(1) After obtaining occupation certificate for the building and within four months of one-third of the apartments being allotted, sold or otherwise transferred in accordance to the provisions of the Land Transfer Act, the promoter shall make an application to the competent authority for the registration of association, with the persons who have purchased apartments as members:
Provided if the promoter fails to make such application, the apartment purchasers can make such application.
(2) There shall be an association, with the apartment owners as its members, for the administration of the affairs in relation to the apartments and the property and for management, maintenance and upkeep of the property, the common areas and facilities and common services:
Provided that in respect of an apartment meant for sale but not yet sold, the promoter shall be an associate member of the association and, when such apartment is later allotted, sold or otherwise transferred as per the provision of the Land Transfer Act, the allottee shall become a member of the association and the promoter shall cease to be associate member of the association in respect of such apartment:
Providing further that the formulation of the association shall be without prejudice to the liability of the promoter for breach of any municipal regulation or the Meghalaya Building Bye Laws, 2011 in force regarding sanction of building plans and to obtain completion and occupancy certificates.
(3) The association shall be registered with the competent authority. The competent authority shall ascertain whether the majority of the apartment owners desire the association to function as a co-operative society or as a limited company. The competent authority shall register the association accordingly, either as a cooperative society under the Meghalaya Co-operative Societies Act or a limited company under the Company's Act.
(4) The Competent Authority shall-
(a) ascertain whether the majority of the apartment owners desire the association to function as a co-operative society or a limited company;
(b) register the association accordingly, either as a co-operative society under the Meghalaya Co-operative Societies Act or as a Limited Company under the Companies Act; and
(c) have all the functions of a Registrar under the respective Act for the association.
(5) The association will be responsible for the administration and management of the property and maintenance and upkeep of the common areas and facilities and common services. The rights and duties of a promoter shall devolve on the association as soon as the possession of the apartments is handed over to the apartment owners.