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Deemed Conveyance

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.

FAQ About Deemed Conveyance

What is conveyance of a property?

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.

What is “Conveyance Deed”?

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 MOFA Act it is whose responsibility to execute the Conveyance Deed?

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.

What are the advantages of obtaining Conveyance by a Housing Society?

  • Proper and legal title of the property (Land & Structures) in the name of the Society.
  • Society’s property will be Free and Marketable. Hence, society can raise the loans for repairs and reconstruction by mortgage of the Society’s Property.
  • Society can raise revenue of rent from advertising hoarding & tele- communication tower etc.
  • Society can get permission for addition, alteration or reconstruction from the Planning Authorities and no need to approach land owner.
  • Society can Re-develop the property by constructing new building using TDR so members can get the additional area, corpus and new amenities.

What are the legal remedies to get the Conveyance of land and building in favour of the society?

The Societies can file the case before the following Courts/ Forum / Authority:

  • File a case in the Civil Court for obtaining the Conveyance under Specific Relief Act, 1963.
  • File case in the Magistrate Court as a criminal offence as contemplated under Section 13 of MOFA, 1963.
  • File case in the Consumer Court as deficiency of services under Consumer Protection Act, 1986.
  • File an application under Deemed conveyance provision as per the latest amendment done in MOFA, 1963.

What is the difference between the Regular Conveyance and Deemed Conveyance?

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.

What is Deemed Conveyance & it’s procedure?

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:

  • This amendment is applicable to the Societies that have not received Conveyance from the Land Owners & Property Developers within 4 Months of their formation.
  • The Society shall make an application for Deemed Conveyance along with necessary documents to the Competent Authority (DDR).
  • The Competent Authority shall hear the say of the Land Owners & Property Developers.
  • The Competent Authority on satisfaction shall issue the Deemed Conveyance Order & Certificate in favour of the applicant Society.
  • The competent Authority shall execute the Deemed Conveyance Deed on behalf of the defaulting Land Owners & Property Developers with the applicant Society.
  • This Conveyance Deed is required to be adjudicated & properly stamped as per the Bombay Stamp Act, 1958 & thereafter registered as per the Registration Act, 1908. It is required to obtain the Index II of the Registered Conveyance Deed.
  • This registered Deemed Conveyance should be submitted to Revenue / City Survey / Talathi Office to change the records in the name of Co-operative Housing Society and then only the Co- Operative Housing Society becomes absolute owner of the Property & the Title becomes completely free and marketable.
  • Getting the title of land and building by adopting the above procedure is known as Deemed Conveyance.

What are the documents required for preparation of application of Deemed Conveyance?

  • The registered Agreement for sale entered between Developer and members of the society,
  • Property card and 7/12 Extract ,
  • Location Plan,
  • City survey plan or survey plan from the Revenue Department,
  • Building / structure Plan approved by the appropriate Authority,
  • Architect Certificate about the entitlement of undivided interest in the entire Layout Plot, common areas and the facilities by each of the entity or the structure constructed or to be constructed on such Layout,
  • Latest title and Search Report for last 30 years from an Advocate,
  • Occupation Certificate,
  • Development Agreement or Power of Attorney or Agreement for Sale executed by the landlord with the Promoter for development or for transferring the right, title and the interest in the land in favour of the Promoter,
  • List of Flats Purchaser along with their sale agreement copy, Receipt of Stamp Duty paid & Registration , etc,
  • Legal notices sent to the Promoter and other interested parties to execute the Conveyance Deed,
  • Society Registration Certificate,
  • Copy of Latest Audit Report,
  • Last Election Date of Managing Committee,
  • Copy of the Resolution Passed by the Society for Deemed Conveyance and also to complete the registration of Conveyance Deed.

What are the provisions of stamp duty on Deemed Conveyance?

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/-

If documents, plans are not available with the society & Builder is not traceable or non co- operative then in such a situation how to move about the conveyance?

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.

Under which circumstances society can apply for DEEMED CONVEYANCE?

Following are the situations and the circumstances under which the societies may approach for deemed Conveyance of land and building in their favour.

  • Builders do not co-operate and hand over the conveyance within 4 months of registration of the society.
  • There is dispute between the developer and the land owner or between the partners of the firm.
  • The Land owner/ Developer are not traceable, available or expired and the legal heirs are not co- operating.
  • The partners of the Developer have expired and their legal heirs are not co-operating or their firm or the company dissolved.
  • The Land owner is expired the property is in layout plot and the builders are not ready to convey the land and the building.
  • Required Documents are not available.
  • The occupation certificate is not available.
  • The Land owner/ Developer demanding the additional compensation for conveyance.
  • Many of the flat owners have not paid the stamp duty and also not registered their agreement.
  • The condominium is not registered or handed over by the builder or the owner.

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.