An Unregistered Association Of Apartment Owners can frame by laws but members of the apartment are not bound to follows these laws because the association is unregistered. Only if the society is registered, the model bye-laws are applicable to every resident. Each member is mandated to pay maintenance charges under the law. In an unregistered society or apartment association, members cannot be forced to do so.
There are various other disadvantages of not registering an Apartment Owners Association. An unregistered society cannot avail and enjoy the tax benefits provided to a registered society. In other words, tax is levied on the society if registered, not on the individual members. Registered societies have a separate bank account under the societyÕs name devoted only for the financial transactions of the society. They have the right to collect deposits, annual Sinking Fund and regular maintenance charges from the members. Thus any emergency expenses or repair are promptly and easily taken care of.
In order to form an apartment association, the owners of the particular flat must register themselves as a society. Therefore, each housing society has a share capital which will include equal paying of it by all the residents, bye-laws may also be amended by a resolution of its general body.
Reference: Different States have different laws for purpose of registering an Apartment Owners Association.