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All you need to know about deemed conveyance

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Cooperative housing societies that face the challenge of getting the conveyance of land from a developer, are entitled to deemed conveyance, upon submitting an application to the competent authority

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 favor of the society, after verification of the documents submitted and upon hearing both, the society and the developer.

Deemed conveyance meaning

Obtaining a conveyance deed is necessary, to get the ownership right to a building and the plot on which it is constructed. 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 landowner must convey the title within a period of four months of formation to society or the legal body of the flat buyers.

However, when the developer fails to provide the same within a specified time, a deemed conveyance is obtained by a housing society through a competent authority under the MOFA.

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 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 are entitled to a deemed conveyance as a legal remedy against the defaulting builder or landowner.

Significance of deemed conveyance

The provision of obtaining the deemed conveyance enables societies to get the legal title and ownership of land, developing rights, and make entries in the government’s records. It makes the land free and marketable to prospective buyers. 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, authorized by a competent authority and having economic value, in lieu of surrendering the land or a part of it to a local body.

More importantly, deemed conveyance enables a society to get permission from the planning authorities for the redevelopment of its structures.

Deemed conveyance procedure

To obtain the deemed conveyance, the housing society should file an application as per the specified format and submit it along with the required documents to the sub-registrar. Upon receiving the application, the competent authority, after verifying the authenticity of the documents and allowing the promoter/ builder to be heard within a reasonable time but not exceeding six months, will issue the deemed conveyance.

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.

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 was 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 favor 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 the 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 the utilization of full FSI or the leftover FSI, if any, with respect to the said property or plot.

Deemed conveyance: Latest updates

State co-operative department initiates awareness drive on deemed conveyance

The Maharashtra cooperative department at the beginning of 2021, initiated a drive among housing societies, to spread awareness about deemed conveyance. The drive was supported by the Pune District Cooperative Housing Society Association. In January 2021, about 200 applications for deemed conveyance were submitted by registered co-operative housing societies in Pune. There are about 18,000 registered cooperative housing societies in the city and over one lakh across the state. The registrar of cooperative housing societies received 574 applications in the state. Around 14,376 cooperative housing societies had obtained deemed conveyance, while over 70,000 housing societies were still to receive the deemed conveyance.

Source- https://housing.com/news/deemed-conveyance/

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