The Andhra Pradesh Apartments (Promotion of Construction and Ownership) Act, 1987

THE ANDHRA PRADESH APARTMENTS (PROMOTION OF CONSTRUCTION
AND OWNERSHIP) ACT, 1987
Act No. 29 of 1987
ARRANGEMENTS OF SECTIONS
SECTIONS
CHAPTER - I
        PRELIMINARY
1. Short title, extent and commencement
2. Application of the Act
3. Definitions
CHAPTER-II
DUTIES AND LIABILITIES OF PROMOTERS
                      GENERAL LIABILITIES OF PROMOTERS
4. General Liabilities of Promoters
5. Agreement to precede advance payment
6. No alterations after disclosure of plans etc
7. Promoter to convey title according to agreement
CHAPTER-III
SPECIAL FACILITIES
8. An apartment to be transferable and heritable property
9. Common areas and facilities
10.Compliance with bye-laws and Covenants
11.Certain works prohibited
12.Encumbrances against apartments
13.Common profits and expenses
14.Contents of Declaration
15.Withdrawal from the provision of this Chapter
16. Withdrawal no bar to subsequent submission of property to Chapter-III
17. Instruments of declarations etc., compulsorily registerable
18.Bye-Laws
19.Separate assessment
20.Charge on property for common expenses
21.Manager to cut off withhold curtail or reduce essential supply or service
22.Joint and several liability of vendor, etc., for unpaid common expenses
23.Insurance
24.Prohibition of selling leasing and misuse of common area and facilities
25.Owner of apartments to provide fire preventive devices
26.Electricity, water and drainage connections only after completion of
apartments
27.Provision of over head tanks
CHAPTER IV
MISCELLANEOUS
28. Offences
29. Offence committed by Companies
30. Indemnity
31. Act to be binding on apartment owners, tenants, etc.,
32. Act to override other laws
33. Power to make rules
34. Power to remove difficulties
35. Act not to apply to Housing Board
THE ANDHRA PRADESH APARTMENTS (PROMOTION OF CONSTRUCTION
AND OWNERSHIP) ACT, 1987
Act No. 29 of 1987
[23rd May, 1987]
AN ACT TO REGULATE IN THE STATE OF ANDHRA PRADESH THE
PROMOTION OF CONSTRUCTION AND TRANSFER OF OWNERSHIP OF
APARTMENTS.
Be it enacted by the Legislative Assembly of the State of Andhra Pradesh
in the Thirty eighth Year of Republic of India as follows:-
CHAPTER - I
PRELIMINARY
1. Short title, extent and commencement - (1) This Act may be called the
Andhra Pradesh Apartments (Promotion of Construction and Ownership) Act,
1987.
(2) It extends to the whole of the State of Andhra Pradesh.
(3) This section shall come into force at once, and the remaining
provision of this Act shall come into force in such areas and on such
dates as the Government may, by notification, appoint, and different
dates may be appointed for different areas.
2. Application of the Act - The provisions of this Act, excepting Chapter III,
shall apply to every property and the provisions of Chapter III, shall not apply
to any property, unless the sole owner or all the owners thereof submit the
same to the provisions of that Chapter by duly executing and registering a
Declaration as hereafter provided.
3. Definitions - In this Act, unless  context otherwise requires,-
(a)"apartment" means a part of the property, including one
or more rooms or enclosed spaces located on any one of the
floors consisting of a unit in a building, intended to be used
for residence, Office, practice of any profession or for
carrying on any occupation, trade or business or for any
other independent use 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)"Association of apartment owners" means all the
apartment owners acting as a group in accordance with the
provisions made by it in the bye-laws.
(c)"Building" means a building containing five or more
apartments, or two or more buildings, each containing two
are more apartments, with a total of five or more
apartments for all such buildings, and comprising a part of
the property.
