LexThe Punjab Apartment Ownership Act, 1995
Punjab · state statute
Open in Lexace · Ask the AI about this actGOVERNMENT OF PUNJAB
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS
THE PUNJAB APARTMENT OWNERSHIP ACT, 1995
(PUNJAB ACT 13 OF 1995)
(As amended upto the 15thJune, 2025)
2025
THE PUNJAB APARTMENT OWNERSHIP ACT, 1995
CONTENTS
Preamble
Sections
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement
2. Application
3. Definitions
CHAPTER II
OWNERSHIP, HERITABILITY AND TRANSFERABILITY
OF APARTMENTS
4. Ownership of apartments
5. Common areas of facilities
6. Apartment to be heritable and transferable
7. Ownership of apartment subject to conditions
8. Compliance with covenants and by-laws
9. Purchasers of lessees to execute undertaking
10. Benamidarto be deemed real owner
11. Certain works prohibited
12. Sub-lease and its Breach
13. Encumbrances against apartments
CHAPTER III
CONVEYANCE DEED OF APARTMENT AND ITS
REGISTRATION
14. Conveyance deed of apartment
15. Enforcement of transfer
16. Registration of conveyance deed of apartment
CHAPTER IV
ASSOCIATION AND REGULATION OF ITS AFFAIRS
17. Formation of association
18. Co-operative society as association
19. Powers and functions of an association
20. Bye-laws
21. Disposition of property on destruction or damage
22. Action
23. Control and supersession
CHAPTER V
COMMON PROFITS, COMMON EXPENSES AND OTHER
MATTERS
24. Common profits, common expenses and other matters
25. No waiver on liability
26. Common expenses a charge
27. Liability on transfer, etc.
28. Liabilities under other laws
29. Recovery
30. Recovery of taxes
31. Insurance
CHAPTER VI
AUTHORITIES UNDER THE ACT
32. Powers and duties of the competent authority
33. Appellate authority and appeals
34. Revision
35. Bar of jurisdiction
CHAPTER VII
MISCELLANEOUS
36. Act binding on apartment owners etc.
37. Penalty for breach
38. Power to make rules
1THE PUNJAB APARTMENT OWNERSHIP ACT, 1995
(Punjab Act No. 13 of 1995)
[Received the assent of the President of India on the 26th
June,1995 and was first published for general information in the
Punjab Government Gazette (Extraordinary), Legislative
Supplement, dated the 4th July, 1995.]
1 2 3 4
Year No. Short Title Whether repealed or
otherwise affected by the
legislation
1995 13 THE PUNJAB
APARTMENT
OWNERSHIP
ACT, 1995
Amended by Punjab Act
No. 17 of 2021
An Act to provide for the ownership of an individual
apartment in a building together with and undivided interest in
the common areas and facilities appurtenant to such apartment
to make such apartment and interest heritable and transferable,
to enforce obligations on promoters and apartment owners, and
to provide for matters connected therewith or incidental thereto.
BE it enacted by the Legislature of the State of Punjab in the
Forty-sixth Year of the Republic of India as follows: -
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Punjab Apartment Ownership
Act, 1995.
(2) It extends to the whole of the State of Punjab.
(3) This Act shall come into force in such areas and on such
dates, as the State Government may, by notification in the Official
Gazette, appoint, and different dates may be appointed for different
areas.
1For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary)
dated the 13th March, 1995, Page 411.
Short title,
extent and
commencement.
2. The provisions of this Act shall apply to every apartment in
any building constructed or converted into apartments by a
promoter before or after the commencement of this Act on free
hold land or on land held on lease.
3. In this Act, unless the context otherwise requires; -
(a) "allottee", in relation to an apartment, means the
person to whom such apartment has been allotted,
sold or otherwise transferred by the promoter;
(b) "apartment", which may be called block, chamber,
dwelling unit, flat, lot, premises, suite, tenement, unit
or by whatever any other name, means a separate and
self-contained part of any property, including one or
more rooms or enclosed spaces, located on one or
more floors, or any part or parts thereof, in a building,
or in a plot of land, used o r intended to be used for
residence, office, shop, showroom, or godown, or, for
carrying on any business, industry, occupation,
profession or trade, or for any other type of
independent use ancillary to the purposes specified
above, and with a direct exit to a public street, road or
highway or, to a common area leading to such street,
road or highway, and includes any garage or room,
whether or not adjacent to the building in which such
apartment is located provided by the promoter for the
use by the owner of such apartment for parking any
vehicle, or, as the case may be, for the residence of
any domestic servant employed in such apartment:
Explanation. - (1) If a basement, cellar, garage, room, shop
or storage space is sold separately from any apartment,
it shall be treated as an independent apartment and not
as part of any other apartment or of the common areas
and facilities:
Explanation. - (2) Notwithstanding that provision is made
for sanitary, washing, bathing or other conveniences as
common to two or m ore apartments, the apartment
shall be deemed to be separate and self-contained;
1[(ba) "apartment building” means a building constructed on
any land containing eight or more apartments, or two
or more adjacent buildings with a total of eight or
1Inserted by Punjab Act No.17 of 2021, Section 2
Definitions.
