Q.1)    What is Conveyance?

Ans.    Granting of Lease or Transfer of lease of land by CIDCO to Co-Operative Housing Society or to an Apartment Owners Association or a Company is known as Conveyance.

Q.2).  How Conveyance is done?

Ans.    For granting of lease by CIDCO, a detailed procedure is available with Estate Department. For transfer of lease by CIDCO, a Tripartite Agreement bearing signatures of Transferor, Transferee and CIDCO Authority has to be executed. The agreement should be properly stamped and registered in Stamp Duty Registrar’s office. Appropriate charges (transfer charges, service charges, water charges etc.) of CIDCO have to be paid. After this procedure, transfer of lease i.e Conveyance is completed.

Q3).    What is the Deemed Conveyance?

Ans.    In Transfer of Lease by CIDCO, if Transferor does not agree to sign the tripartite agreement, then under Section 11 of MOFA Act, 1963, the Competent Authority may grant unilateral conveyance to the Society / Apartment Owners Association / Company and register that instrument as a Deemed Conveyance after following the due procedure as per Act.

Q4).    Is my Society Eligible for Deemed Conveyance?

Ans:.  If your Society is registered on land leased by CIDCO in the following categories mentioned below, only then your Society is Eligible for Deemed Conveyance:-

Plot of land is tendered by CIDCO to an individual or company for construction of multiple tenements under MOFA Act, 1963.

Land is leased to PAP’s under 12.5% Scheme for development.

Q5).    What is the procedure of   Deemed Conveyance?

Ans:.   After registration of a Society or an Apartment Owner’s Association or Company as the case may be, the promoter shall execute conveyance within four months of registration. If the promoter fails to execute the conveyance within four months, then that organization may make an application in writing to the Competent Authority with true copies of registered agreement for sale by each individual member of that organization (Society or any other) for issuing a certificate that such organization is entitled to have a unilateral deemed conveyance in their favor and have it registered.

The competent authority i.e. Joint Registrar of Co-Operative Society, CIDCO, after receiving such application will verify documents and after giving the promoters reasonable opportunities of being heard, and on being satisfied that it is a fit case for issuing certificate to the Sub-Registrar under Registration Act, 1908 for unilateral execution of Conveyance Deed   conveying right, title and interest of promoter in favor of applicant and then will issue a certificate that it is fit for unilateral conveyance.

After registration of instrument, the deemed conveyance is executed. Lease will be transferred after all the necessary charges of CIDCO are paid.

Q6).    What are the documents necessary to accompany an application for deemed conveyance?

Ans.    List of documents required for Deemed Conveyance is as follows,

1)        Application for Deemed Conveyance in Format VII

2)        Society Registration Certificate

3)        Chairman / Secretary Sale Agreement Copy

4)        Registration Agreement copies by all Members

5)        Flat & Shop owners list on society letter head

6)        Agreement to Lease with CIDCO

7)        Copy of Development Rights / Power of Attorney given to Builder by Villagers / Society / Owner

8)        Copy of Occupancy Certificate

9)        Copy of C.C.

10)      Proposed Deemed Conveyance Agreement copy i.e. Deed of Assignment Deemed Conveyance.

11)      Resolution passed by the managing committee for Deemed Conveyance.

12)      Architect’s Certificate

13)      Title Certificate

14)      Plan copy

15)      Rs. 2000/- required Court Fee

16)      Affidavit

17)      Indemnity Bond

18)      Verification

19)      Bandhapatra

20)      Notice given to Builder & Land Owner.

Q 7).   What are the Stamp Duty and Registration Charges of Sub Registrar Office?

Ans.    When all individual members have paid the Stamp Duty and have registered their documents, then Stamp Duty payable is minimum and maximum registration charges are Rupees 30,000/-. The Actual Stamp Duty Charges will be computed by the adjudicating authority under Registration Act, 1908.

Q 8).   After obtaining unilateral Deemed Conveyance certificate from Competent Authority, within how many days the conveyance should be executed?

Ans:    There is no time limit for execution of conveyance after obtaining unilateral Deemed Conveyance Certificate.

Q.9). If an individual member of the Society does not buy tenement/s from the promoter and if it is a resale property, then is it necessary to have the entire previous document registered?

Ans:    For the purpose of Deemed Conveyance, government has dispensed with the necessity for chain of documents

Q.10). After the Deemed Conveyance, is it necessary to obtain permission of CIDCO for re-development of the building?

Ans.    Deemed Conveyance only allows unilateral conveyance of the ‘Lease Hold’ rights of the promoter. Rules and regulation of CIDCO imposed on the promoter remain as it is. Therefore, as per rules of CIDCO, the Society has to take necessary permission for re-development of the building.

Q 11).  If Builder (Promoter) is not a member of the Society and holds some flats which are unsold, is it necessary for the Society to pay stamp duty charges regarding these flats ?

Ans. NO. As regard to the unsold flats, Society is not obliged to pay Stamp Duty to the Sub Registrar as per the Registration Act.

Q12). If a Society is formed by the people who had purchased flats from CIDCO authority, then whether Deemed Conveyance is applicable?

Ans.    NO. When CIDCO sells a flat to an individual, then CIDCO comes into position of a promoter as per MOFA Act, 1963 and MOFA Act is not applicable to CIDCO. CIDGO has a mechanism of granting conveyance i.e grant of lease of plot to the Society and such a lease has been granted to number of Societies.

Q13). Does the Co-operative Housing Society get a Freehold title of the plot after obtaining the deemed conveyance?

Ans. The Co-operative Housing Society will get only Lease Hold rights of the plot after the deemed conveyance is executed. This is because all the land in Navi Mumbai acquired by GOM and vested with CIDCO for the development purpose is on lease hold basis only.

Q14). What are the benefits of Deemed Conveyance?

Ans.    The Co-operative Housing Society which does not have a conveyance i.e lease of the plot, does not have a clear title of the plot on which the Society has constructed a building. Since, the Promoter (Builder) is not ready to appear before the authority for conveyance, the title of the plot is not passed on to the Society.

By executing the deemed conveyance, the Society gets a clear title of the plot. The Society can get the rights for re-construction of the building only when the deemed conveyance is executed.

FOR MORE DETAILS CALL:

VED LEGAL,

Adv. Gajanan Rahate

Mob: 9763040088

E_mail: [email protected]