The Complete Guide To Non-Occupancy Charges
Non-occupancy fees are one of the many fees that are stated in the bye-laws of a Co-operative Housing Society (CHS) in Maharashtra. These apply to homes that are not occupied by the owner or his family. The cost of maintaining the elevator, the energy in common areas, the security. And other facilities are include in the service charges that form the foundation for calculating the occupancy fees.
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Pushpa recently invested in a 2BHK flat in Pune in the hopes of generating a steady stream of rental income. However, her society tacked on “non-occupancy charges” when she made the decision to do so. Like Pushpa, many homeowners in Maharashtra are not aware of these fees that are common. This blog explains the non-occupancy fees assessed on residential properties for such owners.
What are the charges for non-occupancy?
In cases where a property’s ownership has been transfer from the developer or society to the owner but the unit is still vacant despite being in a ready-to-move state, non-occupancy fees are assess. However, only apply when the unit is sublet. If the flat is unoccupied and locked, or if a family member, such as a spouse or parent, lives there, these fees are not due. Non-occupancy fees must be paid by the owner of a property in a housing society if it is not use for self-occupation and the owner derives a profit from it.
The topic of non-occupancy fees has generated a lot of controversy in the past. It frequently leads to conflicts between a society & its member when there are no defined rules. Most of the time, homeowners think that the society has assessed them with unreasonable fees. The society, for its part, argues that charging members such fees for subletting their apartments and generating sizable rental income is acceptable. Complicating problems are inadequate government enforcement and inconsistent legal scholars’ views.
Court judgment about non-occupancy charges
The state governments have attempted to step in and defend the interests of the homeowners while cooperative societies have defended their right to assess non-occupancy fees. The Maharashtra government established a committee in June 1997 to thoroughly investigate the NOC problem. The state government issued an order in August 2001 stating that the NOC charges should not be greater than 10% of the service charges in response to the committee’s report. In March 2007, the Bombay High Court supported the state government’s decision. The Supreme Court subsequently approved of the state government’s announcement.
How are non-occupancy charges determines?
As was already said, society shouldn’t charge more than 10% of service fees as non-occupancy fees. Non-occupancy fees, for instance, would be Rs 271 per month (10% of Rs 2,710). If the service charges component of the monthly maintenance calculation were to be Rs 2,710 per month.
What are the charges for the services?
Bye-law 68 of the new model bye-laws states that service charges cover things like staff salaries and benefits, society office expenses, committee member sitting fees, printing and stationery costs, and common electricity costs. The homeowner will receive a reminder notice from the society and may be label a defaulter if they choose not to pay non-occupancy fees. Furthermore, the society shall not provide a certificate with no dues.
Are parking spaces included in non-occupancy charges as well?
If you park your car inside the society’s property. The parking space is regard as a part of the non-occupancy fees. You won’t have to pay for this component, though, if you don’t drive.
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