Application.
more apartments, or any existing building converted
into eight or more apartments;]
(c) "apartment number", means the number, letter or
combination thereof, designating an apartment;
(d) "apartment owner", means the person owning an
apartment and an undivided interest in the common
areas and facilities appurtenant to such apartment in
the percentage specified in the conveyance deed of
apartment;
Explanation. - A member of a co-operative housing society of
the tenant co - partnership type, or an allottee under a
hire-purchase agreement, will be deemed to be an
owner entitled to membership of the association;
(e) "association", means an association consisting of all
the apartment owners in a building acting as a group
in accordance with the bye- laws;
(f) "Board", means the Board of management of an
association elected by its members from among the
apartment owners under the bye-laws;
1[(g) "building" includes any structure or erection or part of
a structure or erection which is intended to be used for
residential, commercial or for the purpose of any
business, occupation, profession or trade, or for any
other related purposes;]
(h) "building regulations", means the rules or regulations
or bye-laws made under any law for the time being in
force for the erection or re- erection of buildings or
parts thereof and for the purposes of this Act includes
Zoning Regulations framed under any law for the time
being in force;
(i) "bye-laws" means the bye -laws of an association
made under this Act;
2[(j) "common areas and facilities" means, -
(i) the entire land of the project, or where the
project is developed in phases, the entire land of
that phase;
1Substituted byPunjab Act No.17 of 2021, Section 2
2Substituted byPunjab Act No.17 of 2021, Section 2
(ii) the staircases, lifts, staircase and lift lobbies,
fire escapes, and common entrances and exits of
buildings;
(iii) the common basements, terraces, parks, play
areas, open parking areas and common storage
spaces;
(iv) the premises for the lodging of persons
employed for the management of the property
including accommodation for watch and ward
staffs or for the lodging of community service
personnel;
(v) installations of central services such as
electricity, gas, water and sanitation, air -
conditioning and incinerating, system for water
conservation and renewable energy;
(vi) the water tanks, sumps, motors, fans,
compressors, ducts and all apparatus connected
with installations for common use;
(vii) all community and commercial facilities as
provided in the project; and
(viii) all other portions of the project necessary or
convenient for its maintenance, safety, etc., and
in common use;]
(k) "common expenses", means, -
(i) all sums lawfully assessed against the apartment
owners, by the association for meeting the
expenses of administration, maintenance, repair
or replacement of the common areas and
facilities;
(ii) expenses, declared by the provisions of this Act
or by the bye -laws or agreed upon by the
association, as common expenses;
(iii) the Government and municipal taxes, including
ground rent and property tax, which is not
assessed separately, for each apartment;
(l) "common profits", means the balance of all income,
rent, profit and revenue from the common area and
facilities, remaining after the deduction of the
common expenses;
(m) "competent authority", means any person o r authority
appointed by the State Government, by notification in
the Official Gazette, to exercise and perform all or any
of the powers and functions of the competent
authority under this Act and the rules made
thereunder;
(n) "Government" or "State Govern ment" means the
Government of the State of Punjab;
(o) "joint family" in the case of Hindus means a Hindu
undivided family and, in the case of other persons, a
group the members of which are by custom joint in
possession or residence;
(p) "land" means a po rtion of the surface of the earth,
comprising the ground or soil and everything under it
or over it, and things which are attached to the earth
(such as buildings, structures and trees), things which
are permanently fastened to the earth, or, to things
attached to the earth, easements, rights and
appurtenances belonging to them and benefits arising
out of them and includes the sites of villages, towns
and cities;
(q) "limited common areas and facilities" means those
common areas and facilities which are des ignated, in
writing, by the promoter before the allotment , sale or
other transfer of any apartment as reserved for use of
certain apartments to the exclusion of the other
apartments;
(r) "local authority" means a corporation constituted
under section 4 of the Punjab Municipal Corporation
Act, 1976 (Punjab Act No. 42 of 1976), a committee
constituted under section 12 of the Punjab Municipal
Act, 1911 (Punjab Act No. 3 of 1911) or any other
authority notified by the State Government for the
purposes of this Act;
(s) "majority" or "majority of apartment owners" means
