Here I have tried to list some
of the basic differences between the ownership of flats under MAOA, Co-operative
Societies & Companies Act says Adv. R. P.
Rathod.
Ø The Maharashtra Apartment Ownership
Act, 1970 is, as its preamble states, an Act to
provide for the ownership of an individual apartment in a building and to make
such apartment heritable and transferable property. Heritability and transferability of the apartment is the basic
feature of holding the property governed by this Act, which distinguishes it
from holding the property governed by the Co-operative
Societies Act or the Companies Act. The entities are as under:
Ø The
flat owners under MAOA are independent
owners of their flats, whereas the members of society or company exercise
their rights through the society or the company, which remains the legal owner.
Even though condominium is formed under the MAOA, such condominium does not exercise the right of ownership and does not
have corporate existence. It exists only for regulating the mutual relations of
members.
Ø Under
the Co-operative Society/
company, flats form part of the building, which is a unit of common ownership with the
society/ company, whereas, under MAOA each
flat is an independent unit of ownership though part of the same building.
Ø A
flat owner under the society/company
structure has only a right of
occupancy and it is such right of occupancy, which is heritable and
transferable. As against this, under the MAOA
structure, the flat owner is also the owner of the physical structure of
the flat entitled to all the rights of an owner.
Ø The
right of a flat owner under the society act to transfer his occupancy right in the flat is subject to the approval
of the society whereas there may not be any restriction on the right of transfer by an apartment owner under MAOA
according to the Bye Laws.
Ø A
transfer of right by a flat owner in a
co-operative society is possible only to a member of the society. In case
the buyer is not an existing member, he is required to be admitted as a member.
An apartment under MAOA is not subject to any such restriction. Under the
society/company structure, the building and land belong to the society/company
as a legal entity whereas the flat owner MAOA
is not only the owner of the flat but is also the owner of the (to the
extent attributable to the flat) land married to the building and also
proportionately common as specified by the declaration of apartment ownership.
Ø To
constitute a society minimum of 10
members are required, while to constitute a company two or seven members
are required depending upon whether the company is private or public company. Condominium can be formed if there are five
or more apartments.
Ø The
land in a building is transferred to the
society/company by a single deed of conveyance, but in case of MAOA a separate deed
of transfer is required in respect of each flat including proportionate
interest in the land married to it and proportionate common area.
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