Bihar Apartment Ownership Act, 2006

Preamble

AN ACT to provide for the ownership of an individual Apartment in a multi-storied building and of an undivided interest in the common areas and facilities appurtenant to such Apartment and to make such payment and interest heritable and transferable and for matters connected therewith or incidental thereto.

WHEREAS it is expedient to provide for giving ownership of an individual Apartment in a building and to make such Apartment heritable and transferable property and to provide for the matters connected with the purposes aforesaid;

Be it enacted by the Legislature of the State of Bihar in the Fifty seventh year of the Republic of India as follows:-

(1) This Act may be called "Bihar Apartment Ownership Act, 2006."

(2) It shall extend to the whole of the State of Bihar.

(3) This Act shall come into force at once.

The provisions of this act shall apply to every Apartment in a multi-storied building which was constructed for residential or commercial or such other purposes such as office, practice of any profession, occupation, trade or business for any other type of independent uses before or after the commencement of this Act and on a free hold land, or a lease hold land, if the lease for such land is for a period of thirty years or more.

Provided that, where a building constructed, whether before or after the commencement of this Act, on any land contains only two or three Apartments, the owner of such building may, by a declaration duly executed and registered under the provisions of the Registration Act, 1908 (16 of 1908) and as amended from time to time, indicate his intention to make the provisions of this Act applicable to such building, and on such declaration being made, such owner shall execute and register a Deed of Apartment in accordance with the provisions of this Act, as if such owner were the promoter in relation to such building:

Provided further, that the sole owner or all the owners of the land may submit such land to the provisions of this Act with the condition that he or they shall grant a lease of such land to the Apartment owners, terms and conditions of the lease being disclosed in the declaration to be made in this regard either by annexing a copy of the instrument of lease to be executed to the declaration or otherwise:

Provided that the state government may exempt by general or special order any such owner from submitting such building to the provisions of this Act.

In this Act unless the context otherwise requires-

(a) "Allottee" In relation to an Apartment, means the person to whom such Apartment has been allotted, initially by the promoter but not yet sold or transferred:

(b) "Apartment" means a part of the property, provided by the promoter/developer in a multi-storied building intended for any type of independent use, including one or more rooms or enclosed spaces located on one or more floors or any part or parts thereof, in a multi-storied building to be used for residence or office or for the practice of any profession or for the carrying on of any occupation, trade or for business or such other type of independent use as may be prescribed, and with a direct exit to a public street, road or highway or to a Common area leading to such street, road or highway, and includes basement, cellar, any garage or room (whether or not adjacent to the multi-storied building in which such Apartment is located) provided by the promoter for use by the owner of such an Apartment for parking any vehicle or as the case may be for the residence of any domestic aide employed in such an Apartment.

(c) "Apartment number" means the number, letter or combination thereof, which is the designation of the Apartment in the Deed of Apartment.

(d) "Apartment owner" means an allottee to whom an Apartment has been finally transferred or sold by the Promoter and who as a result of which owns the Apartment and has an undivided interest in the Common areas and facilities appurtenant to such Apartment in the manner/percentage specified in the deed of Apartment;

Explanation -- An allottee becomes an Apartment owner only after payment of the entire consideration together with interest thereon, if any due, and the Apartment finally transferred or sold to him by the Promoter subject to provision of Section-11. Besides this, the Apartment Owner should have a Deed of Apartment executed and registered in his favour whereas merely an Allottee is not required to do so;

(e) "Approved Bank" means the State Bank of India constituted under Section 3 of the State Bank of India Act, 1955 (23 of 1955), or a subsidiary bank constituted under Section 3 of the State Bank of India (Subsidiary Banks) Act. 1959 (38 of 1959), or a corresponding existing bank constituted under Section -- 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or a corresponding existing bank constituted under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980).

(f) "Association of Apartment owners" means the association of all the Apartment owners of a multi storied building acting as a group and termed as such in accordance with the bye-laws and Deed of Apartment and competent to contract in its own name.

Explanation-- A member of a co-operative housing society or an allottee under a hire purchase agreement will be deemed to be an owner entitled to membership of the association.

(g) "Board" means the Board of Manager of an Association of Apartment Owners elected by its members under the bye-laws.

(h) "Bye-laws" means the bye-laws of an association of Apartment owners made under this Act.

(i) "Common areas and facilities" in relation to a building means:-

(i) The land on which such building is located and all easements, rights and appurtenances belonging to the land and the building.

(ii) The foundation, columns girders, beams, supports, main wall, roofs, halls, corridors, lobbies, stairs, stair-ways, fire escapes, and entrances and exit of the building.

(iii) The basements, cellars, yards, gardens, open areas, shopping centers, schools and storage spaces.

(iv) The premises for the lodging Gatekeeper or the person employed for looking after the property.

(v) Installation of central services, such as, power, lights, gas, hot and cold water, heating, refrigeration, air conditioning, incinerating, and sewerages.

(vi) The elevators, tanks, pumps, motors, fans, compressor, ducts and in general, all apparatuses and installations existing for Common use.

(vii) Such other community and commercial facilities as may be prescribed; and

(viii) All other parts of the property necessary or convenient to its existence, maintenance and safety, or normally in Common use.

(j) "Common expenses" means.-

(i) All sums lawfully assessed against the Apartment owners by the Association of Apartment owners;

(ii) Expenses of administration maintenance, repair or replacement of Common areas & facilities;

(iii) Other expenses agreed upon as Common expenses by the Association of Apartment owners;

(iv) Expenses declared as Common expenses by the provisions of this Act, or by the Deed of Apartment or the Bye-laws.

(k) "Common profits" means the balance of all incomes, rent, profits and revenues from the Common areas and facilities remaining after the deduction of Common expenses.

(l) "Competent Authority" means the officer or authority who or which maybe vested by the state Government, by notification in the official gazette with executive powers to perform duties and functions of the competent Authority and for implementing the provisions of the Act and the rules made there under for such areas as may be specified in the notification under the general guidance, superintendence & control of the State Government:

Provided that the State Government may notify more than one officer or Authority as competent authority and distribute the work among them in the manner as it may deem fit.

(m) "Deed of Apartment" means the instrument by which the property is submitted to the provisions of this Act as hereinafter provided.

(n) "Government or State Government" means the Government of the State of Bihar.

(o) "Local Authority" means Municipality, Municipal corporation or Regional Development Authority or any other area so notified by the government or constituted under the Bihar Regional Development Authority Act, 1981; The Bihar & Orissa Municipal Act, 1942 and the Patna Municipal Corporation Act- 1951; as amended time to time.

(p) "Manager" means the manager of an Association of Apartment Owners appointed under the bye-laws.

(q) "Multi Storied Building" means a building constructed containing four or more Apartments, or two or more buildings in any area designated as block, pocket or otherwise, each containing two or more Apartments, with a total of four or more Apartments in all such buildings and includes a building containing two or three Apartments in respect of which a declaration has been made under the proviso to Section 2.

(r) "Promoter or Developer" means - the person who constructs or causes to be constructed a building consisting of Apartments or converts an existing building or a part thereof into Apartment for the purpose of selling all or some of the Apartments to other persons, and includes his assigns. Where the person who constructs or converts a building and the person who sells are different persons, the terms include both of them. Any development authority and any other public body so notified by Government are deemed to be the Promoters in respect of the allottees in building constructed by them on land owned by them or placed at their disposal by Government:

Explanation -- Any such person, who acts in the manner described above, will be deemed to be a promoter, in that capacity also if.

(i) he designates himself as builder, colonizer, contractor, developer, estate promoter or by any other name or

(ii) he claims to be acting as the holder of a power of attorney...

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