Buying a resale flat in Hyderabad: association no-dues NOC, maintenance arrears and corpus fund check
Short answer: when you buy a resale flat in Hyderabad, unpaid maintenance can follow the flat to you. Section 22 of the Telangana Apartments (Promotion of Construction and Ownership) Act, 1987 makes the buyer jointly and severally liable with the seller for the seller's unpaid share of common expenses up to the date of sale (you can recover it from the seller later). The Registration department advises getting a no dues certificate from the society. So get a dated, signed no-dues letter from the association and a dues clause in the sale deed before you register.
Who this is for: buyers and NRIs purchasing a second-hand (resale) apartment in a gated community or apartment complex in Hyderabad or elsewhere in Telangana, where an owners' association or welfare society collects monthly maintenance and may hold a corpus or sinking fund.
What the law and official pages say (Telangana)
| Point | Source and what it says | Status |
|---|---|---|
| Arrears pass to the buyer | Telangana Apartments Act, 1987 s.22: on the sale of an apartment, the purchaser is jointly and severally liable with the vendor for all unpaid assessments for the vendor's share of common expenses up to the time of the sale, without affecting the purchaser's right to recover the amount from the vendor. | Act text read 25 Oct 2026 (India Code PDF copy) |
| Dues are a charge on the flat | s.20: sums assessed by the association for a flat's share of common expenses are a charge on that flat, ranking ahead of other charges except Government and municipal taxes and unpaid amounts on a first mortgage. | Read 25 Oct 2026 |
| Services can be cut | s.21: the association's manager or board may, after at least seven days' notice and for just and sufficient cause, cut off or reduce essential services such as water, electricity, stair and passage lights, lifts and conservancy. | Read 25 Oct 2026 |
| How dues are worked out | s.13: common expenses are shared in proportion to each owner's percentage of undivided interest in the common areas. s.18(2): the bye-laws must say how the shares are collected, and a treasurer keeps the books. | Read 25 Oct 2026 |
| Does Chapter III apply to your building? | s.2: sections 20 to 22 sit in Chapter III, which applies only where the owner or all owners registered a Declaration submitting the property to it. The Act came to Telangana through the Telangana Adaptation of Laws Order, 2016 (G.O.Ms.No.45, Law (F), 01.06.2016). | To verify for your building (ask for the registered Declaration) |
| RERA projects | RERA Act, 2016: s.2(d) counts a later buyer of the allotment as an "allottee"; s.19(6) makes the allottee pay maintenance, water, electricity and municipal charges, with interest for delay under s.19(7); s.11(4)(g) keeps the builder liable for outgoings it collected but did not pay before handover. | Act text read 25 Oct 2026; interest rate in TG rules: to verify |
| Official buyer advice | Telangana Registration & Stamps, Property Purchase - Precautions, item "NOC of the society": obtain a no dues certificate and no encumbrance certificate from the society so that all dues are paid and no mortgage is registered with the society. The same page says to make sure water and electricity bills are paid up to date, with any balance paid by the seller. | Page read 25 Oct 2026 |
| Corpus and sinking fund | Neither the Telangana Apartments Act text nor the RERA Act text we read uses the words "corpus" or "sinking fund". Whether such a deposit stays with the flat, is refunded, or sits with the builder depends on the original sale agreement and the association bye-laws. | To verify in your documents |
Five checks before you register a resale flat in Telangana
- Get a written no-dues letter from the association, on its letterhead, signed by the secretary or treasurer, dated within a few days of registration, naming the flat number and the month up to which maintenance is paid. A WhatsApp message from the seller is not enough.
- Ask for the last 12 months' maintenance ledger for the flat and any pending special levies (lift replacement, painting, generator, legal costs) approved at a general body meeting. Such decisions bind all owners, so a levy passed last month is your problem next month.
- Find out where the corpus or sinking fund sits. Ask the seller for the receipt for any corpus paid to the builder and ask the association whether the builder handed it over. If the seller expects to be repaid for it, write the amount into the agreement.
- Write a dues clause into the agreement and sale deed: the seller clears all association, property tax, water and electricity dues up to the registration date, and indemnifies you for anything found later. Keeping part of the price back until the no-dues letter arrives is a common safeguard.
- Clear the utility and tax side too. Check the GHMC property tax and mutation, the HMWSSB water connection and the TGSPDCL meter, and run an EC search.
Common mistake: paying the full price on the seller's word that "maintenance is clear". Under s.22 the association can come to you for the old arrears, and your only remedy is to chase a seller who may have moved abroad.
Related guides
- Registering a flat owners association in Telangana
- Undivided share of land in a flat sale deed
- What the bank checks before a home loan
Buying in Andhra Pradesh? See the Andhra Pradesh guide to association dues on a resale flat.
Not legal advice. This page summarises the Telangana Apartments Act text (an India Code PDF copy), the RERA Act, 2016 and a Telangana Registration department page, all read on 25 Oct 2026, with unconfirmed points 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 Hyderabad property do-it-yourself pack: which papers to ask the seller for, which official portals to open, and in what order, so unpaid society or utility dues show up before you pay the balance.
Get it free (instant download)FAQ
If the seller did not pay maintenance, do I have to pay it after buying the flat in Hyderabad?
You may be asked to. Section 22 of the Telangana Apartments Act, 1987 makes the buyer jointly and severally liable with the seller for unpaid common expenses up to the sale, with a right to recover from the seller. Whether Chapter III applies to your building depends on a registered Declaration (to verify).
Is an NOC from the apartment association compulsory for registration in Telangana?
The Registration department's precautions page calls a no dues certificate from the society advisable, not a registration requirement. We found no rule making it compulsory for the Sub-Registrar; treat it as your own protection.
What should the no-dues letter say?
Flat number, owner's name, the month up to which maintenance and levies are paid, the date, and the signature of the secretary or treasurer. Ask for it close to the registration date.
Does the corpus fund paid by the first owner transfer to me?
The Acts we read do not deal with it. It depends on the original builder agreement and the association bye-laws, so ask the treasurer and settle it in your sale agreement.
Can the association cut water or the lift for unpaid dues?
Section 21 allows the manager or board, after at least seven days' notice and for just and sufficient cause, to cut off or reduce essential services, including water, electricity and lifts.
Official sources
- Telangana Apartments (Promotion of Construction and Ownership) Act, 1987 (India Code PDF copy)
- RERA Act, 2016 (full text)
- Telangana Registration & Stamps: Property Purchase - Precautions
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.