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KARNATAKA APARTMENT OWNERSHIP ACT, 1972

KARNATAKA APARTMENT OWNERSHIP ACT, 1972

17 of 1973

2nd December, 1972

An Act to provide for the ownership of an individual apartment in a building and to make such apartment heritable and transferable property and for matters connected therewith. Whereas, it is expedient to provide for the ownership of an individual apartment in a building and to make such apartment heritable and transferable property and to provide for matters connected therewith; Be it enacted by the Karnataka State Legislature in the Twenty-third Year of the Republic of India as follows:

Section1 Short title, extent and commencement

(1) This Act may be called the Karnataka Apartment Ownership Act, 1972.

(2) It extends to the whole of the State of Karnataka.

(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

Section2 Application of the Act

This Act applies only to property the sole owner or all of the owners of which submit the same to the provisions of this Act by duly executing and registering a Declaration as hereinafter provided :

Provided that, no property shall be submitted to the provisions of this Act, unless it is mainly used, or proposed to be used for residential purposes.

Section3 Definitions

In this Act, unless the context otherwise requires.

(a) "Apartment" means a part of the property intended for any type of independent use, including one or more rooms or enclosed spaces located on one or more floors (or part or parts thereof) in a building, intended to be used for .residential purposes and with a direct exit to a public street, road or highway or to a common area leading to such street, road, or highway;

(b) "Apartment owner" means the person or persons owning an apartment and an undivided interest in the common areas and facilities in the percentage specified and established in the Declaration;

(d) "Association of Apartment Owners" means all of the apartment owners acting as a group in accordance with the bye-laws and Declaration;

(e) "Building" means a building containing four or more apartments, or two or more buildings, each containing two or more apartments, with a total of four or more apartments for all such buildings, and comprising a part of the property;

(f) "Common areas and facilities", unless otherwise provided in the Declaration or lawful amendments thereto, means.

(1) the land on which the building is located;

(2) the foundations, columns, girders, beams, supports, main walls, roofs, halls, corridors, lobbies, stairs, stairways, fire-escapes, entrances and exits of the building;

(3) the basements, cellars, yards, gardens, parking areas and storage spaces;

(4) the premises for the lodging of janitors or persons employed for the management of the property;

(5) installations of central services, such as power, light, gas, hot and cold water, heating, refrigeration, air-conditioning and incinerating;

(6) the elevators, tanks, pumps, motors, fans, compressors, ducts and in general all apparatus and installations existing for common use;

(7) such community and commercial facilities as may be provided for in the Declaration; and

(8) all other parts of the property necessary or convenient to its existence, maintenance and safety, or normally in common use;

(g) "Common expenses" means.

(1) all sums lawfully assessed against the apartment owners by the Association of Apartment Owners;

(2) expenses of administration, maintenance, repair or replacement of the common areas and facilities;

(3) expenses agreed upon as common expenses by the bye-laws;

(4) expenses declared as common expenses by the provisions of this Act or by the Declaration or the bye-laws;

(h) "Common profits" means the balance of all income, rents, profits and revenues from the common areas and facilities remaining after the deduction of the common expenses;

(i) "Competent Authority" means in relation to buildings constructed or to be constructed by the Housing Board, the Secretary of the Housing Board and in any other case, the Registrar of Co-operative Societies as defined in the Karnataka Co-operative Societies Act, 1959;

(j) "Declaration" means the instrument by which the property is submitted to the provisions of this Act, as hereinafter provided, and such Declaration as from time to time may be lawfully amended;

(k) "Housing Board" means the Housing Board constituted under the Karnataka Housing Board Act, 1962 (Karnataka Act 10 of 1963);

(l)"Joint family" means an undivided Hindu family, and in the case of other persons, a group or unit, the members of which are by custom joint in possession or residence;

(m) "Limited common areas and facilities" means those common areas and facilities designated in the Declaration as reserved for use of certain apartment or apartments to the exclusion or the other apartments;

(n) "Majority" or "majority of apartment owners" means the apartment owners with fifty-one per cent or more of the votes in accordance with the percentages assigned in the Declaration to the apartments for voting purposes;

(o) "Person" includes a joint family;

(p) "Prescribed" means prescribed by rules made under this Ad;

(q) "Property" means the land, the building, all improvements and structures thereon, all owned in freehold or held on lease or as occupant under any law relating to land revenue and all easements, rights and appurtenances belonging thereto, and all articles of personal property intended for use in connection. therewith, which have been, or are intended to be submitted to the provisions of this Act.

Section4 Status of apartments

Each apartment, together with its undivided interest in the common areas and facilities, appurtenant to such apartment, shall for all purposes constitute heritable and transferable immovable property within the meaning of any law for the time being in force in the State; and accordingly, an apartment owner may transfer his apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment by way of sale, mortgage, lease, gift, exchange or in any other manner whatsoever in the same manner, to the same extent and subject to the same rights, privileges, obligations, liabilities, legal proceedings and remedies as any other immovable property, or make a bequest of the same under the laws applicable to the transfer and succession of immovable property.

Section5 Ownership of apartments

(1) Each apartment owner shall be entitled to the exclusive ownership and possession of his apartment.

(2) Each apartment owner shall execute a Declaration that he submits his apartment to the provisions of this Act and a Deed of Apartment in relation to his apartment in the manner prescribed for the purpose.

Section6 Common areas and facilities

(1) Each apartment owner shall be entitled to an undivided interest in the common areas and facilities in the percentage expressed in the Declaration. Such percentage shall he computed by taking as a basis the value of the apartment in relation to the value of the property; and such percentage shall reflect limited common areas and facilities.

(2) The percentage of the undivided interest of each apartment owner in the common areas and facilities as expressed in the Declaration shall have a permanent character, and shall not be altered without the consent of all of the apartment owners expressed in an amended Declaration duly executed and registered as provided in this Act. The percentage of the undivided interest in the common areas and facilities shall not be separated from the apartment to which it appertains, and shall be deemed to be conveyed or encumbered with the apartment even though such interest is not expressly mentioned in the conveyance or other instrument.

(3) The common areas and facilities shall remain undivided, and no apartment owner or any other person shall bring any action for partition or division of any part thereof, unless the property has been removed from the provisions of this Act as provided in Sections 14 and 22. Any covenant to the contrary shall be null and void.

(4) Each apartment owner may use the common areas and facilities in accordance with the purpose for which they are intended without hindering or encroaching upon the lawful rights of the other apartment owners.

(5) The necessary work of maintenance, repair and replacement of the common areas and facilities and the making of any additions or improvements thereto shall be carried out only as provided herein and in the bye-laws.

(6) The Association of Apartment Owners shall have the irrevocable right, to be exercised by the Manager or Board of Managers, to have access to each apartment from time to time during reasonable hours as may be necessary for the maintenance, repair and replacement of any of the common areas and facilities therein or accessible therefrom, or for making emergency repairs therein necessary to prevent damage to the common areas and facilities or to another apartment or apartments.

Section7 Compliance with covenants, bye-laws and administrative provisions

Each apartment owner shall comply strictly with the bye-laws and with the administrative rules and regulations adopted pursuant thereto, as either of the same may be lawfully amended from time to time, and with the covenants, conditions and restrictions set forth in the Declaration or in the Deed to his apartment. Failure to comply with any of the same shall be a ground for an action to recover sums due for damages or injunctive relief or both maintainable by the Manager or Board of Managers on behalf of the Association of Apartment Owners or, in a proper case by an aggrieved apartment owner.

Section8 Certain work prohibited

No apartment owner shall do any work which would jeopardize the soundness or safety of the property, reduce the value thereof or impair any easement or hereditament nor may any apartment owner add any material structure or excavate any additional basement or cellar without in every such case the unanimous consent of all the other apartment owners being first obtained.

