Everything about non-occupancy charges

Residents of housing societies are required to pay maintenance fees. You must continue paying the maintenance costs even if the asset is empty. There are no exceptions. However, non-occupancy fees are applied when the property is used for commercial benefit by the flat-proprietor, and neither the asset is self-occupied nor occupied with the help of a right away family member. The cost of the fees is included in the maintenance bill. It’s a way for the housing society to receive a percentage of the overall financial gain.

Owners of housing units who are also members of housing societies are responsible for paying the non-occupancy costs. In these situations, owners wish to provide a copy of the hiring or licensing agreement in addition to other necessary papers and documents.

The following situations do not apply to these fees:

  • If the society member resides in the assets
  • If the property is uninhabited
  • If the property is being used by a right away family member, such as a son, daughter (regardless of their marital status), etc.

Housing societies may charge outrageous sums as non-occupancy fees before the Maharashtra government caps them at 10% of carrier fees. This might increase leases and put a financial hardship on non-resident Indians (NRIs), particularly those who are keen to invest in Indian real estate. Conflicts between societies and their members may also frequently increase in the lack of clear solutions for the same. Things became much more convoluted as a result of poor execution by the alarmed administration and many interpretations by criminal professionals.

While the housing societies argued over their right to collect non-occupancy fees, the state governments fought to protect the interests of the homeowners. A committee was established by the Maharashtra government in June 1997 to thoroughly examine the non-occupancy charge system as a whole. According to the findings of the committee, the State Government had directed in August 2001 that the non-occupancy costs should no longer exceed 10% of the carrier rates. By invoking the Bombay High Court in March 2007, this decision was affirmed. Additionally accepting the State Government’s notification later, the Supreme Court.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.


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