The day a builder hands a project to the newly formed society is the day a group of flat owners, most of whom have never run an organisation, become responsible for lifts, pumps, security, accounts and statutory compliance. Many discover within months that the society’s bank account is thin, the builder’s accounts do not reconcile, and the first big repair bill has no fund behind it. This guide explains how handover works in Maharashtra and how to deal with the shortfall that so often follows. (For the buyer-side checklist at possession, see our earlier handover article.)
The handover process, step by step
Under the Maharashtra Ownership Flats Act (MOFA) and the Real Estate (Regulation and Development) Act, the promoter is expected to help form the society or association and later convey title. The typical sequence:
- Society registration. Flat purchasers form a cooperative housing society and apply to the Registrar. MOFA requires the promoter to take the steps for registration within a prescribed period after minimum bookings; RERA also requires the promoter to enable formation of an association or society within three months of a majority of allottees booking.
- Occupancy Certificate (OC). Confirm the OC covers all wings and floors before accepting charge.
- Handover of common areas and records. Approved plans, OC, fire NOC, lift licences, structural drawings, warranties, STP/UPS manuals, and a list of every asset.
- Financial handover. Corpus fund, unspent maintenance deposits and a reconciled statement of income and expenses up to the date of handover.
- Conveyance. The promoter should convey land and building to the society. RERA expects this within three months of the OC; if the builder stalls, deemed conveyance is the remedy.
Common challenges new societies face
| Challenge | What it looks like | First response |
|---|---|---|
| Corpus or deposit not transferred | Builder says funds were used for “development” or are pending | Compare agreement clauses and receipts; send written demand |
| Unreconciled maintenance accounts | Builder’s statement does not match member payments or vendor bills | Appoint an independent auditor for the handover period |
| Unsold or builder-owned flats not paying | Builder stock flats carry no maintenance contribution | Bill them like any member; builder is a member for unsold flats |
| Defects in common areas | Leakage, cracks, lift or pump failures soon after handover | Document, notify builder in writing, use statutory defect remedies |
| Missing documents | No as-built plans, fire or lift certificates | Written checklist and acknowledgement before taking charge |
| Inexperienced committee | Missed AGMs, audit, returns | Compliance calendar and professional support |
Defect liability: RERA makes the promoter responsible for structural defects or workmanship defects reported within five years of possession, to be rectified within thirty days of notice. Keep dated written records from day one.
Why funds fall short, and how to fix it
A new society usually runs short for one or more of these reasons: builder dues unpaid, no sinking or repair fund built up, maintenance rates set too low to cover real costs, or members delaying payment. A practical recovery plan:
- Get a true opening position. Audit the handover accounts and list what the builder owes: corpus, deposits, unspent maintenance and any stock-flat dues.
- Demand in writing, then escalate. Serve a legal notice. Depending on the agreement and facts, remedies include a complaint to MahaRERA or proceedings before the competent forum. Seek legal advice on which fits.
- Reset maintenance to real costs. Build a budget of actual expenses and place the revised rate before the general body. See how charges are calculated.
- Start the statutory funds. The 2026 amendment rules and Model Bye-Laws require sinking and repair-type funds; check the latest requirements in our MCS rules article and fund them from day one rather than waiting for a crisis.
- Tighten collections. Issue bills on time, follow the bye-law interest provisions, and escalate chronic defaulters through the proper recovery route.
- Phase one-off needs. For large repairs, pass a general body resolution on a special levy or instalments rather than informal collections.
Never spend or levy beyond the committee’s powers. Unapproved collections and spending are a common source of disputes and personal liability for office bearers.
Member rights and practical tips
- Members can ask to inspect accounts and handover records; insist on a written handover checklist signed by both sides.
- Do not accept charge of common areas until the OC and key safety certificates are in hand.
- Pay your share on time; one defaulting block can stall repairs for everyone.
- Ask the committee for a yearly budget and fund position at the AGM.
- Keep all builder communication in writing and preserve photos of defects with dates.
Just taken over from the builder?
We run handover audits, fund recovery plans and compliance set-up for new societies.