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Gujarat Ownership Flats Act, 1973
GUJARAT ACT NO. 13 OF 1973
28th June, 1973
An Act to regulate promotion of the construction of, and the sale, management and transfer of, flats on ownership basis and to provide for the ownership of an individual apartment and to make such apartment heritable and transferable.1* 1. For Statement of Objects and Reasons See Gujarat Government Gazette, Extraordinary, Part-V, dated the 7th March, 1973, p. p. 201-204 * This Act was assented to by the President on the 22nd June, 1973.
Read full Act(1) This Act may be called the Gujarat Ownership Flats Act, 1973.
(2) It extends to the whole of the State of Gujarat.
(3) This section shall come into force at once and the remaining provisions of this Act shall come into force in such areas, and on such dates as the State Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different areas.
In this Part and in Part III, unless the context otherwise requires-
(1) Notwithstanding anything contained in any other law for the time being in force, a promoter who intends to construct or constructs a block or building of flats, all or some of which are to be taken or are taken on ownership basis shall, in all transactions with person intending to take or taking one or more flats on ownership basis, be liable to give or produce, or cause to be given or produced, the information and the documents hereinafter in this section mentioned.
(2) A promoter, who constructs or intends to construct such block or building of flats, shall-
Notwithstanding anything contained in any other law for the time being in force, a promoter who intends to construct or constructs a block or building of flats, all or some of which are to be taken or are taken on ownership basis shall, before he accept any sum of money as advance payment or deposit, which shall not be more than 20 per cent of the sale price, enter into a written agreement for sale with each of such persons who are to take or who have taken such flats, and the agreement shall be registered under the Registration Act, 1908 and such agreement shall contain the prescribed particulars; and to such agreement there shall be attached such documents or copies thereof, in respect of such matters, as may be prescribed.
The promoter shall maintain a separate account in any bank of sums taken by him, from persons intending to take or who have taken flats, as advance or deposit, including any sums so taken towards the share capital for the formation of a co operative society or a company, or towards the outgoings (including ground rent, if any, municipal or other local taxes, taxes on income, water charges, electricity charges, revenue assessment, interest on any mortgage or other encumbrances, if any); and he shall hold the said moneys for the purposes for which they were given and shall disburse the moneys for those purposes, any shall on demand in writing by an officer appointed by general or special order by the State Government for the purpose, make full and true disclosure of all transactions in respect of that account.
A promoter shall, while he is in possession, and where he collects from persons who have taken over flats or are to take over flats sums for the payment of outgoings even thereafter, pay all outgoings (including ground rent, municipal or other local taxes, taxes on income, water charges, electricity charges, revenue assessment, interest on any mortgage or other encumbrances, if any), until he transfers the property to the persons taking over the flats, or to the organisation of any such persons.
(1) After the plans and specifications of the building, as approved by the local authority as aforesaid, are disclosed or furnished to the person who agrees to take one or more flats, the promoter shall not make—
(2) Subject to sub-section (1), the building shall be constructed and completed in accordance with the plans and specifications aforesaid; and if any defect in the building or material used, or if any unauthorised change in the construction, is brought to the notice of the promoter within a period of one year from the date of handing over possession, it shall wherever possible be rectified by th
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then, in any such case, the promoter shall be liable on demand (but without prejudice to any other remedies which may be available against him) to refund the amounts already received by him in respect of the flat (with simple interest at nine per cent. per annum from the date he received the sums till the date the amounts and interest thereon are refunded), and the amounts and the interest shall be a charge on the land and construction if any thereon, in which the flat is or was to be constr
No promoter shall, after he executes an agreement to sell any flat, mortgage or create a charge on the flat or the land, without the previous consent of the persons who take or agree to take the flats, and if any such mortgage or charge is made or created without such previous consent after the agreement referred to in section 4 is registered, it shall not affect the rights and interests of such persons.
(1) As soon as a minimum number of persons required to form a co-operative society or a company have taken flats, the promoter shall within the prescribed period submit an application to the Registrar for registration of the organisation of persons who take the flats, as a co-operative society or, as the case may be, as a company; and the promoter shall join, in respect of the flats which have not been taken, in such application for membership of a co-operative society or, as the case may be, of a company. Nothing in this section shall affect the right of the promoter to dispose of the remaining flats in accordance with the provisions of this Act.
