Buying a Resale Flat in Chennai? The Seller's Unpaid Maintenance Can Become Yours

Picture a buyer in Velachery who has agreed to buy a ten year old two bedroom flat. The sale deed is drafted, the loan is sanctioned, and the seller mentions in passing that they have not paid the association's maintenance bill for a while. It sounds like the seller's problem. Under the Tamil Nadu Apartment Ownership Act, 2022, it can become yours the day you register the deed.

The short answer. Section 22 of the Tamil Nadu Apartment Ownership Act, 2022 makes the buyer of an apartment jointly and severally liable with the seller for all unpaid assessments of common expenses up to the date of sale. The same section gives the buyer a right to a statement from the association setting out the unpaid amount, and caps the buyer's liability for earlier dues at the figure in that statement. Unpaid common expenses are also a charge on the apartment under section 19. The trade-off: asking for the statement adds a step and some days before registration, but skipping it leaves the buyer exposed to dues of unknown size.

What does the Act say about a seller's unpaid maintenance?

The text is direct. Section 22 of the Tamil Nadu Apartment Ownership Act, 2022 as published in the gazette says that where any apartment has been sold or otherwise transferred, the purchaser shall be jointly and severally liable with the vendor for all unpaid assessments against the vendor towards his share of the common expenses up to the time of sale or transfer.

Joint and several liability means the association can pursue either party for the full amount. The section protects the buyer's right to recover from the seller whatever the buyer pays on the seller's account, but that is a claim against a person who has already been paid and may have moved away.

The Act, which repeals and re-enacts the Tamil Nadu Apartment Ownership Act, 1994, received the assent of the President on 15 December 2022 according to the gazette publication. For a resale buyer in Chennai, section 22 is the provision most likely to touch the transaction directly.

How does the association statement protect a buyer?

Section 22 also says the purchaser shall be entitled to a statement from the association setting forth the amount of the unpaid assessment against the seller. The protection that follows is the important part: the purchaser shall not be liable for, nor shall the apartment be subject to a charge for, any unpaid share of common expenses that accrued before the sale in excess of the amount set out in that statement.

In practice, the statement fixes the number. If the association certifies that, say, Rs 40,000 is outstanding, and the seller clears it before registration or the amount is adjusted in the price, the buyer has a documented basis to resist a later claim for older dues above that figure. Without a statement, there is no ceiling.

That is why the statement belongs in your document checklist alongside the title papers. It is the one document that puts a number on the seller's dues to the association, and the Act gives you a right to ask for it.

Why can unpaid dues follow the flat itself?

Because the Act makes them a charge on the apartment. Section 19 says all sums assessed by the association as the share of common expenses chargeable to any apartment shall constitute a charge on that apartment. That charge is subject to prior claims of the government for land revenue, of any local authority for tax or other assessment, and of the mortgage for sums unpaid.

Section 18 adds that common expenses are charged to apartment owners according to their percentage of undivided interest in the common areas and facilities, and that an owner remains liable even if they waive the use of those facilities. Where the owner is not in occupation, the common expenses may be recovered from the person in occupation, and the Act provides for interest on delayed payment at a prescribed rate.

Taken together, these sections mean maintenance dues are not a private matter between the seller and the association. They attach to the flat, which is the asset you are paying for.

What else does the Act change for a Chennai flat buyer?

Several provisions shape what you are buying. The table below sets out five that a buyer should know, with the section and the practical step each one suggests:

Section 8 deserves a closer look. Each apartment owner is entitled to an undivided interest in the common areas and facilities in proportion to the carpet area of the apartment to the total carpet area of the project, and that interest shall not be separated from the apartment or partitioned under any circumstance. Section 3 adds that an apartment together with its undivided interest is heritable and transferable immovable property. We have explained how the undivided share of land works in a Chennai flat in our guide to UDS for Chennai apartment buyers.

What are the declaration and bye-laws, and why do they bind you?

