Blog

DISCLAIMER TO BE NOTED :- This Information Is Provided By Us, On Our Personal Experience, Issues Till Date, & It Shall Not, In Any Manner, Whatsoever, Deemed As Our Opinion. As This BLOG Is Meant To Be Used As A Guide For Only Informative Purpose, Not As A Replacement For Any Legal Opinion.

CONVEYANCE  VS.  DEEMED  CONVEYANCE.

WHY CONVEYANCE OF LAND & BUILDING IN THE NAME OF THE SOCIETY IS NECESSARY

Following Are The General Questions / Queries Asked By Everyone & The Same Are As Follows :-

1. What Is Conveyance Deed ?????

• What Are The Benefits Of Conveyance Deed ?????

• What Is The Effects Of Non Conveyance ?????

• What Are The  Necessary Documents Required For Conveyance ?????

• What Procedure To Be Followed ?????

• What Are Necessary Documents To Be Annexed With Conveyance Deed ?????

• What is Deemed Conveyance Deed ?????

CONVEYANCE  MEANS

“TRANSFERRING OWNERSHIP OF LAND IN THE NAME OF HOUSING SOCIETY.”

TO BECOME LEGAL OWNERS:

• Any Movable/Immovable Property Ownership Is Identified On The Basis Of Title Documents For Example; Immovable Properties Are Recorded And Identified On The Basis Of Survey No., Hissa No. And Such Other Identity Marks In Government Records Like 7/12 Extract Property Card Etc In Favour Of Purchasers, Then Only, The Purchaser Become The Legal Owner.

TO MAKE ENTRIES IN GOVERNMENT RECORDS:

• When The Property Transactions Are Recorded In Government Records, It Becomes Conclusive Evidence Of Ownership Of Property.
• To Make Entries In Government Records, A Conveyance Deed Has To Be Executed As Explained Above.

TO HAVE FREE AND MARKETABLE TITLE:

• When A Particular Person/Society Has Paid Full Consideration And Is In Possession Of The Property But The Title Documents Are Continued In The Original Owners’ Name, The Purchaser Will Not Have A Free And Marketable Title On The Said Property.
• It Is Only After Proper Conveyance – The Purchaser Will Derive Free And Marketable Title Over The Property.

WHAT IS THE DIFFERENCE BETWEEN THE

DEEMED CONVEYANCE AND THE REGULAR CONVEYANCE

• In Case Of Regular Conveyance, The Builder/ Developer/ Landowner Prepare A Conveyance Deed, Execute The Same And Appear Before The Sub-Registrar Of Assurance For Admitting Their Signature.

• Without Any Problem, The Legal Bodies Get The Conveyance With The Co-Operation Of The Builder/ Landowner.

• In Case Of Deemed Conveyance, The Builder/ Land Owner Or Their Legal Heirs Are Not Co-Operating, Therefore, The Aggrieved Parties Appear Before The Designated Competent Authority, Who Hears All The Parties And Passes The Necessary Order Of Conveyance.

• Deemed Conveyance Is Obtained As A Legal Remedy Against The Defaulter Builder/ Landowner Who Do Not Want To Part With The Land And The Building In Favour Of The Society.

• Generally  Builder And Landlord Come Together And Construct A Building.

• After Completion Of Construction Builder Applies And Gets Completion Certificate (CC) From The Municipal Authority.

• Meaning Of Completion Certificate Is That The Construction/Fsi Consumed Is As Per Approval. After This The Builder Fixes All Amenities /Connections So That The Flats Are Ready For People To Move In, Hands Over Flats To The Buyers And Goes Away And This Is Where The Problem Starts.

• Because Once The Flats Are Ready For Occupation The Builder Is Supposed To Get What Is Called As Occupation Certificate (Oc) , Landlord And Builder Together Are Supposed To Registrar Deed Conveying Land Ownership In Societies Name. Since There Is No Control Over Builder /Owner, Lack Of Awareness On The Part Of Flat Buyers /Extreme Hurry By Flat Owners To Move In , 80 To 90 Percent Of Housing Societies Did Not Bother To Get These Documents.

• A Situation Came Where Because Of  Lack Of Conveyance Deed Most Of The Societies Were Unable To Go For Redevelopment And Building Collapses Became Eminent.

• To Overcome This Problem And To Help Housing Societies Maharashtra Government Came Up With The Concept Of Deemed Conveyance. That Means Even If Builder /Landlord Are Not Traceable Societies Can Get The Land Conveyed In Their Name By Presenting Some Documents Which Can Be Procured From Concerned Government Departments. Once This Process Is Complete The Societies Are Free To Go Ahead With Their Redevelopment Programs.

• So Without Waiting For Time For Redevelopment All Societies Should Get Their Conveyance Which Is One Of The Most Important Documents.

ADVANTAGES OF CONVEYANCE :-

• To Get Proper & Legal Title Of Property (Land & Structures) In Society’s Name.

• Society’s Property Will Be Free And Clean, Clear & Marketable.

• To Retain Additional F.S.I Granted By Change Of DC Regulations [PUNE].

• To Raise The Loans For Repairs And Reconstruction By Mortgage Of Society’s Property.

• To Get Permission For Reconstruction From Planning Authorities.

• Society Can Redevelop The Property By Constructing New Building Using TDR & Members Can Get The Additional Area (FUNGIBLE  – F. S. I.), New Amenities & Corpus Fund.

• Can Receive Additional Revenue Of Rent From Advertising Hoarding & Tele –  Communication Tower Etc.

DISADVANTAGES OF NOT HAVING CONVEYANCE OF LAND & BUILDING IN THE NAME OF THE SOCIETY :-

• Even Though You Have Purchased Ownership Flat, You Are Not The Owner Of The Land & Building.

