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Pros and Cons of Deemed Conveyance

Builder takes a Land for development from a land owner either by purchasing or with a development agreement. In either case he holds the ownership rights of the land directly or indirectly.
Once construction is completed builder sales flat to different customers/purchaser, wherein builder and purchaser carry out a registered purchase/sale agreement for that particular flat. Thus, all flats are sold to each customer, in turn builder conveys the structure. Thereafter, builder forms the cooperative housing Society of these customers and transfers the rights of structure to the Society.
Since, all the flats in the structure are already sold, transferring rights of the structure is pretty easy. However, one important part is ignored. It’s a transfer of ownership of the land to the Society. This is forgotten by builder, either to keep vested interest or just because of laziness, Land is not conveyed to the Society.

Now, structure is conveyed, structure and land both are in possession of the Society but builder remains as an owner of the land. As per Law , either by provisions of MOFA or by RERA, builder must convey the land to the Society in stipulated period. Members of this society have nothing to worry about this small defect in the title as they are in possession of the property, they own the flat, they can avail Home Loans, they can sale or mortgage the flat without a hitch. Problem arises when The Society goes for redevelopment. In order to get plans approved in Pune Municipal Corporation, it’s owner who has to apply. At this stage, Society realised that they are not owners and they have to beg the builder. This is the only problem you can face.

This problem is overcome by law. Government of Maharashtra has passed a law where Society can get land conveyed to it’s name without cooperation of the builder

By admin|August 28th, 2019|Pros and Cons of Deemed Conveyance, Uncategorized|Comments Off

Deemed Conveyance Pros & Cons

Builder takes a Land for development from a land owner either by purchasing or with a development agreement. In either case he holds the ownership rights of the land directly or indirectly.
Once construction is completed builder sales flat to different customers/purchaser, wherein builder and purchaser carry out a registered purchase/sale agreement for that particular flat. Thus, all flats are sold to each customer, in turn builder conveys the structure. Thereafter, builder forms the cooperative housing Society of these customers and transfers the rights of structure to the Society.
Since, all the flats in the structure are already sold, transferring rights of the structure is pretty easy. However, one important part is ignored. It’s a transfer of ownership of the land to the Society. This is forgotten by builder, either to keep vested interest or just because of laziness, Land is not conveyed to the Society.

Now, structure is conveyed, structure and land both are in possession of the Society but builder remains as an owner of the land. As per Law , either by provisions of MOFA or by RERA, builder must convey the land to the Society in stipulated period. Members of this society have nothing to worry about this small defect in the title as they are in possession of the property, they own the flat, they can avail Home Loans, they can sale or mortgage the flat without a hitch. Problem arises when The Society goes for redevelopment. In order to get plans approved in Pune Municipal Corporation, it’s owner who has to apply. At this stage, Society realised that they are not owners and they have to beg the builder. This is the only problem you can face.

This problem is overcome by law. Government of Maharashtra has passed a law where Society can get land conveyed to it’s name without cooperation of the builder

By admin|August 23rd, 2019|Uncategorized|Comments Off

Deemed Conveyance of Co-operative Housing Societies in Pune

Deemed Conveyance occurs when the builder/landowner or the legal heir refuse to co-operate in handing over conveyance to the Co-operative Society under the Section 11(3) of Maharashtra Ownership Flats Act, 1963. In such case, the Competent Authority on receipt of Deemed Conveyance application issues the scrutiny Report- within the period of 1 month from receipt of Deemed Conveyance Application.

Once the Compliance is completed the Competent Authority issues summons & Newspaper Notices to landowner and property Developer for appearing before the Competent Authority. The Hearing starts after the receipt of Notices to the opposite party Builder/Landowner and the say of landowner is to be recorded, if they appear before the Competent Authority.The Complete Process of Deemed Conveyance takes around 8 months to 1 year.

By admin|August 23rd, 2019|Uncategorized|Comments Off

Deemed conveyance’s Essential Elements

The term “Deed” means a written legal contract that binds the parties to its terms and can be proved in the court as evidence.
The term ‘Conveyance’ is used when there is transfer of ownership or legal title in a property from one person to another. Hence, a conveyance deed is a legal document between a transferor and a transferee, which proves that a title or ownership in the property along with all other rights related to the property have been transferred from one person to another.
It informs that the property is free from any restrictions and disputes. Both parties sign it and it can be produced in a court if any dispute relating to the agreement arises in future.
However, a conveyance deed is a wide term which not only includes a sale of the property but also other kinds of transfers such as gift, exchange, lease, mortgage, relinquishment and other transfers.
A conveyance deed is valid only when the property is sold for a valid consideration (usually money) except in the case of a gift deed which results out of love and affection.
It can be signed for either movable or immovable property.
A conveyance deed is executed in accordance with the legal provisions under the Transfer of Property Act 1882, Registration Act 1908 and Indian Stamp Act, 1899.
In order to be valid and acceptable in a court, a conveyance deed needs to contain some essential elements. For instance, it must:
* Establish exact boundaries of the property to avoid any dispute relating to land ownership,
* State that all the rights relating to the property have been transferred along with the property,
* Provide details regarding delivery and acceptance of the property,
* State all terms and conditions relating to the transfer,
* Be made on a non-judicial stamp paper and signed by both parties,
* Mention full names, addresses and other requisite details of the seller and the buyer,
* State that the property is free from any disputes and restrictions,
* Be signed by at least two witnesses
* Be in writing and notarized, and
* Be registered through the local registrar’s office by submitting appropriate registration fee. Registration is proof that the property is free from any disputes and has been transferred to the buyer permanently with a clean title.
Once the registration is complete, the buyer becomes the absolute owner of the property and the conveyance process gets over officially. A lawyer and a real estate agent can help two parties compose, sign, and register a deed of conveyance during a transaction. The government obtains its revenue from the stamp duty and registration fees.

