Handover from builder to society is rarely a single clean event. In many Thane, Mumbai and Navi Mumbai projects it drags on for months or years, with the builder still controlling lifts, accounts and parking while residents carry the daily problems. This article lists the seven challenges we see most often and what a committee can do about each. For the funding side, see our handover and fund shortfall guide.
1 to 4: Where handover usually goes wrong
MOFA and RERA both expect the promoter to enable society or association formation and, in due course, convey title. In practice the friction points are predictable.
| Challenge | Why it happens | Practical fix |
|---|---|---|
| 1. Society not formed or registered late | Builder keeps control through an association or “ad-hoc” body | Collect the required number of members, apply for registration, and write to the builder citing MOFA and RERA obligations |
| 2. OC missing or partial | Only some wings or floors covered | Obtain the OC copy before taking charge; record gaps in the handover minutes |
| 3. Incomplete records | Plans, fire and lift certificates, warranties not handed over | Use a signed checklist; do not accept charge without an acknowledgement list of what is missing |
| 4. Defects in common areas | Leakage, cracks, pump or lift failures appear soon after possession | Photograph, date and notify in writing; use the statutory defect liability route |
Defect liability: RERA makes the promoter responsible for structural or workmanship defects reported within five years of possession, to be rectified within thirty days of notice. Written notice with dates is what makes this enforceable.
5 to 7: Money, unsold flats and conveyance
These three tend to surface after the first AGM.
- Unreconciled accounts and unpaid builder dues. Appoint an independent auditor for the handover period and demand corpus, deposits and unspent maintenance in writing.
- Unsold or builder-held flats not contributing. The builder is a member for unsold flats and should pay maintenance like every other member. Bill them and record the dues.
- Conveyance not executed. If the builder stalls, apply for deemed conveyance; the Bombay High Court has refused to let developers delay it over future FSI claims.
Do not sign a “no claims” or full-and-final handover letter until accounts, defects and records are settled. Such letters are later used against the society.
A sensible handover sequence
- Form the society and register it; hold the first general body.
- Collect the document checklist and inspect common areas with an engineer.
- Reconcile builder accounts and agree the fund transfer in writing.
- Take charge of services (lifts, pumps, security) with contractor contracts and warranty papers.
- Serve a defect notice list and keep a tracker.
- Start the conveyance or deemed conveyance process in parallel, not after.
Member rights and practical tips
- Insist on a joint inspection and a signed handover checklist, not a verbal handover.
- Keep every builder communication in writing and preserve dated photos.
- Do not accept charge of services without the OC and key safety certificates.
- Bill unsold flats from the day the society takes over.
- Take legal advice before signing any handover or settlement letter.
Taking over from your builder?
We run handover audits, defect trackers and conveyance support for new societies.