• In The Event Of A Building Collapse Or Damage To The Building, You Cannot Reconstruct The Building Without The Permission Of The Builder / Land Owner.

• The Builder May Mortgage The Property Purchased By You As He Is The Legal Owner And Holding The Title Deeds Of The Property.

• The Builder May Transfer The FSI / TDR To His Other Projects And Enjoy The Commercial Benefits, Depriving The Flat Purchasers / Society Of Its Legal Entitlement.

• The Builder May Make Profit By Sale Of Open Spaces, Gardens, Terrace, Parking Space Belonging To The Society.

• The Builder May Demand A Huge Amount From The Society, If Conveyance Is Sought By The Society After A Lapse Of Many Years.

• The Builder May Sell The Entire Development Rights And The Legal Rights On The Land To Third Party And Create A Third Party Interest In The Property And The Society Will Have To Incur A Huge Amount To Clear The Same.

HENCE IS IT IMPORTANT TO HAVE CONVEYANCE OF LAND & BUILDING IN THE NAME OF THE SOCIETY.

Following Are The General Questions / Queries Asked By Everyone & The Same Are As Follows :-

What Is Conveyance Deed ?????

What Are The Benefits Of Conveyance Deed ?????

What Is The Effects Of Non Conveyance ?????

What Are The  Necessary Documents Required For Conveyance ?????

What Procedure To Be Followed ?????

What Are Necessary Documents To Be Annexed With Conveyance Deed ?????

KINDLY FIND MY CLARIFICATION ON ISSUES:-

CONVEYANCE DEED – ENTIRE PROCESS FROM PREPARATION TILL REGISTRATION

• Once Buyer Decided To Buy Flat From Certain Builder, Builder Executes Agreement To Sale As Per Law By Paying Requisite Stamp Duty And Registration Charges. Then Builder’s Forms A Residential Society Of The Flat Holders To Manage Day To Day Activates Of The Society And Building Maintenance.

• But By Mere Formation Of Society Does Not Make You Absolute Owner, Because To Become Absolute Owner Conveyance Deed More Take Executed By Builder By Transferring Rights And Title Of The Land Below The Building.

• Meaning Of ‘Conveyance’ Is To Transfer All Rights, Title, Interest To Use The Said Property Perpetually Along With Right To Use It, Lease It, Earn Rent, With Ownership Of Building Constructed Above And Everything Available Below The Ground, Roof, Plants, Minerals, Water Etc.

• Conveyance Is Transfer Of Ownership From One Person To Other Person Or From One Intuition Or Company To Other, Individually Or Severally Of Movable Or Immovable Property.

• As Per MOFA (Maharashtra Ownership Of Flat Act) A Builder Has To Execute Conveyance Of The Property In Favour Of Flat Owner Within 4 Month From Date Of Completion Or From Formation Of Society, In The Form Of Conveyance Deed Or Apartment Deed.

• As Per MOFA Builder Has To Complete All The Formalities Required For Executing Conveyance Within 4 Month From Completion. Though This System Is Not Followed By The Builders Sincerely, As The Motive Behind This Is Get Benefited Of Future FSI, TDR Relating To The Land.

• The Land Does Not Carry Market Free Title Unless Conveyance Executes By The Builder And The Title & Ownership Remains With Original Owner Or With Builder.

• Residents Of The Building Cannot Opt For Redevelopment Work Unless The Land Is Conveyed In The Name Of Residents Or Society Or Apartment Condominium –

TDR – TRANSFORMABLE DEVELOPMENT RIGHTS.

FSI – FLOOR SPACE INDEX.

• If Conveyance Of Society Or Apartment Is Done Then It Can Easily Go For Redevelopment And Corporation Gives NOC For The Reconstruction, And Society Or Apartment Gets Additional FSI Or TDR As Per Municipal Corporation Rules For Additional Construction.

EFFECTS OF NON CONVEYANCE –

• Flat Purchaser Does Not Become Absolute Owner Of Flat And Does Not Get Ownership Of The Land, Its Title & Interest.

• Name Of The Society Or Apartment Cannot Be Mutated In Government Records For Example- Property Record Card, 7/12 Extracts Etc.

• Builder / Developer May Use Additional Fsi / Tdr Earned From Municipal Corporation For His Other Projects And That Is A Huge Loss Of The Flat Owners.

• In Case Builder Does Not Cooperate, Then Flat Owners Have To Apply For Deemed Conveyance Process, Which Is Very Lengthy And Quite Expensive Too.

• Redevelopment Is Not Possible Without Conveyance.

• Without Conveyance Name Of Society Or Apartment Cannot Be Mutated In Government Records Like 7/12 Or Property  Card, Or Corporation Tax Or Electricity Meter They All Are Issued In The Name Of Original Land Owner Or Builder.

• If Building Is Collapsed Due To Flood Or Earthquake, The Building Cannot Reconstructed Without Owner’s Permission And There Are Chances Owner Of The Land May Declare His Charge Again & Refrain Society Or Apartment To Reconstruct New Building There On.

LEGAL  GUIDANCE  IN  HANDOVER  PROCESS.

This Process Is Interlinked With Conveyance, So In This The Society Has To DO HANDOVER  PROCESS. 

• DOCUMENT HANDOVER.
  • LAND HANDOVER FOR THE SOCIETY.

1. LEGAL ASSISTANCE  IN  CONVEYANCE DEED.

As Far As This Stage Is Concerned, It Shall Be The Final Stage As This Process Is Vital, So In This The Society Shall Do As Follows. 

• Initially To ISSUE REQUIREMENTS Of All The Documents / Deed For Legally Understanding The Title And Nature Of The Right To Be Devolved To The Society By Virtue Of  Conveyance.