Section9 Encumbrances against apartments; removal from encumbrances, effect of part payment

(1) Subsequent to recording the Declaration as provided in this Act, and while the property remains subject to this Act, no encumbrance of any nature shall thereafter arise or be effective against the property. During such period encumbrances may arise or be created only against each apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment, in the same manner and under the same conditions in every respect as encumbrances may arise or be created upon or against any other separate parcel of property subject to individual ownership:

Provided that if during the period any encumbrance has arisen or been created against such apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment, no apartment and such percentage of undivided interest shall be partitioned or sub-divided in interest:

Provided further that, no labour performed or materials furnished with the consent or at the request of an apartment owner or his agent or his contractor or sub-contractor shall be the basis for a charge or any encumbrance under the provisions of the Transfer of Property Act, 1882, against the apartment or any other property of any other apartment owner not expressly consenting to or requesting the same, except that such express consent shall be deemed to be given by the owner of any apartment in the case of emergency repairs thereto. Labour performed and material furnished for the common areas and facilities if duly authorised by the Association of Apartment Owners, the Manager or Board of Managers in accordance with this Act, the Declaration or bye-laws shall be deemed to be performed or furnished with the express consent of each apartment owner and shall be the basis for a charge or encumbrance under the Act aforesaid against each of the apartments and shall be subject to the provisions of sub-section (2)

(2) In the event of a charge or any encumbrance against two or more apartments becoming effective, the apartment owners of the separate apartments may remove their apartments and the percentage of undivided interest in the common areas and facilities appurtenant to such apartments from the charge or encumbrance by payment of the fractional or proportional amounts attributable to each of the apartments affected. Such individual payment shall be computed by reference to the percentages appearing in the Declaration. Subsequent to any such payment, discharge or other satisfaction, the apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto shall thereafter be free and clear of the charge or encumbrance so paid, satisfied or discharged. Such partial payment, satisfaction or discharge shall not prevent the person having a charge or any other encumbrance from proceeding to enforce his rights against any apartment and the percentage of undivided interest in the common areas and facilities appurtenant thereto not so paid, satisfied or discharged.

Section10 Common profits and expenses

The common profits of the property shall be distributed among and the common expenses shall be charged to, the apartment owners according to the percentage of the undivided interest in the common areas and facilities.

Section11 Contents of Declaration

(1) The Declaration shall contain the following particulars, namely.

(a) description of the land on which the building and improvements are or are to be located; and whether the land is freehold or leasehold;

(b) description of the building stating the number of storeys and basements, the number of apartments and the principal materials of which it is or is to be constructed;

(c) the apartment number of each apartment, and a statement of its location, approximate area, number of rooms, and immediate common area to which it has access, and any other data necessary for its proper identification;

(d) description of the common areas and facilities;

(e) description of the limited common areas and facilities, if any, stating to which apartments their use is reserved;

(f) value of the property and of each apartment, and the percentage of undivided interest in the common areas and facilities appurtaining to each apartment and its owner for all purposes, including voting; and a statement that the apartment and such percentage of undivided interest are not encumbered in any manner whatsoever on the date of the declaration;

(g) statement of the purpose for which the building and each of the apartments are intended and restricted as to use;

(h) the name of a person to receive service of process in the cases hereinafter provided, together with the residence or place of business of such person which shall be within the city town or village in which the building is located;

(i) provision as to the percentage of votes by the apartment owners which shall be determinative of whether to rebuild. repair, restore, or sell the property in the event of damage of destruction of all or part of the property;

(j) any other details in connection with the property which the person executing the Declaration may seem desirable to set forth consistent with this Act; and

(k) the method by which the Declaration may be amended, consistent with the provisions of this Act.

(2) A true copy each of the Declaration and bye-laws and all amendments to the Declaration or the bye-laws shall be filed in the office of the competent authority.

Section12 Contents of Deeds of Apartments

(1) Deeds of Apartments shall include the following particulars, namely.

(a) description of the land as provided in Section 11 of this Act or the post office address of the property, including in either case the book, page and date of executing the Declaration, the date and serial number of its registration, under the Registration Act, 1908 and the date and other reference if any, of its filing with the competent authority ;

(b) the apartment number of the apartment in the Declaration and any other data necessary for its proper identification;

(d) the percentage of undivided interest appurtaining to the apartment in the common areas and facilities; and

(e) any further details which the parties to the Deed may deem desirable to set forth consistent with the Declaration and this Act.

(3) A true copy of every Deed of Apartment shall be filed in the office of the competent authority.

Section13 Declarations, Deeds of Apartments and copies of floor plans to be registered

(1) The Declaration and all amendments thereto and the Deed of Apartment in respect of each apartment and the floor plans of the buildings referred to in sub-section (2) shall be registered under the Registration Act, 1908.

(2) Simultaneously with the registration of the Declaration there shall be filed along with it a set of the floor plans of the building showing the layout, location, apartment numbers and dimensions of the apartments, stating the name of the building or that it has no name, and bearing the verified statement of an architect certifying that it is an accurate copy of portions of the plans of the building as filed with and approved by the local authority within whose jurisdiction the building is located. If such plans do not include a verified statement by such architect that such plans fully and accurately depict the layout location, apartment number and dimensions of the apartments as built, there shall be recorded prior to the first conveyance of any apartment, an amendment to the Declaration to which shall be attached a verified statement of an architect certifying that the plans theretofore filed, or being filed simultaneously with such amendment, fully and accurately depict the layout, location, apartment number and dimensions of the apartment as built.

(3) In all registration offices a book called "Register of Declarations and Deeds of Apartments under the Karnataka Apartment Ownership Act, 1972" and Index relating thereto shall be kept. The book and the Index shall be kept in such form and shall contain such particulars as may be prescribed.

(4) It shall be the duty of every Manager or Board of Managers to send to the Sub-Registrar of the sub-district in which the property containing the apartment is situate, or if there is no Sub-Registrar for the area, to the Registrar of the district in which such property is situate, a certified copy of the Declaration and Deed of Apartment made in respect of every apartment contained in the building forming part of the property together with a memorandum containing such particulars as may be prescribed.

(5) The Sub-Registrar, or as the case may be, the Registrar shall register the Declaration along with floor plans of the building and the Deed of Apartment in the "Register of Declarations and Deeds of Apartments under the Kamataka Apartment Ownership Act, 1972" and shall also enter particulars in the Index kept under sub-section (3). Any person acquiring any apartment of any apartment owner shall be deemed to have notice of the Declaration and of the Deed of Apartment as from the date of its registration under this section.

(6) Except as provided in this section, the provisions of the Registration Act, 1908, shall mutatis mutandis apply to the registration of such Declarations and Deeds of Apartments, and the words and expressions used in this section but not defined in this Act shall have the meanings assigned to them in the Registration Act, 1908.

Section14 Removal from provisions of this Act

(1) All the apartment owners may remove a property from the provisions of this Act by an instrument to that effect duly executed:

Provided that, the holders of all charges and other encumbrances affecting any of the apartments consent thereto or agree, in either case by instruments duly executed, that their charges or encumbrances be transferred to the percentage of the undivided interest of the apartment owner in the property as hereinafter provided.

(2) Upon the removal of the property from the provisions of this Act the property shall be deemed to be owned in common by the apartment owners. The undivided interest in the property owned in common which shall apportion to each apartment owner shall be the percentage of undivided interest previously owned by such owner in the common areas and facilities.

Section15 Removal no bar to subsequent re-submission of property to this Act

The removal provided for in the preceding section shall in no way bar the subsequent re-submission of the property to the provisions of this Act.

Section16 Bye-laws and their contents

(1) The administration of every property shall be governed by bye-laws, a true copy of which shall be annexed to the Declaration. No modification of or amendment to the bye-law shall be valid, unless set forth in an amendment to the Declaration and such amendment is duly recorded and a copy thereof is duly filed with the competent authority.

(2) The bye-laws shall provide for the following matters, namely.

(a) the election from among the apartment owners, of a Board of Managers, the number of persons constituting the same, and that the terms of at least one-third of the members of such Board shall expire annually; the powers and duties of the Board; the compensation, if any, of the members of the Board; the method of removal from office of members of the Board; and whether or not the Board may engage the services of a Secretary, a Manager or Managing Agent, and specifying which of the powers and duties granted to the Board by this Act or otherwise may be delegated by the Board to either or both of them;

(b) method of calling meetings of the apartment owners; what percentage, if other than a majority of Apartment owners, shall constitute a quorum;

(c) election of a President from among members of the Board of Managers who shall preside over the meetings of such Board and of the Association of Apartment Owners;

(d) election of a Secretary who shall keep a minute book wherein resolutions shall be recorded;

(e) election of a Treasurer who shall keep the financial records and books of accounts;

(f) maintenance, repair and replacement of the common areas and facilities and payments therefor;

(g) manner of collecting fom the apartment owners their share of the common expenses;

(h) designation and removal of persons employed for the maintenance, repair and replacement of the common areas and facilities;

(i) the method of adopting and of amending administrative rules and regulations governing the details of the operation and use of the common areas and facilities;

(j) such restrictions on the requirements respecting the use and maintenance of the apartments and the use of the common areas and facilities not set forth in the Declaration, as are designed to prevent unreasonable interference with the use of their respective apartments and of the common areas and facilities by the several apartment owners; and

(k) the percentage of the votes required to amend the bye-laws.

