Who will pay corpus fund in resale property?

Hey,

I see you have some queries pertaining to corpus funds. Well, let me tell you some things I know about it and help you out. I have been in the real estate industry for quite some time and after speaking with many housing society developers, I came to know almost everything about it. Let us dive in!

Corpus fund in apartments or housing societies is a capital fund which is collected by the managing committee of the society or builder for the delivery of timely maintenance and amenities. This is a lump-sum maintenance charge which is separate from the sale amount.

This is fairly the corpus fund meaning in real estate.

The payment of the corpus fund depends on the bye-laws in your area. For example, I live in Mumbai and the model bye laws suggest that the premium between Rs. 10000 to Rs. 25000 can be charged on transferring the property rights. The buyer of the resale property has the right to demand a copy of bye laws from the housing society or builder along with the financial records to understand the contribution towards corpus fund better.

I hope this resolves your concern about what is corpus fund in apartments  and who will pay corpus fund in resale property.

I bought a resale property and just like others I too had this question in mind: who will pay corpus fund in resale property? However, I made this clear up front to prevent misunderstandings in purchasing a resale apartment last year. Although there are certain exceptions, the buyer is usually responsible for this payment.

Who Should Pay the Corpus Fund?

1. The corpus fund, which is a one-time payment collected by the developer at the time of sale to cover future maintenance requirements, is often paid by the buyer. 

2. Unless otherwise specified by the society's bylaws, it is often non-refundable and distinct from the sale price. 

3. The new buyer shouldn't be taxed again, though, if the seller has previously paid the corpus fund at the time of acquisition.

4. Verify this in writing during the sale agreement to prevent disagreements. 

Negotiate with the society or seek a resolution from the Real Estate Regulatory Authority (RERA) if the charges seem unreasonable.

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The corpus fund in a housing society is a one-time contribution collected from property buyers to create a reserve fund for future maintenance, repairs, and other society expenses. But who is responsible for paying corpus fund in resale property? In the case of a resale property, determining who pays the corpus fund depends on the society's rules, buyer-seller negotiations, and legal agreements.

Who Will Pay Corpus Fund in Resale Property in India?

If the previous owner has already paid the corpus fund, the buyer is not required to pay it again. Some societies charge a nominal transfer fee or a new corpus fund contribution from the new buyer. The amount depends on society rules. In many cases, the buyer and seller negotiate who will bear the corpus fund cost. 

If the seller has already paid the corpus fund, the buyer does not need to pay it again. If the society demands a fresh contribution, it is usually the buyer’s responsibility. The seller and buyer can mutually decide on cost-sharing.

I hope you understood who is responsible for paying corpus fund in resale property.

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Who pays Corpus Fund on Resale of Property? 

What is Corpus Fund for flats?

• Corpus fund is a capital fund of any society or apartment which is collected by the managing committee of the society or builder for the delivery of timely maintenance and amenities. 

• This is a lump-sum maintenance charge which is separate from the sale amount.

• At the time of the property sale, every buyer of the apartment/ home contributes his share of a predetermined amount, which collectively forms the Corpus Fund. 

What is the use of Corpus Fund in apartments?

Corpus Fund is a considerable amount collected from the buyer to take care of expenses over a long period of time during the time of the sale. 

Who will pay corpus fund in resale property?

The payment of the corpus fund depends on the bye-laws in your area. Normally, the corpus fund relates to the apartment and not the owner. On resale, the deposit should be deemed as transferred to the new purchaser and there will be no need for any further payment.

As mentioned by Mr. Narayandas, a corpus fund means the amount utilized by the managing committee for the maintenance of cleaning, servicing, light bill, common areas, amenities, etc. The corpus fund is also used for redevelopment purposes.  The amount collected from home buyers as pre-payment charges is called a corpus fund. Mostly, the corpus fund is kept in a bank and the interest generated from it is used by the society for maintenance.

After the housing society is formed the builder directly transfers the fund to the managing committee. The residents of the society pay a maintenance fee by monthly, quarterly, or annually. The payment method is mainly decided by the members and residents of the society. I hope you can understand corpus fund meaning in real estate.

Now, if the members of the society ask for an apartment corpus fund, then you should check if the buyer has paid the corpus before. In most cases, the corpus fund is supposed to be deemed as transferred to the new purchaser. 

You should check the agreement properly and the clause. If it is mentioned that the new buyer has to pay corpus fund then you need to pay it. If not, then you can file a complaint.

Before taking any step you should consult with a lawyer regarding these kinds of matters.

I hope you understand what corpus fund means in the resale of property.

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