• To LEGALLY SCRUTINIZE All The Papers / Documents / Deed / Indentures As Required For Conveyance Deed [Professional From Society Shall Do – Verifying All The Necessary Papers / Documents / Deed / Indentures Will Be Compulsory].

• How To Prepare The Memorandum Of The Conveyance Deed Proposal.

• To Get The Conveyance Deed Draft VETTED As Provided By The Builder / Promoter / Developer.

• To INCORPORATE All The Necessary Legal Clauses In The Said Conveyance Deed Favoring The Society And Protecting The Right Title And Interest Of The Society By Virtue Of Conveyance.

• To Get The Draft Of Conveyance Deed VERIFIED AND FINALIZED.

• To Ensure All The AREA – Common Areas And Facilities / Limited Common Areas And Facilities, / Restricted Common Areas And Facilities.

• To Make Sure That All The Necessary Annexures / Papers / Documents / Deed / Indentures Are ANNEXED With The Conveyance Deed Or Not As Required.

• At The Time Of Registration Of The CONVEYANCE DEED And To Verify All Important And Relevant Parties To The Conveyance Deed Before The IGR OFFICIALS – SUB-REGISTRAR.

• After The Registration Process Of The Conveyance Deed Is Complete, Subsequently The Society Shall Do As Follows On How To Mutate The Name Of The Society On 7/12 Extract Of The Property By The Revenue Department – Talathi.

The Society In Regards With Entire Conveyance Deed Process & To Make Sure That There Is Proper The Transfer Of Right, Title & Interest From Builder To & In Favor Of The Society By Virtue Of Conveyance Deed With Respect To Said Land On Which The Society Is  Developed  / Constructed.

Whereas The Society In Its Very Crucial Stage, Wherein The Future i.e. DOCUMENTS / LAND CONVEYANCE Of The Society Is Depending Upon This Stage With Builder.

TYPES OF DOCUMENTS

• There Are Basically Two Types Of Rights Attached To The Land On Which Building Is Constructed And Then The Society Is Formed Of The Flat/Shop Takers. First Is The Freehold Property And The Other Is Leasehold Property.
• The Documents To Be Prepared To Get The Title In Favour Of The Society Depends Upon The Type Of Property On Which The Building Is Constructed.
• Normally The Type Of Document Whether Lease Rights Or Freehold Of The Land Will Be Conveyed To The Legal Body Will Be Mentioned In The Agreement For Sale Executed By The Builder With The Individual Flat Purchasers.

DOCUMENTS REQUIRED FOR VETTING THE DRAFT CONVEYANCE OF SOCIETY.

ALSO IMPORTANT ANNEXURES TO BE ANNEXED WITH THE CONVEYANCE DEED.

1. RERA – CERTIFICATES. (If RERA Registered Project)
2. 7/12 Extract (Latest Within Period 3 Months).
3. Ownership Mutation Entries.
4. N. A Order [Non – Agriculture Order Of Collector].
5. U.L C Order [Urban Land Ceiling Order By The Competent Authority].
6. Bank NOC – Loan Clearance – No Dues For Project – In Case Of Bank Loan – APF.
7. RERA CERTIFICATE – IF APPLICABLE.
8. ENVIRONMENTAL CLEARANCE – IF APPLICABLE. 
9. SOCIETY :-
10. Society Registration Certificate.
11. Society Registration File.
12. Certified Society Resolution – CONVEYANCE – AGM / SGBM.
13. List Of Members – Name Of Member, Flat / Unit No., Floor, Area, Haveli Registration No And Stamp Duty, Registration Fees Paid Details.
14. Copies Of All Flats & Resale Index II  [For Proof Of SD & REG FEE].
15. Sample Copy Of Builder – Flat Purchaser Agreement.
16. Sale Deed / Development Agreement With Land – Owners [Registered].
17. Power Of Attorney Given By Land – Owners [Registered].
18. Collector  / PMRDA :-
    1. Commencement Certificate [Revised And All].
    1. Completion  Certificate [Part And All].
    1. Approved Layout Plan [Revised And All].
    1. Approved Building Structure & Floor Plan [Revised & All].
19. Architect’s Certificate – [Emplaned Architect – Original Report – 2 Copies].
20. Copy Of Search Report For Last 30 Years From Advocate.
21. All Papers To Be Certified By The Society. [ Round Stamp & Society C/S/T Stamp ]
22. Authority Letter [To Be Prepared By Advocate].
23. Photographs / Pan Card / I’d Card :- Land Owner / Developer – Firm / Society / C.S.T.
24. Builder Resolution For Society Conveyance On Builder’s Letter Head.
25. Any Such Relevant Document May Be Required In Due Course Of Time.

PROCEDURE :-

STAGES INVOLVED

1. PREPARATION OF CONVEYANCE DEED AND EXECUTION THEREOF:

• On Behalf Of The Society, The Managing Committee Has To Enter Into The Conveyance Deed Of The Society.
• The Committee Shall Examine, In Consultation With The Solicitor Or The Advocate Of The Society, The Deed Of The Conveyance Of The Land And The Building/Buildings Thereon Prepared By The Builder And Place The Same Before The Meeting Of The General Body Of The Society For Its Approval.
• On Approval Of The Draft Deed By The General Body Meeting Of The Society, The Committee Shall Execute It.

