electricity) and security deposits
• Records of repairs and service tax payments under builder’s care
• Remaining investment or corpus funds
• Detailed member payment accounts beyond purchase price
• Audited financial statements related to the above

Operational Handover from Builder to Society

The handover involves technical manuals, inventories, and infrastructure details requiring expert review. The managing committee must inspect the building thoroughly before taking over.

Important operational documents and assets:

• Equipment records: generators, gym machines, sewage treatment, etc.
• Annual Maintenance Contracts (AMCs), vendor contracts, invoices
• Technical drawings: water/sewage systems, electrical wiring, gas piping
• Safety systems: fire alarms, extinguishers, CCTV documentation
• Parking space allocations and community amenities blueprints
• Lift operating licences, warranties, and safety manuals
• Maintenance schedules and service team details

Legal & Operational Handover Overview Table

Document/Asset Type	Description
Financial Documents	Tax receipts, insurance, audits
Legal Papers	Sale deeds, NOCs, contracts
Technical Schematics	Wiring, plumbing, safety systems
Equipment & Maintenance Records	Assets details, AMCs, vendor info
Safety & Compliance	Fire safety, lifts, CCTV docs
Property Usage Records	Parking, community facilities plans

Legal Documents Important for a Society Handover Process

Dealing with many government agencies and third parties regarding services, taxes, and operations may make for a lengthy and exhausting paper trail for the Society and the builder. However, the Managing Committee must be watchful and ready to check all legal papers at the moment of the transfer in order to ensure RERA rules for society handover process are followed.

• The builder and the landowner’s signed contracts must be submitted to the organisation.
• Copies of every transfer and sale of ownership deeds and Share Certificates must be submitted to the Society’s officers.
• Zero-dues certificates/guarantees and legally enforceable contracts with all suppliers and maintenance firms should be issued to the builder handover to Society.
• Certifications from independent inspectors and copies of insurance policies covering amenities and equipment.
• An agreement by the builder to repay the liability of the Society for all activities occurring up to the date of handover.

You should take steps and speed through the handover procedure. The first step in creating a cohesive cooperative that is well-aligned inside and compliant in the eyes of the authorities is acquiring the necessary paperwork and certifications on time with adequate checks and inspections.

Ultimate Society Handover Process Checklist

A smooth society handover starts with selecting a reliable Facility Management (FM) company soon after the RWA is formed. The FM company will oversee the building’s maintenance post-handover and assist with the transition.

Key Steps in the Society Handover Process

• Choose the FM Company: Ensure they can manage the handover process effectively on behalf of the RWA.
• Conduct Building Inspection: FM team inspects the building to identify issues (snags) and reports them to the builder for repair before takeover.
• Verify Builder’s Equipment: Check the builder-supplied assets like generators, swimming pool, fire alarms, and septic tanks are functioning well.
• Snagging Focus: Look for leakages or defects in wet areas (bathrooms/kitchens) that must be rectified.
• Enforce Repairs: RWA must ensure the builder repairs all defects promptly.
• Transfer Utilities: Builders should transfer utility connections (power, water) to the RWA or provide a No Objection Certificate if not possible.

Maintenance Fees & Inspection

• Maintenance fees and inspection details often remain undisclosed until handover.
• Early collection of this information helps the RWA develop effective maintenance fee structures.
• These fees cover upkeep and security of common areas, amenities, and centralized utilities.

Society Handover Process Overview

Step	Description
FM Company Selection	Choose a competent team for ongoing society upkeep
Building Inspection & Snagging	Identify defects before taking control
Equipment and Utilities Check	Verify builder’s assets and utility transfers
Repair Enforcement	Ensure timely defect rectifications by builder
Maintenance Fees Planning	Prepare fees structure based on inspection insights

Society Handover from Builder Letter Format

A formal handover letter from the builder to the society is an essential legal document that confirms the transfer of possession and responsibilities. This letter ensures transparency and acts as proof of completion of the handover process.

Sample Format Overview

Section	Description
Subject & Date	Handover confirmation and letter date
Builder Info	Builder’s official details
Society Info	Society and RWA committee details
Property Details	Units and common areas handed over
Legal Clauses	Agreements and RERA compliance references
Document List	Certificates, plans, financial records
Closing Remarks	Confirmation of possession & sign-off request

Read also: Letter Format for Housing Society

Checklist for Society Handover from Old Committee to New Committee

When the old committee hands over to the newly elected committee, it is vital to have a clear checklist to ensure smooth transition:

• Transfer of all legal, financial, and operational documents
• Handover of keys, security codes, and access controls
• Balance sheet and audit report of the society’s funds
• Records of pending dues or litigations
• Maintenance and vendor contracts

Read also: Management Committee Roles and Responsibilities

Easy Society Management Post-Handover: NoBrokerHood

NoBrokerHood is a comprehensive platform designed to simplify society management after handover. It helps RWAs and Facility Management companies streamline maintenance fee collection, automate bill payments, and manage accounting with transparency. 

The platform offers digital tools for tracking repairs, vendor management, and resident communication, ensuring a hassle-free, efficient management experience. By integrating with NoBrokerHood, newly formed societies can focus on building a stronger community, leaving administrative complexities to smart technology.

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