Many flat-owners in redeveloped or developed apartments still need their sale deeds also known as conveyance deeds, or even their names registered in the 7/12 extract. After construction, the builder forms a housing cooperative society and promises to transfer the property's ownership to the society. However, the builder often holds back the property title (i.e., ownership) until all the flats are sold. If this deemed conveyance is not done then there is a high possibility that the builder will use this lack of knowledge to his advantage. This practice takes advantage of the buyers' lack of awareness and understanding of the process.
To address this issue, amendments were made in 2008 to the Maharashtra Ownership Flats Act of 1963 (MOFA), appointing a Competent Authority (the Registrar of Co-operative Housing Societies) to handle complaints from apartment owners and protect the interests of these housing societies.
Conveyance of a property is transferring the rights, title, interest and ownership of the property from the
owner / seller to the purchaser by executing the Conveyance Deed.
In case of a Co- Operative Housing Society (formed under the provisions of Maharashtra Co- Operative
Societies Act, 1960), Conveyance is transferring the rights, title, interest and ownership of the land and
building from the land owner or developer of the property to the Co- Operative Housing Society.
Conveyance Deed is an agreement between the original owner/s or developer/s and the purchaser/s for the purpose of transferring the rights, title, interest and ownership of the property.
As per the provisions under Section 11 of Maharashtra Ownership Flat Act, 1963, Conveyance is the right of the Co- Operative Housing Society and the duty of the property Developer/ Promoter to be executed within 4 months from the date of registration of the Co- Operative Housing Society.
The Societies can file the case before the following Courts/ Forum / Authority:
In case of regular conveyance, the Landowner / Developer prepare a conveyance deed, execute the same and appear before the Sub-Registrar of assurance for registration of the same. In this, society gets conveyance without any problem or hurdles. Society has to submit this conveyance agreement to revenue departments like City Survey Office / Talati to transfer the records in the name of society. Deemed Conveyance is obtained as a legal remedy against the defaulter Landowner / Developer or their legal heirs who do not co-operate to transfer their rights in favour of the society. In this case, the aggrieved parties appear before the Designated Competent Authority, who hears all the parties and passes the necessary order of conveyance.
Deemed Conveyance is an Amendment under sub- section (3) of section 11 of the Maharashtra
Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963.
The essence of the Deemed Conveyance Amendment is as follows:
If some flat owners have not paid Stamp Duty, the same will be have to be paid at the time of registration of the Deemed Conveyance Deed by the defaulter flat owners & if said flat owners does not co-operate then society can pay and the same can be recovered from such flats owners. In the case of no balance FSI & stamp duty of all the society members is paid then the Stamp Duty will be only Rs. 100/-
In such situation, the Society should initiate steps in proceeding legally against the Builder or the Land owner to obtain the conveyance. Society should also initiate steps to obtain the required Documents from the respective Government Departments like, Municipal Corporation / Tahasildar’ s Office , City Survey Office, Talathi, etc. and procure duplicate copies of the documents.
Following are the situations and the circumstances under which the societies may approach for deemed Conveyance of land and building in their favour.
Please note that if society or the beneficiaries have already filed a case in consumer court /civil court/ high
court demanding the conveyance of land or conveyance as one of the prayers, then such society will have to
get such prayer deleted from the petition or seek special permission from such court before filing the
application under deemed conveyance. In case, the builder has filed a case in any of the court not granting
the conveyance or under any of the dispute with the society, still the application for deemed conveyance can
be filed & necessary orders can be obtained.
Deemed Conveyance is a golden opportunity for the societies to get the conveyance and society’s property
will be Free and Marketable.