Society Handover:A Comprehensive Guide

The developer and the co-op need to perform their homework before the handover is complete to comply with the RERA’s guidelines for cooperative societies. 

Society Handover formalities, including financial, operational, and technological considerations, might take up to five months to complete. We provide an all-encompassing manual that clarifies the process for you.

It usually takes three years to build a residential complex and sell homes or apartments. It is recommended that the purchasers get actively engaged in the legal procedure throughout the final phases of the building to make sure everything is proceeding as planned. 

Concurrently, officially registering your co-op is necessary for a smooth transition of society handover.

4 Property Certificates & Documents to be Obtained from the Builder

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 transfer.

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.

List of Financial Documents required for Society Handover

Transferring all financial accounts, papers, and records from the builder is part of the protocol. The society should preferably engage an auditor/tax expert, either outside or from within the members, to ensure that no financial mismanagement occurs. The following items comprise the housing society handover checklist–

1. A copy of the building’s insurance policy.
2. Property and construction tax payment receipts.
3. Certifications of no delinquency and security deposit information for utilities such as water and electricity.
4. Details of all payments made for repairs and service tax when the property was under the builder’s care monetarily.
5. Providing the remaining investment or corpus.
6. A detailed accounting of all member payments received (beyond the purchase price).
7. Audited account statements for those mentioned above.

What is the Operational Handover required from the Builder?

Although the transition to new management may seem simple at first glance, it requires a large number of inventories and technical manuals, which means the society has to include someone proficient in these areas for handing over taking over procedures. 

Every community needs to ensure the safety and security of its citizens. The Managing Committee must conduct a thorough physical inspection of the whole building before the handover.

1. Equipment such as generators, gym equipment, sewage and water treatment facilities, etc.; Annual Maintenance Contracts (AMCs), vendor information, invoices, and service records.
2. Plans for water and sewage treatment that are drawn by hand and include technical information and requirements;
3. A detailed inventory of the building’s furnishings and assets, both portable and fixed;
4. Compounding plans for the building’s convenience shops, offices, etc., in detail and with approval;
5. Gas piping system schematics (if applicable), official authorization, and inspection reports;
6. Includes user guides, technical warranties, contracts, and inspection reports for CCTV access control system (if applicable);
7. Electrical wiring diagrams include earthing locations, preventive measures, generator set layouts, and diesel fuel storage area;
8. Technical drawings of the water distribution system, results of water quality tests, specifications for the water storage tanks on the roof, a report on the water level in the borewell, and proof of legal rainwater collecting;
9. There are smoke detectors, fire alarms, and panic buttons installed throughout the building, a complete stock of fire hoses, hydrants, and extinguishers, and accompanying documentation and instructions detailing the resident alert process.
10. Planned and numbered spaces for automobiles;
11. Community building, park, and other shared space plans and blueprints;
12. A copy of the lift’s operating licence, a copy of the lift’s clearance to operate it, the lift’s safety manual, the warranty and renewal information, and any other relevant paperwork
13. Validated software and tariff rates for a multi-utility pre-paid metre
14. Documentation of the current service and maintenance team’s schedule and duties.

1. Equipment 

• Generators
• Gym equipment
• Sewage and water treatment facilities

2. Annual Maintenance Contracts (AMCs)

• Vendor information invoices
• Service records

3. Hand drawn plans for water and sewage treatment facilities.

4. Inventory of the building’s furnishings

• Portable and fixed assets.
• Convenience shops
• Offices (with approval details)

5. Gas piping system schematics (if applicable), official authorization, and inspection reports.

6. CCTV access control system with

• User guides
• Technical warranties
• Contracts 
• Inspection reports 

7. Electrical wiring diagrams including

• Earthing locations 
• Preventive measures 
• Generator set layouts 
• Diesel fuel storage area

8. Water distribution system

• Results of water quality tests
• Specifications for the water storage tanks on the roof 
• Updated water level in the borewell
• Proof of legal rainwater collecting

9. Complete stock of the following

• Smoke detectors
• Fire alarms
• Panic buttons installed
• Fire hoses and hydrants
• Fire extinguishers 
• Documentation and instructions detailing the resident alert process

10. Planned and numbered spaces for automobiles.

11. Community building, park, and other shared space plans and blueprints.

12. Elevator/Life management details

• Copy of the lift’s operating licence
• Copy of the lift’s clearance to operate it, 
• Lift’s safety manual
• Warranty and renewal information
• Validated software and tariff rates for a multi-utility pre-paid metre
• Documentation of the current service and maintenance team’s schedule

Legal Documents Important for a Society Handover

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.