the apartment owners with fifty one per cent or more
of the votes in accordance with the percentages
assigned in the conveyance deeds of apartments for
voting purposes;
1[(t) "person" includes, -
(i) an individual;
(ii) a Hindu undivided family;
(iii) a company;
(iv) a firm under the Indian Partnership Act, 1932 or
the Limited Liability Partnership Act, 2008, as
the case may be;
(v) an association of persons or a body of
individuals, whether incorporated or not;
(vi) a co -operative society registered under the
Punjab Co -operative Societies Act, 1961
(Punjab Act No. 25 of 1961); and
(vii) any such other entity as the State Government
may, by notification, specify in this behalf;]
(u) "prescribed" means prescribed by rules made under
this Act;
(v) "promoter" means the person who constructs or causes
to be constructed a building consisting of apartments
or who converts an existing building or a part thereof
into apartments for the purpose of selling all or some
of the apartments to other persons and includes his
assigns and where the person who constructs or
converts a building and the person who sells are
different persons, the term includes both of them;
Explanation. - (1) Any development authority or any other
public body so notified by the State Government are
deemed to be promoters in respect of the allottees of
apartments constructed by them on the land owned by
them or placed at their disposal by the State
Government;
Explanation. - (2) A person who acts as described in clause
(v) shall be deemed to be a promoter, even if, -
(i) he styles himself a builder, coloniser, contractor,
developer estate promoter or styles himself by any
other name; or
1Substituted byPunjab Act No.17 of 2021, Section 2
(ii) he claims to be acting as the holder of a power of
attorney of the owner of the land on which the
building is constructed;
(w) "property" means the land, the building, all
improvements and structures thereon, and all
easements, rights and appurtenances belonging
thereto, and includes every type of right and interest in
land which a person can have to the exclusion of other
persons, such as possession, use and enjoyment free
from interference, rights of disposition, franchises and
hereditaments; and
(x) "section" means a section of this Act.
CHAPTER II
OWNERSHIP, HERITABILITY AND TRANSFERABILITY
OF APARTMENTS
4. (1) Every person, to whom an apartment is allotted, sold
or otherwise transferred by the promoter, either before or after the
commencement of this Act, shall be e ntitled, save as otherwise
provided in section 7 and subject to the other provisions of this
Act, on and from such commencement, or on such allotmentsale or
transfer, as the case may be, to the exclusive ownership and
possession of the apartment so allotte d sold or otherwise
transferred to him.
(2) Every person who becomes entitled to the exclusive
ownership and possession of an apartment under sub -section (1)
shall be entitled to such percentage of undivided interest in the
common areas and facilities as may be specified in the conveyance
deed of apartment and such percentage shall be the ratio of the
built-up area of the apartment to the total built -up area of all the
apartments of the building and in respect of the limited common
areas and facilities reserved for the use of certain apartments to the
exclusion of other apartments, such percentage shall be the ratio of
the built-up area of the apartment to the total built -up area of those
apartments for which the use is reserved.
Explanation. - The actual built-up area should be taken into
account for the calculation of the percentage and any different area
Ownership of
apartments.
which may be stated in the agreement of sale between the promoter
and the person taking the apartment, shall be ignored:
Provided that if all or any of the apartments are put to any
non- residential use, the percentage shall be as may be prescribed.
(3) The apartment owners shall own in common the
common areas and facilities and neither the promoter nor the
association shall have any ownersh ip right in the common areas
and facilities and the association shall be vested only with the
management and maintenance of the common areas and facilities.
(4) The percentage of the undivided interest of an
apartment owner in the common areas and faciliti es shall have a
permanent character and shall not be altered without the written
consent of all the apartment owners.
(5) The percentage of undivided interest in the common
areas and facilities shall not be separated from the apartment to
which it appertai ns and shall be deemed to be conveyed or
encumbered with the apartment, even though such interest is not
expressly mentioned in the covenant deed or other instrument
creating the encumbrance.
(6) The common areas and facilities shall remain undivided and
no apartment owner or any other person shall bring any action for
partition or division of any part thereof, and any covenant to the
contrary shall be void.
