What is Corpus Fund? (2024)

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Question

Malti5 Answers 13724 views Investment2 years2022-01-18T10:28:16+05:302022-01-18T10:28:16+05:30

in progress

Sanjana
1

2022-01-18T10:38:37+05:30 January 18, 2022 at 10:38 am

Reply
My builder told me about the corpus fund meaning when my friend was finalizing the deal to buy an apartment in a project. He told me that it is a large amount of money that the builder collects from the buyer at the time of booking the flat. With respect to housing societies, the developer is responsible to collect the corpus fund to maintain the facilities and amenities.
What is the Corpus Fund used for?
The developer utilizes the dividend or interest generated from the Corpus Fund to pay a supervision agency and facility management that takes care of cleaning, servicing, light bill, common areas, amenities, etc. I want you to know that the builder can’t utilize the interest generated from this fund for any other purposes.
Generation of Corpus Fund in a Housing Society
While selling the property, every buyer of the home/apartment contributes his share of a predetermined amount that collectively forms the Corpus Fund. The builder delivers the built property to the buyer generally within 2 years in case the property is under construction. This is why this amount is collected from the buyer for taking care of expenses over a long period of time.
Read more:
What is corpus fund in redevelopment?
Who will pay corpus fund in resale property?
I hope now you know what is corpus fund meaning in real estate.

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Ana

2022-10-02T23:35:54+05:30 October 2, 2022 at 11:35 pm

When my father purchased a flat I learnt the meaning of corpus fund. So, I will share the corpus amount meaning with you. Generally, the corpus fund in apartments meaning can be referred to as a capital fund, an amount kept aside for an organisation/ entity to operate, exist and maintain itself. These funds are collected for apartments purpose only and not for the attainment of any objectives and are accrued through voluntary contributions. In other words, it is the lump sum amount collected as pre-maintenance charges from the home buyer which is not included in the total sale of the property. Corpus Fund is collected by the builder however once the housing society the developer hands over the corpus fund to the managing committee. For further maintenance residents also pay a monthly/quarterly/annual maintenance charge. This is what is corpus fund in apartments means.

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The corpus fund is used for facility management and supervision agencies which take care of amenities, common areas, light bill, servicing, cleaning, etc. The interest generated on corpus funds can only be used for these purposes.

The corpus fund is calculated on a per square feet basis. The amount can be over Rs 1 lakh. After the formation of the housing society, the corpus fund is transferred to the Sinking Fund for major repairs, reconstruction, structural addition or redevelopment. This is the corpus fund meaning in English. I hope what I have shared about the meaning of corpus fund is helpful.

What is corpus fund in redevelopment?

Who will pay corpus fund in resale property?

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High Quality Material In House Team of Experts On Time Completion Dedicated Engineer & Project Team Warrant Cost Transparency

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Meenakshi

2023-02-07T10:25:30+05:30 February 7, 2023 at 10:25 am

I bought an apartment last year and once things got finalised, I was asked to pay Rs 30,000 as the corpus fund. I wasn’t aware of such charges before hence had to ask the owner what is corpus fund in society. I learnt that it is the amount or fund that the society charges to operate, exist and maintain itself. The buyers must pay this fund so let’s read what it includes vividly here.

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What is corpus charges meaning?

In order to exist, organise and perform or maintain certain activities, the society charges this corpus fund. They use this fund during any damage to the

Amenities
Buildings or
Electric/gas/ water supply.

They can also use this fund to

Renovate
Develop
Add or update things available in society

At times of crisis like floods, earthquakes or more as well this fund can be used. It is like the savings of a society that is used when absolutely necessary.

How much is the corpus fund?

The corpus fund is based on the square footage of the building. It can start from Rs 10,000 and go up to Rs 1 lakh as per the rules and regulations of society.

The members of a society are bound to pay this amount.

I hope you have understood what is corpus fund in society.