Glossary
Corpus Fund
A corpus fund is a one-time deposit each owner pays at handover, held for the apartment’s long-term repairs and handed to the owners’ association.
In plain words
An apartment building has costs no single owner can carry: repainting the outside, replacing lift parts, fixing the pumps. The corpus fund is a pool of money set aside for those big-ticket items. Each buyer pays a one-time amount, usually at possession. It is separate from the monthly maintenance charge, which covers everyday running costs like security, housekeeping and electricity for common areas.
A worked example (illustrative)
If a builder asks for a corpus of ₹50 per sq ft and your flat is 1,200 sq ft super built-up, the corpus is ₹60,000. If advance maintenance is ₹4 a sq ft a month for 12 months, that adds ₹57,600. Together that is ₹1,17,600 due at handover, beyond the flat price. These are figures to plan for, not ones a bank usually funds.
Why it matters to you
The corpus belongs to the owners, not the builder. RERA Section 11(4)(e) asks the builder to enable the formation of the owners’ association, and once it is formed, the corpus collected should be handed over to it. In Karnataka, apartment owners usually organise under the Karnataka Apartment Ownership Act, 1972, or as a society.
- Ask how the corpus is calculated and when it is due.
- Ask where it will be held until the association is formed.
- Check it is shown separately from maintenance on your cost sheet.
- Once the association forms, check that the full amount is transferred.
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Related terms
See all glossary terms. This page explains a term; it is not legal or tax advice, and rupee figures are illustrative.
FAQ
Corpus Fund: common questions
Is the corpus fund refundable?
Not usually. It stays with the building for future repairs. If you sell, it stays with the flat.
Is corpus fund the same as maintenance?
No. Corpus is a one-time deposit for long-term repairs. Maintenance is a regular charge for daily running costs.
Who controls the corpus fund?
The owners’ association, once it is formed and the builder hands it over. Until then, ask the builder how it is held.
Can I include the corpus in my home loan?
Most banks fund only the flat’s cost, not deposits like corpus. Plan to pay it from savings.
Want someone to walk you through it?
Ask the Reeva team about this, or anything else on your first-home paperwork. We will call back, with no pressure to buy.