This is a common question that pops up at the time of possession.
IFMS stands for Interest free maintenance security.
The same is a statutory one time deposit and is paid once (generally at possession) to the builder by the buyers.
The builder keeps this amount in its custody till an association of owners is formed.
IFMS needs to be transferred to Association of owners (or RWA) once formed. However, interest earned on this amount is not passed on to the association/buyers.
Advance maintenance charges on the other hand accounts for the maintenance charges that builder incurs while maintaining the project before the liability gets shifted to association of owners. Builders generally demand an advance maintenance charge for 6 months to 2 years in one go on the pretext that regular follow up with owners is not required. Please refer one of our previous article where we discussed prevalent maintenance charges in Noida.
It is critical for buyers to ensure that in the final account statement, IFMS is mentioned exactly as paid. Sometimes builders use the unsuspecting buyers to their benefit by quoting a smaller IFMS amount in the statement so that they have to pay less to RWA once formed.
Last updated: May 24, 2015 at 0:09 am