2. PAY THE APPROPRIATE STAMP DUTY ON CONVEYANCE DEED:

• Once The Conveyance Deed Is Prepared And Executed, The Same Should Be Send To The Collector Of Stamps For Payment Of Stamp Duty And The Stamp Duty On Conveyance Is Calculated As Under:
• In Case Of The Agreement For Sale Registered With The Sub-Registrar By The Flat Owners, The Market Value As On The Date Of Registration Of The Document Will Be Worked Out And The Stamp Duty Rate Will Be Applied As On The Date Of Execution Of The Conveyance Deed.
• In Case The Agreement Is Not Registered, The Stamp Duty On The Present Market Value Will Be Calculated For Such Flats/Shops.
• In Case Of Co-Operative Housing Societies, As Per The Explanation Given In Article 25 Of The Schedule I Of The Bombay Stamp Act, 1958, If The Flat Purchasers Have Paid The Stamp Duty At The Time Of Their Individual Agreement, The Same Would Be Adjusted At The Time Of Final Conveyance. Therefore, The Society Need Not Pay Separate Stamp Duty At The Time Of Conveyance. However, If Some Flat/Shop Owners Have Not Paid Or Have Paid Less Than The
• Required Stamp Duty, The Difference Will Have To Be Paid At The Time Of Executing The Conveyance.

3. REGISTRATION OF CONVEYANCE DEED

• Once The Conveyance Deed Is Executed And Proper Stamp Duty Is Paid, The Same Should Be Lodged For Registration With Subregistrar Of Assurance Within Four Months From The Date Of Execution By The Parties Who Have Executed The Document.
• They Are Also Required To Appear Before The Sub-Registrar For Admitting Execution Of The Document.

4. CHANGES IN THE GOVERNMENT RECORDS

• After The Conveyance Deed Is Executed In Favour Of The Society, The Office Bearers Will Have To Apply To The Talathi/ Revenue Officer Or To The City Survey Office For Making Necessary Changes In The Revenue Record. There Are Prescribed Forms To Be Filled For Making Necessary Changes.
• Even The Land Owner Will Have To Give Consent For Making Changes In The Revenue Record. Accordingly, After Making Such Changes, The Property Card Or 7/12 Extract, Form 6 Extracts Of Revenue Record Will Be Given In The Name Of The Society.

• First Stage Is To Take Resolution In General Body Meeting Of Society Or Association And Pass Resolution With 100% Support And Pass Resolution One Or Few Members To Complete The Procedure On Every Body’s Behalf.

• Second Stage Is To Approve Draft Of Final Conveyance Deed In General Body Meeting.

• Submitting Applications & Documents – Before Submitting Documents It Is Necessary To Prepare A Excel Sheet And All Necessary Information Relating To Each One Has To Be Filled In. The Columns Of Spread Sheet Are As Follows –

• FLAT NO/ SHOP NO/ UNIT NO.

• NAME OF THE MEMBER/ OWNER.

• CARPET AREA.

• BUILT UP AREA.

• SALEABLE AREA.

• DATE OF AGREEMENT.

• REGISTRATION NO.

• AMOUNT OF STAMP DUTY PAID.

• AMOUNT OF REGISTRATION PAID.

• Before Final Submission Of Document It Is Very Much Necessary The Check, Whether All Members Have Paid Stamp Duty, As In Many Cases Builders Just Sign Agreement To Sale But Do Not Register It, In This Case, That Document Has To Be Shown To Sub –Registrar Officer And Ascertain Requisite Stamp Duty Payable As Per Current Ready Recover Rate And Then Get The Valuation Sheet From Sub-Registrar Office And Pay The Same At The Time Of Final Conveyance.

• LBT – As Per Latest LBT Implementation Now Every Flat Owner Has To Pay 1% Stamp Duty On Today’s Government Rate Additionally Towards Local Body Tax (LBT).

• Registration Of Conveyance Deed – After Completion Of All Above Mentioned Formalities, After Checking & Approval Of Draft And Payment Of Stamp Duty & Registration Amount, Both The Parties, Transferor/ Owner/ Builder And Transferee/ Purchaser/ Flat/ Unit Holder Have To Remain Present Before Sub-Registrar In Office And Sign The Said Document In Presence Of Two Witnesses.

• Once The Deed Document Is Ready, Submit The Same For Registration. Then Sub Registrar Officer, Clarifies The Document And On Finding It Proper He Makes It With Registration Number And Registers It Through Software Interface. Thumb Impressions And Online Photo Is Taken Of Both The Parties And Prints Of The Same Are Signed By The Parties Again. The Software Interface Creates A Printed Index Page, It Is Also Known As “Index II” Or “Suchi Kramank – 2” And Receipt Of Registration Charges Received. Then The Document Is Scanned And PDF/ Photo File Of The Document Is Generated For Government Record And Original Is Handed Over To Purchases.

• It Is Advised That Society Of Individual To Make  10 Photo Copies Of The Same. This Is Because If Original Is Used Every Time That May Be Torn Or Deteriorated Due To Use.

1. Copy To Builders.
2. Copy To Pune Municipal Corporation / Pimpri Chinchwad Municipal Corporation.
3. Copy To Talathi For 7/12.
4. Copy To City Survey Office.
5. Copy To Collector.
6. Copy To MSEDCL [Transformers Installed In Society Area]
7. Copy To Income Tax Dept.
8. Copy To Members Who Want Copy For Their Record And Get Photo Copies.
9. Copy To Land Owners.

CONVEYANCE OF CO- OPERATIVE HOUSING SOCIETY

Conveyance Of A Property Is Transferring The Rights, Title, Interest And Ownership Of The Property From The Seller To The Purchaser.

In Case Of A Co- Operative Housing Society (Formed By The Flat Purchasers/ Owners 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/ Property Developer To The Co- Operative Housing Society.

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 Conveyance Is To Be Executed By Way Of Conveyance Deed Between The Land Owners & The Co- Operative Housing Society Where The Property Developer Is The Confirming Party. 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. The Copy Of Registered Conveyance Deed Along With The Index II Is To Be Submitted To Various Government Offices For Change In The Mutation Entries Of The Property.