(2) If any property consisting of building or buildings is constructed or to be constructed and the apartment takers propose to submit the apartments to the provisions of Part II by executing Declarations and Deeds of Apartments as required by that Part, then the promoter shall inform the Registrar accordingly, and in such cases it
A promoter shall take all necessary steps to complete his title and convey to the organisation of persons, who take flats, which is registered either as a co-operative society or as a company as aforesaid, or to an association of flat-takers or apartment owners, his right, title and interest in the land and building, and execute all relevant documents therefor in accordance with the agreement executed under section 4 and if on period for the execution of the conveyance is agreed upon, he shall execute the conveyance within the prescribed period and also deliver all documents of title relating to the property which may be in his possession or power.
(1) Every person who has executed an agreement to take a flat shall pay at the proper time and place the price, his proportionate share of the municipal taxes, water and electricity charges, ground rent (if any) and other public charges in accordance with his agreement with the promoter; and where a co-operative society or a company of persons taking the flats is to be constituted, co-operate in the formation of such society or Company as the case may be.
(2) Any person who has executed an agreement to take a flat and who, without reasonable excuse, fails to comply with or contravenes the provisions of sub- section (1) shall, on conviction, be punished with fine which may extend to two thousand rupees.
(1) No person, who is a promoter, or who is in charge of management or connected with the management of a block or building of flats whether as member of a managing committee, director, secretary or otherwise, or is responsible for the maintenance thereof (hereinafter in this section referred toas “the manager"), shall, without just and sufficient cause, either by himself or through any person cut off, withhold or in any manner curtail or reduce, any essential supply or service enjoyed by the person who has taken a flat or by any person in occupation thereof through or under him in respect of the flat taken, or agreed to be taken, by him.
(2) The person who has taken or agreed to take the flat or the occupier may, if the manager has contravened the provisions of sub-section (1), make an application to the Court for a direction to restore such supply or service.
(3) If the Court on enquiry finds that applicant or the person through or under whom he is in occupation has
The provisions of this Part, except where otherwise provided, shall be in addition to the provisions of the Transfer of. Property Act, 1882 and shall take effect notwithstanding anything to the contrary contained in any contract.
As respects flats which on the commencement of this Part have already been constructed, or converted, the provisions of sections 2, 6, 8, 9, 10, 11, 12, 13, 42, 43 and 44 shall apply subject to the following modifications, that is to say-
Nothing in this Part shall apply to the Gujarat Housing Board constituted under the Gujarat Housing Board Act. 1961.
This Part applies only to property, the sole owner or all of the owners of which submit the same to the provisions of this Part by duly executing and registering a Declaration as hereinafter provided : Provided that, no property shall be submitted to the provisions of this Part unless it is mainly used, or proposed to be used for residential purposes.
In this Part, unless the context otherwise requires,-
Section 18 of the Gujarat Ownership Flats Act, 1973 is a definitional and interpretive provision that primarily deals with the meaning of key terms used throughout the Act, most notably "common areas and facilities." It plays a pivotal role in determining the rights and obligations of flat owners, promoters, and housing societies, especially with regard to the enjoyment and use of shared amenities and the superstructure. The section has been the subject of extensive judicial interpretation, particularly in disputes involving redevelopment, terrace rights, and the enforceability of agreements between promoters and flat allottees.
Section 18 of the Gujarat Ownership Flats Act, 1973 provides definitions for critical terms such as "common areas and facilities" and "flat." It delineates what constitutes common areas and facilities within a building, including the foundations, columns, girders, beams, supports, main walls, roofs, halls, corridors, lobbies, stairs, stairways, fire escapes, and entrances and exits of the building. The section also clarifies the scope of these definitions in the context of redevelopment and the rights of flat holders.
The essential ingredients of Section 18 include:1. Definition of "Common Areas and Facilities": It explicitly lists the structural and shared parts of a building that are considered common areas and facilities, such as the roof, stairs, corridors, and lobbies.2. Definition of "Flat": It defines a flat as a separate and self-contained set of premises forming part of a building, used for residence, office, or other purposes, and includes an apartment.3. Relationship with Other Sections: The definitions provided in Section 18 are foundational for the interpretation of other provisions of the Act, particularly those relating to redevelopment (Section 41A) and the rights of flat owners.