5. (1) Each apartment owner may use the common areas and
facilities in accordance with the purposes for which they are
intended without hindering or encroaching upon the lawful rights
of the other apartment owners.
(2) The necessary work relating to the maintenance,
repairs or replacement of the common areas and facilities and the
making of any additions or improvements thereto, shall be carried
out only in accordance with the provisions of this Act and the bye -
laws.
(3) The association shall have the irrevocable right to be
exercised by the Board to have access to each apa rtment from time
to time during reasonable hours for the maintenance repairs or
Common areas
and facilities.
replacement of the common areas and facilities therein or
accessible therefrom, or for making emergency repairs therein
necessary to prevent damage to the common areas and faci lities or
to any other apartment or apartments.
6. Subject to the provisions of section 7 an apartment together
with the percentage of undivided interest in the common areas and
facilities appurtenant to such apartment, shall constitute for all
purposes a heritable and transferable immovable property within
the meaning of any law for the time being in force and an
apartment owner may transfer his apartment together with the
percentage of undivided interest in the common areas and facilities
appurtenant to such apartment by way of sale-mortgage, lease, gift,
exchange or in any other manner whatsoever, in the same manner,
to the same extent and subject to the same rights, privileges,
obligations, liabilities, investigations, legal proceedings or
remedies, and to penalty forfeiture or punishment, as any o ther
immovable property, or he may make a request of the same under
the law applicable to the transfer and succession of immovable
property and the promoter shall neither impose any condition on
such transfer in the agreement of sale nor collect any amount for
acquiescing to such transfer:
Provided that, where the apartment is in possession of a
person on the basis of a hire purchase agreement, the transfer of
possession of the apartment shall be regulated by the hire purchase
agreement and the transferor s hall be jointly and severally liable
with the transferee for the instalments yet to be paid:
Provided further that, where the apartment is in possession
of a member of a housing cooperative society of the tenant co -
partnership type, the transfer of possess ion of the apartment shall
be regulated by the laws, rules and bye -laws applicable to such
society:
Provided further that where the building is on leasehold land
the transfer shall be subject to the terms and conditions of the
lease.
7. (1) Where an allotment, sale or other transfer of an
apartment has been made, whether before or after the
Apartment to
be heritable and
transferable.
Ownership of
apartment subject
to conditions.
commencement of this Act, in pursuance of any promise of
payment, or part payment, of the consideration thereof, t he allottee
shall not become entitled to the ownership of that apartment or to
the percentage of undivided interest in the common areas and
facilities appurtenant to such apartment until full payment has been
made of the consideration along with any amount s in respect of
common expenses and payment of Government and municipal
taxes incurred by the promoter before the formation of association
together with interest if any due thereof and if there is a dispute
about the amount payable by the allottee to the p romoter the
dispute shall be decided by the competent authority but the allottee
shall be entitled to possession without waiting for the dispute to be
decided.
(2) If after final payment as provided under sub -section
(1) has been made, any expenses incurred by the promoter for
providing any requirement imposed by the State Government or
the local authority, such as fire -fighting equipment, it shall be
recoverable from the apartment owners and where any such
allottee has been inducted into the possession of such apartment or
any part thereof on certain terms and conditions in pursuance of
such allotment, sale or other transfer, he shall continue to remain in
possession thereof on the same terms and conditions and if a
person has entered into a hire -purchase a greement with the
promoter and has been inducted into the possession of an
apartment on certain terms and conditions, he shall continue to
remain in possession thereof on the same terms and conditions.
8. An apart ment owner shall comply strictly with the
provisions of this Act, the rules made there under and the bye-laws
and with the covenants, conditions and restrictions set forth in the
conveyance deed of apartment and failure to comply with any of
them shall be a ground for action to recover sums due for damages
or for injunctive relief, or both, by the Board on behalf of the
association or, in a proper case, by an aggrieved apartment owner,
before the competent authority.
9. Notwithstanding anything contained in any law for the time
being in force, a person acquiring an apartment from an apartment
Compliance with
covenants and
bye-laws.
Purchasers of
lessees to
execute
undertaking.
owner by gift, exchange, purchase or otherwise, or taking lease of
an apartment from an apartment owner, shall, -
(a) in respect of the said apartment, be subject to the
provisions of this Act; and
(b) execute within three months and register an
instrument, in such form and in such manner, as may
be prescribed, giving an undertaking to comply with
the covenants, conditions and restrictions, subject to
which such apartment is owned by the apartment
owner aforesaid, and file certified copy thereof in the
office of the competent authority.