After The Land And Building Is Conveyed In Favour Of The Co-Operative Housing Society And The Title Of The Property Is Fully And Finally Recorded In The Property Card And Other Revenue Records Then Only The Co- Operative Housing Society Becomes Absolute Owner Of The Property & The Title Of The Co- Operative Housing Society Becomes Completely Free And Marketable.

NEED FOR DEEMED CONVEYANCE

A Co- Operative Housing Society Is The Owner Of The Land & Building & Individual Member Enjoys The Ownership Right Of The Flat/ Shop Based On The Share Certificate Issued By The Co- Operative Housing Society.

A Vast Majority Of Co- Operative Housing Societies Does Not Have The Conveyance In Their Favour & Hence Are Not The Owners Of Their Land & Building. In This Situation, Even Though Each Member Of The Co- Operative Housing Society Has Paid Full Consideration And Is In Possession Of The Flat/ Shop Allotted, He Does Not Enjoy The Benefits Of Title Ownership Of The Flat/ Shop.

In Case Of Co- Operative Housing Societies Formed Long Back, Many Of The Buildings Are In Dilapidated Condition And Their Repairs Are Not Economically Viable. The Best Solution Available For These Co- Operative Housing Societies Is To Go Ahead With Redevelopment. The Non- Availability Of The Conveyance & Therefore Free/ Marketable Title Affects The Redevelopment Process Badly.

In Case Of Co- Operative Housing Societies Formed Recently, The Redevelopment At The Moment Is Not On The Agenda. However The Non- Availability Of The Conveyance And Free And Marketable Title May Affect Its Present Revenue And May Be A Hindrance In Redevelopment Process In Future.

Therefore Deemed Conveyance Is In The Larger Interest Of The Co- Operative Housing Societies (And Their Each And Every Member) Who Are Denied Their Right Of Conveyance By The Land- Owners & Property Developers.

ALL ABOUT DEEMED 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.

• Deemed Conveyance Amendment Is Applicable To The Societies That Have Not Received Conveyance From The Land Owners & Property Developers Within 4 Months Of Their Formation.
• The Aggrieved Society Shall Make A Deemed Conveyance Application To The Competent Authority Designated By Government Of Maharashtra.
• The Deemed Conveyance Application Of The Society Shall Include The Documents Notified By Government Of Maharashtra For Deemed Conveyance.
• 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 Aggrieved Society.
• The Competent Authority Shall Execute The Deemed Conveyance Deed On Behalf Of The Defaulting Land Owners & Property Developers With The Aggrieved Society.
• Advantages Of Deemed Conveyance
• Society Will Get Proper And Legal Title Of The Property (Land & Structures) In The Name Of The Society
• Society’s Property Will Be Free And Marketable
• Society Will Retain Additional F.S.I Granted By Change Of Development Regulations
• Society Can Raise The Loans For Repairs And Reconstruction By Mortgage Of The Society’s Property
• Society Can Get Permission For Reconstruction From The Planning Authorities
• Society Can Redevelop The Property By Constructing New Building Using TDR & Members Can Get The Additional Area (Fungible F. S. I.), New Amenities & Corpus Fund
• Society Can Receive Additional Revenue Of Rent From Advertising Hoarding & Tele- Communication Tower Etc.

DEEMED  CONVEYANCE  FOR  SOCIETIES

DEEMED CONVEYANCE

• After The Expiry Of 4 Months Of Formation Of The Legal Body, The Land And Building Is Deemed To Have Been Conveyed To The Legal Body.

• In Order To Bring The Name Of The Society/ Legal Body In The Revenue Record, A Competent Authority Has Been Designated I.E District Deputy Registrar, Who Will Hear The Parties On The Basis Of Applications Received From The Aggrieved Party And Decide The Matter.

• In Case The Competent Authority Is Satisfied That The Society/Legal Body Is Entitled To Get The Conveyance Of Land And Building, An Appropriate Order In Favour Of The Society/Legal Body Will Be Passed.

• After Getting The Favourable Order From The Competent Authority, The Society/Legal Body Should Prepare An Unilateral Conveyance Deed Along With Deemed Conveyance Order And Get The Same Registered With The Sub-Registrar Of Assurance After Paying Appropriate Stamp Duty.

• Getting The Title Of Land And Building By Adopting The Above Procedure Is Known As Deemed Conveyance.

THE PROCEDURE

• Deemed Conveyance Is A One Of The Legal Process To Get The Conveyance Of Land And Building In Favour Of The Legal Bodies. Once The Deemed Conveyance Is Passed By The Competent Authority, Unilateral Conveyance Deed As Provided In MOFA Will Be Executed By The Society/Legal Body As Per The Order Received From The Competent Authority.

• Further, The Same Will Be Registered By Paying Appropriate Stamp Duty And Registration Charges. There Is No Appeal Against The Deemed Conveyance Order Passed By The Competent Authority. However, The Aggrieved Parties Can File A Writ Petition In The High Court.

• Once The Deemed Conveyance Order With Unilateral Conveyance Deed Is Executed, The Index II Has To Be Obtained And Submitted To The Talati Office Or City Survey Office To Incorporate The Name Of The Legal Body In The 7/12 Extracts Or In The Property Card.

PAYMENT OF STAMP DUTY

• The Stamp Duty Will Be Only Rs.100, If All The Flat Owners Have Paid The Stamp Duty And Have Done The Registration Of Their Respective Flats Including On All The Transactions (Chain Of Agreements) Done In Those Flats.

• In Case There Are Some Flat Owners Who Have Not Paid The Stamp Duty Or Has Escaped The Duty, The Same Will Have To Be Paid At The Time Of Registration Of The Deemed Conveyance Deed By The Legal Bodies And The Same Can Be Recovered From Such Flat Owners.

