The Complete Guide To Non-Occupancy Charges

Non-occupancyfeesareoneofthemanyfeesthatarestatedinthebye-lawsofaCooperativeHousingSociety(CHS)inMaharashtra.Theseapplytohomesthatarenot occupiedbytheownerorhisfamily.Thecostofmaintainingtheelevator,theenergy incommonareas,thesecurity,andotherfacilitiesareincludedintheservice chargesthatformthefoundationforcalculatingtheoccupancyfees. Are you searching for new projects in Goregaon?

Pushparecentlyinvestedina2BHKflatinPuneinthehopesofgeneratingasteady streamofrentalincome.However,hersocietytackedon"non-occupancycharges" whenshemadethedecisiontodoso.LikePushpa,manyhomeownersin Maharashtraarenotawareofthesefeesthatarecommon.Thisblogexplainsthe non-occupancyfeesassessedonresidentialpropertiesforsuchowners.

What are the charges for non-occupancy?

Incaseswhereaproperty'sownershiphasbeentransferredfromthedeveloperor societytotheownerbuttheunitisstillvacantdespitebeinginaready-to-move state,non-occupancyfeesareassessed.These,however,onlyapplywhentheunitis sublet.Iftheflatisunoccupiedandlocked,orifafamilymember,suchasaspouse orparent,livesthere,thesefeesarenotdue.Non-occupancyfeesmustbepaidby theownerofapropertyinahousingsocietyifitisnotusedforself-occupationand theownerderivesaprofitfromit.

Thetopicofnon-occupancyfeeshasgeneratedalotofcontroversyinthepast.It frequentlyleadstoconflictsbetweenasociety&itsmemberwhenthereareno definedrules.Mostofthetime,homeownersthinkthatthesocietyhasassessed themwithunreasonablefees.Thesociety,foritspart,arguesthatchargingmembers suchfeesforsublettingtheirapartmentsandgeneratingsizablerentalincomeis acceptable.Complicatingproblemsareinadequategovernmentenforcementand inconsistentlegalscholars'views.

Court judgment about non-occupancy charges

Thestategovernmentshaveattemptedtostepinanddefendtheinterestsofthe homeownerswhilecooperativesocietieshavedefendedtheirrighttoassessnonoccupancyfees.TheMaharashtragovernmentestablishedacommitteeinJune1997 tothoroughlyinvestigatetheNOCproblem.Thestategovernmentissuedanorderin August2001statingthattheNOCchargesshouldnotbegreaterthan10%ofthe servicechargesinresponsetothecommittee'sreport.InMarch2007,theBombay HighCourtsupportedthestategovernment'sdecision.TheSupremeCourt subsequentlyapprovedofthestategovernment'sannouncement.

How are non-occupancy charges determined?

Aswasalreadysaid,societyshouldn'tchargemorethan10%ofservicefeesasnonoccupancyfees.Non-occupancyfees,forinstance,wouldbeRs271permonth(10% ofRs2,710)iftheservicechargescomponentofthemonthlymaintenance calculationweretobeRs2,710permonth.

What are the charges for the services?

Bye-law68ofthenewmodelbye-lawsstatesthatservicechargescoverthingslike staffsalariesandbenefits,societyofficeexpenses,committeemembersittingfees, printingandstationerycosts,andcommonelectricitycosts.Thehomeownerwill receivearemindernoticefromthesocietyandmaybelabelledadefaulterifthey choosenottopaynon-occupancyfees.Furthermore,thesocietyshallnotprovidea certificatewithnodues.

Are parking spaces included in non-occupancy charges as well?

Ifyouparkyourcarinsidethesociety'sproperty,theparkingspaceisregardedasa partofthenon-occupancyfees.Youwon'thavetopayforthiscomponent,though,if youdon'tdrive.

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