What is IFMS Charge?

Anytime you are purchasing real estate, you should always think about IFMS and IDC costs. These factors should be communicated to the buyer. How do IFMS charges work? There has been a lot of confusion regarding the question of how IFMS charges work in real estate.

There are times when home buyers have to pay additional charges such as the IFMS or the Interest-Free Maintenance Security fee that must be paid at the time of possession of the residential or commercial property. Developers charge this fee to investors or buyers in a commercial or residential project, credited to a separate account.

The developer will hold this money in his possession until the RWA (Residential Welfare Association) is established in the residential project, following which the developer will transfer the funds to this association.

Note, however, that interest will not be passed onto the association and will be in favour of the buyer. Typically, resident welfare associations (RWA) will be established at least one year after the project has been delivered. This could be anything from an elevator failing to the construction of a park to enhanced security or any other building maintenance.

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