Stories
Builder Demands Maintenance Before Possession? Know Your Rights!
- •Builders often collect advance maintenance until the residents' association takes over, but this demand must be supported by the agreement and state RERA rules.
- •Always check your sale agreement for maintenance rates, period, services covered, and whether it's a recurring charge or advance deposit.
- •The occupation certificate is crucial; a builder cannot lawfully offer possession or demand maintenance if the project lacks the required occupancy approval.
- •Buyers should inquire how advance maintenance funds will be accounted for and when responsibility shifts to the residents' association.
- •While buyers shouldn't refuse all maintenance demands, they should verify the demand against the agreement and RERA rules, and seek clarification for inconsistencies.
Key Questions Answered
Whether a builder can collect maintenance before possession depends on your agreement for sale, state RERA rules, and whether the project has lawfully reached the possession stage. RERA does not prescribe a nationwide rate, so buyers should check their agreement for a written breakup of the charges, covered services, and approval status.
Possession under RERA is tied to obtaining required occupation or completion approvals. Developers remain responsible for maintaining common areas until the occupation certificate is issued and a residents' association is formed, meaning buyers should verify approvals before assuming maintenance is due.
Homebuyers should avoid automatically refusing valid demands or paying without verification; instead, they should compare the bill with their agreement and request a detailed written calculation. If the dispute remains unresolved and is inconsistent with RERA rules, buyers can raise a written objection or approach the relevant state RERA authority.
