The Bangalore Development Authority (BDA) has introduced a new policy requiring flat buyers to pay a one-year maintenance fee upfront, in addition to the cost of the flat. BDA has developed residential complexes across the city, but many flats remain unoccupied for months after purchase. Some owners fail to pay maintenance fees on time, making it difficult for BDA to maintain infrastructure.
To overcome these financial hurdles, BDA has mandated that buyers pay the one-year maintenance fee during the flat purchase. Additionally, all residential complexes must form Residents’ Welfare Associations (RWAs) within a year. If an RWA is not formed within the stipulated time, BDA will continue to collect maintenance fees directly.
An official said, “The new rule, effective from the first week of December, applies to all new flat buyers. Failure to pay the maintenance fee will result in delays in registration. Currently, over 2,000 flats, including those in newly constructed and unsold complexes, are affected by this policy.
Collecting the maintenance fee upfront ensures smooth maintenance activities until the RWA is established. Otherwise, chasing owners for payments becomes challenging, especially when flats remain vacant after purchase.”
To address unsold inventory, BDA has hired private agencies to facilitate sales. Buyers purchasing flats through these agencies must pay a 3% service fee, which will be credited to BDA’s account.
After registration, BDA will disburse the agency’s commission. BDA has directed every residential complex to establish an RWA within a year to take over maintenance activities. Failure to do so will result in BDA continuing to collect maintenance fees. BDA has urged flat owners to form associations promptly for streamlined management of residential complexes.
“We decided to collect maintenance fees upfront to avoid losses and provide better services. In some complexes, only 20-30% of flats have been sold, making maintenance difficult. Private agencies already follow this model, and it has proven effective,” said NA Harris, BDA Chairperson. A 1% maintenance fee is charged on the flat’s sale price. Though this fee was collected earlier, it was not mandatory. Starting in December 2024, it is compulsory for all new buyers.
The maintenance fee covers services like parks, lifts, swimming pools, sewage treatment plants, streetlights, and waste management within the residential complexes. These services will be managed by BDA until Residents’ Welfare Associations take over. “This initiative aims to ensure better and smooth service delivery and financial stability for maintenance operations across BDA complexes,” added a Bangalore Development Authority official.
