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.

Co-operartion of builder for CHS registration

After getting occupancy certificate of the constructed structure the next step builder submits the copies of legal papers along with the list and documents of the members of the constructed building with an application for Registration to Registrar of the Co-operative Housing Societies. Normally as per under Section 10 of  MOFA 1963, builder has to register the Co-Operative Housing Society of the builder within the 4 months from the date of occupancy certificate.

Managing Committee of the Society


It is the duty of the Registrar to register the society and on registration of the society it becomes a separate legal entity. Thereafter, the management of the affairs of the society is carried out by the managing committee which is elected by the general body meeting of the society. It may be of interest to note that in a co-operative society the principle is one member one vote. In a co-operative society the right to be exercised in the general body meeting is a personal right. This is one of the reasons why even a person holding a power of attorney cannot attend the general body meeting of the society. THE quantum of the capital being introduced by the member is not of much importance. Preference should be given for formation of a private limited company if one member propose to acquire majority of the flats in the building.

Documents for Registration of Co-Operative housing society


1. Application for registration of Society in Form A along with Statement A. Enclosure to application for Registration as per Rule 4(1) of Maharashtra Co-operative Societies Rules, 1961.

2. Information about proposed society in Statement ‘B’ (vide Govt. Circular dated 2-5-1980).

3. Information about promoter members of the proposed society in Statement ‘C’ (vide Govt. Circular dt. 2-5-1980).

4. A Statement of Accounts as per Form D.

5. Model Bye-laws.

6. Bank Balance Certificate.

7. R.B.I. / Treasury Challan for payment of Registration Fee of Rs. 2500/-.

8. Title Clearance Certificate from an Advocate

9. A true copy of the approved Building Plan.

10. Letter of Authority Granting permission to commence construction work/Completion Certificate (if applicable).

11. Affidavit on Rs.100/- Stamp Paper from atleast 10 promoter members to the effect that they are residing in the area of operation of the Society (Proposed), made before a Competent Authority.

12. Affidavit from the Chief Promoter on Stamp Paper of Rs. 100/- executed before the Competent Authority in form ‘Y’.

13. Certified True Copy of agreement made on Stamp paper and registered between the builder, promoter and purchasers of flat.

14. Where the promoter members are firms/ companies, a letter of authority from such firms/companies authorising the promoter to sign on behalf of firm/company.

15. In case of such proposed societies, names of 60% of the flat holders of the total number of flats constructed or proposed to be constructed as per the plan approved, must be included in Statement ‘A’ to be attached to the Registration Proposal.

Registration of Co-Operative Housing Society


On allotment of name and permission to open a bank account by the Registrar, the Chief Promoter has to collect Share Capital, Entrance Fees from promoters and deposit the same in the branch of the bank permitted by the Registrar. It should be noted that the amount cannot be withdrawn from the Bank till the Society is Registered or its Registration is refused, except with prior written permission of the Registrar. The Chief Promoter should submit Registration Proposal to the Registering Authority within a period of 3 months from the date of issue of Letter of Reservation in the name of the proposed Society. The documents that are normally to be submitted to the Registering Authorities.

Procedure for Proposed Co-operative Housing Society

The procedure for Registration of a society begins with electing a Chief Promoter in a meeting of the Promoter. The builder under the Flat Owners type of co-operative society has the first right to act as the chief promoter. The developer/flat purchasers should call for a meeting of the Promoters by issuing the notice under Agenda of the meeting given at least 14 days notice to the Promoters. In this meeting, a Chief Promoter is elected who can exercise such powers and carry out such functions as are mentioned in the minutes of the Promoters of the proposed Co-operative Society. After electing the Chief Promoter, the proposed name of the society has to be decided by the Promoters.


Normally, the name reservation proposal should be accompanied with the signature of atleast 10 Promoters who have attended the meeting. It is a common belief that the Society should consist of atleast 10 members. If the number is less than 10 then special permission from Government has to be taken. In such cases, the garages/car parking may be allotted to other relatives of the promoter to reach number of 10. It would be of interest to note that the model byelaws define flat as a ‘Flat means a separate set and self-contained set of premises used or intended to be used or intended to be used for residence, or office or show-room, or shop, or godown and includes a garage, or dispensary, or consulting room, or clinic, or flour mill, the premises forming part of a building and includes an apartment’. 

