Resale flat in Vizag or Vijayawada: association NOC, unpaid maintenance and sinking fund check before registration
Short answer: in a resale apartment deal in Visakhapatnam or Vijayawada, the seller's unpaid maintenance does not simply vanish at registration. Under section 22 of the Andhra Pradesh Apartments (Promotion of Construction and Ownership) Act, 1987, the new owner shares liability with the old one for common-expense arrears up to the sale, and may then claim the money back from the seller. The AP Registration department's own buyer guidance recommends a no dues certificate from the society. Collect that letter and settle who pays what in writing before the sale deed is presented.
Who this is for: anyone, including NRIs, buying a previously owned flat in an AP apartment complex (Vizag, Vijayawada, Guntur, Tirupati and other towns) that is run by an owners' association, a welfare society or the builder's maintenance agency.
What the AP law and official guidance say
| Point | Source and what it says | Status |
|---|---|---|
| Buyer shares the arrears | Section 22: once an apartment is sold, the purchaser and the vendor are jointly and severally liable for every unpaid assessment against the vendor's share of common expenses up to the sale; the purchaser keeps the right to recover what they pay from the vendor. | Machine-read copy of the gazette scan, read 25 Oct 2026 |
| Priority of the claim | Section 20: amounts the association assesses against an apartment form a charge on it, ahead of other charges apart from Government and municipal taxes and any balance on a first mortgage. | Read 25 Oct 2026 |
| Water, lifts and power | Section 21: with a notice of not less than seven days and for just and sufficient cause, the manager or board may withhold or curtail essential supplies, which include water, electricity, staircase and corridor lighting, lifts and sanitation. | Read 25 Oct 2026 |
| Bye-laws and votes | Section 18(2) requires the bye-laws to set out how owners' shares of common expenses are collected. Section 31(2) makes association decisions taken by the required voting percentage binding on every owner. | Read 25 Oct 2026 |
| When these sections apply | Section 2 (as in the 1987 text) limits Chapter III, which holds sections 18 to 22, to property whose owners executed and registered a Declaration. A 1993 amendment reportedly changed section 2; we could not read the amended text today. | To verify for your complex and the current s.2 |
| Projects under RERA | Under the RERA Act, 2016 a person who later buys an allotment is an "allottee" (s.2(d)). Allottees pay their share of maintenance, municipal taxes, water and power charges (s.19(6)) and interest on late payment (s.19(7)). A builder that collected outgoings and did not pay them before handover stays liable (s.11(4)(g)). | Read 25 Oct 2026; AP interest rate: to verify |
| IGRS buyer precautions | The AP IGRS Property Purchase - Precautions note, under "NOC of the society", advises a no dues certificate and a no encumbrance certificate from the society, and checking that society forms are filled and signed. It also says water and electricity bills should be paid to date, with the seller clearing any balance. | PDF read 25 Oct 2026 |
| Corpus or sinking fund deposit | The RERA Act text we read has no provision using these terms. What happens to such a deposit on resale is set by the builder's agreement and the association's bye-laws. | To verify in the papers |
Five checks before the sale deed in Andhra Pradesh
- Ask the association (or the builder's maintenance office, if no association yet) for a no-dues certificate that states the flat number, the owner's name, the date and the period paid up to, and carries an office-bearer's signature and seal.
- Read the flat's maintenance account and recent general body minutes. Look for approved one-time levies, penalties for late payment and any dispute between the seller and the association. Once you own the flat, a lawfully passed resolution binds you.
- Trace the corpus or sinking fund deposit. Collect the original receipt from the seller and ask the treasurer whether the builder ever transferred it. Agree in writing whether any refund is part of the price.
- Record the dues position in the agreement of sale: who pays society, property tax, water and power dues up to registration, an indemnity from the seller, and a sum held back until the no-dues letter is produced.
- Close the civic accounts. See our pages on property tax transfer in AP, GVMC water charges and the electricity meter name change, and pull an IGRS encumbrance certificate.
Common mistake: treating the association letter as a formality to collect after registration. Once the deed is registered you have lost your best leverage, and section 22 lets the association pursue you for the old dues as well as the seller.
Related guides
- How AP flat owners register their association
- UDS check in an AP flat deed
- Bank legal opinion for a home loan in AP
Buying in Telangana? See the Telangana guide to association dues on a resale flat.
Not legal advice. This page draws on a machine-read copy of the AP Apartments Act gazette scan, the RERA Act, 2016 and the AP IGRS precautions note, read on 25 Oct 2026; open points are marked "to verify". It does not tell you what any particular association may charge. Ask a property lawyer to review the dues clause before you pay.
A free sample from our Andhra Pradesh property do-it-yourself pack: the documents to collect, the portals to check and the order to do it in, so arrears left behind by a seller are found while you can still negotiate.
Get it free (instant download)FAQ
Am I liable for the previous owner's maintenance arrears in Vizag or Vijayawada?
Possibly. Under section 22 of the AP Apartments Act, 1987 a purchaser shares liability with the vendor for common-expense arrears up to the sale and can then recover them from the vendor. Check whether your complex registered a Declaration (to verify).
Does the AP Sub-Registrar ask for the society NOC?
The AP IGRS precautions note recommends a no dues certificate from the society to protect the buyer. We did not find a rule making it a registration condition.
Who issues the no-dues letter if the association is not registered yet?
Usually whoever collects maintenance, often the builder or its maintenance agency. Under RERA s.11(4)(d) the builder maintains essential services until the association takes over.
What happens to the sinking fund when a flat is resold?
The RERA Act text we read does not mention it. The builder's agreement and the bye-laws decide, so get the treasurer's written answer and record any refund in the sale agreement.
Can unpaid association dues rank ahead of my home loan?
Section 20 makes assessed common expenses a charge on the flat ahead of other charges, except Government and municipal taxes and sums unpaid on a first mortgage. Ask your lawyer how this affects your loan.
Official sources
- A.P. Apartments (Promotion of Construction and Ownership) Act, 1987, s.22 (machine-read gazette copy)
- RERA Act, 2016 (full text)
- AP IGRS: Property Purchase - Precautions (PDF)
Not legal advice. We don't check properties or certify ads. A lawyer must confirm title, and the Authority's own notices override anything on this page.