10. If an apartment is acquired by a person, wheth er by
allotment, sale or otherwise, with the consideration thereof paid or
provided by another person, the acquirer shall notwithstanding
anything contained in any law for the time being in force, be
deemed to be real owner of such apartment, and no court shall
entertain any claim of the person paying or providing such
consideration, for the title to such apartment, on the ground that the
acquisition of the apartment was made on behalf of such person or
on behalf of someone through whom such person claims.
11. No apartment owner shall do any work which would be
prejudicial to the soundness or safety of the property or reduce the
value thereof or impair any easement or hereditament or shall add
any material structure or excavate any additional basement or
cellar, without first obtaining the consent of all other apartment
owners.
Explanation. - Where there is more than one building in the
association, reference to the other apartment owners in this section,
is only to the other apartment owners in the concerned building.
12. (1) Where any land is given on lease by a person
(hereinafter in this section referred to as the lessor) to another
person (hereafter in this section referred to as the lessee, which
term shall include a person in whose favour a sub -lease of such
land has been granted and any building has been constructed on
such lease -hold land by the lessee or by any other person
authorised by him or claiming through him) such lessee shall grant
Benamidar to be
deemed real
owner.
Certain works
prohibited.
Sub-lease and its
Breach.
in respect of the land as many sub-leases as there are apartments in
such building and shall execute a separate conveyance deed of sub-
lease in respect of such land in favour of each apartment owner
within three months from the date of which possession of any
apartment is given to him and execute a document transferring the
management of the common areas and facilities to the association
within three months of its being formed, and file certified copies of
the instruments in the office of the competent authori ty and in the
case of a building constructed before the commencement of this
Act, such conveyance deeds of sub -lease and such documents of
transfer shall be executed within three months of the
commencement of the Act and thereafter the powers and functions
of the lessee shall be exercised by the association in respect of
apartment owners who are the sub-leases:
Provided that no sub -lease in respect of any land shall be
granted except on the same terms and conditions on which the
lease in respect of the land has been granted by the lessor and no
additional terms and conditions shall be imposed by the lessee
except with the previous approval of the lessor:
Provided further that the lessee shall not withhold consent
to, or collect any amount for acquiescing to the apartment owner
executing a transfer of the sub -lease and endorsement on the deed
of apartment in favour of a transferee but where the lessor is the
Government, it may levy such transfer fee as may be prescribed.
(2) Where the lessee has any reason to suspect that there
has been any breach by the apartment owner (hereinafter referred
to as the defaulting apartment owner) of the terms and conditions
of the sub -lease, in respect of the land appurtenant to the
apartment, he may himself inspect such land an d make a report as
to whether there has been any breach of the terms and conditions of
any sub -lease in respect of such land and if so, the nature and
extent of such breach and for this purpose, it shall be lawful for the
person authorised by him to enter into, and to be in the land in
relation to which such breach has been or is suspected to have been
committed.
(3) Where the lessee or any person authorised by him
makes an inspection of the land referred to in sub -section (2) he
shall record, in writing, h is findings on such inspection and a true
copy thereof shall be furnished to the defaulting apartment owner
and, where such findings indicate that there has been any breach of
the terms and conditions of the sub -lease in respect of such land,
the lessee ma y, by a notice, in writing, require the defaulting
apartment owner to refrain from such breach, or to pay in lieu
thereof such composition fee as may be specified in the notice in
accordance with such scales of composition fee as may be
prescribed.
(4) The defaulting apartment owner who is aggrieved by
any notice served on him by the lessee under sub -section (3) may,
within thirty days from the date of service of such notice, prefer an
appeal to the competent authority, either challenging the findings
of th e lessee or any person authorised by him, or disputing the
amount of composition fee as specified in the notice and the
competent authority may, after giving the parties a reasonable
opportunity of being heard, confirm, alter or reverse those findings,
or may confirm or reduce the amount of composition fee, or set
aside the notice.
(5) Where there is default in the payment of any
composition fee, it shall be lawful for the lessee to recover the
amount of composition fee from the defaulting apartment owner.
(6) Where any composition fee is paid, whether in
pursuance of the notice served under sub -section (3) or in
accordance with the decision of the competent authority, no further
action shall be taken by the lessee for the breach in relation to
which payment of such composition fee has been made.
