Deemed Conveyance of a Co-operative Housing Society

August 28, 2019
By Rahul Sarkar
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The legal ownership of your society as a whole is not automatically acquired once the homeowners buy individual residences or once you form a co-operative housing society. A conveyance deed is a mandatory legal document that literally seals the deal. A big percentage of societies across the country exist without a Conveyance Deed which presents a set of challenges, including no ownership to the entire property and redevelopment woes.

What is a Conveyance Deed?

A Conveyance deed is a legal document of ownership right over property (land and building). It is a document designed to transfer the property ownership right from the developer/builder to the society.

Regular Conveyance vs Deemed Conveyance

Within four months of the formation of a housing society, the developer is required to legally convey the land and the plot ownership to the society, ideally to the managing committee members who are in charge of legal documents. When the developer/builder/landowner prepares and executes a conveyance deed within stipulated time period and presents it to the Registrar’s office, they have said to create a Regular Conveyance Deed, in which the society is handed over all the original documents from the builder without any inconvenience to either parties.

However, the builder/developer is not always prompt and proactive in following the legal guidelines and it has been recorded a few years ago that around 80% of housing societies had not been given the conveyance deed in Maharashtra alone. Builders refrain from giving conveyance in hopes of increased FSI that they could avail in the future or simply because they are negligent in following the mandatory procedures. In such scenarios, the societies have the provision of obtaining Deemed Conveyance with the help of competent authorities and the Sub-registrar.

When the builder proves to be an obstacle in obtaining the Conveyance Deed, the society has to follow a procedure of obtaining certificates and documents from local authorities while simultaneously applying to the Sub-registrar who examines the documents provided and allows the builder to present his case. Only after due diligence and after ascertaining that the society is correct in demanding conveyance, the Registrar passes the order of issuing Deemed Conveyance under the Registration Act 1908, which is then considered legal and final.

The procedure to get Deemed Conveyance

This process involves a lot of paperwork and it goes without saying, a lot of groundwork by the Managing Committee of the Society. But it’s not impossible and certainly doable when you have the right guidance.

  1. Submit an application in Form -7 to the District Dy. Registrar, Co-operative Societies (Competent Authority)
  2. Along with the form, add the court fee stamp of Rs 2000
  3. Affix the documents listed below along with the application form

The decision is taken by the Sub-registrar within the time period of six months or less. Any official who does not provide a Deemed Conveyance within 6 months is penalised between Rs 500 to Rs 5000.

Documents needed to obtain Deemed Conveyance

  • Affidavit made before a Notary or Executive Magistrate
  • List of all members and details of each member’s share certificate
  • True copy of Society Registration Certificate
  • Index II (extract after registering the document of immovable property) and copies of Registered Agreements for all Flats/ Shops with Stamp Duty & Registration
  • Copy of the legal notice issued to the builder for issuing Regular Conveyance Deed

Land revenue documents from city survey office/collector’s office

  • 7/12 Extract
  • City Survey Plan
  • Property Card
  • Village Form VI or register of mutation
  • Urban Land Ceiling Clearance Certificate (Collector’s Office)
  • N.A Order and latest NA tax receipt (copy of Non Agriculture Order from Collector’s Office)

Documents from Municipal Corporation

  • Property taxes paid
  • Approved plan of layouts of residences along with approved building plans and location plan of the building
  • Intimation of Disapproval (IOD) – a clearance to the builder to start the construction process

Documents needed from professionals

  • Architect’s Certificate of the layout plan
  • Full report of FSI left in the property from Panel Architect
  • Advocate issued Search Report of Land (for the last 30 years minimum)
  • Advocate issued Title Certificate of the Property

Documents needed from promoter/builder/developer

  • Copy of Partnership Deed of all the partners of the builder firm
  • Development Agreement between landowner and builder
  • POA provided to builder from landowner
  • If necessary, the Will and Probate copy if land agreement signed by landowner’s heirs along with Death Certificates of Landowners if needed

Up until a few years ago, it was mandatory for the society to submit an OC (Occupation Certificate) and BCC (Building Completion Certificate). But this was a harrowing process for societies as many builders had abandoned the project before complying with all completion norms and handed the reins to the society before obtaining these certificates from authorities.

Homebuyers found this step a major roadblock in obtaining Conveyance Deed as the authorities would not issue OC and BCC without proper compliance. The government has scrapped the need for these in order to get a Deemed Conveyance. However after it is granted, the society is required to obtain OC and BCC from the municipal corporation.The copy of Deemed Conveyance Deed along with the Index II has to be sent to local authorities/government offices to officially incorporate the name of the society.

After the submission procedure, the Registrar sends an official/s for a spot visit and issues a notice to the builder. The builder has the opportunity to present his plea if he so chooses, after which a hearing is held formally. The intention is published in a regional and English newspaper. If no objection is raised on any counts, the society is given the Deemed Conveyance.

It is crucial for a society to obtain a Deemed Conveyance in case if the builder creates trouble with a Regular Conveyance as a Conveyance is mandatory to establish legal ownership and also when the society wishes to opt for redevelopment at a later stage. Many projects are stalled due to the older societies not being able to produce a Conveyance.

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