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The Bangalore Development Authority (BDA) has introduced a new rule requiring flat buyers to pay a one-year maintenance fee upfront, effective December 2024. The fee, set at 1% of the flat's sale price, ensures smoother maintenance of infrastructure in residential complexes until Residents' Welfare Associations (RWAs) are established. If RWAs are not formed within a year, BDA will continue collecting the fees. The policy addresses challenges like unpaid fees and unsold flats, with over 2,000 flats currently affected. Private agencies hired for sales will charge a 3% service fee. The initiative aims to ensure better services and financial stability.
The Bangalore Development Authority (BDA) has implemented a new policy requiring flat buyers to pay a one-year advance maintenance fee along with the purchase price of their flats. This change, effective from December 2024, aims to address financial difficulties in maintaining infrastructure, particularly in complexes where many flats remain unoccupied for extended periods. Advertisement
An official from BDA explained that the policy ensures uninterrupted maintenance services and prevents delays in registration for buyers failing to comply. Over 2,000 flats, including unsold and newly constructed units, are currently impacted by this new rule. The BDA chairperson, NA Harris, noted that in some complexes, only 20-30% of flats are sold, making maintenance challenging without a consistent revenue stream. Collecting fees upfront mirrors a model already used by private agencies, which BDA considers effective.
To streamline the management of residential complexes, the authority has mandated that all complexes form RWAs within a year. If this requirement is not met, BDA will continue collecting maintenance fees directly from flat owners. Additionally, private agencies have been hired to facilitate sales of unsold flats. Buyers who purchase through these agencies will be required to pay a 3% service fee, credited to BDA's account, with the agencies receiving their commission post-registration.
An official explained that the initiative ensures the smooth delivery of services while also providing financial stability for maintaining the complexes.The collected maintenance fee will fund services until RWAs assume responsibility, offering a more sustainable approach to managing residential infrastructure.
The new policy is part of BDA's efforts to enhance service quality and overcome challenges posed by unsold inventory and inconsistent fee payments. Buyers are urged to form RWAs promptly to take over maintenance activities and avoid prolonged reliance on the authority for service management. By enforcing this policy, BDA aims to ensure better upkeep and improved living standards across its residential complexes.
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