Deemed Conveyance Convey title of ownership of property: Deemed Conveyance in Co-operative Housing Society What is 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. Contents 1.Importance of Property Conveyance A conveyance deed is a document that conveys the title of ownership of a property from the original owner to the ultimate purchaser. All the flat owners must obtain conveyance deed for their structures, to become true owners of the entire structure and land attached to it. A conveyance deed transfers the ownership rights from the developer or the landowner to the flat owners. The first and foremost objective is to become the legal owners of the entire property. Obtaining free and marketable title of the property is the most important objective. When a particular person or society has paid full consideration and is in possession of the property but the title documents are in the name of the original owner (developer or landowner), the purchaser does not have a free and marketable title of the said property. It is only after obtaining the conveyance that the buyers derive free and marketable title over the property. Here are some advantages of obtaining the conveyance deed from the developer: a) Getting the proper title Retaining additional FSI, if any b) Property will be free and marketable c) Loan can be raised by mortgage d) Permission for reconstruction possible e) Construct additional floor/s by TDR Receive compensation on development 2. Reasons for Deemed Conveyance of Property The Promoter (Builder) is lawfully obliged to convey the land and the building within 4 months of formation to the society or any legal body of the flat purchasers. However, it has been observed in many cases that such Conveyance has not been executed. Some of the main reasons on the part of the flat purchasers are ignorance regarding the subject matter, lack of knowledge regarding the importance of Conveyance and non-co-operation amongst the members of the society. In light of the above, the State Government of Maharashtra has amended the Maharashtra Ownership Flats Act, 1963 (MOFA) and provided for the deemed conveyance in favour of the legal bodies. Conveyance of Housing Society 3.Procedure The flat purchasers after forming a Co-operative Society shall approach the competent authority for obtaining a unilateral deemed conveyance in favour of the legal entity i.e. Co-operative Society, apartment or a company. The competent authority on receipt of such application shall within reasonable period but in any case, not later than six months subsequent to making such examination as are deemed necessary and after verifying authenticity of the document submitted and after giving the promoter reasonable opportunity of being heard and on being satisfied shall issue a certificate to the sub-registrar or any other appropriate registration authority under the Registration Act 1908 certifying that this is a fit case for enforcing unilateral execution of conveyance deed, conveying the right title and interest of the promoters in the land and building in favour of the applicant as Deemed Conveyance for the Housing Society or Building. When some such submissions are made by the Society or the Company or association or apartment owners to the Sub Registrar or the appropriate registering authority on the basis of the certificate issued by the competent authority along with the unilateral instrument of conveyance, shall notwithstanding anything contained in the Registration Act 1908 issue summons to the promoters as to why unilateral instrument should not be registered as deemed conveyance and after giving the promoter reasonable opportunity of being heard may on being satisfied that it is a fit case for unilateral conveyance register instrument as deemed conveyance. The process of Deemed Conveuyace takes about 6-8 months. In case of Deemed Conveyance, the earlier the better, because later on it will be difficult to find the original builder/owner. If the builder/owner is deceased then each of her/his legal heirs must be found, which is an insurmountable task if they are not even in the country. The Laxminarayan Cooperative Housing Society in Ghatkopar was the first society to get deemed conveyance in February 2011. The Society had three storeys and 35 tenants. (Also see the TOI Article) In or about Januray 2012, the City and Industrial Development Corporation of Maharashtra Ltd. (CIDCO) made it compulsory for co-operative societies in Navi Mumbai to have conveyance deed executed in favour of the society for a transfer No Objection Certificate (NOC) from CIDCO. List of Documents Required for Deemed Conveyance The following are the documents required for Deemed Conveyance, to be submitted with Form VII: From Society Records Copy of Society Registration Certificate List of Members & their Share Certificate Details Copies of Registered Agreements (Chain of Registered Agreements in case of Re- Sale) for all Flats/ Shops with Stamp Duty & Registration Receipts & Index II of all the Registered Agreements Death Certificate of Land- Owners, wherever necessary Title Devolution Statement of all the Flats/ Shops Registered Partnership Deed of the Partners of the Developer Firm Development Agreement/ Conveyance Agreement between Land- Owners & Developer Building for Deemed Conveyance, India Power of Attorney given by Land- Owners to the Developer Land Revenue Records 7/12 Extract Village Form No.6 Property Card City Survey Map N. A Order U. L. C Order Latest Property Tax Paid Receipt Latest N. A. Tax Paid Receipt From BMC Records BMC Approved Plan BMC (IOD) BMC (Commencement Certificate) BMC (Building Completion Certificate) BMC (Occupation Certificate) BMC (Latest Property Tax Paid Receipt) Location Map From Professionals Survey Report – From an Architect 30 Years Search Report & Title Certificate – From an advocate
Posted on: Tue, 07 Oct 2014 06:30:11 +0000
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