CONSTRUCTION IN PHASES

• In Case Of Layout Plot, The Provision For Part Conveyance Is Already In Existence On Proportionate Basis.

• There Are Many Complexes Where The Conveyance Has Been Done For One Of The Societies In A Layout Plot.

• There Are Many Judgments To Provide Part Conveyance To One Of The Societies In Layout Plot.

• It Has Been Clearly Pointed Out That In Case Of Layout Plot, The Legal Body Will Be Entitled To Get The Proportionate Undivided Rights, Title And Interest In The Layout Plot Based On The FSI/TDR Used For The Respective Building Out Of The Total Development Potential Of The Entire Layout Plot As On The Date Of Conveyance Of The Land And The Building And As Per The Disclosure Made By The Builder.

• In Case The Builder Has Not Disclosed The Same, The Entire Balance FSI/TDR Will Be Transferred To The Legal Bodies Proportionately Otherwise It Will Be Available To The Builder.

DEEMED CONVEYANCE ORDER

• Normally, The Aggrieved Party Has To Make The Application To The Competent Authority In The Prescribed Form With Documents Available Against The Builder, If He Fails To Convey The Land And Building To The Legal Body Within 4 Months Of Its Formation.

• The Competent Authority Shall Scrutinize The Application, Collect The Documents From The Promoter/ Builder Or From The Authorised Officer Appointed By Him And Get The Application Admitted.

• After The Admission Of The Application, The Competent Authority Shall Conduct The Hearing And Then Take The Appropriate Decision, Whether The Applicant Or The Legal Body Is A Fit Case For Granting The Deemed Conveyance.

• If He Passes A Favourable Order, Then He Appoints An Authorised Officer, Who Shall Execute The Conveyance Deed.

PROCEDURE FOR DEEMED CONVEYANCE

The Procedure For Deemed Conveyance Involves The Following Stages

STAGE 1- PREPARATION FOR DEEMED CONVEYANCE

• During This Stage The Managing Committee Prepares The Members Of The Co- Operative Housing Society For Deemed Conveyance.

• Preparation For Deemed Conveyance

• This Is A Very Important Stage Where The Managing Committee Prepares The Members Of Co- Operative Housing Society For The Deemed Conveyance.

• The Managing Committee Convenes A Special General Meeting (SGM) Of The Society By Giving Suitable Notice Highlighting The Agenda.

• The Managing Committee Places Before The SGM The Difficulties Faced For Obtaining The Conveyance From The Land Owners/ Property Developers. The Managing Committee Explains The Effects Of Non- Availability Of Conveyance To The Members. The Managing Committee Explains The Procedure & Benefits Of Deemed Conveyance To The Members.

• During This SGM The Following Resolutions Are Typically Passed.

1.         Resolution For Going Ahead With Deemed Conveyance

2.         Resolution For Appointment Of Authorised Representative

3.         Resolution For Appointment Of Legal Consultant For Deemed Conveyance

4.         Resolution For Per Member Contributions

After This Stage Only The Deemed Conveyance Activity For The Society Moves Forward To The Documentation Stage.

STAGE 2- DOCUMENTATION FOR DEEMED CONVEYANCE

• During This Stage The Documents Required For Deemed Conveyance Are Collected/ Organized & The Case Is Prepared.

• Documentation For Deemed Conveyance

• Documentation Is A Very Important & Crucial Stage In The Procedure For Deemed Conveyance. It Requires Absolute Focus & Meticulous Handling To Ensure That All The Required Documents Are Obtained & Organized In An Appropriate Manner.

• Refer: Documents Required For Deemed Conveyance

• The Land Revenue Records Of Recent Origin Are Obtained By Making Applications To The Respective Government Departments Like City Survey Office, Tahasildar/ Talathi Office & District Collector Office. These Documents Are Obtained Typically Within 8- 10 Weeks.

• The Municipal Corporation Records Are Obtained By Making Application To The Building Proposal Department Of The Municipal Corporation. These Documents Are Obtained Typically Within 8- 10 Weeks.

• In Case It Is Difficult To Obtain The Land Revenue Records & Municipal Corporation Records, Right To Information (RTI) May Be Invoked.

• The Society Records Are Obtained From Society Office & The Professional Certificates Are Obtained From Professionals.

• Following Documents Are Required To Be Prepared.
  • Deemed Conveyance Application- Form VII
  • Synopsis Of The Case
  • Vakalatnama
  • Society Special General Body Resolution
  • Letter Of Authority
  • Affidavit By Authorised Representative
  • Affidavit By Society Secretary
  • List Of Society Members Including Their Flat/ Shop Agreement Details

During The Documentation Stage, A Legal Notice Is To Be Sent To The Land Owners & Property Developers.

The Complete Set Of The Above Documents Is To Be Annexed With The Deemed Conveyance Application- Form VII & To Be Filed In A Neat & Tidy Manner.

The Complete Deemed Conveyance Application- Form VII Is To Submitted To The Competent Authority- The District Deputy Registrar Of Co- Operative Societies Of The Particular District.

The Documentation Stage From Beginning To Submission Of Deemed Conveyance Application- Form VII Can Be Successfully Completed Within 90 To 120 Days.

STAGE 3- LEGAL CASE FOR DEEMED CONVEYANCE

• During This Stage The Case Is Filed Before The Competent Authority & After Contesting The Same The Order & Certificate Upholding The Right Of Deemed Conveyance Of The Society Is Obtained.

• Legal Case For Deemed Conveyance

• On Receipt Of The Deemed Conveyance Application- Form VII, The Office Of Competent Authority Issues The Deemed Conveyance Scrutiny Report- Form VIII Within About 1 Month.

