In short
Flat owners in an Indian building usually run it through one of two bodies. In a co-operative housing society, registered under the state’s co-operative societies law, the society holds the building and each owner is a member with shares. Under a state Apartment Ownership Act, each owner owns the flat outright plus an undivided percentage of the common areas, and the owners together form an Association of Apartment Owners once a Declaration is executed and registered. The RERA Act, 2016 makes the promoter enable the formation of whichever body “the laws applicable” provide (s. 11(4)(e)). This guide reads the Maharashtra (1970) and Karnataka (1972) Acts; other states have their own.
The rule
- RERA. The promoter must “enable the formation of an association or society or co-operative society, as the case may be, of the allottees, or a federation of the same, under the laws applicable”. Where there is no local law, the association must be formed within three months of a majority of allottees having booked (s. 11(4)(e)). Each allottee must take part in forming it (s. 19(9)).
- Conveyance. The promoter executes a registered conveyance of each unit to its buyer, with the undivided share of the common areas to the association (s. 17(1)). Without a local law, this is due within three months of the occupancy certificate, and the documents and plans within 30 days of it (s. 17(1)-(2)).
- Until then, the promoter runs essential services “on reasonable charges” until the association takes over maintenance (s. 11(4)(d)).
- The choice is made by state law. In Maharashtra, if buyers submit the building to the Apartment Ownership Act, the promoter informs the Registrar and “it shall not be lawful to form any co-operative society or company” (section 10(2) inserted into the Maharashtra Ownership Flats Act, 1963 by the Schedule to the 1970 Act).
Side by side
| Co-operative housing society | Apartment owners’ association (Maharashtra 1970 Act) | |
|---|---|---|
| What you own | Shares in the society and the right to the flat under its bye-laws | The apartment itself, as “heritable and transferable immovable property” (s. 4), plus a percentage of the common areas (s. 6(1)) |
| Founding document | Registration of the society by the Registrar; the Maharashtra Housing Manual lists 10 members as the minimum | A Declaration by the owner or all owners, registered (s. 2), and a Deed of Apartment for each flat (s. 5(2)) |
| Who runs it | A managing committee under the bye-laws | A Board of Managers elected under bye-laws annexed to the Declaration, at least one-third retiring each year (s. 16(2)(a)) |
| Sharing costs | Service charges set under the bye-laws | Common expenses and profits shared by each owner’s percentage (s. 10) |
| Selling a flat | Transfer of shares and membership, with notice to the society (see resale flat in a society) | Sale, mortgage, gift or will like any other immovable property (s. 4) |
| Property tax | Billing set by the municipality | Each apartment and its share is assessed separately (s. 18) |
| Disputes | Registrar and co-operative courts | Complaint to the Registrar, decided within 30 days “as far as possible” (s. 16A); appeal to the Co-operative Court within 60 days (s. 16B) |
| Redevelopment | The state order of 30 September 2026: 2/3 quorum, 51% of all members | Consent of the majority of owners, if the building is 30 years old from its completion or occupation certificate or declared dangerous (s. 6A) |
How the apartment route works in Maharashtra
- Who it covers. A “building” is one with five or more apartments, or several buildings with five or more in total (s. 3(e)). The use can be residential, office, profession or business (s. 2).
- The Declaration describes the land (freehold or leasehold), the building, each apartment and the percentage of common areas attached to it (s. 11). The percentage is based on the value of each apartment against the whole property (s. 6(1)).
- Majority means owners with 51% or more of the votes, using the percentages in the Declaration (s. 3(o)). Since the 2018 amendment, the percentages can be changed with the consent of a majority, through a registered amended Declaration (s. 6(2)); before, it needed all owners.
- Common areas cannot be partitioned while the property stays under the Act (s. 6(3)). No owner can avoid paying common expenses by not using the common areas or by abandoning the flat (s. 17).
- Unpaid dues become a charge on the apartment ranking after only government and municipal taxes and a first mortgage (s. 19).
- Who supervises. The “competent authority” is the Registrar of Co-operative Societies, except for buildings of MHADA, its boards or a company (s. 3(i)).
Karnataka
The Karnataka Apartment Ownership Act, 1972 (Act 17 of 1973) came into force on 1 April 1975. Its structure is the same: a registered Declaration (s. 2), ownership of the apartment as heritable and transferable property (s. 4), a Deed of Apartment (s. 5(2)), and separate property tax assessment (s. 18). Differences in the text Payotte read on India Code:
- a “building” has four or more apartments (s. 3(e));
- the property must be mainly residential (s. 2);
- changing the percentages needs the consent of all owners (s. 6(2));
- the competent authority is the Secretary of the Housing Board for its buildings and otherwise the Registrar of Co-operative Societies under the Karnataka Co-operative Societies Act, 1959 (s. 3(i)).
The India Code copy lists no amendment other than the 1973 adaptation order; ask the Registrar whether a later one applies.
What to check before you buy
Ask whether the building is under a society or a registered Declaration. In a society, ask for the share certificate and the conveyance; in an apartment building, for your Deed of Apartment and its percentage. For a new project, check the project page on the state RERA portal (RERA registration check) and the title and encumbrances of the land.
Which professional to consult
A property lawyer (an advocate enrolled with the State Bar Council) reads the Declaration or bye-laws. This guide states the published law and is not legal advice.
Frequently asked questions
Which is better, a society or an association?
Neither is ranked by law. In a society you hold shares and membership; under an Apartment Ownership Act you own the flat and a share of the common areas directly. The state law and the promoter’s choice usually decide.
Can a building have both?
In Maharashtra, no: once owners submit to the 1970 Act, forming a co-operative society or company for that building is not lawful under the inserted section 10(2) of the 1963 Act.
Does RERA force a co-operative society?
No. Section 11(4)(e) lets the body be an association, society or co-operative society “under the laws applicable”.
Is property tax billed per flat?
Under both Acts read here, each apartment and its share of the common areas is assessed separately (s. 18). See property tax in Indian cities.
How does redevelopment differ?
A society follows the state order on redevelopment: see housing society redevelopment. An apartment association in Maharashtra uses section 6A of the 1970 Act.
General information drawn from the official sources cited and dated on this page. It is not legal, tax or financial advice: for your own situation, ask a licensed professional.
More guides on buyer rights and housing societies
Sources
- The Maharashtra Apartment Ownership Act, 1970, text as on 24 April 2025 (India Code) (consulted 18 October 2026)
- The Karnataka Apartment Ownership Act, 1972, Karnataka Act 17 of 1973 (India Code) (consulted 18 October 2026)
- The Real Estate (Regulation and Development) Act, 2016 (text published by UP-RERA) (consulted 18 October 2026)
- Housing Manual 2012 (English), Commissioner for Co-operation and Registrar, Co-operative Societies, Maharashtra (consulted 18 October 2026)
- Government Order No. SGYO-2026/C.No.108/14-S of 30 September 2026 on redevelopment of co-operative housing society buildings, Co-operation Department, Government of Maharashtra (Marathi) (consulted 18 October 2026)