The Maharashtra Apartment Ownership Act was published in the Maharashtra Government
Gazette on February 19, 1971. This Act was established for individual ownership, making it a heritable and transferable asset. It is important to note that the Act only applies to property.
According to the Act, the owner must file a declaration, which must be duly executed and
recorded.

The Maharashtra Apartment Ownership Act led to similar legislation in other states. An
example is the Karnataka Apartment Ownership Act of 1972.
According to the Maharashtra Apartment Ownership Act 1970, apartment owners have the legal right to fully own their homes, including their proportionate share of the apartment’s undivided common areas and amenities.

It also makes apartment ownership transferable and heritable, allowing owners to secure
mortgages. Apartment owners and builders benefit from this because they can use the freed-up money to start new projects.

Along with this, the Act facilitates the formation of associations among apartment owners, who take responsibility for ensuring residents’ welfare and advancing their rights. Although there are apartment owner’s associations that are not registered, it is always advisable to protect your association’s legal rights in the event of a later dispute.

The Act gives the owner complete ownership of the apartment and the power to organize a
group of other apartment owners to set the building’s bylaws.
All the apartment owners are legally protected, as disputes that arise due to conflict in the said association of apartment owners shall be governed under the civil jurisdiction of the law.

The key features of the Act

● According to the Maharashtra Apartment Ownership Act, you will be
considered the owner of a particular apartment in the building with a
proportional share in the undivided common areas and facilities. In
other words, in addition to having all the rights of an owner, you become the sole
owner of your apartment or the entire building.

● The apartment will also become heritable and transferable, from which you can
raise capital. You have the right to transfer ownership of your apartment to
anyone you choose, provided that you follow the bylaws.

● Among other Maharashtra laws, the Cooperative Societies and Companies Act
considers a flat part of the building and a unit owned jointly by the company or
society. While a flat is a unit of the building, the Maharashtra Apartment
Ownership Act of 1970 views it as a separate unit of ownership.

You can form an association with apartment owners.

● All apartment owners willing to join the association need to come together in one
place to complete the formalities.
● The association must have at least seven members over the age of 18.
● A Memorandum of Association includes information such as the names and
addresses of the organization and the occupations of all association members.
● Along with the Memorandum of Association, the association’s rules, and
regulations, or bylaws, must be filed.
● One or more buildings must contain at least five apartments to qualify to form an
association.

Understanding the terms used in the act

Common Expenses
These expenses are sums of money rightfully levied against apartment owners for
administration, upkeep, and repair, modifying communal spaces and amenities.
Common areas and facilities
Common areas and facilities include the land on which the multi-story apartment building is
situated, gardens, cellars, parking areas, or other similar structures, as well as all the structural components such as lobbies, corridors, fire escapes, beams, and columns.

Memorandum of Association
The name and purposes of the organization are listed in the Memorandum of Association, along with the location of the organization’s registered office, the names, addresses, and occupations of the members of the governing body, as well as the signatures of those who have subscribed to the document.

Conclusion
The Maharashtra Apartment Ownership Act of 1970 gives apartment owners the right to full
ownership of their units, which includes an equal share of the undivided common space and
amenities. As a result, the apartment owners are charged with ensuring the welfare of the
residents of the building and advancing their rights. The apartments are heritable and
transferable, allowing the owner to obtain a mortgage for the particular apartment.