(3) The bye-laws may also provide for the following matters, namely.

(a) subject to the provisions of this Act, provision for regulating transfer or partition of any apartment and percentage of undivided interest in the common areas and facilities appurtenant to such apartment, subject to such terms and conditions as may be specified in the bye-laws;

(b) provisions enabling the Board of Managers to retain certain areas of the building and lease to non-residents for commercial purposes and for distribution of resulting proceeds to the apartment owners as income or application thereof in reduction of their common charges for maintaining the building; and

(c) any other provisions, not inconsistent with the provisions of this Act, relating to the audit and accounts and administration of the property and annual and special general meetings. annual report and the like.

Section17 Waiver of use of common areas and facilities Abandonment of apartment

No apartment owner may exempt himself from liability for his contribution towards the common expenses by waiver of the use or enjoyment of any of the common areas and facilities, or by abandonment of his apartment.

Section18 Separate assessment

Notwithstanding anything to the contrary contained in any law relating to local authorities, each apartment and its percentage of undivided interest in the common areas and facilities appurtenant to such apartment (being an apartment submitted to the provisions of this Act) shall be deemed to be separate property for the purpose of assessment to tax on lands and buildings leviable under such law and shall be assessed and taxed, accordingly; and for this purpose, a local authority shall make all suitable rules to carry out the provisions of this section. Neither the building, the property nor any of the common areas and facilities shall be deemed to be separate property for the purposes of the levy of such tax.

Section19 Charge on property for common expenses

All sums assessed by the Association of Apartment Owners but unpaid for the share of the common expenses chargeable to any apartment shall constitute a charge on such apartment prior to all other charges, except only

(i) charge if any on the apartment for payment of Government and Municipal taxes and

(ii)all sums unpaid on a first mortgage of the apartment

Section20 Joint and several liability of vendor, etc., for unpaid common expenses

(1) Upon the sale of an apartment, the purchaser of the apartment shall be jointly and severally liabl.e with the vendor for all unpaid assessments against the latter for his share of the common expenses upto the time of the sale without prejudice to the purchaser's or grantee's right to recover from the vendor the amount paid by the purchaser or grantee therefor.

(2) A purchaser referred to in sub-section (1) shall be entitled to a statement from the Secretary or Board of Managers, setting forth the amount of the unpaid assessment against the vendor and such purchaser or grantee shall not be liable for, nor shall the apartment sold be subject to a charge for any unpaid share of common expenses against such apartment accrued prior to such sale or bequest in excess of the amount therein set forth.

Section21 Insurance

(1) The Manager or Board of Managers, if required by the Declaration or the bye-laws or by a majority of the apartment owners, or at the request of a mortgagee having a first mortgage covering an apartment, shall have the authority to, and shall obtain insurance for the property against loss or damage by fire and such other hazards under such terms and for such amounts as shall be required, or requested.

(2) Insurance referred to in sub-section (1) shall be written in the name of the Manager or of the Board of Managers of the Association of the Apartment Owners as trustee for each of the apartment owners in the percentages established in the Declaration.

(3) Premiums in respect of insurance referred to in sub-section (1) shall be common expenses and such insurance shall be without prejudice to the right of each apartment owner to insure his own apartment for his benefit.

Section22 Disposition of property; destruction or damage

If within sixty days of the date of damage or destruction to all or part of the property, it is not determined by the Association of Apartment Owners to repair, reconstruct or rebuild, then and in that event.

(a) the property shall be deemed to be owned in common by the apartment owners;

(b) the undivided interest in the property owned in common which shall appurtain to each apartment owner shall be the percentage of the undivided interest previously owned by such owner in the common areas and facilities;

(c) any encumbrances affecting any of the apartments shall be deemed to be transferred in accordance with the existing priority to the percentage of the undivided interest of the apartment owner in the property as provided herein;

property shall be subject to an action for partition at the suit of any apartment owner, in which event the net proceeds of sale together with the net proceeds of the insurance on the property, if any, shall be considered as one fund and shall be divided among all the apartment owners in percentage equal to the percentage of undivided interest owned by each owner in the property after first paying out all the respective shares of the apartment owners to the extent sufficient for the purpose and all charges on the undivided interest in the property owned by each apartment owner.

Section23 Action

Without limiting the rights of any apartment owner, actions may be brought by the Manager or Board of Managers, in either case in the discretion of the Board of Managers, on behalf of two or more of the apartment owners as their respective interest may appear with respect to any cause of action relating to the common areas and facilities or more than one apartment. Service of process on two or more apartment owners in any action relating to the common areas and facilities or more than one apartment may be made on the person designated in the Declaration to receive service of process.

Section24 Act to be binding on apartment owners, tenants, etc

(1) All apartment owners, tenants of such owners, employees of owners and tenants, or any other person that may in any manner use property or any part thereof submitted to the provisions of this Act shall be subject to this Act and to the Declaration and the bye-laws of the Association of Apartment Owners adopted pursuant to the provisions of this Act.

(2) All agreements, decisions and determinations lawfully made by the Association of Apartment Owners in accordance with the voting percentages established under this Act, Declaration or bye-laws, shall be deemed to be binding on all apartment owners.

Section25 Power to make rules

(1) The State Government may, subject to the condition of previous publication, by notification in the Official Gazette, makes rules for carrying into effect the provisions of this Act.

(2) Every rule made under this Act shall be laid as soon as may be after it is made before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or successive sessions aforesaid both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall from the date on which the modification or annulment is notified by the State Government in the Official Gazette have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Section26 Removal of doubt

For the removal of doubt, it is hereby declared that the provisions of the Transfer of Property Act, 1882, shall, insofar as they are not inconsistent with the provisions of this Act, apply to every apartment together with its undivided interest in the common areas and facilities appurtenant to such apartment as those provisions apply in relation to any immovable property, and the provisions of this Act shall take effect, notwithstanding anything to the contrary contained in any contract.

Section27 Severability

If any provision of this Act or any section, sentence, clause, phrase or word, or application thereof in any circumstances is held invalid, the validity of the remainder of this Act and of the application of my such provision, section, sentence, clause, phrase, or word, in any other circumstances shall not be affected thereby.

RULE

KARNATAKA APARTMENT OWNERSHIP RULES, 1974

Whereas, the draft of the Karnataka Apartment Ownership Rules, 1974 which the Government of Karnataka proposes to make in exercise of the powers conferred by sub-section (1) of Section 25 read with sub-sections (3) and (4) of Section 13 of the Karnataka Apartment Ownership Act, 1972 (Karnataka Act 17 of 1973) was published in Notification No. DPC 334 DHB 73(2), dated 21st October, 1974 in the Karnataka Gazette, Extraordinary, Part IV, Section 2-C(i), dated 23rd October, 1974 inviting objections and suggestions from all the persons likely to be affected thereby on or before 25th November, 1974; And whereas, the said Gazette was made available to the public on 23rd October, 1974; And whereas, no objections or suggestions have been received on the said draft by the State Government; Now therefore, in exercise of the powers conferred by sub-section (1) of Section 25 read with sub-sections (3) and (4) of Section 13 of the Karnataka Apartment Ownership Act, 1972 (Karnataka Act 17 of 1973), the Government of Karnataka hereby makes the following rules, namely

Rule1 Short title and commencement

(1) These bye-laws may be called the bye-laws of the Condominium.

(2) The provisions of these bye-laws apply to the Condominium. All present or future owners, tenants, future tenants or their employees, or any other person that might use the facilities of the building in any manner, are subject to the regulation set forth in these bye-laws. The mere acquisition or rental or taking or licence of any of the family units (hereinafter referred to as "units") of the building or mere act of occupancy of any of the said units will signify that these bye-laws are accepted, ratified, and will be complied with.