The scope of Section 18 extends to:- Determining the rights of flat owners over common amenities and facilities, including the terrace and roof.- Interpreting the enforceability of agreements between promoters and flat allottees that seek to restrict the use of common areas.- Providing a legal framework for the redevelopment of dilapidated buildings under Section 41A, where the consent of 75% of flat owners is required.- Clarifying that the execution of an agreement to sell, even without a formal sale deed, does not extinguish the rights of flat holders to enjoy common amenities and facilities.
While Section 18 itself is a definitional provision and does not directly prescribe punishment, violations of the rights defined or protected under this section can lead to legal consequences under other provisions of the Act. For instance, offences under Sections 4 and 5 of the Act (relating to the promoter's obligations) are punishable under Section 42, which can include imprisonment and fines.
Each apartment, together with the undivided interest in the common areas and facilities, appurtenant to such apartment, shall, for all purpose, constitute heritable and transferable immovable property within the meaning of any law for the time being in force in the State; and accordingly, an apartment owner may transfer his apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment by way of sale, mortgage, lease, gift, exchange or in any other manner whatsoever, in the same manner, to the same extent and subject to the same rights, privileges, obligations, liabilities, investigations, legal proceedings, remedies and to penalty, forfeiture and puni- shment as any other immoveable property, or make a bequest of the same under the laws applicable to the transfer and succession of immoveable property.
(1) Each apartment owner shall be entitled to the exclusive ownership and possession of his apartment.
(2) Each apartment owner shall execute a Declaration that he submits his apartment to the provisions of this Part and a Deed of Apartment in relation to his apartment in the manner prescribed for the purpose.
(1) Each apartment owner shall be entitled to an undivided interest in the common areas and facilities in the percentage expressed in the Declaration. Such percentage shall be computed by taking as a basis the value of the apartment in relation to the value of the property; and such percentage shall reflect the limited common areas and facilities.
(2) The percentage of the undivided interest of each apartment owner in the common areas and facilities as expressed in the Declaration shall have a permanent character, and shall not be altered without the consent of all of the apartment owners expressed in an amended Declaration duly executed and registered as provided in this Part. The percentage of the undivided interest in the common areas and facilities shall not be separated from the apartment to which it appertains, and shall be deemed to be conveyed or encumbered with the apartment even though such interest is not expressly mentioned in the conveyance or other instrument.
Each apartment owner shall comply strictly with the bye- laws and with the administrative rules and regulations adopted pursuant thereto, as either of the same may be lawfully amended from time to time, and with the covenants, conditions an restri- ctions set forth in the Declaration or in the Deed of Apartment in respect of his apartment. Failure to comply with any of the same shall be a ground for an action to recover sums due, for damages or injunctive relief or both maintainable by the manager or Board of managers on behalf of the association of apartment owners or, in a proper case, by an aggrieved apartment owner.
No apartment owner shall do any work which is likely to jeopardise the soundness or safety of the property, reduce the value thereof or impair any easement or hereditament nor shall any apartment owner add any material structure or excavate any additional basement or cellar without in every such case the unanimous consent of all the other apartment owners being first obtained.
(1) Subsequent to recording the Declaration as provided in this Part and while the property remains subject to this Part, no encumbrance of any nature shall thereafter arise or be created or be effective against the property. During such period, encumbrances may arise or be created only against each apartment and the percentage of undivided interest in the common areas and _ facilities appurtenant to such apartment, in the same manner and under the same conditions in every respect as encumbrances may arise or be created upon or against any other separate parcel of property subject to individual ownership:
Provided that, if during the period any encumbrance has arisen or been created against such apartment and the percentage of undivided interest in the common arears and facilities, appurtenant to such apartment, no apartment and such percentage of undivided interest shall be partitioned or sub-divided in interest:
Provided further that, no labour performed or materials
The common profits of the property shall be distributed among, and the common expenses shall be charged to, the apartment owners according to the percentage of the undivided interest in the common areas and facilities.
(1) The Declaration shall contain the following particulars, namely :-
(1) Deeds of Apartments shall include the following particulars, namely :-
(2) A true copy of every Deed of Apar
(1) The Declaration and all amendments thereto and the Deed of Apartment in respect of each apartment and the floor plans of the buildings referred to in sub- section (2) shall all be registered under the registration Act, 1908.
