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Home/ Buy and Sell/Investment/What is corpus fund in redevelopment?
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Sweta4 Answers 14980 views Investment2 years2022-01-04T12:42:59+05:302022-01-04T12:42:59+05:30
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Aaryan
5
2022-01-04T16:09:00+05:30 January 4, 2022 at 4:09 pm
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When we purchase an apartment we come across several interrelated terms and concepts such as Corpus Fund, Sinking Fund, Hybrid Maintenance Calculation, etc. So, let me explain what is corpus fund in redevelopment so that you can understand all the aspects related to the corpus funds.
In simple words, Corpus Fund is a type of capital fund that is kept aside for organizations, entities to function, exist and maintain themselves. The amount used for these funds should not be used for any other objectives.
In real estate, the developer collects the corpus fund for the maintenance of amenities and facilities. When an amount is collected from home buyers as pre-maintenance charges and not included in the total sale amount of property it can be considered as a corpus fund. The corpus funds are kept in the bank and the interest generated from the amount is used by the developer for maintenance purposes.
When a housing society is formed it is the duty of the builder to transfer the corpus fund to the managing committee. To maintain the amenities residents pay a maintenance fee to the managing committee on a monthly, quarterly or annual basis and the calculation method is decided with everyone in the society. This is the corpus fund meaning in real estate.
The Corpus Fund is used for maintenance purposes such as taking care of amenities, common areas, light bills, servicing, cleaning, etc. The builder cannot use corpus for any other purposes.
If you have noticed the builder is utilizing corpus fund for other purposes you can file a complaint in the consumer court as well as RERA. You should always ask what is the amount of money the builder is charging as corpus fund and you should also understand how it will be utilized.
How to check corpus fund calculation for redevelopment?
The corpus fund is calculated depending on the square feet which is collected by the builder. The amount could sum up in lakhs of rupees.
I hope you understand what is corpus fund in redevelopment.
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Ridhima
2
2023-01-18T07:46:48+05:30 January 18, 2023 at 7:46 am
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The Corpus Fund Rules Model bye-laws of Maharashtra govern the corpus fund redevelopment Mumbai. It states unequivocally that a premium on the transfer of property rights may be imposed ranging from Rs 10,000 to Rs 25,000. But once a society is established, these regulations take effect; most builders determine their corpus funds based on square footage, and the total can easily exceed Rs 1 lakh.
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I hope this helps you with the query: how much corpus fund for redevelopment.
The Corpus Fund sum may also be moved to the Sinking Fund, which is used for significant repairs, rebuilding, structural augmentation, or redevelopment, once the housing society has been officially founded.
Many societies prefer to collect a sizable corpus from each owner and use the interest earned to maintain the amenities for years, only charging the owners for additional maintenance and replacement. Regarding the sum, the investment, and the utilisation, the general body of the society may establish its own norms and regulations. Homeowners can request a copy of the bye-laws from the society’s office and ask to examine the society’s annual financial report if they have questions about this fund or its intended purpose.
I hope the corpus fund meaning in redevelopment is clarified after going through the above-given answers. However, I’d like to express my opinion about the same. Generally speaking, a corpus fund is a sum of money set aside for an organisation or institution to run, exist, and maintain itself. This money, which is accumulated by voluntary contributions, is not intended to be used for the accomplishment of any goals.
It is the developer’s job to gather the corpus fund for the apartment complex in order to maintain the amenities and facilities. In other words, it is a one-time payment made by the home buyer (consider it a pre-paid maintenance fee) and is not reflected in the final sale price of the property.
I’d like to conclude here about the corpus fund redevelopment Mumbai. I hope this helps:)
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Swati mishra
2023-08-31T18:21:28+05:30 August 31, 2023 at 6:21 pm
Reply
The meaning of corpus fund is reserved money by the developer or the redeveloper to finance a redevelopment project.
It helps in ensuring the smooth execution of the redevelopment process. It also addresses the needs of the existing residents or society members.
Here's the detailed meaning of the corpus fund in the context of redevelopment in India:
- Redevelopment Project:
It includes the reconstruction or renovation of an existing building or complex to redevelop it, and improve its infrastructure, and the living conditions of its occupants.
- Corpus Fund Purpose:
It is established to fulfill the various financial requirements associated with the redevelopment project. It is contributed by the existing members or residents of the society.
- Contributions and Utilization:
Society members or residents contribute to the corpus fund based on an agreement. The contribution is determined by factors like the size of their existing unit and the expected benefits from the redevelopment.
- Maintenance and Amenities:
The corpus fund is also used to improve common amenities, landscaping, and maintenance services within the redeveloped complex.
- Transparency and Management:
Developers or redevelopers are expected to manage the fund carefully and provide regular updates to society members about the fund's utilization.
- Legal Framework:
The management of the corpus fund is governed by legal agreements, and guidelines set by relevant authorities. It includes the terms of fund utilization, contribution, and other related matters.
Society members need to be well-informed about
corpus fund meaning in redevelopment
, its purpose, contribution, and management before entering into a redevelopment project.
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