What is Deemed Conveyance ? Why is it Needed?

What is deemed conveyance? 

Many land or flat owners need clarification on a Conveyance Deed and Deemed Conveyance and which one of these two applies to them or the legal body such as a Co-operative Housing Society. One main difference between the two is whether the Promoter or builder is willing to cooperate with the flat owners or CHS. A deemed conveyance can be summarized as transferring the housing society's right, title, and interest in the land or building. The Promoters give the conveyance voluntarily or willingly in the typical conveyance. The housing society and the promoters must sign the standard conveyance deed.

Nevertheless, it has been observed that the builders or landowners are not willing to carry out the deed in many instances. Under the MOFA (Maharashtra Ownership Flat Act) of 1963, the Maharashtra Government has granted the Competent Authority the right to sign the conveyance deed on behalf of landowners and developers in these situations. This is called Deemed Conveyance.

In such situations, the housing society must appear in front of the designated competent authority, which will hear the arguments of both the housing society and the builder and issue the necessary conveyance order. It is a redressal action taken by the housing society against the builder or landowner who does not want to sell the property because they expect to make a profit from it in the future. This could mean using the potential floor space index (FSI) for their own benefit. 

In accordance with section 11 of the Maharashtra Ownership Flats Acts (MOFA), in the event of a regular conveyance, the Landowner, or Promoter is obligated to cooperate with the housing society and execute a conveyance deed in front of the Sub-Registrar. After completing all the necessary steps, the original documents are given to the new owners. There can be no appeal of the order after it has been issued by the designated competent authority.

Why is deemed conveyance important?

Understanding what constitutes deemed conveyance is essential for anyone who lives in a housing society or apartment complex. In Mumbai and cities like the financial capital of the country, there are many housing societies which are old and will go into redevelopment soon. Acquiring deemed conveyance and having the land named after their housing society is essential for any housing society. Obtaining the conveyance certificate is ideal, and a housing society can only undergo redevelopment if this is done. 

Societies are able to obtain the legal title and ownership of land, develop rights, and make entries in the government's records thanks to the provision of obtaining the deemed conveyance. It makes the land available for purchase. Additionally, the housing society can make use of Transferable Development Rights (TDR) and keep the additional FSI. The rights a property owner obtains in the form of a certificate that is authorized by a competent authority and has economic value, instead of surrendering the land or a portion of it to a local body, are referred to as TDR. More importantly, a society can obtain permission from the planning authorities for the redevelopment of its structures through deemed conveyance.

Advantages of deemed conveyance:

1.     Getting developing rights in the name of the Society, obtaining a legal title to the land, and making entries in government records.

2.     The housing society takes advantage of TDR and keeps the additional FSI.

3.     Land will be marketable and free.

4.     By mortgage, society can increase loan amounts.

5.     If the building needs to be redeveloped in the future because of age, earthquake, or any other factor, permission from planning authorities is possible.

6.     The housing society benefits from all commercial profits.

The housing society is able to process the conveyance deed once the developer, also known as the builder, and the landowners are prepared to sign it. The point when the manufacturer or their main successor makes an obstacle is a point at which the housing society can pick deemed conveyance. The housing society must apply to the sub-registrar in the format required. Within six months of submission to the competent authority, a reasonable timeframe, the builder's plea is heard after the documents are examined for authenticity. The instrument of deemed conveyance is issued when the competent authority is convinced that the society's case is stronger.

Documents required for deemed conveyance 

• A court fee stamp along with the application form. This should be submitted to the District Deputy Registrar, Co-operative Societies. 

• An affidavit & true copy of the housing society's certificate of registration

• Validation of the paid stamp duty and registered agreement copy of 1 individual flat with Builder/Developer.

• List of members in the stipulated format

• Development agreement between property owner and Promoter, with a copy attached

• Copy of the Power of Attorney between landowner and builder

• Details about the legal notice issued to the original owner or developer for doing conveyance. Attaching a copy is necessary

• Details such as the address and telephone number of the original owner or Promoter

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