Common Area Maintenance Charges: A Guide to CAM Charges in Indian Properties

by Godrej Properties Limited

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The Significance Of OC When Purchasing Property In India

What is CAM?

When you invest in a property in India, whether it's a residential or commercial space, you may come across the term"Common Area Maintenance Charges" or CAM charges. Common Area Maintenance Charges refer to the expenses incurred for the maintenance and upkeep of shared or common areas in a property. Understanding CAM charges is essential for property owners and tenants alike to ensure transparency and effective management of common areas. 

Key Aspects of CAM Charges

1. What are Common Areas?

Common areas typically include spaces in a property that are shared by all occupants, such as lobbies, corridors, staircases, elevators, parking areas, gardens, swimming pools, and clubhouse facilities. These areas are maintained collectively for the benefit of all residents or occupants.

2. Types of CAM Charges

CAM charges may include various expenses related to the maintenance and management of common areas. Some common components of CAM charges are:

  • Security services and personnel
  • Housekeeping and cleaning services
  • Electricity and water charges for common area
  • Maintenance of elevators, fire safety systems, and other shared facility
  • Landscaping and gardening services
  • Repairs and maintenance of common infrastructure

3. Calculation and Allocation of CAM Charges

CAM charges are typically calculated and allocated based on the size or area of the individual property. The charges may be divided equally among all occupants or allocated based on the proportionate area occupied by each unit. The specific methodology for calculating and allocating CAM charges may vary from property to property, and it is usually mentioned in the terms and conditions of the lease agreement/purchase agreement.

4. CAM Charges and Legal Compliance

Property owners and developers are legally bound to maintain and manage common areas following local laws and regulations. The charges levied for common area maintenance should be reasonable and justifiable. Property owners and tenants need to be aware of their rights and responsibilities regarding CAM charges. 

5. Transparency and Accountability

Transparency and accountability in the management of CAM charges are crucial. Property owners and tenants should have access to detailed information about the expenses incurred and the utilisation of funds for common area maintenance. 

6. Effective Communication and Participation

Effective communication and participation from all stakeholders are essential for the smooth management of common areas and CAM charges. Property owners, tenants, and the property management or owners' association should maintain open lines of communication to address concerns, share information, and seek feedback regarding common area maintenance. 

Conclusion

Understanding Common Area Maintenance Charges (CAM charges) is crucial for property owners and tenants in Indian properties. CAM charges cover the expenses associated with the maintenance and upkeep of shared or common areas in a property. 

 

Frequently Asked Questions

1.Are CAM charges applicable to both residential and commercial properties?

Ans: Yes, CAM charges apply to both residential and commercial properties

2.Can CAM charges increase over time?

Ans: Yes, CAM charges can increase over time. The increase in CAM charges may be due to certain factors.

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