(2) Simultaneously with the registration of the Declaration there shall be filed along with it a set of the floor plans of the building showing the lay out, location, apartment numbers and dimensions of the apartments, stating the name of the building or that it has no name, and bearing the verified statement of an architect certifying that it is an accurate copy of portions of the plans of the building as filed with and approved by the local authority within whose jurisdiction the building is located. If such plans do not include a verified statement by such architect that such plans fully and accurately depict the layout, location, apartment numbers and dimensions of the apartments as built, there shall be recorded prior to the first conveyance of a
(1) All the apartment owners may remove a property from the provisions of this Part by an instrument to that effect duly executed, if the holders of all charges and other encumbrances affecting any of the apartments consent there to or agree, in either case by instruments duly executed, that their charges of encu- mbrances be transferred to the percentage of the undivided interest of the apartment owner in the property as hereinafter provided.
(2) Upon removal of the property from the provisions of this Part the property shall be deemed to be owned in common by the apartment owners. The undivided interest in the property owned in common which shall appertain to each apartment owner shall be the percentage of undivided interest previously owned by such owner in the common areas and facilities.
The removal provided for in section 29 shall in no way bar the subsequent resubmission of the property to the provisions of this Part.
(1) The administration of every property shall be governed by bye-laws a true copy of which shall be annexed to the Declaration. No modification of or amendment to the bye-laws shall be valid, unless it is set forth in an amendment to the Declaration, and such amendment is duly recorded, and a copy thereof is duly filed with the competent authority.
(2) The bye-laws shall provide for the following matters, namely :-
No apartment owner may exempt himself from liability for his contribution towards the common expenses by waiver of the Use or enjoyment of any of the common areas and facilities, or by abandonment of his apartment.
Notwithstanding anything to the contrary contained in any law relating to local authorities, each apartment and its percentage of undivided interest in the common areas and facilities appurtenant to such apartment (being an apartment submitted to the provisions of this Part) shall be deemed to be separate property for the purpose of assessment to tax on lands and buildings leviable under such law and shall be assessed and taxed accordingly; and for this purpose, a local authority shall make all suitable rules to carry out the provisions of this section. Neither the building, the property nor any of the common areas and facilities shall be deemed to be separate property for the purposes of the levy of such tax.
All sums assessed by the association of apartment owners but unpaid for the share of the common expenses chargeable to any apartment shall constitute a charge on such apartment prior to all other charges, except only (i) charge, if any, on the apartment for payment of Government and Municipal taxes, and (ii) all sums unpaid on a first mortgage of the apartment.
Upon the sale of an apartment, the purchaser of the apartment shall be jointly and severally liable with the vendor for all unpaid assessment against the latter for his share of the common expenses upto the time of the sale without prejudice to the purchaser's or grantee's right to recover from the vendor the amount paid by the purchaser or grantee therefor. Any such purchaser shall be entitled to a statement from the secretary or Board of managers, setting forth the amount of the unpaid assessment against the vendor and such purchaser or grantee shall not be liable for, nor shall the apartment sold be subject to a charge for any unpaid share of common expenses against such apartment accrued prior to such sale or bequest in excess of the amount therein set forth.
The manager or Board of managers, if required by the Declaration or the bye-laws or by a majority of the apartment owners, or at the request of a mortgagee having a first mortgage covering an apartment, shall have the authority to obtain, and shall obtain, insurance for the property against loss or damage by fire, and such other hazards under such terms and for such amounts as shall be required, or requested. Such insurance coverage shall be written on the property in the name of such manager or of the Board of managers of the association of the apartment owners as trustee for each of the apartment owners in the percentages established in the Declaration. Premiums shall be common expenses. Provisions for such insurance shall be without prejudice to the right of each apartment owner to insure his own apartment for his benefit.
If within sixty days of the date of damage or destruction to all or part of the property, it is not determined by the association of apartment owners to repair, reconstruct or rebuilt the property, then and in that event,-
Without limiting the rights of any apartment owner action may be brought by the manager or Board of managers, in either case in the discretion of the Board of managers, on behalf of two or more of the apartment owners as their respective interest may appear with respect to any cause of action relating to the common areas of facilities of more than one apartment. Service of process on two or more apartment owners in any action relating to the common areas and facilities of more than one apartment may be made on the person designated in the Declaration to receive service of process.
(1) All apartment owners, tenants of such owners, employees of owners and tenants, or any other person that may in any manner use property or any part thereof submitted to the provisions of this Part shall be subject to this Part and to the Declaration and the bye-laws of the association of apartment owners adopted pursuant to the provisions of this Part.
