Apartment Owners Association (AOA): Objectives, Members, and Benefits

What is the Apartment Owners Association (AOA)?

When the owners of different apartments come together to form an association that can work for the common good of members and achieve collective goals, they are said to have formed AOA. AOA full form is Apartment Owners Association. The association is charged with enforcing different rules and regulations and also providing welfare services to the residents. AOA is the primary body responsible for addressing the problems of the residents from time to time.

What are the things required to form the Apartment Owners Association?

Following are some of the prerequisites that need to be considered to form the apartment owners association.

  • At least seven members should come together to form the apartment owners Association. The members include important stakeholders like owners and managers. The president presides over the association and is assisted by the vice president. The General Body manages the overall functions and the treasurer looks after the finances.
  • Apartment association registration is one of the most crucial steps as it gives a statutory backing to the management body.
  • A charter needs to be created by the association that guides the overall working as well as the memorandum of operating procedure. The charter highlights the overall objectives of the association and impresses upon the members to achieve them.
  • The statutory functions of the body are guided by the different types of laws and bylaws of the association. These laws are used for effective governance mechanisms of the association. It is also pertinent that the charter and the laws be written down and signed by the members.

What are the documents required for AOA registration?

Some of the important documents that are required for AOA registration and flat owners registration online include:

  • A document containing the society name as well as the address.
  • A letter of proposal for establishing the association that is addressed to the Registrar and duly signed by the members of the executive body.
  • A document containing the minutes of the first meeting of the general body of the association.
  • A Memorandum containing the different terms, rules and regulations of flat owner association and other legal details pertaining to the association.
  • A standard fee that needs to be paid to get the association formally registered.

What are the duties and roles of the AOA Management Committee?

The duties of the members of the association form a strong overlap with the roles that they are designated.

1. President

The president sits at the top of the hierarchy of the association and ensures that the funds that are collected are used for the overall welfare of the residents.

2. Vice president

The vice president assumes the charge of the presidentship in the absence of the president. In addition to this, he assists the president in the discharge of his duties.

3. Secretary

The secretary of the association is the chief convenor for the meetings of the general body. He is also responsible for discharging the administrative functions of the association. He also oversees the apartment association election process.

4. Treasurer

The treasurer is the chief financial officer of the association and is mainly responsible for accounting and disbursal of funds and other expenses.

AOA Members

A wide gamut of roles and responsibilities are reserved for the AOA members. It is pertinent for them to attend the general meeting and render their valuable opinion. By virtue of their valuable votes, they decide the structure of the main body. They play an important role in various welfare activities at the grassroot level. Apartment owners association bylaws help the AOA members to fulfill their roles and duties responsibly.

What are the benefits of registering AOA?

Following are some of the benefits of registering Apartment Owners Association:

1. Rules, laws and regulations

The registration of the apartment owners association gives the mandate to enforce certain rules, laws and regulations upon the members of the society at large. The registration process also gives the power to the body to impose fines or punish the members in case of violation of rules.

2. Maintenance activities and grievance redressal

Statutory backing for the apartment owners association allows it to start various types of cultural and maintenance activities on its own. Different types of grievances of the members can be addressed by the general body of the association with the help of other stakeholders once it is registered.

3. Safety and security

The process of registration allows the association to draft various types of rules related to the security of the area. This also allows the association to maintain harmony and a peaceful environment that is necessary for the amicable functioning as well as execution of routine tasks.

The association can also take legal action against the construction agency if it does not meet quality standards. For instance, the process of registration gives the power to the association to sue the construction agency if any anomalies are witnessed in the structure of the building.

5. Maintenance of records

The association also gets the mandate to maintain a diary of records as well as ownership records after it is registered. This not only ensures transparency within the association but also helps in smooth conduct of other functions.

6. Taxes and transactions

In addition to this, the association also becomes eligible to pay various types of taxes after it has been registered. The association also becomes eligible to open a bank account after the process of registration that aids in various financial transactions.

What are the byelaws of AOA?

Some of the important bye laws of AOA include:

  • The registration of the act is done under the society act or the flat owners act.
  • The minimum number of people required to form an association under statute should be 10 and each should have the age of 18 or above during the time of registration.
  • Regulations concerning the eviction of certain members in extraordinary circumstances.
  • Detailed rules and regulations concerning the payment of fees as well as the imposition of penalties in case of delay in payments.
  • Clauses related to the qualifications of the members as well as the terms and conditions for their appointment and reappointment.

Disadvantages of an AOA

  • It is highly likely that the decisions taken by the AOA may not take into account the opinion of each and every member since a majority vote prevails.
  • Decision making process is stalled and the course of action and implementation is less smooth if all the board members do not consent to a particular motion under consideration.
  • There is a possibility of a disagreement between the managing body and the general body. In this case, the decision taken by the general body is final and cannot be challenged.
  • The bye laws that are drafted by the association do not have a binding effect like the laws of a cooperative. Although the association can impose certain penalties in case of violation of rules, they can’t expel members like the cooperative body.

FAQs on Apartment Owners Association

Who has the right to cancel the AOA?

When the association fails to meet the requirements as well as the standards prescribed for them, the Registrar reserves the right to cancel the AOA.

What is the timeline to get the association registered?

The association should be registered within three months of its formation under the society registration act.

How are the members of the association selected?

Upon the unanimous consent by the members of the apartment, the members of the association are selected for a period of one year.

Cooperative Housing Society

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