A co-operative society is the perfect fit for a residential building as flat-owners have common needs (water connection, watchmen, etc) and interests (maintenance of common areas, such as the terrace and compound). If you’ve purchased a flat in a new building, it would probably be best if you took interest in forming a society. The builder may also be statutorily obligated to form a society. For example, under Maharashtra Flat Ownership Act, 1963, a builder must form a society within four months of selling 60% of the flats.

But you needn’t wait for the builder to form the society. In many states, including Delhi and Maharashtra, ten flat-owners are enough to promote a co-operative housing society. A building without a housing society usually indicates that there is a dispute between members or a general lack of interest. If you’re considering buying a house in a building where the society has not been formed, find out what the problem is. If the builder does not form a society, rights to the terrace and the compound continue to rest with him.

Here’s what you need to do register a housing society:

1) Submit an application for registration to the Registrar.

2) Along with the application, you need to submit the byelaws (see below) the society wishes to adopt and the names and occupations of the promoters of the co-operative.

3) Pay the registration fees. subject to a minimum of Rs100 and

4) The minutes of the meeting in which the byelaws were adopted.

Each housing society has a share capital, which will be paid up equally by the residents of the society, regardless of the size of the flat. Within six months of allotment, the member should receive a share certificate in this regard, according to the byelaws of Mumbai. Byelaws may also be amended by a resolution of its general body. All such amendments need to be approved by the registrar.