Who is responsible for Paying Corpus Fund in Resale?
I recently purchased a flat in Bangalore. The owner's association is asking me to pay a corpus fund even though my previous owner had already. This is the law they passed in the 2018 AGM meeting: "The AMC proposed to collect a Corpus Fund of 60,000 rupees from the new owners to become a member of the association". My concerns: 1. Is it legal to collect corpus fund from new owner in resale? 2. Do we need to pay additional amount to become a member of the owner's association? Shouldn't it be by default? 3. If the law was amended to the byelaws, should it be approved by the registrar to be abided or not? 4. They threatened to stop my facilities if I don't pay the corpus fund, even though I have been paying maintenance of 7000 rupees every month. And they cut off my power supply for 4 hours.
The buyer is responsible for paying the corpus fund in a resale property. The corpus fund is a lump sum amount collected from home buyers by the developer at the time of the property sale. It's a pre-maintenance charge that's not included in the total sale amount. When a flat is sold, the corpus fund of the flat goes to the buyer. Corpus funds are usually non-refundable, unless the by-laws state otherwise. If the seller has already paid the corpus fund, the new buyer shouldn't be required to pay it again. If you believe the corpus fund charges are unjustified or excessive, you can try negotiating with the society management or builder. You can also file a complaint with the Real Estate Regulatory Authority if applicable.
Sir, we appreciate you concern regarding a flat situated in Bangalore and would like to answer accordingly. This matter requires brief discussion and understanding it more clearly. Kindly contact us on our helpline number for further details.
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