(d)"Common areas and facilities" unless otherwise provided
in the declaration, means:
(i) The land on which the building is located;
(ii) foundations, columns, girders, beams, supports,
main walls, roofs including terraces, halls, corridors,
lobbies, stairs, stair-ways, fire-escapes and entrances
and exits of the building;
(iii) Basements, cellars, yards, gardens, parking areas,
Children's playground and storage spaces;
(iv) The premises for the lodging of janitors or
care-takers or persons employed for the management
of the property;
(v) installations of central services, such as power,
light, gas, hot and cold water, heating, refrigeration,
air-conditioning and incinerating;
(vi) elevators, tanks, wells and bore-wells, pumps,
motors, fans, compressors, ducts and in general all
apparatus and installations existing for common use;
(vii) such other community and commercial facilities
as may be provided for in the building plan and
Declaration;
(viii) all other parts of the property necessary or
convenient to its existence, maintenance and safety or
normally in common use;
(e)"Common expenses" means;-
(i) all sums lawfully assessed against the apartment
owners by the association of apartment owners;
(ii) expenses of administration, maintenance, repairs
or replacement of the common areas and facilities;
(iii) Expenses agreed upon as common expenses by
the association of apartment owners;
(iv) Expenses declared as common expenses by the
provisions of this Act or by the Declaration or the bye-
laws.
(v) Premium for insurance coverage of the property.
(f)"common profits" means the balance of all income, rents,
profits and other income from the common areas and
facilities remaining after the deduction of the common
expenses;
(g)"competent authority" means any person or authority
authorised by the Government by notification, to perform
the functions of the competent authority under this Act for
such areas as may be specified in the notification;
(h)"declaration" means the instrument by which the
property is submitted to the provisions of Chapter III, as
provided by section 2 and such declaration as may be
lawfully amended; from time to time.
(i) "Government" means the State Government;
(j)"Limited Common areas and facilities" means these
common areas and facilities designated in the Declaration
as reserved for the use of certain apartment or apartments
to the exclusion of the other apartments;
(k)"Notification" means a notification published in the
Andhra Pradesh Gazette and the word "notified" shall be
construed accordingly;
(l)"Prescribed" means prescribed by rules made by the
Government under this Act;
(m)"Promotor" means a person who has already constructd
or constructs a building of apartments for the purpose of
selling some or all of them to other persons;
(n)"Property" comprises the land, the building and the
common areas and facilities.
CHAPTER-II
DUTIES AND LIABILITIES OF PROMOTERS
                         GENERAL LIABILITIES OF PROMOTERS
4.  - (1) Any promoter who intends to sell an apartment, shall on being so
required by an intending transferee make a full and true disclosure in writing
of-
(a) his title to the land on and the building, in which the
apartments are, or are to be, constructed;
(b) all encumbrances, if any, on such land or building and
any right, title, interest or claim of any person in or over
such land or building;
(c) the plans and specifications approved by the local
authority as the case may be or the Urban Development
Authority of the entire building of which the apartments
forms part;
(d) the nature of fixtures, fittings and amenities which have
been or are proposed to be provided;
(e) the particulars in respect of the designs and the
materials which have been or are proposed to be used in
the construction of the building, together with the
details of all agreements entered into by him with the
architects Engineers and Contractors;
(f) all outgoings, including ground rent if any, municipal or
other local taxes, taxes on income, water and electricity
charges, revenue assessment, interest on any mortgage
or other encumbrance, if any, in respect of the land,
building and apartments;
(g) such other information and documents as may be
prescribed.
(2) Such promoter shall also -
(a) specify in writing the date by which possession of the
apartments is to be handed over to such transferee;
(b) supply in writing a list of all the apartments which have
already been taken or agreed to be taken, together with
their distinctive numbers, names and address of the
transferers, either actual or intended, the prices paid or
agreed to be paid therefor and any other particulars as
may be prescribed.
(c) transfer the open spaces earmarked for parks,
play-grounds, market places and for other common use
free of cost to the Government through a registered gift
deed.
(3) The promoter shall give on demand by the intending transferee
true copies of the documents referred to in this section.
(4) An apartment may be transferred by the promoters to any person
only after obtaining the required certificate of completion and the
certificate of fitness for occupation from the local authority
concerned.
(5) The water works department and the Electricity Board may supply
water and electricity respectively on a temporary basis on production
of the plan approved by the local authority or the Urban Development
Authority concerned as the case may be:
Provided that, if the promoters proceed with the construction of
the building contrary to the sanctioned plan, the supply of water and
electricity may be cut off on an intimation from the local authority or
the Urban Development Authority, as the case may be, to the water
works department or to the authorities of the Electricity Board.
(6) The promoter and the apartment owners are responsible for the
provision and fixation of fire prevention devices ground and over-head
water tank hydrants and wetrisers etc., as may be prescribed.
