When I first time I became a homeowner in a prestigious society, the builder introduced me to Corpus Fund. He explained everything related to it to me, so I can tell you why corpus fund is collected by builder. To provide a financial reserve for the long-term maintenance of the common areas and amenities, a builder gathers a corpus fund from unit purchasers in a residential project.
What is the Society Corpus Fund Used For?
The developer pays a facility management and oversight organisation that handles amenities, common areas, light bills, service, cleaning, etc. with the interest or dividends earned from the Corpus Fund. The interest earned from the Corpus Fund cannot be used for any other reason by the builder.
How is the Corpus Fund Generated in Housing Societies?
Each buyer of the apartment or house contributes their portion of a set sum at the time of the property transaction, which adds up to the Corpus Fund. If the property is still being built, the builder typically gives the buyer the completed product in two years. Hence, a sizeable sum is obtained from the purchaser to cover costs over an extended length of time.
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Why Corpus Fund is Collected by Builder?
Diggi88
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2025-07-21T08:15:52+00:00 2025-07-21T10:17:17+00:00Comment
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