(7) Where any lessee omits or fails to take any action
under sub -section (2) or sub -section (3), the lessor may, by a
notice, in writing, require the lessee to take action against the
defaulting apartment owner under sub-section (2) or (3) within a
period of ninety days from the date of service of such notice and, in
the event of the omission or failure of the lessee to do so within
such period, the lessor may himself take action under sub -sections
(2) or (3) and the provisions of sub -sections (4), (5) and (6) shall,
as far as may be, apply to any action taken by him, as if such action
had been taken by the lessee.
(8) For the removal of doubts, it is hereby declared that
no work in any apartment by the owner thereof, unless the work is
prohibited by section 11, shall be deemed to be a breach of the
terms and conditions of the sub -lease in respect of the land on
which the building containing such apartment has been
constructed.
(9) Where the building is not constructed on leasehold
land, the promoter will not be required to grant a sub -lease to any
apartment owner or execute a document transferring the
management and maintenance of the common areas and facilities
to the association but, on the execution of a conveyance d eed of
apartment, the title to the apartment and the percentage of
undivided interest in the common areas and facilities appurtenant
to such apartment shall be deemed to be transferred to the
concerned apartment owner and the right of management of the
common areas and facilities to the association and the provisions of
the other sub -sections of this section shall apply, as if the words
"sub-lease", "lessee" and "sub -lessee" refer to the "deed of
apartment", "association" and "apartment owner" respectively.
13. (1) An apartment owner may create any encumbrance
only against the apartment owned by him and the percentage of
undivided interest in the common areas and facilities appurtenant
to such apartment, in the same manner and to the same extent as
may be created in relation to any other separate parcel or property
subject to individual ownership:
Provided that where any such encumbrance has arisen or has
been created against the apartment and the percentage of undivided
interest in the common areas and facilities appurtenant thereto,
such apartment and undivided interest shall not be partitioned or
sub-divided.
(2) No labour performed or material furnished with the
consent or at the request of an apartment owner or his agen t or his
contractor or sub - contractor, shall be the basis of a charge or
encumbrance under the provisions of the Transfer of Property Act,
1882 (Central Act No. IV of 1882), against the apartment or any
other property of any other apartment owner not expr essly
consenting to, or requesting the same, except that such express
Encumbrances
against
apartments.
consent shall be deemed to be given by an apartment owner in the
case of emergency repairs to his apartment.
(3) The labour performed and material furnished for the
common areas and faci lities, if duly authorised by the association
or the Board in accordance with the provisions of this Act or the
bye-laws, shall be deemed to be performed or furnished with the
express consent of each apartment owner and shall be the basis for
a charge or e ncumbrance against each of the apartments and shall
be subject to the provisions of sub-section (4).
(4) In the event of a charge or encumbrance against two
or more apartments becoming effective, an apartment owner may
remove his apartment from the charge or encumbrance by making
payment of the proportional amount attributable to his apartment.
(5) On the payment, discharge or other satisfaction
referred to in sub - section (4), the apartment and the percentage of
undivided interest in the common areas and f acilities appurtenant
thereto shall thereafter be free and clear of the charge or
encumbrance so paid, discharged or satisfied:
Provided that such part payment shall not prevent the person
having a charge or encumbrance from proceeding to enforce the
right, in relation to the amount still outstanding against any other
apartments not so free of the charge or encumbrance.
CHAPTER III
CONVEYANCE DEED OF APARTMENT AND ITS
REGISTRATION
14. (1) Whenever any allotment, sale or other transfer of an
apartment is made by the promoter to the allottee, the promoter and
the allottee shall, as the party in the first part and party in the
second part respectively, within three months from the date of such
allotment, sale or other trans fer, execute a conveyance deed of
apartment, containing the following particulars, namely, -
(a) the name, address and other particulars of the allottee;
(b) the description of the land on which the building and
the common areas and facilities are located, and
Conveyance deed
of apartment.
