Why does the housing society require deemed conveyance?

 As per section 11(1) of the Maharashtra Ownership Flats Act, 1963 read with Rule 9 of the Maharashtra Ownership Rules, 1964, the developer and the land owners are required to convey the right, title and interest in the land and building in favour of the society/company or the association of flat purchasers within four months of its registration.

After the expiry of the statutory period of four months, the said land and building are ‘deemed’ to have been ‘conveyed’ to the registered legal body and the legal body thereafter, can represent before the competent Authority (District Deputy Registrar) to convey the same, in favour of them by giving sufficient opportunities to the builder and land owner within six months of making such application.

Legally speaking, the society members only have the possession rights of their flat and not the land on which their building stands. Hence, it’s very important that once the society is formed, the members put in all their efforts to secure conveyance for their building.

It is essential for a resident of a housing society or an apartment complex to be aware of and understand the concept of deemed conveyance. “The housing society requires deemed conveyance to get absolute rights, title, interest and ownership of its property”.

To add to it, for any housing society, it is of utmost importance to obtain deemed conveyance and have the land named after their society, failing which, a housing society cannot go through the process of redevelopment. Deemed conveyance is a reformatory measure, mandatory for a society to acquire eligibility for redevelopment.

Why are most societies unable to acquire deemed conveyance?

The primary reason is mostly attributed to the lack of awareness among society members about such an important right.

Many co-operative societies do not complete the conveyance procedure due to the promoter/builder/developer not executing the conveyance. Not availing professional help, a lack of proper documents, a lack of awareness are also said to be the reasons why many societies do not have deemed conveyance.

Conclusion:-

Deemed conveyance is a legal document through which the society will get absolute rights, title, interest and ownership of its property (land and structures) in the name of the society. If the society fails to acquire this document, the builder continues to be the legal owner of the land and can sell it at any given point of time.

Therefore, it’s important that the society members take the initiative and acquire this document at the earliest and at the same time, it’s necessary that the government simplifies the process of acquiring conveyance for the stakeholders as this will create a win-win situation for both, the government as well as the housing societies in the city.