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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What is deemed conveyance?
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 housing society in Maharashtra, involving registration of the documents in the government records. However, when the developer refuses to provide the conveyance deed, the housing society can apply for deemed conveyance through a legal procedure.
The process of deemed conveyance is relevant in Maharashtra in cities such as Mumbai, Thane, Navi Mumbai, Pune, Nashik. With scarcity of land, rising land values, high demand for properties and presence of old buildings, the redevelopment potential in these cities is high.
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.
If the builder does not provide the same within the specified timeline, a deemed conveyance can be obtained by the 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. The total cost for a deemed conveyance may vary based on several factors, such as property location, professional lawyer fees, etc.
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.
| Parameters | Conveyance Deed | Deemed conveyance |
| Purpose | It is a document issued by the developer when handing over the property | Deemed conveyance is sought by a society when the builder refuses or delays issuing the conveyance deed |
| Documents required | Sale deed, development agreement, approved layout, etc. | Same set of documents along with proof of builder’s non-cooperation |
| Time taken to issue it | It depends on the builder | As per the defined legal process by the authority |
| Transfer | Voluntary transfer by the builder | Statutory transfer through a government authority |
See also: Maharashtra housing society bye-laws
Significance of deemed conveyance
Legal rights over land and property
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 in the society’s name.
Without a deemed conveyance, a housing society can face legal risks as developer or any third-party can claim their right over the land. Having deemed conveyance safeguards the society as the developer cannot lay unauthorised claims or sell or mortgage the land.
Redevelopment rights
With a deemed conveyance, the housing society can claim control over the land and does not require developer’s permission to undertake redevelopment work, structural repairs, etc. It can directly seek permission from the planning authorities for the redevelopment of its structures.
Retain additional FSI
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.
It makes the land free and marketable to prospective buyers.
See also: What is Floor Area Ratio or Floor Space Index
How to file an application for Deemed conveyance online?
To obtain the deemed conveyance, the housing society can file an online application and submit it along with the required documents to the sub-registrar.
As the first step, the CHS or flat owners must submit a formal email or a letter to the promoter/ builder/ developer requesting for the Sale Deed or Conveyance Deed draft. In case of no reply to the formal communication, the legal body can take the following action:
- Send a legal notice to the developer through an advocate, asking them to provide the deed with due signatures.
- File an application with the Registrar of Co-operative Societies by attaching the relevant documents (along with self-attestation and copies) and Rs 2000 court stamp fees.
- After the required documents are verified by the Competent Authority, a notice will be sent to the landowners/ promoter/ developer.
- Upon receiving the notice, the authority will hear arguments from both parties and ask them to present further evidence in the next hearing.
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.
- 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).
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.
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.
Further, submitting an occupation certificate from the builder was a mandatory requirement. However, with new rules, this requirement has been scrapped. A housing society can get an occupation certificate from the municipal corporation after the conveyance has been done.
How to register the deemed conveyance?
In case the developer/builder/landowner does not reply to a legal notice asking for the conveyance deed, the CHS or legal body must fill the Deemed Conveyance application form along with the required documents. Further, the following steps must be taken:
- The Special General Body of the Society must nominate 3 members to sign the documents for the purpose of executing the conveyance. After successful execution, it is passed to the District Stamp Office for Adjudication.
- After receiving the Adjudication Certificate, the Society must pay the required Stamp Duty and receive the conveyance franked from the bank.
- After Franking, the deemed conveyance is submitted to the Registration Office. The office then issues a legal notice to owners/promoters to verify they have received any stay order against the specified conveyance.
- In case no Stay Order has been received, the Registration Office formally registers the conveyance and issues a scanned copy and Index II documents (within 15 days)
Housing.com News Viewpoint
Many housing societies face issues with builders owing to the lack of awareness about deemed conveyance. Understanding importance and the process of obtaining deemed conveyance is important to avoid legal problems. Whether a society plans to undertake redevelopment, go for repairs or raise funds, having a deemed conveyance gives them the rights without requiring developer’s permission.
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.