• When Compliance Is Given To The Scrutiny Report The Office Of Competent Authority Issues Summons & Newspaper Notices To The Land Owners & Property Developers For Appearing For The Hearing.

• It Is Essential To Record The Say Of The Land Owners & Property Developers If They Appear Before The Competent Authority For Hearing. During The Hearings The Written Replies, Arguments, Written Arguments Of The Land Owners & Property Developers Are Recorded. During The Hearings The Rejoinders, Arguments & Written Arguments Of The Society Are Also Recorded. The Hearings Are Typically Concluded Within 3- 4 Months & The Deemed Conveyance Application File Is Closed For Order.

• After The File Is Closed For Order, The Office Of Competent Authority Issues The Deemed Conveyance Order Within 1 Month.

• The Legal Case For Deemed Conveyance Is A Time Bound Activity & Is Typically Completed Within 6 Months.

STAGE 4- REGISTRATION OF DEEMED CONVEYANCE

• During This Stage The Deemed Conveyance Deed Is Adjudicated, Properly Stamped & Registered.

• Registration Of Deemed Conveyance

• On Receipt Of The Deemed Conveyance Order, The Deemed Conveyance Deed Between The Competent Authority & The Society Is Prepared. The Competent Authority Appears In The Deed On Behalf Of The Defaulting Land Owners & Property Developers.

• The Deemed Conveyance Deed Is Submitted To The Office Of Competent Authority For Approval & Their Signature With Authority Stamp & Seal.

• The Special General Body Of The Society Is Called To Approve The Deemed Conveyance Deed & To Nominate 3 Members Of The Society To Sign The Deed.

• The Deemed Conveyance Deed Is Executed By The Signature Of The Competent Authority & The Signatures Of The 3 Nominated Members Of The Society.

• On Execution Of The Deemed Conveyance Deed, It Is Forwarded To The District Stamp Office For Adjudication. If All The Members Of The Society Have Paid The Stamp Duty On Their Respective Flat/ Shop Agreements & There Is No Balance FSI, The Deemed Conveyance Deed Attracts Only Rs. 100/- Stamp Duty. The Stamp Office Issues The Adjudication Certificate.

• On Receipt Of The Adjudication Certificate, The Society Pays The Required Stamp Duty & Gets The Deemed Conveyance Deed Franked From Local Bank.

• After Franking Of The Deemed Conveyance Deed, The Same Is Submitted To The Registration Office For Registration. The Registration Office Issues A Notice To The Land Owners & Property Developers To Verify Whether They Have Received Any Stay Order From Proper Court Against The Deemed Conveyance Order.

• The Proper Court For Issuing The Stay Order Against The Deemed Conveyance Order Is High Court. It Is Very Difficult For The Land Owners & Property Developers To Obtain The Stay Order From High Court Against The Deemed Conveyance Order.

• If There Is No Stay Order Received, The Registration Office Registers The Deemed Conveyance Deed. The Competent Authority Is Exempted From Appearing For The Registration & Hence The 3 Members Nominated By The Society Only Appear For Registration.

• After Registration Of The Deemed Conveyance Deed, The Registration Office Issues The Scanned Document & Index II Typically Within 15 Days.

• The Complete Procedure Of Registration Of Deemed Conveyance Deed Is Typically Completed Within 3- 4 Months.

• On Receipt Of The Index II, The Registration Process Of The Deemed Conveyance Deed Is Successfully Completed & The Society Becomes The Owner Of The Land & Structure.

STAGE 5- TRANSFER OF PROPERTY AFTER DEEMED CONVEYANCE

• During This Stage The Society Name Is Incorporated In The Land Revenue Records.

• Transfer Of Property After Deemed Conveyance

• On Completion Of The Registration Of The Deemed Conveyance Deed & Receipt Of The Index II, The Photocopies Of The Same Are Submitted Along With Relevant Applications To Various Government Departments Like City Survey Office, Tahasildar/ Talathi Office, District Collector Office & Municipal Corporation Office For Change Of Mutation Entries In The Land Revenue Records & Property Tax Bills.

• On Receipt Of These Applications The Government Departments Effect The Change Of Mutation Entries In The Land Revenue Records

• On Completion Of The Change Of Mutation Entries, The Land & Structures Are Transferred In Favour Of The Society.

DEEMED CONVEYANCE & REDEVELOPMENT

• It Is Commonly Observed That The Deemed Conveyance Activity Logically Extends To The Redevelopment Of The Society. However Some Cautions Are Required To Be Exercised While Handling Both These Procedures Simultaneously.

• The Society May Consider The Beginning Of Redevelopment Procedure After Filing The Deemed Conveyance Application Before The Competent Authority.

• The Society May Consider Memorandum Of Understanding (Mou) With The Incoming Property Developer After Receipt Of The Deemed Conveyance Order From The Competent Authority.

• The Society May Consider Development Agreement (DA) With The Incoming Property Developer After Registration Of Deemed Conveyance Deed & Receipt Of Index II.

• The Society May Consider Power Of Attorney To The Incoming Property Developer On Change Of Mutation Entries In The Land Revenue Records.

FOR CONVEYANCE / DEEMED CONVEYANCE PROCESS / UNILATERAL CONVEYANCE PROCESS FOR THE SOCIETY AS UNDER :-

1. To Scrutinize All The Papers / Documents Required For Deemed Conveyance.

• To Issue Legal Notice To Developer/Promoter/Builder And Land Owners As Per The Maharashtra Ownership Of Flats Act (MOFA) & Rules There In Under.

• To Prepare The Memorandum Of The Deemed Conveyance Proposal AND To Submit The Memorandum Of The Deemed Conveyance Proposal With The Competent Authority By Way Of Online Procedure [Scan & Upload]. & To Submit Hardcopy Of The Memorandum Of The Deemed Conveyance With The Office Of Competent Authority.