5. Agreement to precede advance payment - A promoter who intends to
transfer any apartment shall before, accepting any sum of money as advance
payment or deposit, which shall not exceed twenty percent of the price, enter
into a written agreement of sale with the intending transferee and the same
shall be registered as a document compulsorily registerable under clause (b) of
sub-section (1) of section 17of the Registration Act, 1908 (Central Act 16 of
1908).
6. No alterations after disclosure of plans etc – (1) After the plans,
specifications and the nature of fixtures, fittings amenities and common areas
as sanctioned by the local authorities or Urban Development Authority
concerned are disclosed to an intending transferee under section 4 and a
written agreement of sale is entered into under section 5, the promoter shall
not make any additions and alterations therein;
(i) if it affects any apartment, without the previous
consent in writing of the transferee who intends to
take that apartment; and
(ii) if it affects more than one apartment, without the
previous consent in writing of all the transferees who
intend to take those apartments.
(2) Any of the additions or alterations referred to above shall be
carried out only with the prior approval of the local authority or the
Urban Development Authority concerned.
7. Promoter to convey title according to agreement- A promoter shall, on
payment or tender of the amount due in respect of the price, execute a proper
conveyance of the apartment in accordance with the agreement executed under
section 5 and give possession of the apartment to the transferee after
discharging all encumbrances unless the apartment is sold subject to
encumbrances.
CHAPTER-III
SPECIAL FACILITIES
8. An apartment to be transferable and heritable property- (1) Each
apartment owner shall be entitled to the exclusive ownership and possession of
his apartment.
(2) Each apartment, together with its undivided interest in the
common areas and facilities, shall for all purposes constitute
heritable and transferable immovable property:
Provided that the percentage of undivided interest in the
common areas and facilities appurtenant to the apartment shall not
be partitioned or sub-divided for any purpose whatsoever unless the
property is withdrawn from the provisions of this Chapter.
9. Common areas and facilities- (1) Each apartment owner shall be entitled
to the percentage of undivided interest in the common areas and facilities as
expressed in the Declaration. Such percentage shall be computed by taking as
basic, the value of the apartment in relation to the value of the property and
such percentage shall also reflect the limited common areas and facilities.
(2) The percentage of undivided interest of each apartment owner in
the common areas and facilities as expressed in the Declaration shall
not be altered without the consent of all the apartment owners
expressed in an amended Declaration duly executed and registered as
provided in this Act. The percentage of undivided interests 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 either instrument.
(3) Each apartment owner may use the common areas and facilities
for the purpose for which they are intended without hindering or
encroaching upon the lawful right of the other apartments owners.
(4) The work relating to the maintenance, repair and replacement of
the common areas and facilities and the making of any additions or
improvements thereto shall be carried out in accordance with the
provision of this chapter and bye-laws.
(5) The association of apartment owners shall have an irrevocable
right, to be exercised by the manager or the board of managers on
behalf of the association, with such assistance as the manager or the
board of managers, as the case may be considered necessary, to have
access to any apartment from time to time during reasonable hours,
for the maintenance, repair and replacement of any of the common
areas and facilities therein or accessible there from or for making
emergency repairs therein to prevent any damage to the common
areas and facilities or to other apartments.
10. Compliance with bye-laws and Covenants- Each apartment owner shall
comply with the covenants, conditions and restrictions set forth in the
Declaration and the bye-laws. Failure to comply with any of the same shall be a
ground for action to recover sums due, for damages or other relief, at the
instance of the Manager or Board of Managers on behalf of the association of
apartment owners or in a proper case, by an aggrieved apartment owner.
11. Certain works prohibited- No apartment owner shall add any material
structure or excavate any additional basement or cellar or do any other work
which would be prejudicial to the soundness or safety of the property or would
reduce the value thereof or impair any easement or hereditament.
12. Encumbrances against apartments- During the period the property
remains subject to this chapter an encumbrance may be created against any
apartment and the percentage of undivided interest in the common areas and
facilities appurtenant thereto but not against the property as such.
13. 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 their percentage of undivided interest in the
common areas and facilities.
14. Contents of Declaration- (1) The Declaration referred to in section 2 shall
be submitted in the office of the competent authority in such form and in such
manner as may be prescribed and shall contain full and true particulars of the
following, namely:-
(a) description of the land on which the building and
improvements are or are to be located and whether the land
is free hold or lease hold;
(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 number of each apartment and statement of its
locations, approximate areas, number of rooms and the
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 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 the facilities appertaining to each apartment and its
owner for all purposes, including voting;
(g) particulars of encumbrances, if any, on the property of
apartment and its undivided interest at the date of the
Declaration;
(h)Such other particulars as may be prescribed;
(2) The Declaration referred to in sub-section (1) may be amended
under such circumstances and in such manner as may be
prescribed.
