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Deemed Conveyance

deemed-conveyance

MEANING OF DEEMED CONVEYANCE: … In the legal sense Conveyance refers to the transfer of ownership or right, title & interest in the property to the other party. Conveyance Deed is a document executed to transfer the title of land and building in favour of Society or Association of Persons (AOP).

The main object of the society is to obtain conveyance of the land and building in favour of the society.

The builder/developer obtains development rights from the land owners and constructs the building consisting of a number of purchasers. The land/plot on which building is constructed continues to be in the name of original owner.

In order to avail more floor space index (FSI) that may become available in future, or to avail the benefits accrued to them in case the property is redeveloped, builder / developer do not transfer convey the right, title & interest to society.

It is a well-known fact that about 70% of the Co-operative Housing Societies formed by the flat purchasers do not have executed conveyance for one or the other reasons. Co-operative Societies and number of associations and federations were represented the government to grant a deemed conveyance provision in MOFA, finally in 1963 they have received the accent of the Honorable President.

As per Act Section 11 of Maharashtra Ownership Flat Act, 1963 the promoter (builder/developer/landowner) is require to convey the land and building in favour the society formed by the flat purchasers within the prescribed period i.e. within four months from the date of registration of the society.

The following provisions have been incorporated in the latest amendment to MOFA, 1963 to grant the deemed conveyance.

  1. The District Deputy Registrar of the District is appointed as Competent Authority to hear the complaints regarding non-execution of conveyance by the builder/ promoter in favour of the society/Company etc.
  2. The society will have to file all the relevant papers before the competent authority who will in turn give a hearing to the builder/land owner as to why the deemed conveyance order should not be granted in the favour of the society.
  3. The relevant papers include the approved plan, property card, N.A. Order, registered agreement, copy of Occupancy certificate, building completion certificate.Copies of all the flat owners of the society/company etc. The competent Authority has to pass the above Deemed Conveyance Order within 6 months from the date of filling the complaint for the deemed conveyance.
  4. When the competent authority issues the deemed conveyance certificate/ order the same has to be filled with the sub-registrar of the area to register the same as conveyance in favour of the society/Company.
  5. The sub-registrar again shall issue a notice to the builder/promoter/land owner as to why the deemed conveyance should not be registered.
  6. After the hearing the sub-registrar shall register the conveyance in favour of the society.

In June 2018, The Maharashtra government has relaxed the terms for the deemed conveyance (DC)-ownership right of plot certificate from the builder, by bringing down the number of documents required from 12 to 8 and stipulating that DC will be given even if the society does not have an Occupation Certificate (OC) or the Building Completion Certificate  (CC).

The very first step is to write a letter to the builder/developer requesting for the documents for conveyance

Procedure of Deemed Conveyance

The added feature of this Act is deemed conveyance. The competent Authority receiving an application from a society for conveyance. After making such enquiry as deemed necessary and after verifying  the authenticity of the documents submitted and after giving an opportunity to the promoter of being heard and on being satisfied that it is a fit case for issuing such certificate, shall issue a certificate to the sub-registrar or any other appropriate Registration Officer under the Registration Act 1905, certifying that it is a fit case for enforcing unilateral execution of conveyance deed conveying the right, title and interest of the promoter in the land and building in favour of the applicant as a deemed conveyance.

The Sub-Registrar or the concerned appropriate registration officer shall, notwithstanding anything contained in the Registration Act, 1908, issue summons to the promoter to show cause why such unilateral instrument should not be registered as deemed conveyance and after giving the promoter and the applicants a reasonable opportunity of being heard may on being satisfied that, it was a fit case for unilateral conveyance register that instrument as a deemed conveyance.

if the society has prepared and collected all the documents as mentioned above can also apply online for deemed conveyance.

Builder / Promoter is not entitled to make additional construction

Section 7 of MOFA imposes a prohibition on the promoter to the effect that after plans and specification of the building have been disclosed or furnished to the flat purchasers, the promoter shall not make any alteration in the structure described therein respect of the flats or any other alterations or additions in the structure of the building without previous consent of purchases. The promoters are bound by the contents of the brochure and cannot say that the broachers were not a part of agreement.

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