Deemed Conveyance
About Conveyance Its Advantages And Disadvantages
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.
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.
DISADVANTAGES
AUTHORISED COMMITTEE TO GET DEEMED 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.
5. The Builder may make profit by sale of open spaces, gardens, terrace, parking space belonging to the Society.
6. 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
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.
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.
DISADVANTAGES
AUTHORISED COMMITTEE TO GET DEEMED 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.
5. The Builder may make profit by sale of open spaces, gardens, terrace, parking space belonging to the Society.
6. 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