15. Withdrawal from the provision of this Chapter– (1) All the apartment
owners acting together way withdraw a property from the provisions of this
Chapter 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 and agree, by instruments
duly executed, that their charges or encumbrances be transfered to the
percentage of undivided interest of the apartment owner in the property as
hereinafter provided.
(2) Upon withdrawal of the property from the provisions of this
chapter, the property shall be deemed to be owned in common by the
apartment owners and the undivided interest in the property owned in common
which shall appertain to each apartment owner shall be the percentage of
undivided interest previously owned by such owner in the common areas and
facilities.
16. Withdrawal no bar to subsequent submission of property to Chapter-III
– The withdrawal provided for in section 15 shall in no way bar the subsequent
submission of the property to the provisions of the Chapter.
17. Instruments of declarations etc., compulsorily registerable- All
instruments relating to the Declaration or any amendment thereto referred to
in section 14 or the withdrawal of a property from the provisions of this chapter
referred to in section 15 shall be deemed to be instruments compulsorily
registerable within the meaning of clause (b) sub-section (1) of Section 17 of the
Registration Act, 1908 (Central Act 16 of 1908).
18. Bye-Laws- (1) The administration of every property shall be governed by
bye-laws as amended from time to time and a true copy of the bye-laws and the
amendments thereto, if any shall, as soon as they are made be filed with the
competent authority and be annexed to the Declaration, provided that no such
bye-laws or amendments thereto shall take effect until copies thereof duly filed
with the competent authority.
(2) The bye-laws shall provide for the following matters, namely:-
(a) the manner in which the association of apartment
owners is to be formed, the election of a board of
managers from among the apartment owners, the
number of persons constituting the board, the number
of members of such board to retire annually, the powers
and duties of the board; the honorarium, if any of
members of the board; the method of removal from the
office of members of the board; the powers of board to
engage the services of manager and delegation of
powers and duties to such managers;
(b) method of calling meetings of the apartment owners and
the quorum for such meetings;
(c) election of a President and who shall preside over the
meetings of the Board and of the association or
apartment owners ;
(d) election of a secretary who shall keep a minutes book
wherein resolution shall be recorded;
(e) election of a treasurer who shall keep the financial
records and books of accounts;
(f) manner of collecting from the apartment owners their
share of the common expenses;
(g) maintenance, repair and replacement of the common
areas and facilities and payments therefor;
(h) any other matter considered to be necessary for the
administration of the property.
19. Separate assessment- Each apartment and its percentage of undivided
interest in the common areas and facilities shall be deemed to be a separate
property for the purpose of assessment of tax on lands and buildings under
any law for the time being in force.
20. Charge on property for common expenses- All sums assessed by the
association of apartment owners for the share of the common expenses
chargeable to any apartment shall constitute a charge on such apartment with
precedence over other charges, except charges, if any, for payment of
Government and Municipal Taxes and all sums remaining unpaid on a first
mortgage of the apartment;
Explanation:- For the purposes of this section, 'Government' shall include the
Central Government.
21. Manager to cut off withhold curtail or reduce essential supply or
service - The manager or board of managers of an association of apartment
owners may, after due notice of not less than seven days, for just and sufficient
cause, cut off, with-hold, or in any manner curtail or reduce, any essential
supply or service enjoyed by an apartment owner.
Explanation:- In this section, essential supply or service includes the supply of
water, electricity, lights in passages and on stair cases, lifts and conservancy or
sanitary service.
22. Joint and several liability of vendor, etc., for unpaid common
expenses - Upon the sale of any apartment, the purchaser of the apartment
shall be jointly and severally liable with the vendor for all unpaid assessments
against the later for his share of the common expenses upto the time of the
sale without prejudice to the purchaser's right to recover from the vendor the
amount paid by him.
23. Insurance - The Manager or Board of Managers of an association of
apartment owners if required by the Declaration or the bye-laws or by a
majority of the apartment owners, shall have authority to, and shall obtain
insurance coverage for the property against loss or damage by fire and such
other hazards under such terms and for such amounts as shall be required.
