Builder Handover in Bengaluru: What You’re Owed Beyond the Keys

Got the Keys? What a Bengaluru Builder Must Still Hand Over to Apartment Owners

You have the keys to your flat. But has the builder handed over everything else?

Most buyers think handover ends when the door opens. Imagine residents of a new apartment community in Bengaluru who, two years after moving in, ask the builder a simple question: how much maintenance corpus was collected, how much was spent, and where is the rest? The builder’s answer is vague. There is no registered association yet, the sanctioned plans are with the builder, and nobody has seen the accounts. None of this was hidden. Nobody asked early.

Quick answer

Under RERA, the builder (promoter) must help form the owners’ association, and after the occupancy certificate (OC) must hand over documents, plans and common areas to it. Where no local law says otherwise, RERA gives 30 days for documents, plans and common areas, and 3 months for conveying title. In Karnataka, state laws also apply, so the exact timeline can differ. Ask for the handover in writing.

What must a builder do beyond handing over your flat?

When must the association be formed?

Where no local law says otherwise, RERA requires the association to be formed within three months of a majority of allottees booking in the project. This gives owners a legal body that can speak for them, manage the common areas and hold the builder to account.

What must be handed over, and when?

After the occupancy certificate, the builder must hand over the necessary documents and plans, including common areas, to the association. Where no local law says otherwise, that is within 30 days of the OC. The common handover list usually includes:

• sanctioned building plans and approvals

• completion and occupancy certificates

• common areas such as the clubhouse, lobbies, lifts, open spaces and parking areas

• warranties and manuals for lifts, pumps, generators and fire systems

• utility connection records for electricity and water

• the accounts and statements for the maintenance and sinking funds

In Karnataka, the Karnataka Apartment Ownership Act and the Karnataka Ownership Flats Act also apply to residential projects, and some legal commentary reads these as allowing three months from the OC for handing over common areas. So ask your lawyer which rule governs your project.

What are the maintenance corpus and the sinking fund?

• Maintenance corpus: money collected for the day-to-day upkeep of common areas.

• Sinking fund: money set aside for big, future costs such as lift replacement, water systems and repainting.

This money is collected from owners for the building. It is not the builder’s own money. Ask for a written statement showing how much was collected, how much was spent, and the balance that is being handed to the association. Your agreement for sale usually sets out how the corpus is to be handled, so read that clause.

Does the association become the owner of the common areas?

Not in the way many people think. Handing over the management of the common areas to the association is different from the ownership question. How ownership of the land and common areas is held depends on the project’s legal structure (an apartment owners’ association or a co-operative society) and on your sale deed. Under Karnataka’s apartment laws, each owner holds an undivided share in the common areas, while RERA speaks of conveying title to the association. Ask your lawyer how it works in your building.

What can residents do if the builder doesn’t hand over? (7 steps)

1. Write to the builder. State what is pending, quote the dates of OC and possession, and ask for a specific date.

2. Get the association registered under the law that applies to your project, so residents have a body to act through.

3. Collect the records you already have: agreements, receipts, correspondence and the OC.

4. Ask for the accounts in writing: corpus collected, spent and balance.

5. Send a legal notice through an advocate if the builder doesn’t respond.

6. File a complaint with K-RERA, or approach a consumer court, depending on your advocate’s advice.

7. Act together. A complaint by the association or a group of owners is usually stronger than separate complaints.

What should buyers check before they buy?

• Is the project RERA-registered, and what does the registration say about common areas and the completion date?

• Is the OC issued, or is the builder offering possession without it?

• What does the agreement say about corpus fund, sinking fund, association formation and handover?

• Builder’s track record: look at past projects and whether their associations were handed over properly.

• Total cost: corpus deposit, maintenance charges and legal fees should be clear in writing.

• Title and approvals: verify these as in our mother deed and chain of title guide and legal opinion guide.

Frequently asked questions

When must a builder form the owners’ association in Karnataka?
RERA says the association must be formed within three months of a majority of allottees booking, where local law doesn’t say otherwise. Karnataka’s apartment laws also apply, so check which rules govern your project.

Within how many days must the builder hand over common areas after the occupancy certificate?
RERA says within 30 days for documents, plans and common areas, and three months for conveying title, where local law is silent. Karnataka laws may specify a different period, so confirm for your project.

Is the maintenance corpus the builder’s money?
No. It is collected from owners for the building. Ask for a written statement of what was collected, spent and what remains.

What documents should the association receive from the builder?
Sanctioned plans, approvals, the completion and occupancy certificates, warranties and manuals, utility records, and accounts for the maintenance and sinking funds.

What can I do if the builder delays handover?
Write to the builder, get legal advice, and file a complaint with K-RERA or approach a consumer court. Acting together as an association usually helps.

Does RERA cover defects after handover?
RERA makes the promoter liable to fix structural and workmanship defects reported within five years of handing over possession. Report them in writing and keep a record.

This article is for general education and is not financial, legal or insurance advice. Please consult a licensed insurance adviser before you decide.