What you should know about maintenance charges
The flat maintenance charges law is something that will enlighten you about the statutory angle of maintenance charges on flats. Buying a flat is accompanied by a series of different charges which are aside from the fees you have paid during the registration of ownership. Maintenance charges are paid either monthly or annually by the flat owner to the society or the resident’s welfare society. These payments are made for the upkeep of the place in the property complex known as the common area. Housing society will charge these maintenance costs based on the area of your flat and other factors. If you miss out on the finer points or hidden costs while buying a flat, you may have to repent later when you’ve already lost an opportunity to redress the issue in your favor.
You, as a buyer, have also got to be aware that you’ve all the right to ask for the items on which these charges will be spent and how much or how far these items concern you. You should also know the facilities and amenities provided by the society or the builder before you sign on the dotted line. If you find that there is a clause of advance maintenance charges, you should pause and discuss before going ahead because once the payment is made, there is no choice going back. There is a GST law that says if the monthly maintenance charge per individual owner is less than rs7500, there are no GST charges. If you knew the law, you’d be doubly cautious about overcharging on account of GST. Since maintenance charges are slapped right from the inception of a deal of sale, the main purpose of maintenance charge to upkeep, maintain, clean, go for annual maintenance of generator and lift, and the upkeep of the areas not under the ownership of the flat owner. The developer shall submit documents that he is doing this job of maintenance on his own and he is not getting any remuneration for the same. That wards off any vested interest of a third party that would not serve the rightful owners properly.
Types of Maintenance Charges
Expenses on repair and maintenance of the building are 0.75% per year of the construction cost per flat. Service charges like housekeeping, security guard, equipment used, electricity charges and so on are equally divided among the residents. Expenses on repair and maintenance of lifts are also divided. There is a sinking fund that is .25% of the cost of each flat. Non-occupancy charges are also levied for rented flats and these are @10% of service charges. There is a cost of parking and parking charges are levied based on the number of parking spaces provided to the flat owners.
A Detailed Description of charges
Once you become an owner and have taken possession of your flat, you are part of the larger gated community. It is enjoyable and full of pride to own a piece of property but along with it comes commitment and responsibility that lasts lifelong. It is not a thing of worry but a matter of investment for an untrammeled comfortable living for life. If maintenance charges abide by the compliance of law and are justified, there no way to think they are a kind of burden on you.
The charges can be divided as per the points mentioned below:
Service charge: These charges include electricity supply for the common area, security arrangement, lift operator, cleaners or janitors, parks and gardens, etc.
Repair and maintenance charges: It incorporates internal roads, pumping system, drainage facility, elevator service, generator service, street lights, equipment or gadgets for security, etc.
Charges for parking of vehicles: It applies to you if you’re a vehicle owner and you utilize the space provided to you. There are different rates for two and four-wheelers.
Charges for water: Water charge is based on the number of water inlets in each flat.
Non-occupancy charges: If you’re not residing in your flat, this charge, which is within 10% of the service charge, will be levied.
Sinking Fund: It is also known as an emergency fund kept for contingencies or unforeseeable circumstances. The quantum of the fund is determined by the governing body of the housing society.
Property Tax: This tax is charged by the authority designated by the state government.
Interest on defaulted payments: You will be charged for late payments to the tune of a maximum of 21% per annum of the charges.
Insurance charges; Building and its equipment are often insured and there will be an annual premium payment that will be shared by the members.
Lease and rent charges: Lease and rent charges depend on the area of each flat.
In a nutshell, it can be said that maintenance charges are necessary and they must be paid by each owner of a flat or apartment. It is essential because these charges are against a host of services you receive as a rightful owner of the property and it ensures a lifelong peaceful and comfortable living. There is an assurance of hassle-free existence.
