At the time of possession of commercial or residential properties, buyers are generally liable to pay a number of extra ‘burdens’ known as additional charges. One of the significant among them is the IFMS (Interest Free Maintenance Security) charges. IFMS is a collective sum of money levied from the buyers/investors of a residential/commercial project by the builder, under a separate account.
The builder will keep the money under their custody, till a RWA (Residential Welfare Association) is enacted in the residential project, following which the builder will transfer the account to the association. However the interest for the money will not be passed to the association and will be in favour to the buyers. Mostly, RWA’s will be set up at least a year after the project is delivered.
IFMS is mandatory when you purchase home and is collected for the benefit of the residents itself. The money is reserved for the unprecedented or planned maintenances that might incur for the project in the future like lift failure, park development, security enhancement or any other building maintenance works. IFMS is also ideally charged to curb the disputes between the flat owners.
IFMS is higher for commercial projects and relatively low for residential projects. Generally, Rs 25 to 50 per sq ft is being charged as IFMS for residential projects and Rs 50 to 60 per sq ft for commercial projects in Delhi-NCR. The commercial projects will be maintained by the builder or any authorized authorities appointed by the builder.