Society Handover To Homeowners Association: What Homeowners Must Know

When a builder hands over the management and maintenance duties to a residents’ welfare association (RWA) or apartment owners’ association (AOA), it is usually considered an eventful milestone in the home ownership journey of the homebuyers. This handover usually takes about 3-5 months after the project wraps up. However, it also calls for necessary checks, which if not done, could lead to residents ending up dealing with legal issues, financial risks, or poorly managed shared resources.

Why Does Society Registration Matter?

Any transfer of assets, maintenance charges and liabilities can only be made to a registered RWA and/or AOA. With no registration, ownership of the common areas remains with the builder or developer. In practice this means the builder may continue collecting maintenance fees and managing operations, something that homeowners must avoid.

Homebuyers should verify registration status with the Registrar of Co‑operative Societies in their state. If registration is pending, achieving legal transfer becomes difficult.

What Legal Documents Should Be Reviewed?

Here are a few legal documents one should review.

Current vendor contracts: Carefully study maintenance, service provider and warranty agreements.

Society bank: Changeovers in signatories for the cheque books, statements and operation of account should be moved to the resident committee.

The RWA and/or AOA should ideally also go for an audit of the financial records before taking over the records. They can also engage an advocate to check the paperwork and other compliance with the Real Estate Regulatory Authority (Rera) regulations before taking official charge.

Title deed or conveyance deed: This is a legal document that transfers property and common areas of the land to the society.

No Objection Certificates (NOCs): These are required from fire, electricity, water, and pollution control authorities to ensure that all is in line with prescribed standards.

Sale deeds and share certificates: All title papers should be transferred to concerned officials within the society.

Having these documents in place will safeguard residents from possible claims or disputes in the future.

What Financial Records Must Be Transferred?

A transparent handover requires full financial disclosure. Residents should cross check the following:

• Audited financial statements

• Tax payment receipts

• Utility no‑dues certificates and security deposits

• Maintenance, service provider, and guarantee contracts should be reviewed carefully.

• Up-to-date bank accounts, cheque books, statements, and official transfer of control of the bank account to the RWA/AOA

How Should Physical and Technical Assets Be Inspected?

The society must obtain an inventory of all assets and equipment: lifts, pumps, security systems, water tanks, parking infrastructure and common‑area installations. Where possible, professionals with technical expertise should verify condition and operational status.

A significant feature of Rera is that it stipulates a five-year defect liability period. During this time, the builder remains responsible for correcting structural defects or poor workmanship found by the society.

Should Legal Experts Be Engaged?

Having a legal counsel review documents and agreements is imperative. In addition to ensuring compliance with Rera rules, a lawyer can verify the completeness of documentation and identify potential liabilities. Performing this audit now can prevent costly disputes in the future.

FAQs: Frequent Questions About Society Handover

What should homeowners do if a dispute emerges during handover?

Residents should first attempt an amicable resolution by referencing the terms of the handover agreement. If unresolved, they may file a complaint with Rera or approach consumer forums.

Is the builder still accountable for defects post‑handover?

Yes. Under the typical five‑year defects liability period, the builder must address any structural or quality defects discovered after possession, at no extra cost.

What will society have to manage after the handover?

After the turnover, it is the society’s duty to oversee and upkeep constructions, such as parking places, lifts, gardens or other common places, which have to be taken care of from the funds collected as resident maintenance charges.

How can an owner confirm that the builder has complied with handover conditions?

Residents have to ensure all schedules have been adhered to and requisite legal approvals (OC, CC and NOCs) have been taken from the concerned authorities.