What Is the Rule About Unsold Flats?
In apartment projects, a common confusion is whether builders must pay maintenance for flats that are still unsold. The law is clear:
If the builder still owns the flat, the builder must pay the maintenance.
Even if:
- The flat is vacant
- No one is living there
- It is not generating income
👉 Maintenance is linked to ownership, not usage.
Why Builders Cannot Avoid Maintenance
Maintenance charges are used for:
- Lift operation and servicing
- Security staff
- Cleaning and housekeeping
- Common area electricity
- Water systems
- General upkeep of the building
These services benefit the entire property, including unsold units.
So, even if a flat is locked:
- The building is still running
- Costs still exist
✔ Therefore, the builder must pay their share.
What Does the Law Say? (RERA Explained Simply)
AS per the Sec Builder Must Pay Maintenance for Unsold Flats in Tamil Nadu: As Per Section 11(4)(a) of the Real Estate (Regulation and Development) Act, 2016:
- The builder (promoter) is responsible for the project until:
- Flats are handed over, or
- Association takes full control
- The builder must pay:
- Maintenance charges
- Utility dues
- All other outgoing expenses
👉 This includes unsold flats also
What About Tamil Nadu Projects?
In Tamil Nadu:
- The same RERA rule applies
- Builders are treated as owners of unsold flats
- So they must:
- Pay maintenance regularly
- Not shift burden to other residents
✔ This is standard practice across apartment associations in the state.
Can Society Charge Other Residents Instead?
No.
Housing societies or associations cannot:
- Divide the cost of unsold flats among existing owners
- Increase maintenance unfairly
- Absorb builder’s share into general expenses
👉 That would be legally unfair and challengeable.
What If the Builder Refuses to Pay?
If a builder avoids paying maintenance:
Residents or association can:
- Send a formal demand notice
- Charge interest on dues
- File a complaint under RERA
- Take legal recovery action
✔ The law supports the association in such cases.
Simple Example to Understand
Imagine a building with 10 flats:
- 7 flats sold → owners paying maintenance
- 3 flats unsold → still owned by builder
👉 The builder must pay maintenance for those 3 flats
❌ The 7 owners cannot be asked to cover that cost
Builder Still Liable for Maintenance on Unsold Flats (Even After Association Formation)
Even after the apartment association is formed and residents take over management, the builder does not escape responsibility for unsold units.
If even one flat remains unsold, the builder continues to be the legal owner of that unit. Because maintenance charges are linked to ownership—not occupancy—the builder must keep paying maintenance for that flat.
Under the Real Estate (Regulation and Development) Act, 2016:
- The builder’s role as promoter may end after handover
- But ownership of unsold flats still remains with the builder
👉 This creates a clear distinction:
- As a promoter → responsibility can end after proper handover
- As an owner of unsold flats → responsibility to pay maintenance continues
So, even after the association is fully functional:
✔ Builder becomes a regular member of the society
✔ Must pay monthly maintenance like any other owner
✔ Cannot refuse payment citing vacancy or unsold status
❌ The association cannot shift this cost to other residents
In simple terms:
If the builder owns even one flat, he must pay maintenance for it—just like any other owner.
Key Takeaway
- Maintenance is based on ownership, not usage
- Unsold flats are still owned by the builder
- So the builder must pay maintenance
✔ Residents should not bear extra burden
✔ This rule protects buyers from unfair charges