By admin|August 21st, 2019|Uncategorized|Comments Off

Importance of Deemed Conveyance

The Promoter (Builder/ Developer) is legally required 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 the experience that many promoters (Builders/Developers) have not conveyed the land and building to the legal bodies. Therefore, government has amended the Maharashtra Ownership Flats Act, 1963 (MOFA) and provided for the deemed conveyance in favor of the legal bodies. Under the provision, deemed conveyance means after the expiry of 4 months of formation of the legal body, the land and building is deemed to have been conveyed to the legal body and to bring the same in the revenue record, Competent Authority has been designated who will hear the parties on the basis of applications received from the aggrieved party and transfers the title in favor of the legal body by passing the necessary order and deemed conveyance certificate and appoint an authorized officer to execute the conveyance deed in favor of the society and execute on behalf of non-co-operative builder or the land owner. Getting the title of land and building by adopting the above procedure is known as deemed conveyance.
Defined boundaries. A deed needs to describe the defined boundary lines of the property. Parties involved may need to order a land survey to accurately define and document the exact parameters of the property in question. It is important that the boundaries are accurate to avoid property line and ownership disputes down the road. The document should also clearly state the rights that come with ownership of the property.
Conveyance. The deed must include clear language that conveys the property from one party to the other. The deed must transfer the chain of title, or all the legal rights of the property, from the owner to the buyer. The deed should also state how the grantor delivered the property to the buyer, as well as how the grantee received the property. If there are any terms or conditions that go along with the transfer, the deed should describe these as well.
Signatures. All parties involved in the transfer – including the current owner of the property and the “new” owner – must sign the deed of conveyance for it to be valid. Upon signing a conveyance deed, the original owner transfers all legal rights, ownership, and authority over the property to the buyer. The seller signs away his or her rights to legally own, keep, or use a particular property.
Seal. To qualify as a “deed,” the document must be in writing. Oral contracts are difficult or impossible to enforce in court, and are not technically deeds. The written deed will identify the names of the seller, or owner, of the home (the grantor) and the buyer (the grantee). The grantor must sign the deed in front of a notary, who will then seal the document.
Registration. The grantee will need to register the deed of conveyance with the appropriate county. Presenting the signed and sealed deed of conveyance to the local registrar’s office can complete this action, with a registration fee. The transfer then becomes part of the public domain, searchable via the public records. The conveyance is complete, and the grantee becomes teh official, legal owner of the property.
A real estate agent can help two parties compose, sign, and register a deed of conveyance during a real estate transaction. The same is true if the conveyance of ownership is as a gift, such as from one family member to another. The final written and signed document is a deed that will be enforceable in a court of law.

By admin|August 19th, 2019|Uncategorized|Comments Off

DISADVANTAGES OF NOT HAVING CONVEYANCE DEED

Deemed Conveyance occurs when the builder/land owner or the legal heir refuse to co-operate in handing over conveyance to the Co-operative Society under the Section 11(3) of Maharashtra Ownership Flats Act, 1963. In such case, the housing society has to appear before the District Deputy Registrar, who will hear the case of both parties i.e. the housing society and the builder and would pass the required order of Conveyance. It is a remedial measure obtained by the society against the builder/landowner who does not wish to convey the property since he/she sees a commercial gain out of the property in future. This could include usage of potential FSI for their personal gain.
Deemed Conveyance is final conveyance and the same can be registered. Once the designated Competent Authority has passed the order, there cannot be an appeal against it.

NEED FOR DEEMED CONVEYANCE:
In a situation when a promoter or owner of residential premises/ buildings does not transfer/convey the ownership of the flats to the housing society or association of persons (AOP), the society or AOP can make an application to Registrar of Co-operative Housing Societies, to transfer the ownership of the said flats to them. This process is carried on through Deemed Conveyance of the title of the buildings and land in favour of the Society or AOP without the need of the builder to do so.

