Steps to form a legally registered association of buyers

Buyers of many under construction projects in the region form group to fight against the builder.
While the group of buyers can put pressure on builder through means of constant meetings, emails and protests, it is equally significant to give it a legal standing by virtue of which the group may fight the case as a registered entity.
Also, this would enable core members of the group to get contribution from group members/buyers in a traceable manner with complete book keeping.
Hence, it becomes imperative for such a group to register the buyer’s association under Societies Registration Act of 1860 in NCR.

Below is the process to form registered association of buyers:

  • At least 7 buyers with local (where property is located) address proof.
  • At least 1 buyer with local (where property is located) permanent address proof.
  • Elect/choose the office bearers – President, Vice President, Treasurer, General Secretary, Secretary among these 7 odd buyers and share the same when applying.
  • The application for association then needs to be forwarded to Registrar authority of the state. For instance, in UP, the Deputy Registrar Authority is at Meerut city. You can take services of a lawyer or a CA to get it done at a cost not more than 10k typically.

  • Post formation of the buyer’s society/association, you may open a bank account and apply for PAN card.
    Update model bye laws if required and share the same with the members.
    Invite other group members for joining society/association after defining the minimum joining fees that shall be in form of cheque in favor of society account.
    After this, contribution can be collected legally as and when necessitated.
    Ensure that responsibilities are well communicated to the office bearers and the members.

    You may also fight the case against builder legally in consumer and other jurisdiction courts as a registered association.

    Note: This buyers association is different from RWA (Resident welfare association). The RWA can only be formed by people residing in the project after possession once a minimum timeframe post possession (of minimum percentage of total flats) has crossed.

    Comments/Feedback invited.

    Last updated: April 22, 2015 at 17:02 pm

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    Kishore Raheja
    Kishore Raheja

    Can we get sample Memorandum of association for house buyer association?


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