whether the land is free -hold or lease - hold, and if
lease-hold the period of such lease, and the postal
address of the property;
(c) a floor plan of the building showing the layout and
location of the apartment, and bearing the verified
statement of an architect certifying that it is an
accurate copy of the portions of the plans of the
building as filed with and approved by the local
authority within the jurisdiction of which the building
is located;
(d) the description of the building, stating the nu mber of
storeys and basement, the number of apartments in
that building and the main material of which it is
constructed;
(e) the apartment number or statement of the location of
the apartment, its approximate area, number and
dimensions of the rooms, imme diate common area to
which it has access, and any other data necessary for
its proper identification:
Provided that the number and areas of the apartments
should be in conformity with the building regulations;
(f) the description of the common areas and fa cilities
appurtenant to such apartment;
(g) the description of the limited common areas and
facilities, if any, stating to which apartments their use
is reserved;
(h) the value of the property and of the apartment, and the
percentage of undivided interest respectively in the
common areas and facilities and the limited common
areas and facilities, if any, appurtenant to such
apartment, and a statement that the apartment and
such undivided interest are not encumbered in any
manner whatsoever on the date of ex ecution of the
conveyance deed of apartment;
(i) the statement of the purposes for which the building
and each of the apartments are intended and restricted
as to use;
(j) the name of the person to receive service of process,
together with the residence or place of business of
such person; and
(k) any other details which the parties to the conveyance
deed of apartment may deem desirable to set forth:
Provided that if the competent authority is satisfied that the
promoter was prevented by sufficient cause from executing
the conveyance deed of apartment in relation to any
apartment within the period of three months, it may permit
the promoter to execute such conveyance deed of apartment
within such further period, not exceeding six months, as it
may specify:
Provided further that the State Government may grant
further extension if it is satisfied that it is necessary to do so:
Provided further that in the case of an allotment, sale or
other transfer made before the commencement of this Act,
the promoter shall execute the conveyance deed of
apartment within six months of such commencement or
within the period of extension granted by the competent
authority or the State Government:
Provided further that the non -execution of a lease between
the lessor and the les see, or the alleged breach of any
condition of the original agreement regarding allotment
between the promoter and the allottee, shall not be
considered sufficient cause for the promoter for not
executing the conveyance deed of apartment in favour of the
allottee.
(2) If the apartment is allotted under hire -purchase, the
promoter and the hire -purchaser shall execute, instead of a
conveyance deed of apartment, a hire-purchase agreement.
(3) The promoter shall file in the office of the competent
authority, and deliver to the concerned allottee a true copy of the
conveyance deed of apartment or the hire -purchase agreement as
registered under section 16.
(4) Whenever any transfer of an apartment is made by the
owner thereof, whether by sale, lease, mortgage, exc hange, gift or
otherwise, the transferor shall deliver to the transferee the certified
copy of the conveyance deed of apartment delivered to him under
sub-section (3), after making an endorsement thereon as to the
name, address and other particulars of the transferee, to enable the
transferee to get such endorsement registered in accordance with
the provisions of section 16.
(5) The execution of the conveyance deed of apartment
under this section vests the apartment owner with the exclusive
ownership and po ssession of the apartment together with the
percentage of undivided interest in the common areas and facilities
appurtenant to such apartment, as an heritable and transferable
property in terms of sections 4 and 6.
(6) For the removal of doubts, it is here by declared that
the provisions of this section shall be in addition to, and not in
derogation of the provisions of any other law for the time being in
force, relating to the transfer of immovable property.
(7) In the absence of any agreement to the contra ry, the
stamp duty and the registration fee for a conveyance deed of
apartment or an endorsement thereon or a sub -lease, shall be borne
by the allottee, transferee or the sub-lessee, as the case may be.
15. (1) If the promoter, or the apartment owner, as the case
may be, fails to execute a conveyance deed of apartment or an
endorsement thereon under sub -section (1) or sub -section (4) of
section 14 within three months, or does not comply with the
provisions of sub -sections (3) and (4) of section 14 within three
months of the execution of the conveyance deed of apartment or
the endorsement thereon, or with the provisions of sub -section (1)
of section 12 within three months of the date on which possession
of the apartment is given, o r, where the competent authority or the
State Government has granted extension of time under the first
proviso to sub -section (1) of section 14 within such extended
Enforcement of
transfer.
period, the competent authority may, either on a complaint or suo
moto, 1[impose-
(i) in case o f promoter, a penalty, which may extent upto
five per cent of the cost of the project;
(ii) in case of apartment owner, a penalty, which may extent
upto five per cent of the estimated cost of the apartment,
and the penalty may be recovered as an arrear of land
revenue.]
Provided that it will be incumbent on the promoter to
execute the sub-lease only after the lease is executed in his favour,
but the conveyance deed of apartment will have to be executed
without waiting for the execution of the lease, as envisaged by the
fourth proviso to sub-section (1) of section 14.
(2) The penalty imposed in sub -section (1) shall be in
addition to any action taken under the Indian Stamp Act, 1899
(Central Act No. 2 of 1899) or the Registration Act, 1908 (Central
Act No. 16 of 1 908), and if a penalty is imposed under the
provisions of any of the aforesaid Acts, the promoter shall not be
liable to penalty for the same reason under this Act or under any
other law governing the apartment ownership.
