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Ajay Kumar (Software Architect)     12 August 2018

Who has ownership of club house in a residential society

As the title says, who has ownership of a club house built in a residentail society. Is the builder obligated to transfer it to RWA after the construction is completed or the owners entitled to only membership?

My AOS has a clause about club house clearly stating the following

"The vendors shall provide club house for owners or occupants of the residential units in the township and provide recreational facilities. The right of the purchaser on club house property shall remain restricted to use only the facilities provided by teh club subject to its availability and functioning. The purchaser by virtue of purchasing the schedule property shall be entitled to utilize the facilities provided by the club on payment of service charges, etc., as prescribed by the management of the club from time to time. However, the membership in the club shall automatically be terminated to as and when the Purchaser ceased to be the owner of the aparement."

This makes it very clear that the owners are only getting membership and the ownership resides with builder. However, some residents are still arguing that the club house has to be handled over to the RWA. Some of the earlier buyers may not have any clause related to club house mentioned in the AOS. So,

What is the default stance when nothing is mentioned in the agreement?

Can the builder sell parts or whole of club house as commercial space to any entity?



Learning

 2 Replies

Adv Deepak Joshi +917017821512 (Advocate)     12 August 2018

Dear querist,

Anything can be said after checking complete papers of society registration. What I mean is if the builder has transferred the right to the society then the society formed will be owner and will take decision in General body meeting of society.

If builder has retained ownership with himself and just promised to provide recreational facilities then he can sell but the buyer will provide same facilities.

Ajay Kumar (Software Architect)     12 August 2018

The builder has not transfered ownership nor has claimed that he will do it so far. As you can see from the quote from my AOS, they clearly state that they will retain ownerhip and only provide membership to flat buyers. The flat buyers are debating whether the builder is obligated to get the ownership transfered to the RWA. 

So, what I would like knowing is whether there is any compulsion on the builder to transfer the ownership as a standard process or can they legally retain ownership and secondly, what is the default stance if there is no metion of ownership mode at all in the AOS.


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