Rule2 Definitions

In these bye-laws, unless the context requires otherwise.

(a) "Act" means the Karnataka Apartment Ownership Act, 1972;

(b) "Association" means the Association of all the Apartment Owners constituted by such owners for the purpose of the............Condominium;

(c) "Board" means a Board of Managers consisting of.............persons, all of whom shall be owners of apartment in the...Condominium;

(d) "Building" means the building located at.............and known as the.............Condominium, and includes, the land forming part thereof;

(e) "Declaration" means the Declaration which the sole owner of the building or all the owners of the building have executed and registered as provided in Section 2;

(f) "Majority of Owners" means those owners holding 51 per cent of the votes in accordance with the percentages assigned in the declaration;

(g) "Owner" or "Apartment Owner" means the person owning an apartment in the...........Condominium;

(h) "Section" means a section of the Act;

(i) "Unit" means a family unit in the............Condominium;

(j) "Registrar" means the Registrar of Co-operative Societies.

Rule3 Declaration under Section 2

The building located at...........street, City/Town/Village of...........in the............District..known as...........Condominium is submitted to the provisions of the Act.

Rule4 Declaration under Section 5(2)

(1) The object of the Association shall be.

(a) to be and to act as the Association of Apartment Owners of the building called...........................at...........................(herein called "the said building") who have filed their respective Declarations submitting their apartments to the provision of the Act;

(b) to invest or deposit moneys;

(c) to provide for the maintenance, repair and replacement of the common areas and facilities by contributions from the apartment owners, and if necessary, by raising loans for that purpose;

(d) to retain and rent or license if possible suitable portions of the common areas to outsiders for commercial purposes, and to distribute the common profits left after deducting the common expenses amongst the apartment owners as common profits or accumulate the same for building up reserve fund;

(e) to provide for and do all and any of the matters provided in sub-section (2) of Section 16;

(f) to advance, with the consent of the apartment owners, any short-term loans to any apartment owners in case of any emergent necessity, and to provide for the repayment thereof in lump sum or in instalments;

(g) to establish and carry on, its own account or jointly with individuals or institutions, educational, physical, social and recreative activities for the benefit of the apartment owners;

(h) to frame rules, with the approval of the general meeting of the Association and after consulting the competent authority and may establish a provident fund and gratuity fund, if necessary, for the benefit of the employees of the Association;

(i) to do all things necessary or and otherwise provide for their welfare expedient for the attainment of the objects specified in these bye-laws.

(2) The Association shall not act beyond the scope of its objects without duly amending the provisions of these bye-laws for the purpose.

Rule5 Conveyance of Apartments

(1) All persons who have purchased apartments in the..............................Condominium and executed respective Declarations under Section 5 submitting their apartments to provisions of the Act shall automatically be the members of the Association, and shall pay the sum of one rupee as entrance fee and may purchase atleast one share of the face value of Rs. 100 each. Each apartment owner shall receive a copy of the bye-laws on payment of one rupee.

(2) Upon any apartment owner selling his apartment or absolutely conveying the same by way of gift under his Will or otherwise, the purchaser or donee shall automatically become a member of the Association and shall be admitted as member on payment of the entrance fee of one rupee. The shares held by an apartment owner shall be transferred to the name of such purchaser or donee on payment of one rupee to the Association.

(3) On the death of an apartment owner, his apartment shall be transferred to the person or persons to whom he bequeaths the same by his Will, or to the legal representatives of his estate, in case he has not made any specific bequest of the apartment. The name of the legatee or the names of the legal representatives jointly shall be entered in the register of apartment owners maintained by the Secretary for the purposes of administration of the...................Condominium as apartment owner or joint apartment owners. Where any legatee is a minor, the apartment owner shall be entitled to appoint a guardian of such minor.

Rule6 Parties to Deeds of Apartments

Where an apartment has been purchased by two or more persons jointly, they shall be jointly entitled to the apartment and the shares of the Association shall be issued in their joint names, but the person whose name stands first in the share certificate shall alone have the right to vote.

Rule7 Contents of Deeds of Apartment

Every apartment owner must hold atleast one share of the Association (joint apartment owners holding the shares jointly).

Rule8 Form of Book under Section 13(3) and of Index thereto

No apartment owner shall be entitled to vote on the questions of the election of members of the Board or the President Secretary, Treasurer or any other office bearer or be entitled to stand for election to such office if he is in arrears on the last day of the year in respect of his contributions for common expenses to the Association for more than 60 days.

Rule9 Form of Memorandum under Section 13(4)

Voting shall be on a percentage basis, and the percentage of the vote to which the owner is entitled is the percentage assigned to the family unit or units in the Declaration.

CHAPTER 1 CHAPTER

Rule1 Short title and application

(1) These bye-laws may be called the bye-laws of the Condominium.

Rule2 Definitions

In these bye-laws, unless the context requires otherwise.

(a) "Act" means the Karnataka Apartment Ownership Act, 1972;

(b) "Association" means the Association of all the Apartment Owners constituted by such owners for the purpose of the............Condominium;

(c) "Board" means a Board of Managers consisting of.............persons, all of whom shall be owners of apartment in the...Condominium;

(d) "Building" means the building located at.............and known as the.............Condominium, and includes, the land forming part thereof;

(e) "Declaration" means the Declaration which the sole owner of the building or all the owners of the building have executed and registered as provided in Section 2;

(f) "Majority of Owners" means those owners holding 51 per cent of the votes in accordance with the percentages assigned in the declaration;

(g) "Owner" or "Apartment Owner" means the person owning an apartment in the...........Condominium;

(h) "Section" means a section of the Act;

(i) "Unit" means a family unit in the............Condominium;

(j) "Registrar" means the Registrar of Co-operative Societies.

Rule3 Apartment Ownership

The building located at...........street, City/Town/Village of...........in the............District..known as...........Condominium is submitted to the provisions of the Act.

Rule4 Objects of Association

(1) The object of the Association shall be.

(b) to invest or deposit moneys;

(c) to provide for the maintenance, repair and replacement of the common areas and facilities by contributions from the apartment owners, and if necessary, by raising loans for that purpose;

(e) to provide for and do all and any of the matters provided in sub-section (2) of Section 16;

(g) to establish and carry on, its own account or jointly with individuals or institutions, educational, physical, social and recreative activities for the benefit of the apartment owners;

(i) to do all things necessary or and otherwise provide for their welfare expedient for the attainment of the objects specified in these bye-laws.

(2) The Association shall not act beyond the scope of its objects without duly amending the provisions of these bye-laws for the purpose.

Rule5 Members of Association

Rule6 Joint apartment owners

.Where an apartment has been purchased by two or more persons jointly, they shall be jointly entitled to the apartment and the shares of the Association shall be issued in their joint names, but the person whose name stands first in the share certificate shall alone have the right to vote.

Rule7 Holding of one share compulsory

Every apartment owner must hold atleast one share of the Association (joint apartment owners holding the shares jointly).

Rule8 Disqualifications

CHAPTER 2 Voting, Quorum and Proxies

Rule9 Voting

.Voting shall be on a percentage basis, and the percentage of the vote to which the owner is entitled is the percentage assigned to the family unit or units in the Declaration.

Rule10 Quorum

Except as otherwise provided in these bye-laws, the presence in person of a majority of owners shall constitute a quorum.

Rule11 Vote to be cast in person

Votes shall be cast in person.

CHAPTER 3 Administration

Rule12 Powers and duties of Association

The Association will have the responsibility of administering the...Condominium, approving the annual budget, establishing and collecting monthly assessments and arranging for the management of the Condominium in an efficient manner. Except otherwise provided, resolutions of the Association shall require approval by a majority of owners, casting votes in persons.

Rule13 Place of Meetings

.Meetings of the Association shall be held at suitable place convenient to the owners as may from time to time be designated by the Association.

Rule14 Annual Meetings

The first annual meeting of the Association shall be held on...................(date). Thereafter, the annual meetings of the Association shall be held on the...................(1st, 2nd, 3rd, 4th)...........................(Monday, Tuesday, Wednesday, etc.,) of...........................(month) each succeeding year. At such meetings there shall be elected by ballot of the apartment owners a Board of Managers in accordance with the requirements of bye-law 23. The owners may also transact such other business of the Association as may properly come before them.

