What is deemed conveyance?

Deemed conveyance is a crucial legal provision for housing societies in India, especially in states like Maharashtra, that ensures the transfer of property ownership from the builder to the housing society when the builder fails or refuses to do so. Understanding this concept is essential for societies looking to secure their legal rights over land and common areas.

1. What is Deemed Conveyance?

In simple terms, deemed conveyance is a legal remedy provided to flat owners and cooperative housing societies to obtain the ownership of land and building from the builder or developer without their consent. The word “deemed” means the conveyance is executed by the competent authority on behalf of the builder when they do not cooperate.

This process is governed by laws like the Maharashtra Ownership Flats Act (MOFA), 1963 and supported by the Real Estate (Regulation and Development) Act (RERA) to protect buyers’ interests.

2. Why is Deemed Conveyance Necessary?

Many builders delay or refuse to execute the conveyance deed even after selling all flats, often to retain development rights or for personal benefit. Without the conveyance deed:

• The housing society has no legal title to the land or building.
• Redevelopment or repair work becomes legally complicated.
• The society cannot mortgage the property for loans.
• Property tax and legal disputes can arise.

Deemed conveyance ensures the society gets full ownership rights, enabling it to manage and develop the property independently.

3. Legal Framework for Deemed Conveyance

The right to obtain a deemed conveyance is derived from Section 11 of MOFA and similar provisions in other state laws. It empowers the housing society to approach the Competent Authority to issue an order for conveyance if the builder does not cooperate.

The Competent Authority then executes the conveyance deed on behalf of the builder and registers it with the Sub-Registrar.

4. Who Can Apply for Deemed Conveyance?

The following parties are eligible:

1. Cooperative housing societies.
2. Apartment owners’ associations.
3. Legal representatives of flat purchasers.

5. Documents Required for Deemed Conveyance

The applicant society must collect the following:

• Society registration certificate.
• Sale agreements of all flats.
• Approved building plans.
• Commencement and completion certificates.
• List of society members.
• Property card and 7/12 extract.
• Correspondence with the builder requesting conveyance.
• Proof of payment for stamp duty and registration.

6. Step-by-Step Process for Obtaining Deemed Conveyance

Step 1: Formation of Society
Register the cooperative housing society or association of apartment owners.

Step 2: Request Builder for Conveyance
Send a formal written request to the builder to execute the conveyance deed.

Step 3: Prepare Application
If the builder does not respond, prepare an application in the prescribed form with all required documents.

Step 4: Submit to Competent Authority
File the application with the District Deputy Registrar (DDR) or the state-appointed Competent Authority.

Step 5: Hearing
The Competent Authority will summon both parties for a hearing.

Step 6: Order for Deemed Conveyance
If the builder fails to justify the delay, the authority issues an order in favor of the society.

Step 7: Registration
The conveyance deed is executed and registered in the name of the society.

7. Benefits of Deemed Conveyance

• Full Legal Ownership: Society gains legal title to land and building.
• Redevelopment Rights: Society can redevelop without builder interference.
• Loan Eligibility: Property can be mortgaged for funds.
• Control over Common Areas: Better maintenance and usage.
• Protection Against Builder Misuse: Prevents the builder from making unauthorized sales or construction.

8. Challenges in Obtaining Deemed Conveyance

• Incomplete documentation.
• Disputes among society members.
• Non-availability of original building plans.
• Legal disputes with builder.
• Delays in hearings.

9. Tips for a Smooth Deemed Conveyance Process

• Maintain complete records from the time of flat purchase.
• Register the society as early as possible.
• Keep all communication with the builder documented.
• Hire an experienced legal consultant for the process.
• Ensure all members cooperate and submit their documents on time.

10. Cost Involved in Deemed Conveyance

Costs include:

• Government application fee.
• Stamp duty (if applicable).
• Registration charges.
• Professional fees for legal advisors.
• Documentation and certification costs.

11. Deemed Conveyance vs Regular Conveyance

12. State-Wise Provisions

While Maharashtra is the pioneer in implementing deemed conveyance through MOFA, other states are gradually introducing similar provisions. Always check your state’s cooperative housing laws for specifics.

Conclusion

Deemed conveyance is a vital legal safeguard for housing societies, ensuring they gain rightful ownership when builders fail to fulfill their obligations. With the correct documents, a cooperative approach among members, and professional guidance, societies can successfully complete this process and secure their property rights.