1. The builder and the landowner’s signed contracts must be submitted to the organisation.
2. Copies of every transfer and sale of ownership deeds and Share Certificates must be submitted to the Society’s officers.
3. Zero-dues certificates/guarantees and legally enforceable contracts with all suppliers and maintenance firms should be issued to the builder handover to Society.
4. Certifications from independent inspectors and copies of insurance policies covering amenities and equipment.
5. 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.

The Ultimate Society Handover Checklist

The next stage in making sure the transition goes well is for the RWA to choose a good Facility Management (FM) company to take care of the building in the future. Ideally, this would be taken care of right after the RWA was established. Confirm that the FM business chosen can complete a full transition on behalf of the RWA.

1. Once the FM Company has been chosen to manage the premises after the handover, a thorough transition program should be mapped out for snagging and the handover itself. 
2. This means the FM company will send out a team to inspect the building and report any problems they find to the builder so that they can fix them before the FM company takes over. 
3. Ensure that the builder’s supplied equipment (such as the generators, septic tanks, swimming pool, and fire alarms) is in good working order. 
4. Verify any leakages which are important for snagging, particularly in wet areas like the kitchen or bathroom. It would be unreasonable to expect the builder to go back and rectify them after the fact. 
5. Once the FM Company has provided the RWA with a comprehensive list of problems and deficiencies, the RWA is responsible for enforcing prompt repairs by the builder.

6. In addition to handing over the facilities, the builder is also responsible for transferring the utility connections, such as the RWAs access to power and water, to the RWA. 
7. If the builder can’t make such changes, he must provide a certificate stating that he has received a No Objection to the Work.

Maintenance Fees & Society Handover Checklist

The amount of the maintenance fees is apartment handover inspection is often kept private throughout the selling process but is instead disclosed at the time of handover. 

Gather this data in advance so the RWA can develop a maintenance fee structure that best suits their needs. 

Maintenance fees are essential because they cover the costs of upkeep and security for common spaces like lobbies, elevators, gardens, and parking lots and centralised utilities like power and air conditioning. 

Society Handover Legal Checklist

It’s also important to note that when the FM company takes over, they should recommend hiring a full-time accountant for the Society. This information will be useful when the RWA collects the maintenance fees and explains them to the other residents.

Before a building is sold, the developer often agrees to provide several perks to the buyer. However, some of them could be late or fall short of the advertised quality. Verify that all advertised features are in working order and following the sales contract.

Last but not least, the chosen FM Company should recommend the creation of a Resident Manual as the last stage in taking over the Society. All current and future occupants of the building are expected to adhere to the policies outlined in the Resident Manual. 

Usually, this takes a few months to make with everyone’s involvement. Included in this are such things as clubhouse administration, vendor scheduling, parking regulations, and maintenance fees. The rules and procedures that all tenants must abide by may be found in a handbook provided to each newcomer.

Facilities management, financial management, vendor management, and, most significantly, communication and handover management are all part of the current real estate market’s management process, which aims to foster a connected and cohesive neighbourhood. 

It’s easier to conceive of keeping track of everything with a community management platform or a fun homeowner app. This is exactly why thousands of residential society associations choose NoBroker Hood for all of the residential property management needs. 

NoBroker Hood provides comprehensive residential and commercial property management solutions such as visitor management, accounting management, maintenance and utility bill payments, and apartment management as well. 

Contact the experts at NoBroker Hood for a free consultation. Ensure the smooth management of your properties at an efficient cost. Drop an E-mail and Our executive will be in touch with you soon. 

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