Encumbrances against apartments.
– (1) The owner of each apartment may create any encumbrance, only against the apartment owned by him and the percentage of the undivided interest in the common areas and facilities appurtenant to such
apartment in the same manner and to the same extent as may be
created in relation to any other separate parcel of property subject
to individual ownership:
Provided that where any such encumbrance is created, the
apartment in relation to which such encumbrance has been created
shall not be partitioned or sub-divided.
(2) No labour performed or material furnished with the
consent, or at the request, of an apartment owner or his agent or his
contractor or sub-contractor, shall be the basis for a charge or any
encumbrance under the provisions of the Transfer of Property Act,
1882 (Central Act No. 4 of 1882), against the apartment or
property of any other apartment owner not expressly consenting to,
or requesting, the same, except that such express consent shall be
deemed to be given by the other apartment owner in case of
emergency repairs thereto.
(3) The labour performed and material furnished for the
common areas and facilities, if duly authorized by the Association
in accordance with the provisions of this Act, or the bye-laws, shall
be deemed to be performed or furnished with the express consent
of each apartment owner and shall be the basis for a charge or
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encumbrance under the Act aforesaid against each of the
apartments and shall be subject to the provisions of sub-section (4).
(4) In the event of a charge or any encumbrance against
two or more apartments becoming effective, the apartment owners
of the separate apartments may remove their apartments and the
percentage of undivided interest in the common areas and facilities
appurtenant to such apartments from the charge or encumbrance on
payment of the fractional or proportional amounts attributable to
each of the apartments affected and on such payment, the
apartment and the percentage of undivided interest in the common
areas and facilities appurtenant thereto shall be free of the charge
or encumbrance so removed:
Provided that such partial payment shall not prevent the
person having a charge or any of the encumbrances from
proceeding to enforce the rights, in relation to the amount not so
paid, against any other apartment and the percentage of undivided
interest in the common areas and facilities appurtenant to such
apartment.
(5) On any such payment, discharge or other satisfaction,
referred to in sub-section (4), the apartment and the percentage of
undivided interest in the common areas and facilities appurtenant
thereto shall be free and clear of the charge or encumbrances, so
paid, satisfied or discharged.
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