Such insurance shall be in the name of the Manager or the Board of Managers
of the association of the apartment owners as trustee for each of the apartment
owners in the percentage established in the declaration.
24. Prohibition of selling leasing and misuse of common area and
facilities - The promoters or the owners of apartments shall not sell or lease
out or misuse any common areas and facilities;
25. Owner of apartments to provide fire preventive devices - Every owner
of an apartment in a building consisting of a ground floor, together with three
or more floors on it shall be required to provide all the fire preventive device in
consultation with the Director General of Fire Services in the manner
prescribed.
26. Electricity, water and drainage connections only after completion of
apartments - Every owner of an apartment shall be entitled to have electricity,
water and drainage connection on a permanent basis only on payment of such
fee as may be prescribed and on the production of a certificate from the
competent authority to the effect that the apartment has been constructed in
accordance with the sanctioned plan.
27. Provision of overhead tanks - Every owner of the apartment shall provide
an overhead tank in the manner prescribed.
CHAPTER IV
MISCELLANEOUS
28. Offences - Any promoter or owner of the apartment who without
reasonable excuse fails to comply with or contravenes any provisions of
section 4, section 5, section 6, section 7, section 24, section 25, or
section 27 shall be punishable with imprisonment for a term which may extend
to one year or with fine which may extend to fifty thousand rupees, or with
both.
29. Offence committed by Companies - (1) Where an offence under this Act
has been committed by a company, every person who, at the time the offence
was committed, was in charge of, and was responsible to, the company for the
conduct of the business of the company as well as the company, shall be
deemed to be guilty of the offence and shall be liable to be proceeded against
and punished accordingly:
Provided that nothing containing in this sub-section shall render any
such person liable to any punishment, if he proves that the offence was
committed without his knowledge or that he exercised all due diligence to
prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an
offence under this Act has been committed by company and it is proved that
the offence has been committed with the consent or connivance of, or is
attributable to any neglect on the part of, any director, manager, secretary or
other officer of the company, such director, manager, secretary or other officer
shall also be deemed to be guilty of that offence and shall be liable to be
proceeded against and punished accordingly.
Explanation - For the purposes of this Section,-
(a)"Company" means anybody corporate and includes a
firm or other association of individuals; and
(b)"Director", in relation to a firm, means a partner in the
firm.
30. Indemnity- No suit, prosecution or other legal proceeding shall lie against
the Government or any officer or other employee of the Government in respect
of anything which is in good faith done or intended to be done by or under this
act.
31. Act to be binding on apartment owners, tenants, etc., - (1) All
apartment owners, their tenants and employees or any other person that may
in any manner use the property or any part thereof submitted to the provisions
of Chapter III shall be subject to this Act, and to the Declaration and bye-laws
of the association of the apartment owners.
(2) All agreements, decisions, and determinations lawfully made by
the association of apartment owners in accordance with the voting
percentage specified in the Declaration or bye-laws shall be deemed
to be binding on all the apartment owners.
32. Act to override other laws - The provisions of the Transfer of Property
Act, 1882 (Central Act 4 of 1882), shall in so far 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 have effect notwithstanding anything to the
contrary contained in any other law.
33. Power to make rules - (1) The Government may, by notification, make
rules for carrying out all or any of the purposes of this Act.
(2) Every rule made under this Act shall, immediately after it is made,
be laid before the Legislative Assembly of the State if it is in session and if it is
not in session, in the session immediately following, for a total period of
fourteen days which may be comprised in one session, or in two successive
sessions and if before the expiration of the session in which it is so laid or the
session immediately following the Legislative Assembly agrees in making any
modification in the rule, or in the annulment of the rule, the rule shall, from
the date on which the modification or annulment is notified, have effected only
in such modified form or shall stand annulled, 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.
34. Power to remove difficulties - If any difficulty arises in giving effect to the
provisions of this Act, the Government may, by general or special order,
published in the Andhra Pradesh Gazette, make such provisions not
inconsistent with the provisions of this Act as appear to them to be necessary
or expedient for the removal of the difficulty:
Provided that no such order shall be made after the expiration of two
years from the commencement of this Act.
35. Act not to apply to Housing Board - Nothing in this Act shall apply to the
Andhra Pradesh Housing Board constituted under the Andhra Pradesh
Housing Board Act, 1956 (Act 46 of 1956).

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