(2) All agreements, decisions and determinations lawfully made by the association of apartment owners in accordance with the voting percentages established under this Part, Declaration or bye-laws, shall be deemed to be binding on all apartment owners.
For the removal of doubt it is hereby declared that the provisions of the Transfer of property Act, 1882 shall, in so far as they are not inconsistent with the provisions of this part apply to every apartment together with its undivided interest in the common areas and facilities appurtenant to such apartment as the aforesaid provisions apply in relation to any immovable property, and the provisions of this Part shall take effect notwithstanding anything to the contrary contained in any contract.
The Gujarat Housing Board Act, 1961 shall be amended in the manner and to the extent specified in the Schedule.
Any promoter who, without reasonable excuse, fails to comply with or contravenes any provision of Part I or of any rule made under this Part shall, where no other penalty is expressly provided for, on conviction, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to two thousand rupees, or with both; and a promoter who commits criminal breach of trust of any amount advanced or deposited with him for the purposes mentioned in section 5 shall, on conviction, be punished with imprisonment for a term which may extend to four years, or with fine, or with both.
(1) If the person committing an offence under this Act is a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of business by the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to such punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of th
(1) The State Government may, subject to the condition of previous publication, by notification in the Official Gazette, make rules for carrying into effect the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :—
Extent of amendment
(1) In section 2—
(2) In section 25, after clause (g), the following clause shall be inserted, namely :— “(gg) the sale of apartment in any building or buildings constructed by the Board on such terms and conditions as the Board may determine;";
(3) In section 49—
(1) This Act may be called the Gujarat Ownership Flats Act, 1973.
(2) It extends to the whole of the State of Gujarat.
(3) This section shall come into force at once and the remaining provisions of this Act shall come into force in such areas, and on such dates as the State Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different areas.
In this Part and in Part III, unless the context otherwise requires-
(1) Notwithstanding anything contained in any other law for the time being in force, a promoter who intends to construct or constructs a block or building of flats, all or some of which are to be taken or are taken on ownership basis shall, in all transactions with person intending to take or taking one or more flats on ownership basis, be liable to give or produce, or cause to be given or produced, the information and the documents hereinafter in this section mentioned.
(2) A promoter, who constructs or intends to construct such block or building of flats, shall-
Notwithstanding anything contained in any other law for the time being in force, a promoter who intends to construct or constructs a block or building of flats, all or some of which are to be taken or are taken on ownership basis shall, before he accept any sum of money as advance payment or deposit, which shall not be more than 20 per cent of the sale price, enter into a written agreement for sale with each of such persons who are to take or who have taken such flats, and the agreement shall be registered under the Registration Act, 1908 and such agreement shall contain the prescribed particulars; and to such agreement there shall be attached such documents or copies thereof, in respect of such matters, as may be prescribed.
The promoter shall maintain a separate account in any bank of sums taken by him, from persons intending to take or who have taken flats, as advance or deposit, including any sums so taken towards the share capital for the formation of a co operative society or a company, or towards the outgoings (including ground rent, if any, municipal or other local taxes, taxes on income, water charges, electricity charges, revenue assessment, interest on any mortgage or other encumbrances, if any); and he shall hold the said moneys for the purposes for which they were given and shall disburse the moneys for those purposes, any shall on demand in writing by an officer appointed by general or special order by the State Government for the purpose, make full and true disclosure of all transactions in respect of that account.
A promoter shall, while he is in possession, and where he collects from persons who have taken over flats or are to take over flats sums for the payment of outgoings even thereafter, pay all outgoings (including ground rent, municipal or other local taxes, taxes on income, water charges, electricity charges, revenue assessment, interest on any mortgage or other encumbrances, if any), until he transfers the property to the persons taking over the flats, or to the organisation of any such persons.
(1) After the plans and specifications of the building, as approved by the local authority as aforesaid, are disclosed or furnished to the person who agrees to take one or more flats, the promoter shall not make—
(2) Subject to sub-section (1), the building shall be constructed and completed in accordance with the plans and specifications aforesaid; and if any defect in the building or material used, or if any unauthorised change in the construction, is brought to the notice of the promoter within a period of one year from the date of handing over possession, it shall wherever possible be rectified by t
If-
then, in any such case, the promoter shall be liable on demand (but without prejudice to any other remedies which may be available against him) to refund the amounts already received by him in respect of the flat (with simple interest at nine per cent. per annum from the date he received the sums till the date the amounts and interest thereon are refunded), and the amounts and the interest shall be a charge on the land and construction if any thereon, in which the flat is or was to be const
No promoter shall, after he executes an agreement to sell any flat, mortgage or create a charge on the flat or the land, without the previous consent of the persons who take or agree to take the flats, and if any such mortgage or charge is made or created without such previous consent after the agreement referred to in section 4 is registered, it shall not affect the rights and interests of such persons.