Rule15 Special Meetings

It shall be the duty of the President to call a special meetings of the apartment owners as directed by a resolution of the Board or upon a petition signed by a majority of the owners and having been presented to the Secretary or at the request of the Housing Commissioner, or as the case may be, the Registrar or any officer duly authorised by him in his behalf. The notice of any special meeting shall state the time and place of such meeting and the purpose thereof. No other business shall be transacted at a special meeting except as stated in the notice without the consent of four-fifths of the owners present in person.

Rule16 Notice of Meetings

It shall be the duty of the Secretary to mail or send a notice of each annual or special meeting, stating the purpose thereof as well as the time and place where it is to be held, to each apartment owner, atleast 2 but not more than 7 days prior to such meeting. The mailing or sending of a notice in the manner provided in this bye-law shall be considered notice served. Notices of all meetings shall be mailed or sent to the Housing Commissioner, or as the case may he, the Registrar.

Rule17 Adjourned Meetings

.If any meeting of owners cannot be organised because a quorum has not attended the owners who are present, may adjourn the meeting to a time not less than forty-eight hours from the time the original meeting was called. If at such adjourned meeting also, no quorum is present the owners present in person being not less than two shall form a quorum.

Rule18 Order of Business

.The order of business at all meeting of the owners of units shall be as follows.

(a) Roll Call;

(b) Proof of notice of meeting or waiver of notice;

(d) Reports of officers;

(e) Report of the Housing Commissioner, or the Registrar or of the officer duly authorised by them, if present;

(f) Report of Committees;

(g) Election of Board of Managers;

(h) Unfinished Business, if any,

(i) New business.

CHAPTER 4 Board of Managers

Rule19 Management of Association

The affairs of the Association shall be governed by a Board of Managers.

Rule20 Powers and duties of Board

The Board of Managers shall have the powers and duties necessary for the administration of the affairs of the Association, and may do all such acts and things as are not by law or by these bye-laws directed to be exercised and done by the owners.

Rule21 Other duties

In addition to duties imposed by these bye-laws or by resolutions of the Association, the Board shall be responsible for the following that is to say.

(a) care, upkeep and surveillance of the...Condominium and the common areas and facilities and the restricted common areas and facilities;

(b) collection of monthly assessment from the owners;

(c) designation, employment, remuneration and dismissal of the personnel necessary for the maintenance and operation of the...........................Condominium, the common areas and facilities and the restricted common areas and facilities;

(d) to provide for the manner in which the audit and accounts of the Association, shall be carried out;

(e) to inspect the accounts kept by the Secretary and/or the Treasurer, and examine the registers and account books and to take steps for the recovery of all sums due to the Association;

(f) to sanction working expenses, count cash balance and deal with other miscellaneous business;

(g) to see that cash book is written up promptly and is signed daily by one of the members of the Board authorised in this behalf;

(h) to hear and deal with complaints.

Rule22 Manager

The Board may employ for the Association a Manager at a compensation determined by the Board to perform such duties and services as the Board shall authorise including, but not limited to the duties listed in bye-law 21.

Rule23 Election and term of office

At the first annual meeting of the Association, the term of office of two Managers shall be fixed for three years. The term of office of two Managers shall be fixed at two years, and the term of office of one Manager shall be fixed at one year. At the expiration of the initial term of office of each respective Manager, his successor shall be elected to serve a term of three years. The Managers shall hold office until their successors have been elected and hold their first meeting. (If a larger Board of Managers is contemplated, the terms of office should be established in a similar manner so that they will expire in different years).

Rule24 Vacancies

Vacancies in the Board of Managers caused by any reason other than the removal of a Manager by a vote of the Association shall be filled by vote of the majority of the remaining Managers, even though they may constitute less than a quorum; and each person so elected shall be a Manager until a successor is elected at the next annual meeting of the Association

Rule25 Removal of Manager

At any regular or special meeting duly called any one or more of the Managers may be removed with or without cause by a majority of the apartment owners and a successor may then and there be elected to fill the vacancy thus created. Any Manager whose removal has been proposed by the owners shall be given an opportunity to be heard at the meeting.

Rule26 Organisation Meeting

The first meeting of a newly elected Board of Managers shall be held within ten days of election at such place as shall be fixed by the Managers at the meeting at which such managers were elected and no notice shall be necessary to the newly elected Managers in order legally to constitute such meeting, provided a majority of the whole Board shall be present.

Rule27 Regular Meetings

Regular meetings of the Board may be held at such time and place as shall be determined, from time to time, by a majority of managers, but atleast two such meetings shall be held during each year. Notice of regular meetings of the Board shall be given to each Manager, personally or by man, or telegraph, atleast three days prior to the day named for such meetings.

Rule28 Special Meetings

Special meetings of the Board may be called by the President on three days' notice to each Manager, given personally or by mail, or telegraph, which notice shall state the time, place (as hereinabove provided) and purpose of the meeting. Special meetings of the Board shall be called by the President or Secretary in like manner and on like notice on the written request of atieast three Managers,

Rule29 Waiver of Notice

.Before or at any meetings of the Board any Manager, may, in writing, waive notice of such meeting, and such waiver shall be deemed equivalent to the giving of such notice. Attendance by a Manager at any meeting of the Board shall be a waiver of notice by him of the time and place thereof. If all the Managers are present at any meeting of the Board, no notice shall be required and any business may be transacted at such meeting.

Rule30 Quorum

At all meetings of the Board, one-third of the total strength of the Managers shall constitute a quorum for the transaction of business, and the acts of the Managers present at a meeting at which quorum is present shall be the acts of the Board. If, at any meeting of the Board, there be less than a quorum present, the majority of those present may adjourn the meeting from time to time. At any such adjourned meeting, any business which might have been transacted at the meeting as originally called may be transacted without further notice, provided there is a quorum present.

Rule31 Fidelity bonds

The Board may require that all officers and employees of the Association handling or responsible for Association funds shall furnish adequate fidelity bonds. The premiums on such bonds shall be paid by the Association.

CHAPTER 5 Officers

Rule32 Designation

The principal officers of the Association shall be a President, a Vice-President, a Secretary, and a Treasurer, all of whom shall be elected by and from the Board of Managers. The Board may appoint an Assistant Treasurer, and an Assistant Secretary and such other Officers as in their judgment may be necessary. (In the case of an Association of one hundred owners or less, the offices of Treasurer and Secretary, may be filled by the same person).

Rule33 Election of Officers

The Officers of the Association shall be elected annually by the Board of Managers at the organisation meeting of each new Board and shall hold office at the pleasure of the Board.

Rule34 Removal of Officers

.Upon an affirmative vote of a majority of the members of the Board any officer may be removed, either with or without cause, and his successor elected at any regular meeting of the Board or at any special meeting of the Board called for such purpose.

Rule35 President

.'The President shall be the Chief Executive Officer of the Association. He shall preside at all meetings of the Association and of the Board. Me shall have all of the general powers and duties which are usually vested in the office of President of an Association, including, but not limited to the power to appoint committees from among the owner from time to time as he may in his discretion decide to be appropriate to assist in the conduct of the affairs of the Association.

Rule36 Vice-President

The Vice-President shall take the place of the President and perform his duties whenever, the President shall be absent or unable to act. If neither the President nor the Vice-President is able to act the Board shall appoint some other members of the Board so to act on an interim basis. The Vice-President shall also perform such other duties as shall from time to time be imposed upon him by the Board.

Rule37 Secretary

The Secretary shall keep the minutes of all meetings of the Board and the minutes of all meetings of the Association; he shall have charge of such books and papers as the Board may direct; and he shall, in general, perform all the duties incidental to the office of Secretary.

Rule38 Treasurer

The Treasurer shall be responsible for Association funds and securities and shall also be responsible for keeping full and accurate accounts of all receipts and disbursements in books belonging to the Association. He shall be responsible for the deposit of all moneys and other valuable effects in the name and to the credit, of the Association in such depositories as may from time to time be designated by the Board of Managers.

