The Tamil Nadu Apartment Ownership Act, 2022

What the Act governs

The Tamil Nadu Apartment Ownership Act, 2022, Act No. 44 of 2022, applies throughout Tamil Nadu and covers buildings containing four or more apartments. An apartment may be used or intended for residential or commercial purposes, including as a flat, office, showroom, shop or other self-contained unit.

The legislation affects apartment owners, promoters, associations, existing societies and people holding an apartment under a lease of at least thirty years. Its commencement depends on a State Government notification, and different commencement dates may be appointed for different areas.

Ownership and transfer

The Tamil Nadu Apartment Ownership Act, 2022 gives each apartment owner exclusive ownership and possession of the apartment. Key provisions include:

• The apartment and its undivided interest in common areas and facilities together form heritable and transferable immovable property.
• An apartment or its undivided interest in common areas and facilities cannot be partitioned or subdivided.
• A subsequent apartment owner may acquire an apartment by purchase, inheritance or a lease of at least thirty years.

Common property and expenses

The Tamil Nadu Apartment Ownership Act, 2022 treats staircases, lifts, common entrances, fire escapes, common basements, terraces, parks, play areas, open parking, common storage, central services and community facilities as common areas and facilities. Limited common areas may be reserved in the declaration for particular owners, including car parking spaces, balconies, verandahs and open terraces attached to an apartment.

Common expenses include administration, maintenance, repair or replacement of common property, certain legal expenses and other expenses approved by the association or declared common under the legislation or bye-laws.

Declarations and associations

The Tamil Nadu Apartment Ownership Act, 2022 requires the promoter or a majority of apartment owners to submit a declaration to the competent authority. Important requirements are:

• For a newly completed building, the declaration must be submitted within ninety days after the appropriate authority issues the completion certificate.
• For a building already existing when the legislation commences, the declaration must be submitted within one hundred and eighty days after commencement.
• The declaration must be submitted in duplicate, in the prescribed form and manner, with the prescribed fee.
• After accepting the declaration, the competent authority endorses and returns it while retaining a copy.
• A majority of owners must then prepare bye-laws for registration by the competent authority.

The bye-laws must address association formation, management elections, meetings, quorum, common-property maintenance, collection of common expenses and formation of a federation where necessary.