Many flat owners often confuse a Condominium/Apartment Association with a Cooperative Housing Society, but both are governed by different laws and function differently. One of the most common questions raised is whether an apartment association is required to issue share certificates to apartment owners.
The answer is No.
Difference Between a Condominium and a Housing Society
A condominium or apartment association is governed by the:
Maharashtra Apartment Ownership Act 1970
Whereas a cooperative housing society is governed by the:
Maharashtra Cooperative Societies Act 1960
This distinction is extremely important because the ownership structure and legal framework of both systems are different.
What Is an Apartment Owners Association?
An Apartment Owners Association consists of:
- All apartment owners acting collectively
- Managed as per:
- Declaration deed
- Bye-laws framed under MAOA
Unlike a cooperative housing society:
- It is not mandatory to register as a cooperative society
- There is no separate corporate entity like a CHS
Why Shares Are Not Issued in a Condominium
In a cooperative housing society:
- Members are allotted:
- Shares in the society
- Share certificate as proof of membership
However, in a condominium:
- Apartment owners directly own:
- Their individual apartment
- Undivided interest in common areas and facilities
This ownership is already defined in:
- The deed of apartment
- Declaration document
Therefore:
❌ There is no concept of issuing shares
❌ No share certificate is required
Ownership Structure Under MAOA
Under the Maharashtra Apartment Ownership Act:
Each apartment owner holds:
- Exclusive ownership of the flat/apartment
- Proportionate undivided interest in:
- Common passages
- Lifts
- Staircases
- Parking areas
- Recreational facilities
The percentage of ownership is specified in the:
- Declaration deed
Role of Bye-laws in Apartment Associations
Although shares are not issued, the association must frame:
- Bye-laws for administration and management
These bye-laws govern:
- Maintenance collection
- Meetings
- Voting
- Use of common areas
- Dispute management
Where Can Apartment Owners File Complaints?
Under:
Section 12A of Maharashtra Apartment Ownership Act
Apartment owners can file complaints before:
- The Registrar of Cooperative Societies designated under the MCS Act
Time Limit for Disposal of Complaint
The Registrar is required to:
- Dispose of the complaint within:
- 30 days from receipt
Appeal Against Registrar’s Decision
If aggrieved by the Registrar’s order:
- An appeal can be filed before:
- The Cooperative Court
As per:
Section 16A of Maharashtra Apartment Ownership Act
The appeal must be filed within:
- 60 days from receiving the Registrar’s decision
Key Differences Between CHS and Condominium
| Particulars | Cooperative Housing Society | Condominium / Apartment Association |
|---|---|---|
| Governing Law | MCS Act, 1960 | MAOA, 1970 |
| Share Certificate | Issued | Not issued |
| Separate Legal Entity | Yes | No |
| Ownership Structure | Shares + Occupancy Rights | Direct apartment ownership |
| Registration Requirement | Mandatory | Declaration-based structure |
Conclusion
Apartment associations under the Maharashtra Apartment Ownership Act are fundamentally different from cooperative housing societies. Since apartment owners directly own their units along with undivided rights in common areas, there is no requirement to issue shares or share certificates. In case of disputes, apartment owners can approach the Registrar and further appeal before the Cooperative Court under the provisions of the MAOA.