• To Appear Before Competent Authority For Hearing Of The Legal Case Of Deemed Conveyance & To Submit Written Notes Of Arguments, If Required Also To Provide For Arguments / Final Arguments, If Required.

• To Obtain The Copy Of The Deemed Conveyance Order.

• To File The Application For The Getting It Registered Through IGR Officials For Adjudication Of Stamp Duty And Registration Fees.

• To Submit The Memorandum Of The Deemed Conveyance Proposal With IGR Officials For Adjudication By Way Of Online Procedure [Scan & Upload].

• To Submit Hardcopy Of The Memorandum Of The Deemed Conveyance With IGR Officials For Adjudication & To Take Every Possible Step To Get The Adjudication Done On Priority Basis.

• To Draft The Deed Of Deemed Conveyance & To Obtain The Stamp Adjudication Order From The IGR Official & To Be Present At The Time Of Registration Of The Deemed Conveyance And To Identify The Parties In Capacity Of The Legal Representative To The Sub-Registrar.

1. To Make An APPLICATION & GET ACKNOWLEDGEMENT RECEIPT On Application To The Revenue Department For Mutation Of The Name Of The Society On 7/12 Extract Of The Property.

1. To Provide Legal Assistance To The Society In Regard With Deemed Conveyance Issue.

PROCEDURE FOR DEEMED CONVEYANCE

The Complete Procedure Is Provided In The Amended Maharashtra Ownership Flats Rules, 2010. The Same In The Form Of Process Flow Chart Is Given Hereunder For The Benefit Of The Readers.

• Society/Company/Condominium (Apartment Owners Association ) To Apply With Documents & Prescribed Fees/ Court Fees

• Competent Authority To Verify Documents From His Officials Or The Authorized Officer And Obtain The Report To That Effect.

• To Issue Compliance Notice In Form No. VIII To The Applicant To Remove The Defects In The Application Within 30 Days.

• Competent Authority To Finally Verify Documents Submitted In Response To Compliance Notice And If Proper In All Respect ,To Admit The Application Or Reject The Same And On Admitting The Application, Register The Same In The Appropriate Register.

• Enquiries If Any Will Be Conducted And Spot Visit Will Be Done By Officials Of Competent Authority Or His Authorized Officer Wherever Required.

• To Admit Any Person As Intervening Party In Response To Public Notice Or Who Claim To Be Interested Parties Against The Application And Decide About The Same By The Competent Authority

• Interested Party To File Its Say And Also Deliver A Copy To The Applicant And All Other Parties Made In The Application.

• Receive The Written Reply From The Applicant And Other Opponents Based On The Submission Made By The Interested Party In Response To Public Notice.

• Oral Arguments Of The Applicant, Opponents And The Interested Parties On The Submissions Made By Each Of Them And To Submit The Necessary Documents In Support Of Their Arguments.

• Speaking Order And Certificate Of Deemed Conveyance To Be Issued By Competent Authority Or Speaking Order For Rejecting The Application.

• Competent Authority To Execute The Conveyance Deed And Register And Issue A Letter To Regarding The Exemption Of His Appereance Before Him To Admit The Execution Before The Sub-Registrar Of Assurance At The Time Of Registration Of The Same.

• Deemed Conveyance Order Shall Be Passed Or Application For The Same To Be Rejected Within A Period 6 Months From The Date Of Receipt Of Application By The Competent Authority Subject To Receipt Of Relevant Documents.

• Competent Authority Will Issue Notice To Promoter/ Opponent And Other Interested Parties On The Said Land And Building.

• Hearing To Be Conducted By Competent Authority.

• Submission Of Written Arguments By The Opponents/ Builder / Land Owner And Other Interested Parties.

• The Competent Authority May Direct The Opponent To Produce Certain Documents In Support Of The Statements Made By The Builder / Opponent Based On The Arguments Of The Applicant.

• To Hear The Other Parties On The Documents Produced By The Party As Per The Directions Of The Competent Authority And To Decide On The Same By The Competent Authority Based On Written Submission And The Oral Arguments Made By All The Parties.

• Public Notice Will Be Issued As Per The Order Of Competent Authority In News Papers At The Cost And Expense To Be Incurred By The Applicant In Case The Notices Are Not Served To The Opponents/ Builders/ Land Owners.

• Relevant Documents Which Are Required By The Competent Authority To Ascertain The Authenticity Of The Application And To Arrive At The Final Decision About Granting The Conveyance Shall Be Obtained By The Competent Authority Through Authorized Officer At The Cost And Expense Of The Society.

• Vetting Of Draft Unilateral Conveyance Deed From The Authorized Officer Appointed By The Competent Authority. Get Professionals To Draft The Unilateral Conveyance Deed, If Required.

WHAT IS THE DIFFERENCE BETWEEN THE DEEMED CONVEYANCE AND THE REGULAR CONVEYANCE?

In Case Of Regular Conveyance, The Builder/ Developer/ Landowner Prepare A Conveyance Deed, Execute The Same And Appear Before The Sub-Registrar Of Assurance For Admitting Their Signature.

Without Any Problem, The Legal Bodies Get The Conveyance With The Co-Operation Of The Builder/ Landowner.

In Case Of Deemed Conveyance, The Builder/ Land Owner Or Their Legal Heirs Are Not Co-Operating, Therefore, The Aggrieved Parties Appear Before The Designated Competent Authority, Who Hears All The Parties And Passes The Necessary Order Of Conveyance.

Deemed Conveyance Is Obtained As A Legal Remedy Against The Defaulter Builder/ Landowner Who Do Not Want To Part With The Land And The Building In Favour Of The Society.

THANKING YOU. YOURS FAITHFULLY.