Creating A Corpus Fund for Maintenance of Apartments

A corpus fund for maintenance is a substantial amount of money that the builder collects from the buyer at the time of booking an apartment. It is used for the building and maintenance of the several recreational amenities that the builder has promised at the time of the booking.

In addition to maintaining the common areas such as parking, the corpus would also contain funding to maintain the apartment until the apartment is handed over to the respective buyers. However, as such, the corpus amount is out of bounds and maintenance will be funded only from the interest that accrues.

How Are Maintenance Charges Collected Once the Builder Moves Out?

Normally, builders are responsible for the development of an entire project from the very beginning until they hand over possession to the intended allottees. However, they have an additional task of ensuring that the liabilities of the project are transferred to another entity. A Resident Welfare Association/Society is established to achieve this objective.

Under Section 11(4)(e), the builder shall facilitate the formation of an association/society/co-operative society of the allottees, as the case may be, within three months of the majority of the allottees booking their apartments.

In Summary

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