Special Ownership Rights for Flat Owners

 Legal News India: Apartment buyers struggling to sell their property, obtain loan on it, or transfer it to their children as a legacy, will now see an end to their struggle.

The Delhi High Court has now guaranteed the buyers “exclusive ownership rights.”
Headed by Acting Chief Justice A.K. Sikri, a bench has notified the authorities that a “deed of apartment” must be executed for flat buyers according to the Delhi Apartment Ownership Act. This will allow owners “heritage right”.
Although there was a 2010 court ruling and a law in this regard, it was difficult for the flat-owners to hold, use, enjoy, transfer and/or mortgage their flats without the intervention of the court. As the owners did not have absolute right on an indivisible land till now, they required to hire an attorney to transfer their property.

With this deed, flat owners will enjoy the right to vote, form their own association and fix maintenance. Their membership will be at par with that of the original allottees. This will ensure a flat owner’s undivided interest in the common areas and facilities concerned with their apartments. Read transfer of property here.

Currently, the title of such properties lies with the society which makes it difficult for the flat owner to secure loans on the property. However, the High Court directive seeks to change this.
The Court has directed the Deputy Commissioners (DC) of all the districts in Delhi to gather the requisite information and necessary documents from the owners, builders and the government agencies for the execution of the deed.

O.S. Bajpai filed this petition to ensure the implementation of the 2010 verdict. According to the verdict, the land owning agencies, L&DO and DDA, had been asked to appoint competent authorities in accordance with the Delhi Apartment Ownership Act. It was noted by the HC that sufficient number of officers were not appointed. Furthermore, the court did not give much consideration to the authorities’ insistence that execution of the deed was not possible in cases where the promoters or the builders did not hand over the required paperwork.  Read FAQ's on NRI real estate in India

The HC also proclaimed that effective steps had not been taken so far to compel the promoters/builders to act accordingly, thus ensuring smooth functioning of the Act. There are no penalties prescribed by law for those promoters not willing to execute the deed. The HC has asked the concerned parties to respond, following which they would offer the final verdict.