Property Buyers' Liability for Previous Owners' Maintenance Dues

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 Certificate before a flat is transferred. These documents help in establishing whether maintenance charges, repair contributions and other society dues have been cleared before the sale. The buyer may also have a separate right to recover the amount from the seller, depending on the sale agreement and other contractual terms.

As per, Section 23 of the Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) Act, 2010, the purchaser is jointly liable with the previous owner for unpaid assessments towards common expenses up to the date of transfer. The buyer can, thus, recover the paid amount from the seller. Regardless, you should not assume that previous maintenance dues are automatically the seller's problem, and take necessary steps to prevent any such problems post-purchase. Hence, before purchase of a flat, you should obtain a written no-dues statement from the association, check its records and include an indemnity clause in the sale agreement requiring the seller to clear all liabilities arising before the date of transfer.