Types of Co-Operative Housing Society

There are basically four types of Co-operative Housing Societies connected with the housing.

(a) Open Plot Societies

(b) Flat Owners Societies

(c) Tenant Societies

(d) Housing Board Societies.


In Open Plot Societies, members purchase or take one lease a plot of land and themselves construct the building. Due to bureaucratic formalities and lack of specialised knowledge, a few societies are formed under the head of open Plot Societies. When a builder constructs flats and sells them to Flat Owners, the Society when formed is called Flat Owner’s Society. When Landlord forms a Society of tenants, it is called Tenants Society. When a Society is formed by Allottees of flats and building is constructed by the Housing Board Authorities, i.e. Mumbai Housing and Development Board, then the Society so formed is of the type of Housing Board Society. The procedure that should be followed for formation of societies of the above said types is different for different types of Societies. Members who wish to form Co-operative Housing Societies are generally ignorant of the procedural aspects and as a result of the same they have to run from place to place and get entangled in bureaucratic delays.

Formation of Co-operative Housing Society

Practically every developer has to form a Co-operative Housing Society at one point of time or another. With the limited amount of options available with regard to management of the affairs of the building i.e. 
 (a) Condominium 
 (b) Private Limited Company and 
 (c) Co-operative Society, 
 (excluding the unrealistic rental housing), it will not be an exaggeration to state that in atleast 90% cases particularly in Mumbai the Promoters and/or the Builders have formed a Co-operative Housing Society. The basic requirements for Registration of Co-operative Housing Society normally is not known to the flat purchasers. It is here that apart from the statutory obligations cast upon the builder, the builder as a friend, philosopher and guide of promoters helps in forming a Co-operative Housing Society.

Maharashtra sets up panel to resolve pending cases of deemed conveyance


A special drive has been undertaken from 15 December 2012 to 30 June 2013 for completing deemed conveyance of cooperative housing societies in Maharashtra

Mumbai: The Maharashtra government has set up a co-ordination committee under the district collector to assist the district deputy registrar and cooperative housing societies (CHS) in resolving pending cases of deemed conveyance, reports PTI.

Fewer hearings to get deemed conveyance


MUMBAI: Housing societies seeking deemed conveyance will no longer need to go through a fresh hearing before revenue officials to get the society's name entered in the land records.


The decision will not only reduce the bureaucratic process, but will save residents several months of waiting period. The revenue department has directed all collectorates that maintain land records to desist from issuing fresh notices and conducting hearings once the competent authorities in the co-operatives department have held hearings and given an order in favour of deemed conveyance. "The deputy registrar is the competent authority to hold such hearings. Holding a second hearing all over again for the same issue creates unnecessary delay. Hence it has been decided that mutation of land records will be carried out based on the deputy registrar's decision," said Swadhin Kshatriya, principal secretary (revenue and forests).

Getting name on property card to be easier


The state government is taking yet another step towards simplifying the process to secure deemed conveyance, by addressing procedural anomalies and removing unnecessary obstacles.
It has decided that housing societies applying to get their name on the property card will no longer be required to produce records of all previous transactions with respect to the land. Henceforth, it will suffice for them to show the records for only the last transaction.

Sale of flats: No need of developer's NOC


It will not be mandatory for flat-owners and housing society residents to get NOC (no-objection certificates) from builders while selling or transferring their property, Maharashtra Chief Minister Prithviraj Chavan has said.
"There is no need for flat owners to seek NOC from builders before sale or re-sale of flats. There is no such provision in the Maharashtra Ownership of Flats Act (MOFA)," he said.

ADVANTAGES OF CONVEYANCE


ADVANTAGES OF CONVEYANCE

Following are the advantages of getting the conveyance of land and building in the name of the legal bodies.
Getting the proper title
·        Retaining Additional F.S.I which has been granted by change of regulations.
·        Property will be free and marketable from any encumbrances/ charges
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