What is Deemed Conveyance?

As a resident of a housing society or an apartment complex, it is vital that one understands what is deemed conveyance? In Mumbai and several cities like the financial capital of the country, there are many housing societies which are old and would go into redevelopment soon. For any housing society, it is vital to acquire conveyance or deemed conveyance and have the land named after their society. The ideal scenario is acquiring the conveyance certificate. Failing to do so, a housing society cannot go under redevelopment.

There are several documents which are required to apply for deemed conveyance. Documents like –

  • list of members in the prescribed format and index-II for each member as issued by the Sub-Registrar of Assurance can be uploaded on your apartment management software like ADDA and digital copies of them same can be maintained.
  • Moreover, it can be updated from time to time. Most housing societies often end up looking for these documents at the last minute. ADDA ERP’s document sharing feature can help avoid such hassle.
what is deemed conveyance

The Basic Concept

Deemed conveyance occurs when the builder/land owner or the legal heir refuse to co-operate in handing over conveyance certificate to the apartment complex management committee. In such case, the housing society has to appear before the designated competent authority who will hear the case of both parties i.e. the housing society and the builder and would pass the required order of conveyance. It is a remedial measure obtained by the society against the builder/landowner who does not wish to convey the property since he/she sees a commercial gain out of the property in the future. This could include usage of potential FSI for their personal gain.

Deemed conveyance is final conveyance and the same can be registered. Once the designated competent authority has passed the order, there cannot be an appeal against it.

What does the law say?

Under section 11 of Maharashtra Ownership Flats Acts (MOFA), in case of Regular Conveyance, the Builder/ Developer/ Landowner/ Promoter are duty bound to co-operate with the CHS and execute a Conveyance deed before the Sub-Registrar and the original documents are handed over the new owners after completing all the necessary procedure.

How to obtain deemed conveyance?

When the developer i.e. the builder and the landowners are ready to sign the deed, the housing society can process the conveyance deed. When the builder or their heir create a hurdle is when the housing society can opt for deemed conveyance. The housing society needs to file an application in the prescribed format before the sub-registrar. Once submitted, the competent authority, within a reasonable time which is not more than 6 months. After verifying the authenticity of the documents, the plea of the builder is heard. Once the competent authority is convinced that the society’s case is stronger, he/she issues the instrument of deemed conveyance.

There are a list of documents which are required in order to file a deemed conveyance for the housing society. Click here to see the entire list.

Documentation is important. Download the apartment management app, ADDA and share all important property documents with your community members.

How to obtain deemed conveyance?

Rights and Obligations of a Society after Deemed Conveyance

When a society obtains a deemed conveyance, it signals a significant event, as it marks a transition from ownership of the property by the Development Authority, to the members of the society. With this change comes both rights and obligations, so it is important for members of the society to understand what their rights and obligations are.

Rights and obligations of housing society members

  1. One of the most important rights is that members of the society now have the right to make any improvements it deems necessary for the development of the property. This can include anything from building new homes and commercial spaces to making changes to its existing structures.
  2. Members of the society are also able to access the funds necessary to make these changes. Along with these rights, the society also has the obligation to ensure that all decisions made regarding the development of the property are done in accordance with applicable laws and regulations. This includes making sure that all building codes and regulations are adhered to and that the development of the property is done in a way that meets the collective interests of all members.
  3. In regards to financing, the society has the right to access funds through either private or institutional sources. In addition, the society can also benefit from relief packages or subsidies from the government, when available.
  4. Finally, the society has the obligation to ensure that all the money raised from the deemed conveyance of the property is used efficiently and prudently, to ensure the best possible development of the property is achieved.

Overall, the deemed conveyance of a society brings with it many rights and obligations. It is therefore important for members of the society to understand the rights and obligations that come along with it, in order to ensure the orderly and smooth progress of the development of the property.

Common Issues faced while opting for Deemed Conveyance in a society

Deemed conveyance is a process of changing the title deeds of developments from the developer to a cooperative housing society in Maharashtra. While this process helps homebuyers secure their properties, it also comes with its share of challenges.

Here are some of the common issues faced while opting for deemed conveyance:

  1. Insufficient documents: sometimes, the builder or the developer may fail to provide sufficient documents that the registrar requires for approving a deemed conveyance application. It is made worse if there are multiple builders who are unable to present their joint documents on time.
  2. Incomplete or misguided information: It is important that applicants provide the right information in their deemed conveyance application as the application is subject to scrutiny. Incomplete or incorrect information can lead to delays in the process.
  3. Legal and technical processes: The deemed conveyance process involves a lot of legal and technical paperwork. It is important that all the requirements are properly filled out and any documents that need to be filed are in accordance with the laws. This requires legal and technical expertise which many homeowners may not have.
  4. Delays in clearance: One of the most common issues faced during a deemed conveyance is the delay in getting clearance from the registrar. It may take months for the registrar to approve the application and process it, leading to a lot of frustration for the applicants.
  5. Costly process: The process of deemed conveyance involves a lot of paperwork and legal fees. This makes it a costly affair for many applicants. Moreover, applicants may not be aware of the fees they have to pay, leading to further delays and complications.

Therefore, it is important to be aware of all the issues involved in the process of deemed conveyance before opting for it. Homeowners must opt for a professional legal consultant or service provider to get the best results, while also avoiding any pitfalls in the process.

Role of a Lawyer/Advocate in Deemed Conveyance of a Society

The role of a lawyer/advocate in deemed conveyance of a society is of paramount significance.

  • A lawyer/advocate can provide legal advice on the complexities and implications of the conveyance process.
  • The lawyer/advocate will have to study the legal documents pertaining to the society and its members to ensure that all relevant laws and regulations are adhered to.
  • The lawyer/advocate will also be required to draft documents and carry out due diligence, such as verifying title deeds, carrying out searches to check ownership of land and reviewing legal documents like the trust deed and society’s bye-laws among other tasks.
  • Another important role that a lawyer/advocate plays in deemed conveyance of a society is ensuring that it is not vulnerable to any disputes or litigations. This involves understanding the society’s grievances and progressing towards a resolution by mediating and negotiating with both parties, if needed.
  • A lawyer/advocate has to ensure that all the dues and liabilities of the society and its members are paid before the conveyance process begins.
  • Additionally, the lawyer/advocate has to ensure that all clearances required for the conveyance process from local authorities, various departments and government bodies are obtained in a timely manner. This can involve a great deal of paperwork and documentation. These include obtaining NOCs from various authorities like the Building Proposal department, Fire and Electricity department and obtaining clearances from local bodies like Municipal Corporation, Panchayat and Village councils.

Thus, the lawyer/advocate plays a key role in making the conveyance process successful by ensuring the timely and complete legal requirements are met.

Benefits for a Society to opt for Deemed Conveyance

  1. This process can help a particular society in many ways, such as helping to ensure the right of ownership, providing legal protection and reducing the burden of transfer fees for the seller of the property.
  2. Secondly, it ensures that the seller of the property is able to receive the amount due to them without any hassles, since all the relevant documents are deemed to be in order and the transaction is secure. Deemed conveyance also helps in the prevention of fraudulent cases, since the property involved will be registered in the name of the correct person and the true ownership of the property will be established.
  3. Third, it also helps to reduce the complexity of the property transfer process and enables the transfer of the property from one owner to another in less time.
  4. Furthermore, it also helps to reduce the paperwork involved in the transfer of property and thus the buyer of the property will not have to face any unnecessary hurdles. In short, opting for deemed conveyance is a great way to ensure the protection of the rights of the seller and the buyer of a particular property, while reducing the associated costs and complexities of property transfer.

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About the Author: Krishanu