(1) As soon as a minimum number of persons required to form a co-operative society or a company have taken flats, the promoter shall within the prescribed period submit an application to the Registrar for registration of the organisation of persons who take the flats, as a co-operative society or, as the case may be, as a company; and the promoter shall join, in respect of the flats which have not been taken, in such application for membership of a co-operative society or, as the case may be, of a company. Nothing in this section shall affect the right of the promoter to dispose of the remaining flats in accordance with the provisions of this Act.
(2) If any property consisting of building or buildings is constructed or to be constructed and the apartment takers propose to submit the apartments to the provisions of Part II by executing Declarations and Deeds of Apartments as required by that Part, then the promoter shall inform the Registrar accordingly, and in such cases it
A promoter shall take all necessary steps to complete his title and convey to the organisation of persons, who take flats, which is registered either as a co-operative society or as a company as aforesaid, or to an association of flat-takers or apartment owners, his right, title and interest in the land and building, and execute all relevant documents therefor in accordance with the agreement executed under section 4 and if on period for the execution of the conveyance is agreed upon, he shall execute the conveyance within the prescribed period and also deliver all documents of title relating to the property which may be in his possession or power.
(1) Every person who has executed an agreement to take a flat shall pay at the proper time and place the price, his proportionate share of the municipal taxes, water and electricity charges, ground rent (if any) and other public charges in accordance with his agreement with the promoter; and where a co-operative society or a company of persons taking the flats is to be constituted, co-operate in the formation of such society or Company as the case may be.
(2) Any person who has executed an agreement to take a flat and who, without reasonable excuse, fails to comply with or contravenes the provisions of sub-section (1) shall, on conviction, be punished with fine which may extend to two thousand rupees.
(1) No person, who is a promoter, or who is in charge of management or connected with the management of a block or building of flats whether as member of a managing committee, director, secretary or otherwise, or is responsible for the maintenance thereof (hereinafter in this section referred to as "the manager"), shall, without just and sufficient cause, either by himself or through any person cut off, withhold or in any manner curtail or reduce, any essential supply or service enjoyed by the person who has taken a flat or by any person in occupation thereof through or under him in respect of the flat taken, or agreed to be taken, by him.
(2) The person who has taken or agreed to take the flat or the occupier may, if the manager has contravened the provisions of sub-section (1), make an application to the Court for a direction to restore such supply or service.
(3) If the Court on enquiry finds that applicant or the person through or under whom he is in occupation ha
The provisions of this Part, except where otherwise provided, shall be in addition to the provisions of the Transfer of Property Act, 1882 and shall take effect notwithstanding anything to the contrary contained in any contract.
As respects flats which on the commencement of this Part have already been constructed, or converted, the provisions of sections 2, 6, 8, 9, 10, 11, 12, 13, 42, 43 and 44 shall apply subject to the following modifications, that is to say-
Nothing in this Part shall apply to the Gujarat Housing Board constituted under the Gujarat Housing Board Act. 1961.
This Part applies only to property, the sole owner or all of the owners of which submit the same to the provisions of this Part by duly executing and registering a Declaration as hereinafter provided :
Provided that, no property shall be submitted to the provisions of this Part unless it is mainly used, or proposed to be used for residential purposes.
In this Part, unless the context otherwise requires,-
Each apartment, together with the undivided interest in the common areas and facilities, appurtenant to such apartment, shall, for all purpose, constitute heritable and transferable immovable property within the meaning of any law for the time being in force in the State;
and accordingly, an apartment owner may transfer his apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment by way of sale, mortgage, lease, gift, exchange or in any other manner whatsoever, in the same manner, to the same extent and subject to the same rights, privileges, obligations, liabilities, investigations, legal proceedings, remedies and to penalty, forfeiture and punishment as any other immoveable property, or make a bequest of the same under the laws applicable to the transfer and succession of immoveable property.
