SOCIETIES VS. CONDOMINIUMS: WHAT HOMEBUYERS SHOULD KNOW | ||
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Aspect | Housing Society | Condominium |
Formation | Requires at least 10 members from different families. Governed by the Maharashtra Cooperative Societies Act, 1960. | Can be formed with a minimum of 5 apartments. Governed by the Maharashtra Apartment Ownership Act, 1970. |
Ownership | The society collectively owns the land and building. Members are issued share certificates. | Each apartment owner holds the title to their unit and a proportionate undivided interest in common areas. |
Management | Managed by an elected managing committee. Each member has one vote. | Managed by an association of apartment owners. Voting rights are proportional to the value of the apartment. |
Bye-laws | Adopts model bye-laws with limited scope for changes. | Allows for more flexibility in adopting bye-laws, provided they do not contravene the Act. |
Financial Responsibilities | The society collectively manages and pays for common expenses, including municipal taxes. | Each apartment owner is responsible for paying their own municipal taxes. Common expenses are shared based on apartment area. |
Legal Framework | Governed by a comprehensive set of rules under the Cooperative Societies Act. | Governed by fewer rules under the Apartment Ownership Act, making it simpler in some respects. |
Community and Social Aspects | Often fosters a strong sense of community with social events and equal voting rights. | Offers more individual ownership and flexibility, with voting rights proportional to apartment value. |