What is Deemed Conveyance?


What is Deemed Conveyance?

A Deemed Conveyance is a unilateral conveyance, granted under the Maharashtra Ownership Flats Act, 1963 (MOFA), in favour of the legal entity i.e. Co-operative Society, apartment or a company in case the promoter (builder) fails to deliver the title i.e. grant a conveyance to such entity.

Deemed Conveyance

Collect the relevant Documents such as Society Registration Certificate, Property Card or 7/12 Extracts, Building Approved Plan, Copies of Agreement for Sale of flat purchasers, Registration Receipts, Stamp Duty paid proof, Non Agricultural Order, ULC Order, Search Report, Layout Plan, City Survey Map, Architect Certificate about the utilization of FSI and the proportionate land entitlement Occupation Certificates, Draft Conveyance Deed etc.

Make an application before Competent Authority, make a written submission, attend the hearing, argue the case and obtain the Order.

Amendments

The state government has recently issued an order, specifying details of how housing societies can go about applying the transfer process.

 The state has decided to appoint competent authorities to help facilitate the process for the deemed conveyance (which means transfer of land title from landlord to society) .

Disadvantages of Conveyance


AUTHORISED COMMITTEE TO GET CONVEYANCE OF LAND & BUILDING IN THE NAME OF THE SOCIETY TO AVOID FOLLOWING CONSEQUENCES

1. Even though you have purchased ownership flat, you are not the owner of the land and building.

2. 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.

3. The Builder /Developer may mortgage the property purchased by you as he is the legal owner and holding the Title Deeds of the Property.

4. The Builder / Developer may transfer the FSI / TDR to his other projects and enjoy the commercial benefits, depriving the flat purchasers / Society of its legal entitlement.

Advantages of Conveyance


1.         Getting a proper and legal title in the name of the Society.

2.         Retaining the additional FSI as per the Government  announcements.

3.         Property will be free and marketable.

4.         Society can raise the loans for repairs and reconstruction by   mortgage.

5.        Permission from planning authorities is possible if the building has to be reconstructed at a later        date due to dilapidation of the structure due to age or by earthquake.

6.         Society can take the benefit of TDR.

7.         Members can receive compensation from Builder on redevelopment of the building.

Meaning of Conveyance


Conveyance Deed is a document executed to transfer the title of land and building in favour of Society.

Importance and provision of law on Conveyance:

As per the Housing Society bye-laws, the main objective of formation of the Society is to obtain the Conveyance; and if Conveyance is not given by the Builder within four months from the date of registration of the Society, a case can be filed against the Builder to obtain the Conveyance. As per Section 13 of Maharashtra Ownership Flats Act, 1963, failure to give Conveyance is an offence and the Builder can be imprisoned upto 3 years or fined or both.

Non Co-Operation of the builder for registration of CHS

If Builder doesn't co-operate for the registration of the co-operative housing society after the 4 months from the date of occupancy certificate. Then the members of the society can approach Competent Authority and apply for the Registration of the co-operative housing society under section 10 of the Maharashtra Ownership Flat Act(MOFA), 1963. Then the Competent Authority sends notices to the builder for the registration asking him to submit the legal copies regarding the construction, if builder fails to appear or deny for no reason then competent authority has the powers to  register the co-operative housing society.
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