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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  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.

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 :-

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.

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.

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.