(1) Each apartment owner shall be entitled to the exclusive ownership and possession of his apartment.
(2) Each apartment owner shall execute a Declaration that he submits his apartment to the provisions of this Part and a Deed of Apartment in relation to his apartment in the manner prescribed for the purpose.
(1) Each apartment owner shall be entitled to an undivided interest in the common areas and facilities in the percentage expressed in the Declaration. Such percentage shall be computed by taking as a basis the value of the apartment in relation to the value of the property; and such percentage shall reflect the limited common areas and facilities.
(2) The percentage of the undivided interest of each apartment owner in the common areas and facilities as expressed in the Declaration shall have a permanent character, and shall not be altered without the consent of all of the apartment owners expressed in an amended Declaration duly executed and registered as provided in this Part. The percentage of the undivided interest in the common areas and facilities shall not be separated from the apartment to which it appertains, and shall be deemed to be conveyed or encumbered with the apartment even though such interest is not expressly mentioned in the conveyance or other instrument.<
Each apartment owner shall comply strictly with the bye- laws and with the administrative rules and regulations adopted pursuant thereto, as either of the same may be lawfully amended from time to time, and with the covenants, conditions an restrictions set forth in the Declaration or in the Deed of Apartment in respect of his apartment. Failure to comply with any of the same shall be a ground for an action to recover sums due, for damages or injunctive relief or both maintainable by the manager or Board of managers on behalf of the association of apartment owners or, in a proper case, by an aggrieved apartment owner.
No apartment owner shall do any work which is likely to jeopardise the soundness or safety of the property, reduce the value thereof or impair any easement or hereditament nor shall any apartment owner add any material structure or excavate any additional basement or cellar without in every such case the unanimous consent of all the other apartment owners being first obtained.
(1) Subsequent to recording the Declaration as provided in this Part and while the property remains subject to this Part, no encumbrance of any nature shall thereafter arise or be created or be effective against the property. During such period, encumbrances may arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment, in the same manner and under the same conditions in every respect as encumbrances may arise or be created upon or against any other separate parcel of property subject to individual ownership:
Provided that, if during the period any encumbrance has arisen or been created against such apartment and the percentage of undivided interest in the common arears and facilities, appurtenant to such apartment, no apartment and such percentage of undivided interest shall be partitioned or sub-divided in interest:
Provided further that, no labour performed or materials
The common profits of the property shall be distributed among, and the common expenses shall be charged to, the apartment owners according to the percentage of the undivided interest in the common areas and facilities.
(1) The Declaration shall contain the following particulars, namely :-
(1) Deeds of Apartments shall include the following particulars, namely :-
(2) A true copy of every Deed of Apa
(1) The Declaration and all amendments thereto and the Deed of Apartment in respect of each apartment and the floor plans of the buildings referred to in sub-section (2) shall all be registered under the registration Act, 1908.
(2) Simultaneously with the registration of the Declaration there shall be filed along with it a set of the floor plans of the building showing the lay out, location, apartment numbers and dimensions of the apartments, stating the name of the building or that it has no name, and bearing the verified statement of an architect certifying that it is an accurate copy of portions of the plans of the building as filed with and approved by the local authority within whose jurisdiction the building is located. If such plans do not include a verified statement by such architect that such plans fully and accurately depict the layout, location, apartment numbers and dimensions of the apartments as built, there shall be recorded prior to the first conveyance of a
(1) All the apartment owners may remove a property from the provisions of this Part by an instrument to that effect duly executed, if the holders of all charges and other encumbrances affecting any of the apartments consent there to or agree, in either case by instruments duly executed, that their charges of encumbrances be transferred to the percentage of the undivided interest of the apartment owner in the property as hereinafter provided.
(2) Upon removal of the property from the provisions of this Part the property shall be deemed to be owned in common by the apartment owners. The undivided interest in the property owned in common which shall appertain to each apartment owner shall be the percentage of undivided interest previously owned by such owner in the common areas and facilities.
The removal provided for in section 29 shall in no way bar the subsequent resubmission of the property to the provisions of this Part.
(1) The administration of every property shall be governed by bye-laws a true copy of which shall be annexed to the Declaration. No modification of or amendment to the bye-laws shall be valid, unless it is set forth in an amendment to the Declaration, and such amendment is duly recorded, and a copy thereof is duly filed with the competent authority.
