Common areas are part of a property that is accessible to every tenant and the owner. The common area in the apartment includes sidewalks, swimming pools, hallways, community halls, parking lots, etc. If an area or element of a property is free for use by every resident, it comes under the common areas and facilities.
One can find multiple case laws which are for the valuation of the common areas in a property for evaluating the property taxes. Amenities like clubs and pools that come under the well-maintained elements of the property can lead to an increase in the property values but the majority of the courts state that common areas have a nominal value.
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Common Area in a Apartment or Building Includes:-
According to the Real Estate Act of 2016, the common areas are inclusive of:
- The complete land of the project and in case the project is being completed in phases and RERA registration is done for a particular phase, then the entire land of that specific phase.
- Elevator or staircase lobbies, staircases, elevators, common entry and exit of the property, and fire escapes.
- Open parking land, playgrounds, parks, basements, terraces, storage spaces that are common to the property.
- The areas are given for the stay of people maintaining the property which is also inclusive of stays for ward staff, watchmen, and community personnel.
- Commercial and community facilities are mentioned in the project.
- Compressors, ducts, sumps, water tanks, and every apparatus and appliance installed for common use.
How can one identify a common area in a property?
The registration papers and sale deed of the project include the details of the land on which the property is being built and also of the common areas and facilities. These documents will also mention whether a particular property is a freehold or leasehold property. If the property is a leasehold one, it will also mention the tenure of the lease. Also, it will have the undivided interest which is regarding the property in the common areas. Common areas and facilities that are limited should also be mentioned.
Maintenance of Common Areas
The amount paid by the owners of the individual units of a property collectively for upkeeping the common areas is termed as common area maintenance of a property. Maintenance and upkeep of the common areas is a cumulative responsibility. The contributions which are done for this purpose are a fee which is to handle the management cost and costs of any damage or repair. Common Space maintenance can also be called the cost of operational management. If the property is on a lease, this amount is calculated as a load factor which gets adjusted in the overall rent.
What does the Apartment Act state about the common areas?
- The common areas of a property cannot be divided and any of the owners or residents can ask for a portion of the common Space individually. Any such division will be considered invalid. Also, the co-owners cannot hinder or restrict the right of others over the common areas.
- The association formed out of the owners has the right to access the common spaces but in the right hours for any repair or maintenance-related work. Any such task should be carried out in accordance with the Apartment Act and bye-laws of that particular state.
Can developers sell the common roof rights?
A rooftop or terrace of a property comes under a common area and is meant to be accessed by the residents and owners. It has been witnessed that developers try to give access to a terrace or sell it for payment which is considered to be illegal. In the eyes of law, this comes as a disadvantage for residents who cannot access the rooftop or terrace. If the residents file a case for this, the developers can see themselves landing in trouble.
Important Real estate Terms You Should Know
Commencement Certificate | What is Commencement Certificate |
Carpet Area | What is Carpet Area |
Brownfield Project | What are Brownfield Project |
built-up-area | What is built-up-area |
Debt to Income Ratio | What is Debt to Income Ratio |
Super Built-up Area | What is Super Built-up Area |
Annual Statement of Rates | What is Annual Statement of Rates |
Fixed Rate Home Loan | What is a Fixed Rate Home Loan |
Written Down Value | What is Written Down Value |
Crowdfunding | What is Crowdfunding |
Frequently Asked Questions
What are considered common areas?
Common areas include sidewalks, swimming pools, hallways, community halls, parking lots, etc.
What is a common area in a development?
The area which is co-owned by every resident and is indivisible is a common area in development.
Is a balcony considered a common area?
No, balconies come under exclusive possessions.
What is a limited common area?
The areas which are owned by the residents but are considered as the property of the community are limited common areas.
Is a garage a common area?
If a garage is for every resident’s use, it is a common area.
Can common areas be converted for other purposes?
Common areas can be used for other purposes but cannot be converted by an individual.
What happens if a co-owner does not pay maintenance charges for common areas?
Usually, the management sends a notice to the defaulter.