Under section 4, the promoter or the majority of apartment owners shall submit a declaration to the competent authority within ninety days from the date of issue of the completion certificate of the building. For buildings already in existence when the Act commenced, the proviso allows one hundred and eighty days from that date. The competent authority may inquire into the declaration and, if satisfied, endorses and returns it.

Once the declaration is accepted, section 6 says the majority of owners shall make bye-laws and submit them for registration, and section 7 says the owners shall then form an association. The bye-laws cover how the association is formed, the board of managers, meetings, maintenance of common areas and the manner of collecting each owner's share of common expenses.

Section 9 is the reason this matters to a buyer. Notwithstanding the Transfer of Property Act or any other law, a subsequent apartment owner shall be bound by the declaration and the bye-laws. Section 24 sets a fine of up to one lakh rupees on conviction for contravening the Act, rules, orders or bye-laws, with an additional fine of up to five hundred rupees a day for a continuing contravention.

Can other owners redevelop or insure the building without you?

The Act gives the collective of owners real power over the building, and a buyer should know where the thresholds sit. Section 13 says redevelopment of a project may be carried out, on prescribed terms and conditions, with the consent of not less than two thirds of the apartment owners of the project, or where the appropriate authority has certified that the building is in a ruinous condition or may endanger the lives of occupants or any other person.

On insurance, section 14 preserves each owner's right to insure their own apartment, and adds that the association shall, if required by a majority of apartment owners, insure the building against fire, flood, cyclone or other hazards. The policy is written in the name of the association as trustee for each owner in the percentage set out in the declaration, and the premium is a common expense.

For a buyer of an older flat, these two sections are worth a question to the association. Ask whether any redevelopment proposal has been discussed, and whether the building is insured. Both affect what you are buying, and the answers are easier to get before registration than after.

What should you check before registering a resale flat in Chennai?

Whether the flat is in an older building in Velachery or a newer project such as Prestige Park Street in Velachery, run through these steps before the sale deed is registered:

1. Ask the association, in writing, for a statement of the unpaid assessment against the seller under section 22.
2. Agree with the seller that dues in the statement are cleared before registration or adjusted in the price.
3. Keep the association's statement with your sale deed and loan papers.
4. Check that the undivided share in the deed matches the flat's proportion of carpet area.
5. Ask whether the declaration under section 4 has been filed and accepted, and request a copy.
6. Read the registered bye-laws, since a subsequent owner is bound by them.
7. Confirm that the owner named in the association's records matches the seller on the sale deed.

None of these steps replaces a lawyer's title search. They address a specific gap that a title search can miss. For the wider sequence of documents in a Chennai purchase, see our guide to the sale agreement and the sale deed in Chennai.

Frequently asked questions

Am I liable for the previous owner's unpaid maintenance in Chennai?

You can be. Section 22 of the Tamil Nadu Apartment Ownership Act, 2022 makes the purchaser jointly and severally liable with the seller for unpaid common expenses up to the date of sale. You keep the right to recover from the seller whatever you pay on their account.

How can I limit my liability for the seller's dues?

Ask the association for a statement of the unpaid assessment before you buy. Section 22 says the purchaser is entitled to that statement and is not liable for dues accrued before the sale in excess of the amount set out in it. Settle or adjust that amount before registration.

What if the building has no association yet?

The Act sets the sequence. Section 4 requires the promoter or majority of owners to file a declaration within ninety days of the completion certificate. After it is accepted, owners make bye-laws for registration under section 6, and on registration form an association under section 7. Ask where the building stands in that sequence.

Am I bound by the association's bye-laws after I buy?

Yes. Section 9 of the Act says a subsequent apartment owner shall be bound by the declaration and the bye-laws, notwithstanding the Transfer of Property Act or any other law. Read the registered bye-laws, including how common expenses are collected, before you commit to the purchase.

Last updated 2026-10-20. PropNewz Team.