(3) On the failure of the promoter to execute the
conveyance deed of apartment within the time stated in sub-section
(1), the transferee may make an application to the competent
authority in accordance with the provisions of sub-section (6).
(4) On failure of the apartment owner to make an
endorsement of the transfer of an apartment on the conveyance
deed of apartment within the time stated in sub -section (1), the
transferee may make an application to the competent authority in
accordance with the provisions of sub-section (6).
(5) On the f ailure of the lessee to execute a sub -lease
within the time stated in sub -section (1), the apartment owner may
make an application to the competent authority in accordance with
the provisions of sub-section (6).
1Substituted byPunjab Act No.17 of 2021, Section 3
(6) The applications under sub -sections (3), (4) or (5), as
the case may be, shall be in the prescribed form for a certificate to
be produced before the concerned registering officer for enforcing
the registration of the transfer.
(7) After making such enquiry as may be necessary and
satisfying itself that the occupation certificate has been obtained
from the authority required to do so under any law and that the
applicant has done what he is required to do under the agreement,
the competent authority shall issue a certificate to the registering
officer that it is a fit case for enforcing registration and direct the
applicant to present the conveyance deed of apartment, the
endorsement on the conveyance deed of apartment or the sub-lease,
as the case may be, though not executed by the other party, for
unilateral execution of registration.
(8) After the instrument along with the certificate issued by the
competent authority under sub -section (7) is presented for
registration, the registering officer shall cause a summons to be
issued to the other pa rty and if the other party fails to appear in
compliance with the summons, the execution of the instrument
shall be deemed to be admitted by that party and the registering
officer shall proceed to register the instrument but if the party
appears but denies the execution of the instrument and the
registering officer, after giving the party a reasonable opportunity
of being heard is satisfied that the party has failed to execute the
instrument without sufficient cause, shall proceed to register the
instrument.
16. (1) Every instrument under section 9, every sub -lease and
every document transferring management of common areas and
facilities to an association under section 12, every conveyance deed
of apartment an d every endorsement thereon and every hire -
purchase agreement relating to an apartment and a set of floor
plans for every building of apartments under section 14, shall be
deemed to be documents which are compulsorily registerable under
the Registration Act, 1908 (Central Act No. 16 of 1908) and shall
be registered with the registering officer accordingly, and the
words and expressions used in this section but not defined in this
Registration of
conveyance
deed of
apartment.
Act, shall have the meanings respectively assigned to them in that
Act.
(2) The promoter shall file in the appropriate registration
office with the first conveyance deed of apartment in respect of
every building, set of all floor plans of the building, showing the
layout, location, numbers and dimensions of apartments, and
bearing the verified statement of an Architect certifying that it is an
accurate copy of the plans of the building as filed with and
approved by the local authority within the jurisdiction of which the
building is located.
(3) In all registration offices, a book c alled "Register of
conveyance deeds of apartments under the "Punjab Apartment
Ownership Act, 1995" and an index relating thereto shall be kept in
such form and shall contain such particulars as may be prescribed.
(4) Whenever any endorsement on a conveyance deed of
apartment is registered, the concerned registering officer shall
forward a certified copy thereof to the competent authority to
enable that authority to make necessary entries in the certified copy
of the concerned conveyance deed of apartment fi led with it under
sub-section (3) of section 14.
(5) A person acquiring an apartment shall be deemed to
have notice of the contents of the conveyance deed of apartment
and the endorsement if any, thereon as from the date of its
registration under this section.
CHAPTER IV
ASSOCIATION AND REGULATION OF ITS AFFAIRS
1[17. (1) After obtaining occupation certificate and within three
months of majority of the apartments being allotted, sold, or
otherwise transferred, the promoter shall make an application to
the competent authority appointed under clause (m) of section
3 of the principal Act for the registration of association, with the
persons who have taken apartments as members and if the
promoter fails to make such appli cation, the allottees shall make
such application.
1Substituted by Punjab Act No.17 of 2021. Section 4
Formation of
association.
(2) If the promoter or the allottees, as the case may be,
fail(s) to make application for registration of the association within
the period mentioned in sub -section (1), the competent authority
shall by an order, direct the promoter or the allottees, as the ca se
may be, to form an association of residents in respect of the project
within such period, as may be specified in the order.
(3) The owner or allottee or occupier of any apartment
shall be a member of the association from the date he takes
possession of such apartment.
(4) The promoter of the project shall be an associate
member of the association in resExcerpt shown. Open the full act in Lexace.