CHAPTER 6 Obligations of the Apartment Owners

Rule39 Assessment

All owners are obliged to pay monthly assessments imposed by the Association to meet all expenses relating to the..Condominium, which may include an insurance premium for a policy to cover repair and reconstruction work in case of hurricane, fire, earthquake or other hazard or calamity. The assessment shall be made pro rate according to the value of the unit owned, as, stipulated in the Declaration. Such assessments shall include monthly payments to a General Operating Reserve and a Reserve Fund for Replacements.

Rule40 Maintenance and repair

(1) Every owner must perform promptly, all maintenance and repair work within his own unit, which if omitted would affect the...Condominium in entirety or in a part belonging to other owners, being expressly responsible for the damages and liabilities that his failure to do so may endanger.

(2) All the repairs of internal installations of the unit such as water, light, gas, power, sewage, telephones, air-conditioners, sanitary installations, doors, windows, lamps and all other accessories belonging to the unit area shall be at the expense of the apartment owner concerned.

(3) An owner shall reimburse the Association for any expenditures incurred in repairing or replacing any common area and facility damages through his fault.

Rule41 Use of family units-internal changes

(1) All units (except units on the ...................) shall be utilised for residential purposes only.

(2) An owner shall not make any structural modifications or alterations in his unit or installations located therein without previously notifying the Association in writing, through the President of the Board if no manager is employed. The Association shall have the obligation to answer within thirty days and failure to do so within the stipulated time shall mean that there is no objection to the proposed modification, alteration or installation.

Rule42 Use of common areas and facilities and restricted common areas and facilities

(1) An owner shall not place or cause to be placed in the lobbies, vestibules, stairways, elevators and other areas of.......Condominium and facilities of a similar nature both common and restricted, any furniture, packages or objects of any kind. Such areas shall be used for no other purpose than for normal transit through them.

(2) The..................Condominium shall have................elevators................devoted to the transportation of the owners and their guests "and...................for freight service or auxiliary purposes. Owners and tradesmen are expressly required to utilise exclusively a freight or service elevator for transporting packages, merchandise or any other object that may affect the comfort or well-being of the passengers of the elevators dedicated to the transportation of owners, residents and guests". "To be retained where necessary".

Rule43 Right of entry

(1) An owner shall grant the right of entry to the Manager or to any other person authorised by the Board of the Association in case of any emergency originating in or threatening his unit, whether the owner is present at the time or not.

(2) An owner shall permit other owners, or their representatives when so required to enter his unit for the purpose of performing installations, alterations or repairs to the mechanical or electrical services, provided that requests for entry are made in advance and that such entry is at a time convenient to the owner. In case of an emergency, such right of entry shall be immediate.

Rule44 Rules of conduct

(1) No resident of the....................Condominium shall post any advertisement, or posters of any kind in or on the building except as authorised by the Association.

(2) Residents shall exercise extreme care about making noises or the use of musical instruments, radios, television and amplifiers that may disturb others. Residents keeping domestic animals shall abide by the municipal sanitary bye-laws or regulations.

(3) It is prohibited to hang garments, rugs, etc., from the windows, balconies or from any of the facades of the....................Condominium.

(4) It is prohibited to dust rugs, etc., from the windows, or to clean rugs, etc., by beating on the exterior part of the said Condominium.

(5) It is prohibited to throw garbage or trash outside the disposal installations provided for such purposes in the service areas. If such installation is not provided, all garbage or trash shall be collected in a vessel and thrown in the municipal dust bin.

(6) No owner, resident or lessee shall instal wiring for electrical or telephone installation, television antennae, machines or air-conditioning units, etc., on the exterior of the...................Condominium or that protrude through the walls or the roof of that Condominium except as authorised by the Association.

CHAPTER 7 Funds and their Investments

Rule45 Funds

Funds may be raised by the Association in all or any of the following ways, namely.

(a) by shares;

(b) by contributions and donations from the apartment owners;

(d) by raising loans, if necessary, subject to such terms and conditions as the Associations, with the approval of the Competent Authority, may determine in his behalf.

Rule46 Investment

.The Association may invest or deposit its funds in one or more of the following.

(a) in the Central Co-operative Bank or in the State Co-operative Bank; or

(b) in any of the securities specified in Section 20 of the Indian Trusts Act, 1882; or

(c) in any co-operative bank other than those referred to in clause (a) of this bye-law; or in any banking company approved for this purpose by the Association.

Rule47 Affiliation

Should there be any Federation of apartment owners in the locality in which the...Condominium is situate, the Association may, after consulting the competent authority, become a member thereof, and pay the sums from time to time payable to such Federation under the rules thereof.

Rule48 Accounts

(1) A banking account shall be opened by the Association into which all moneys received on behalf of the Association, shall be paid, provided that the Secretary may retain in his personal custody an amount not exceeding Rs. 100 for petty expenses. All payment above Rs. 20, shall be made by cheques signed by the Secretary, and one member of the Board of Managers.

(2) Each apartment owner shall have a pass book in which the Secretary shall enter amounts paid to or received for his share in receipts of profits from common areas and contributions towards common expenses, and his share of assessment and other dues, if any, in respect of his apartment.

(3) The Association shall on or before 31st July in each year publish an audited annual financial statement in respect of the common areas and facilities containing.

(a) the profit and loss account;

(b) the receipts and expenditure of the previous financial years; and

(c) a summary of the property and assets and liabilities of the common areas and facilities of the Association, giving such particulars as will disclose the general nature of these liabilities and assets and how the value of fixed assets has been arrived at.

(4) The audited financial statement shall be open to the inspection of any member of the Association during the office hours and in the office of the Association and a copy thereof, shall be submitted to the competent authority not later than 15th August, every year.

(5) Every financial statement shall be accompanied by a complete list of the apartment owners. There shall also accompany the financial statement a similar list of loanees. The financial statement shall state upto what date profits and expenses of common areas are included.

Rule49 Publication of accounts and reports

A copy of the last financial statement and of the report of the Auditor, if any shall be kept in a conspicuous place in the office of the Association.

Rule50 Appointment of Auditors

The Association shall appoint at its general meeting, an auditor who shall audit the accounts of the Association to be prepared by the Board as hereinbefore provided and shall examine the annual return, and verify the same, with the accounts relating thereto and shall either sign the same as found by him to be correct, duly vouched and in accordance with law, or specially report to the Association in what respect he finds it incorrect, unvouched or not in accordance with law.

Rule51 Power of Auditor

The Auditor shall be entitled to call for and examine any papers or documents belonging to the Association relating to the common areas and facilities (including limited common areas and facilities) and common expenses and shall make a special report to the Association upon any matter connected with the accounts which appears to him to require notice.

CHAPTER 8 Mortgages

Rule52 Notice to Association

An owner who mortgages his unit, shall notify the Association through the Manager, if any, or the President of the Board in the event there is no Manager, the name and address of his mortgagee; and the Association shall maintain such information in a book entitled "Mortgagees of Units".

Rule53 Notice of unpaid assessments

The Association shall at the request of a mortgagee of a unit report any unpaid assessments due from the owner of such unit.

CHAPTER 9 Compliance

Rule54 Compliance

These bye-laws are set forth to comply with the requirements of 11. Hereby specify No. of apartment, if any used for commercial purposes [the Karnataka Apartment Ownership Act, 1972.] In case, any of these bye-laws conflict with the provisions of the said Act, it is hereby agreed and accepted that the provisions of the Act will apply.

Rule55 Seal of the Association

.The Association shall have a common seal which shall be in the custody of the Secretary, and shall be used only under the authority of a resolution of the Board of Managers and every deed of instrument to which the seal is affixed shall be attested for or on behalf of the Association by two members of the Board and the Secretary or any other person authorised by the Association in that behalf.

CHAPTER 10 Amendments to Plan of Apartment Ownership

Rule56 Amendment of bye-laws

APPENDIX A FORM

FORM A

[ See Rule 3]

Deed of Declarations to be made by the sole owner or all owners for submitting their property to the provisions of the Karnataka Apartment Ownership Act, 1972 (Karnataka Act No. 17 of 1973) as provided in Section 2 of the Act.

In the (here enter name of city, town, village, taluka and district) on this day of 19 (here enter name of sole owner or all owners) hereinafter referred to as the Grantor(s) who is/are fully empowered and qualified to execute this Deed of Declaration do(es) hereby state.

..........1.That the purpose of this declaration is to submit the property

hereinafter mentioned to the provisions of Karnataka Apartment

Ownership Act, 1972.