(2) The bye-laws shall provide for the following matters, namely :-
No apartment owner may exempt himself from liability for his contribution towards the common expenses by waiver of the Use or enjoyment of any of the common areas and facilities, or by abandonment of his apartment.
Notwithstanding anything to the contrary contained in any law relating to local authorities, each apartment and its percentage of undivided interest in the common areas and facilities appurtenant to such apartment (being an apartment submitted to the provisions of this Part) shall be deemed to be separate property for the purpose of assessment to tax on lands and buildings leviable under such law and shall be assessed and taxed accordingly; and for this purpose, a local authority shall make all suitable rules to carry out the provisions of this section. Neither the building, the property nor any of the common areas and facilities shall be deemed to be separate property for the purposes of the levy of such tax.
All sums assessed by the association of apartment owners but unpaid for the share of the common expenses chargeable to any apartment shall constitute a charge on such apartment prior to all other charges, except only (i) charge, if any, on the apartment for payment of Government and Municipal taxes, and (ii) all sums unpaid on a first mortgage of the apartment.
Upon the sale of an apartment, the purchaser of the apartment shall be jointly and severally liable with the vendor for all unpaid assessment against the latter for his share of the common expenses upto the time of the sale without prejudice to the purchaser's or grantee's right to recover from the vendor the amount paid by the purchaser or grantee therefor. Any such purchaser shall be entitled to a statement from the secretary or Board of managers, setting forth the amount of the unpaid assessment against the vendor and such purchaser or grantee shall not be liable for, nor shall the apartment sold be subject to a charge for any unpaid share of common expenses against such apartment accrued prior to such sale or bequest in excess of the amount therein set forth.
The manager or Board of managers, if required by the Declaration or the bye-laws or by a majority of the apartment owners, or at the request of a mortgagee having a first mortgage covering an apartment, shall have the authority to obtain, and shall obtain, insurance for the property against loss or damage by fire, and such other hazards under such terms and for such amounts as shall be required, or requested. Such insurance coverage shall be written on the property in the name of such manager or of the Board of managers of the association of the apartment owners as trustee for each of the apartment owners in the percentages established in the Declaration. Premiums shall be common expenses. Provisions for such insurance shall be without prejudice to the right of each apartment owner to insure his own apartment for his benefit.
If within sixty days of the date of damage or destruction to all or part of the property, it is not determined by the association of apartment owners to repair, reconstruct or rebuilt the property, then and in that event,-
Without limiting the rights of any apartment owner action may be brought by the manager or Board of managers, in either case in the discretion of the Board of managers, on behalf of two or more of the apartment owners as their respective interest may appear with respect to any cause of action relating to the common areas of facilities of more than one apartment. Service of process on two or more apartment owners in any action relating to the common areas and facilities of more than one apartment may be made on the person designated in the Declaration to receive service of process.
(1) All apartment owners, tenants of such owners, employees of owners and tenants, or any other person that may in any manner use property or any part thereof submitted to the provisions of this Part shall be subject to this Part and to the Declaration and the bye-laws of the association of apartment owners adopted pursuant to the provisions of this Part.
(2) All agreements, decisions and determinations lawfully made by the association of apartment owners in accordance with the voting percentages established under this Part, Declaration or bye-laws, shall be deemed to be binding on all apartment owners.
For the removal of doubt it is hereby declared that the provisions of the Transfer of property Act, 1882 shall, in so far as they are not inconsistent with the provisions of this part apply to every apartment together with its undivided interest in the common areas and facilities appurtenant to such apartment as the aforesaid provisions apply in relation to any immovable property, and the provisions of this Part shall take effect notwithstanding anything to the contrary contained in any contract.
The Gujarat Housing Board Act, 1961 shall be amended in the manner and to the extent specified in the Schedule.
Any promoter who, without reasonable excuse, fails to comply with or contravenes any provision of Part I or of any rule made under this Part shall, where no other penalty is expressly provided for, on conviction, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to two thousand rupees, or with both; and a promoter who commits criminal breach of trust of any amount advanced or deposited with him for the purposes mentioned in section 5 shall, on conviction, be punished with imprisonment for a term which may extend to four years, or with fine, or with both.
(1) If the person committing an offence under this Act is a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of business by the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to such punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guil
(1) The State Government may, subject to the condition of previous publication, by notification in the Official Gazette, make rules for carrying into effect the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :—
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