Deemed Conveyance of Society: Meaning, Procedure & Charges

A conveyance deed is a vital legal document that transfers the ownership of land to a cooperative housing society from a developer or from the previous landowner. In several cities like Mumbai, many housing societies face the challenge of obtaining the conveyance of land. The major problem arises during the redevelopment of societies having old and dilapidated structures. Consequently, the Maharashtra government introduced the concept of deemed conveyance in 2008, and published the rules pertaining to it in 2010. Under deemed conveyance, a society that did not receive the conveyance was entitled to apply to the Deputy District Registrar (DDR) of Cooperative Societies that would pass an order conveying the land in favour of the society, after verification of the documents submitted and upon hearing both, the society and the developer.

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Deemed conveyance meaning

Obtaining a conveyance deed is necessary, to get the ownership right to a building and the plot on which it is constructed. The requisite procedure must be followed for obtaining conveyance deed of a society in Maharashtra, involving registration of the documents in the government records. According to Section 11 of the Maharashtra Ownership Flats Act (MOFA), 1963, the promoter must convey the title of the land and building, to the cooperative housing society. The builder or land-owner must convey the title within a period of four months of formation to a society or the legal body of the flat buyers.

However, when the developer fails to provide the same within a specified time, a deemed conveyance is obtained by a housing society through a competent authority under the MOFA.

Deemed conveyance charges

A society can file an application for obtaining a ‘certificate of deemed conveyance’, by affixing a court fee of Rs 2,000, along with the necessary documents that need to be submitted.

Conveyance deed of society vs deemed conveyance

To transfer the title of the land and the building, a developer or landowner must execute a conveyance deed. It is an important document that confers the legal ownership of the common areas of a housing society and is crucial for a housing society in proving its legal ownership over the property and for undertaking redevelopment projects.

There are many instances, where builders or landowners fail to convey the title of land and building to the housing societies, owing to their personal interests. Thus, to keep a check on such practices, amendments were made in the MOFA in 2008, to appoint a ‘competent authority’, the registrar of cooperative housing societies, for addressing the societies’ grievances and protecting their interest, by executing deemed conveyance under section 11(3) of the MOFA.

Societies that do not have the conveyance deed, as per the new rules in Maharashtra are entitled to a deemed conveyance as a legal remedy against the defaulting builder or landowner.

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Significance of deemed conveyance

The provision of obtaining the deemed conveyance, enables societies to get the legal title and ownership of land, developing rights and to make entries in the government’s records. It makes the land free and marketable to prospective buyers. Further, the society can retain the additional FSI and take advantage of Transferable Development Rights (TDR). TDR refers to the rights obtained by a property owner in the form of a certificate, authorised by a competent authority and having economic value, in lieu of surrendering the land or a part of it to a local body.

More importantly, deemed conveyance enables a society to get permission from the planning authorities for the redevelopment of its structures.

Deemed conveyance procedure

To obtain the deemed conveyance, the housing society should file an application as per the specified format and submit it along with the required documents to the sub-registrar. Upon receiving the application, the competent authority, after verifying the authenticity of the documents and allowing the promoter/ builder to be heard within a reasonable time but not exceeding six months, will issue the deemed conveyance.

Documents required for deemed conveyance

The applicant must furnish the following papers and document proofs, for obtaining the deemed conveyance:

Application Form VII to the District Deputy Registrar, Cooperative Societies, with a court fee stamp of Rs 2,000.
List of members, in the prescribed format.
Index – II for each member, issued by the Sub-Registrar of Assurance.
An affidavit submitted before the notary or executive magistrate.
Proof of stamp duty payment and registered agreement for sale for all individual apartments.

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A true copy of the society’s registration certificate.
A copy of the development agreement between the landowner and the builder.
A copy of the legal notice issued to the original owner/ developer for executing conveyance.
Contact details of the developer/ original owner like the address and telephone number.
Draft conveyance deed or declaration proposed to be executed in favour of the applicant.

Documents obtained from the City Survey Office

City survey (CTS) plan.
Property card registration or 7/12 extract of the land and village form no 6 (mutation entries).

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Documents obtained from the collector’s office

Copy of the non-agricultural order.
Certificate under the Urban Land Ceiling Act, 1976.

Documents obtained from the municipal authority

Building or structure plan approved by the authority concerned.
Location plan.
Intimation of disapproval (IOD).
Commencement certificate.
Building completion certificate.
Occupancy certificate (not mandatory).
Proof of payment of property taxes.

Also read our in-depth Property tax guide

Other documents to be submitted

Search report of land, issued by the solicitor or advocate.
Title certificate of the property issued by the solicitor or advocate (the title search should be for the last 30 years).
Land measurement map / architect’s certificate.
Certified copy from a panel architect about utilisation of full FSI or the leftover FSI, if any, with respect to the said property or plot.

The government issued a government resolution or GR to list the documents necessary for deemed conveyance.

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Deemed conveyance: Latest updates

State co-operative department initiates awareness drive on deemed conveyance

The Maharashtra cooperative department in the beginning of 2021, initiated a drive among housing societies, to spread awareness about deemed conveyance. The drive was supported by the Pune District Cooperative Housing Society Association. In January 2021, about 200 applications for deemed conveyance were submitted by registered co-operative housing societies in Pune. There are about 18,000 registered cooperative housing societies in the city and over one lakh across the state. The registrar of cooperative housing societies received 574 applications in the state. Around 14,376 cooperative housing societies had obtained deemed conveyance, while over 70,000 housing societies were still to receive the deemed conveyance. The move has benefitted these societies not having a conveyance deed in Maharashtra.

Activists draw government’s attention to the non-implementation of GR on deemed conveyance Adalat mooted in 2013

In 2013, a government resolution or GR was issued by the housing department for holding a deemed conveyance Adalat every month with the aim of addressing issues related to deemed conveyance in Maharashtra. However, there have been no hearing since the GR was announced and several citizen activists in the state have written to the to the district collector and the state government to voice their concerns.

The GR issued in 2013 stated that as per the amendments in the Maharashtra Ownership Flats (Regulation of the promotion of construction, sale management and transfer act 1963), the Maharashtra government has appointed a competent authority under Section 5 and powers were conferred upon them to implement the deemed conveyance process.

The activists revealed that even though the cooperative department has been conducting drives for deemed conveyance, consumers are encountering issues and society members are unable to obtain all the documents.

FAQs

Is deemed conveyance necessary?

Getting deemed conveyance becomes necessary, when landowners or builders fail to convey the title of the land within the stipulated time.

Can a society get deemed conveyance without OC?

In Maharashtra, cooperative housing societies can apply for DC, even without an occupancy certificate.

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Harini Balasubramanian

Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.