..........2.That the grantor own(s) the following freehold/leasehold land

situate in the. . .(here enter city, town, village, taluka, district) which

is described as follows, namely.

(Insert metes and bound description of land upon which the building is constructed/to be constructed and add the City Survey has become entitled to the leasehold land in case the lease is not have been given to the land. Also state the date and registration details of the last document of title under which the grantor(s) claim(s) the land. In case of leasehold land give the particulars of the Lease Deed including the name of the Lessor, the Lessee, the term of the Lease and the Lease rent. Also state how the grantor has become entitled to the leasehold land in case the Lease is not in his favour).

.........3.That the grantor has constructed/proposes to construct on the

parcel of land described above a building known/to be known as (here enter name of building) according to the plans attached hereto as Exhibit 'A' which were approved bythe (here enter name of Local Authority) on the day of and which are made a part thereof. The Municipal or ward number, street number and House number are as follows.

(In case House Number is given only after the building is constructed, the same need not be given). The postal address of the building is.

.........4.That the said building consists of a basement, a ground floor

and upper floors .

The ground floor will be used for commercial facilities, or other common purposes. The ground and upper floors consist of individual apartments all for residential purposes. The upper floors are all capable of individual utilization on account of having their own exit to a common area and facility of the building.

........5. Apartments in the said building/buildings will be sold to one or

more owners each owner obtaining a particular and exclusive property right thereto and each apartment constituting a heritable and transferable immoveable property within the meaning of any law for the time being in force in the State of Karnataka (hereinafter referred to as "apartment") and also an undivided interest in the general and/or restricted common areas and facilities of the building as listed hereinafter in this Deed of Declaration, necessary for their adequate use and enjoyment and hereinafter referred to as "general and/or restricted common areas and facilities" all of the above in accordance with the Act.

........6. That the aforesaid building has a total building area of ...square metres of which square metres will constitute apartments and square metres will constitute general and/or restricted common areas and facilities.

........7. That this Condominium shall be known as The 3 ...Condominium

and that the apartments and common areas and facilities of the

building/buildings will be as follows.

(1) Apartments on the ground and each of the...upper floors, there are...apartments. The said apartments will be numbered consecutively from one to...on each floor. These numbers will be preceded by the tenth which corresponds to each floor to with. Those of the ground floor will bear the numbers "001", "002", "003", etc. Those of the first floor bear Nos. "101", "102", "103", etc. Those of the 2nd floor will bear the Nos. "201", "202", "203", etc.; and those of the higher floors will be numbered similarly according to the corresponding tenth of each floor. Hereinafter such apartments will be referred to as Apartment Type Number one, Apartment Type No. two, etc., respectively.

Each apartment is equipped with

The apartments are described hereinbelow:

The measures of an apartment include all the outside walls and one-half of the block partitions but exclude bearing walls.

(a) Apartment Type Number One.It is an apartment measuring...square metres as specifically shown in Exhibit "A" of this Deed of Declaration. Its boundaries are as follows.

(Confirm boundary description to actual facts).

Its main door has across to the Corridor of the respective floors5 . The apartment consists of the following rooms.

a hall of Square metres, a living room of Square metres, a dining room of Square metres, a kitchen of square metres,

which includes the sinks or washing area, gas or electric range model...colour...bedrooms of...square metres bathroom of...square metres. In addition, the apartment has a balcony (balconies) facing street of...square metres. (A description of each type of apartment should follow as items (b), (c), (d), etc.).

2. Common areas and facilities:

(a) The parcel of land described in paragraph first of this Deed.

(b) A basement as shown in Exhibit 'A' attached hereto and

consisting of.... square metres.

(d) Parking facilities as shown in Exhibit 'A' attached hereto and

consisting of...square metres.

(e)........The ground floor as shown in Exhibit 'A' attached and consisting

of a garden, lawn, children playing area, swimming pool, tennis

or badminton court, etc., admeasuring...square metres.

(f)........The following facilities located in the ground floor:

(1) Commercial areas and facilities as shown in Exhibit 'A' attached

hereto consisting of...square metres and described as follows.

( )

(2) A lobby and facilities as shown in Exhibit 'A' attached hereto

consisting of...square metres and described as follows.

(g) The following facilities located throughout the building and as shown in Exhibit 'A' attached hereto.

(1)............ elevator(s).

(2)........An elevator shaft of square metres for the elevator(s) extending from the ground floor upto the floor.

(3)........A stairway, referred to in this Deed as Stairway 'A' of square

metres, which leads from the ground floor to the roof of the building.

(4)........a stairway referred to in this Deed as Stairway 'B' of square metres which leads from the open court to the upper floor.

(5) ........A flue extending from the incinerator in the basement to the

roof of the building. The said flue will have a hopper door in each

one of the...upper floors for the disposal of garbage and rubbish and

will be fed from the janitor's room of each of the upper floors.

(6) ........Water tank located on the roof of the building.

(7) ........Elevator penthouse with corresponding elevator equipment

located on the roof of the building.

(8)........Plumbing network throughout the building.

(9)........Electric wiring network throughout the building.

(10)......Necessary light, telephone and public water connections.

(11)......The foundations and main walls, columns girders, beams and

roofs of the building as described in the plans which form part of this

Deed as Exhibit 'A' hereof.

(12).......Tank, pumps, motors, fans, fire fighting equipment, compressor

ducts, central air-conditioning and heating equipment and in general

all apparatus and installation existing for common use.

(h) The following facilities located in each one of the...upper floors and as shown in Exhibit 'A' attached hereto are restricted common areas and facilitiesrestricted to the family units of each respective floor.

A lobby which gives access to the...elevators to the family unit,

to the janitor's room, to...to the corridor and to Stairway 'A'.

A room for the use of the janitor.

A corridor extending from the lobby to Stairway 'B'.

........8. (a) That the right, title and interest of each owner of an apartment in the general ommon areas and facilities listed under letters (a) to (g) of sub-paragraph (2) of paragraph fifth and heir proportionate share in the profits and common expenses in the said general common areas and facilities as well as the proportionate representation for voting purposes in the meeting of the Association of Apartment Owners, of the...Condominium each shall be in the proportion as mentioned in table given in Schedule...hereto annexed and the basic on which the said roportion is calculated is also given in the said Schedule.

(b) That the right, title and interest of each owner of an Apartment located on each of ground and upper floors in therestricted common areas and facilities located in the respective floors and listed under letter (h) of the said sub-paragraph 2 of paragraph fifth, and their proportionate share in the profits and common expenses in the said restricted common areas and facilities as well as the proportionate representation for voting purposes with respect to the said restricted common areas and facilities in the meeting to the Association of Apartment Owners of the Condominium shall be in proportion as mentioned in the said Table given in Schedule hereto annexed.

(c)........The proportionate representation for voting purpose provided

in (a) and (b) hereof may be limited in accordance with the

provisions of the bye-laws attached hereto, as Exhibit 'B'.

(d).......Apartment/Apartments and the percentage of undivided

interest in the common areas, and facilities appertaining to the

apartments/apartment/each are not encumbered in any

manner whatsoever on the date of this Declaration.

.........9.That the Administration of Condominium consisting as aforesaid of the building and parcel of land described in paragraphs First and Fifth of this Deed shall be in accordance with the provisions of this Deed and with the provisions of the bye-laws which are made a part of this Deed and are attached hereto as Exhibit 'B'.

......10. That as appears above a plan of Apartment Ownership is hereby constituted under the subject to the provisions of the Act, so that the Apartments of ground/and...upper floors may be conveyed and registered as individual properties capable of independent use on account of each having its own exit to a common area facility of the building, each apartment owner having an exclusive and particular right, title and interest over his respective apartment and in addition the specified undivided interest in the common areas and facilities and/are restricted common areas and facilities.

......11. That for the purposes of stamp duty and registration fees to be imposed on the registration of this Deed in the Register of Declaration and Deeds of Apartment under Section 13(5), the value of the...Condominium is distributed as follows.

Parcel of land described in paragraph First hereof is valued

at Rupees

The building described in paragraphs second and third hereof

is valued at Rupees

.........12.That so long as the Grantor(s) own(s) one or more Apartments, the Grantor shall be subject to the provisions of this Deed and of the Exhibits 'A' and 'B' attached hereto and the Grantor(s) convenant(s) to take no action which will adversely affect the rights of the ssociation of Apartment Owners with respect to assurances against latent defects in the building or other rights, assigned to the Association by reason of the establishment of the Condominium.

