Can a housing society recover the previous owner's dues from a new buyer? Explained
This article explains the legal risks for new homebuyers regarding unpaid maintenance dues left by previous owners. It advises buyers to verify no-dues certificates and include indemnity clauses in sale agreements to avoid inheriting financial liabilities.
Why it matters
Understanding property liability is crucial for real estate investors and homebuyers to prevent unexpected financial burdens after a transaction.
You may have checked the title documents, verified ownership and finalised the sale price, but have you checked if the previous owner cleared all maintenance dues?In some cases, apartment associations can seek recovery of pending charges from you that were never paid by the previous owner, making it essential for buyers to understand their rights and responsibilities before purchasing a flat.These charges may cover services and expenses such as security, housekeeping, lift maintenance, electricity for common areas, water supply systems, landscaping, routine repairs and the upkeep of amenities.However, whether an apartment association or housing society can recover old dues from a new owner depends on the applicable state law, society bye-laws, clauses in the sale deed and whether the dues are treated as a personal liability of the former owner or as a charge connected with the property.In several cases, societies require a No Objection Certificate (NOC) or No Dues…
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