........13.That the general and/or restricted common areas and facilities shall remain undivided and no owner shall bring any action for partition or division thereof.

........14.That the percentage of the undivided interest in the general and/or restricted common areas and facilities established herein shall not be changed except with the unanimous consent of all the apartment owners.

........15.That the undivided interest in the general and/or restricted common areas and facilities shall not be separated from the Apartment to which it appertains and shall be deemed conveyed or encumbered which the apartment even though such interest is not expressly

mentioned or described in the conveyance or other instrument.

.........16.That each apartment owner shall comply with the provisions of this Deed, the bye-laws, decisions and resolutions of the Association of Apartment Owners of its representative and failure to comply with any such provisions, decisions or resolutions, shall be grounds for an action to recover sums due, for damages, or for injunctive relief.

.........17.That the dedication of the property to the plan of Apartment Ownership herein shall not be revoked, or the property removed from the plan of Apartment Ownership or any of the provisions herein amended unless all of the Apartment Owners and the Mortgagees of all the Mortgages covering the apartments unanimously agree to such revocation or amendment or removal of the property from the plan by duly registered instruments; PROVIDED HOWEVER the other provisions (except paragraph 13) of this Declaration may he amended but that the Declaration shall always be kept consistent with the provisions of the Act by a vote of atleast 66 2/3 per cent in number and in common interest of all apartment owners cast at a meeting duly held in accordance with the provisions of the bye-laws (annexed as Exhibit 'B' hereto), provided further that any such amendment shall have been approved in writing by the Mortgagees of all the Mortgages covering the Apartments. No such amendments shall be effective until duly registered in accordance with the provisions of the Registration Act.

........18.That no Apartment Owner of an Apartment may exempt himself from liability for his contribution towards the common expenses by waiver of the use or enjoyment of any of the general and/or restricted common areas and facilities or by the abandonment of his apartment

.........19.All sums assessed by the Association but unpaid for the share of the common expenses chargeable to any Apartment shall constitute a charge on such Apartment prior to all other charges except only(1) charge, if any, on the Apartment for payment of Government or

Municipal taxes or both and all sums unpaid on a first mortgage of the Apartment.

.........20.That all present or future owners, tenants, future tenants or any other person that might use the facilities of the building in any manner, are subject to the provisions of this Deed and that the mere acquisition or rental of any of the Apartments of the building or the mere act of occupancy of any of the said Apartments shall signify that the provisions of this Deed are accepted and ratified. The respective Apartments shall not be rented or given on lease and licence or caretaker basis by the Apartment Owners thereof for transient or hotel

purposes, which shall be defined as (a) rental compensation or compensation for any period less than thirty days or (b) any rental or if the occupants of the Apartment are provided customary hotel or boarding or lodging or paying guest services other than the foregoing

obligations, the apartment owners of the respective Apartments shall have the absolute right to lease such Apartment or give it on lease and licence or caretaker basis provided that said lease or leave licence or caretaker basis is made subject to the covenants and restrictions

contained in this Declaration and further subject to the bye-laws in Exhibit 'B' attached hereto.

..........21.That if the property, subject to the Plan of Apartment Ownership is totally or substantially damaged or destroyed, the repair, reconstruction, or disposition of the property shall be as provided by the Act.

.........22.That, where an Apartment is sold by a mortgagee in exercise of his powers of sale under an English mortgage or by a Court in execution of a decree in a suit brought by a mortgagee against the owner of such Apartment, then neither the mortgagee nor the

purchaser who derives title to the Apartment at such sale, or his successors or assigns shall be liable, for assessments by the association which become due prior to the acquisition of title by such acquirer, it being understood, however, that the above shall not be construed to prevent the Association of Apartment Owners from filing and claiming charge for such assessments and enforcing same as provided by law, and that such charge shall be subordinate to such mortgage.

..........23.That in a voluntary conveyance of an Apartment the grantee of the Apartment shall be jointly and severally liable with the Grantor for all unpaid Assessments by the Association of Apartment Owners against the latter for his share of the common expenses upto the time

of the grant or conveyance without prejudice to the grantee's right to recover from the Grantor the amounts paid by the grantee therefor. However, any such grantee shall be entitled to a statement from the Manager or Board of Managers of the Association, as the case may be,

setting forth the amount of the unpaid assessments against the Grantor due to the Association and such grantee shall not be liable for, nor shall the apartment conveyed be subject to a charge for, any unpaid assessments made by the Association of Apartment Owners against the Grantor in excess of the amount therein, setforth.

..........24.That the Manager or Board of Managers of the Association shall obtain and continue in effect blanket property insurance in form and amounts satisfactory to mortgagees holding first mortgagees covering Apartments but without prejudicial to the right of the owner of anapartment to obtain individual apartment insurance.

..........25.That insurance premium for any blanket insurance coverage shall be a common expense to be paid by monthly Assessments levied by the Association of Apartment Owners; and that such payment shall be held in a separate account of the Association and used solely tor the payment of the blanket property insurance premiums as such premiums become due.

IN WITNESS WHEREOF Shri

day of ............................................................................................has hereto set his hand this

..............................................................................19

SIGNED AND DELIVERED BY

Shri

in the presence of :

Before me,

Notary.

APPENDIX B Form of Declaration

FORM B

[See Rule 4]

Form of eclaration

I, ... hereby declare that I am the first/present owner of apartment No..on the....floor of a building now under construction/already constructed called....situated at....in the city/town/village of...in the district of....

I derived title to the said apartment by a Deed of Apartment bearing date...between....and myself.

I hereby declare that I/my heirs, executors, administrators and assigns and the said apartment referred to in paragraph 1 of this Declaration, shall hereafter be subject to the provisions of the Karnataka Apartment Ownership Act, 1972 (Karnataka Act 17 of 1973), and all amendments thereto, and I further declare that I shall comply strictly with the covenants conditions and restrictions set forth in the Declaration and with the bye-laws forming part hereof, and attached hereto, as Exhibit 'B' and with the administrative rules and regulations

adopted pursuant to such bye-laws (as either of the same may be lawfully amended from time to time) as in the Deed of Apartment.

Solemnly affirmed/sworn at aforesaid, the...day of....

BEFORE ME.

APPENDIX C Register of Declaration and Deeds of Apartments

FORM C

[See Rule 8(1)]

Apartment No. shown in the plans annexed ...

Floor of the building

Name of building

Street/Road No. where the building is

situated

Name of Street/Road where the

building is situated

Name of builder

....7....(a) Cadastral Survey No. of land

(b) Hissa No.

..........on which building is

..........constructed.

....8. Registration district and sub-district in which declaration and Deed of

...........Apartment are registered.

SI.No. Date of Application for Registration Name of the Apartment owner Address Date of Declaration Date of registration of the Declaration (1) (2) (3) (4) (5) (6)

Percentage of undivided interest in common areas and facilities Date of Deed of Apartment Date of registration of the Deed of Apartment Price of Apartment settled Date of payment of price (7) (8) (9) (10) (11)

APPENDIX D Form of Index to Register

FORM D

[See Rule 8(2)]

Form of Index to Register

Name of the Executing Party

Place of residence

Situation of Property

Apartment No., floor of the building and name of the building

(1)

(2)

(3)

(4)

Nature of Deed (i.e. Declaration or Deed of Apartment and consideration)

Date of

Serial No., volume and page

Remarks

Execution

Registration

(5)

(6)

(7)

(8)

APPENDIX E Form of Memorandum

FORM E

[See Rule 9]

Form of morandum

1. Apartment No. shown in the plans annexed

2. Floor of the building

3. Name of the building

4. Street/Road No. where the building is situated

5. Name of Street / Road where the building is situated

6. Name of builder

......7. (a) Cadastral Survey No. of land

..........(b) Hissa No. of land on which building is constructed.

8. Registration district and sub-district in which declaration and Deed of Agreement are registered.

9. Name of Apartment owner

10. Address

11. Percentage of undivided

interest in common facilities.

12. Date of Declaration

13. Date of Deed of Apartment.

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KARNATAKA APARTMENT OWNERSHIP ACT, 1972

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