DISADVANTAGES OF NOT HAVING CONVEYANCE DEED:
Even though you have purchased ownership flat, you are not the owner of the land and building. In the event of a building collapse or damage to the building, you cannot reconstruct the building without the permission of the Builder / Land owner.
1. The Builder/Developer may mortgage the property purchased by you as he is the legal owner and holding the Title Deeds of the Property.
2. The Builder/Developer may tap the benefits in case the building is later taken up for redevelopment or if the plot has some unutilized floor space index.
3. The Builder may make profit by sale of open spaces, gardens, terrace, parking space belonging to the Society.
4. The Builder may demand a huge amount from the Society, if Conveyance is sought by the Society after a lapse of many years.
5. The Builder may sell the entire Development Rights and the Legal Rights on the land to third party and create a third party interest in the Property and the Society will have to incur a huge amount to clear the same.

By admin|August 19th, 2019|Uncategorized|Comments Off

Deemed Conveyance in Pune

Ved Legal is having enough experience to deal with these kinds of Deemed Conveyance of Co-operative Housing Societies, in and around Pune. Any aggrieved society or apartment holder can get resolution from us in regards of the same.
The Maharashtra assembly has passed a bill in recently concluded winter session which would facilitate over a million housing societies in and around Maharashtra to get conveyance deed executed in their favour.
Conveyance deed is a final document which a builder has to give while transferring the ownership of land on which a housing society building exists in favour of the society.
However, in a large number of cases the builders try to avoid getting this document executed despite housing society being formed as the builders continue to enjoy the ownership rights over the land.
As ownership title is either in favour of a builder or the original owner of the land, housing societies don’t get property tax bills and bills for other amenities in their name.
Many old housing societies whose buildings are not in good condition go for redevelopment of the property. They demolish their old building and then they buy additional floor space index (FSI) from market and construct new building. Which help members of housing societies to get brand new flats at no cost as cost of the construction is recovered from the sale of additional flats.
However, this becomes possible only if conveyance deed has been executed in favour of the housing societies.
Again, there is always the danger of a member of housing society getting involved in long drawn legal battle if the building collapses due to natural calamity and there is no conveyance deed in the name of the society.
In this scenario, the original owner of the land or builder can always claim that the title of the land is in their name and after the collapse of the building, members of the housing societies no longer have any legal rights over the land. Such cases have been reported after the earthquake in 2001.
Under the new law passed by the state assembly, district collectors have been given powers to execute conveyance deed in favour of the housing societies.
In the case of housing societies which are in existence for more than 10 years or so, they can approach the district collector directly and ask him to execute the conveyance deed in their favour.
After receiving a request from a housing society, the district collector would issue a notice to the original owner of the land or builder to execute conveyance deed in favour of the society within three months.

By admin|August 19th, 2019|Uncategorized|Comments Off

Deemed Conveyance and its Significance

Ved Legal is having enough experience to deal with these kinds of Deemed Conveyance of Co-operative Housing Societies, in and around Pune. Any aggrieved society or apartment holder can get resolution from us in regards of the same.

Conveyance is transfer the title of land and building by promoter/landowner in favour of housing society by execution of Conveyance Deed. As per the provision contemplated in section 11 of Maharashtra Ownership Flat Act 1963, Conveyance is the right of Co-operative Housing Society and the Duty of the property Developer/Promoter to be executed within 4 months from date of Registration of Co-Operative Society.

After land and Building is conveyed i favour of Co-Operative Society and the title of property is fully and finally recorded in the property card and other revenue records then only the property becomes completely free and marketable.

As per Housing Society Bye-laws the main objective of formation of the society is to obtain conveyance and if conveyance is executed within 4 months from date of registration of society case can be filed against the promoter /landowner of the land to obtain the conveyance as per section 13 of MOFA 1963 failure to give conveyance is an offence and the promoter/landowner of land can be imprisoned upto 3 years or fine or both.

By admin|August 16th, 2019|Deemed Conveyance and its Significance, Uncategorized|Comments Off

Conveyance Deed in Pune

What is Conveyance Deed?

Conveyance’ refers to the act of transferring the title, ownership, rights and interests in a property, from one entity to another. The term ‘deed’ refers to an instrument, like a written document that is signed by all the parties to a contract, in this case, the seller and buyer. It is a binding contract that is enforceable in a court of law. A conveyance deed is, therefore, a contract in which, the seller transfers all rights to legally own and keep a property. The purchase of a property is not complete without a valid conveyance deed.

A valid conveyance deed must contain the following:

1. The actual demarcation of the property.
2. Other rights annexed to the property and its use.
3. The full chain of titles, that is, all legal rights up until the present seller.
4. The method of delivery of the property to the buyer.
5. A memo of the consideration, stating how it has been received.
6. Any further applicable terms and conditions for the full transfer of ownership rights.

Important points to consider, to ensure smooth purchase/sale of a property:

The seller is required to certify that the property is free of any legal encumbrance.
If a loan was taken against the property in question, then, the mortgage must be cleared before the deed is signed. Buyers have the option of having this checked at the local sub-registrar’s office.
The conveyance deed should state the exact date on which the property will be handed over to the buyer.
Within four months of the execution of the deed, all the original documents related to the sale of the property, need to be produced for registration before the local registrar.
The deed is required to be signed by at least two witnesses.

By admin|August 16th, 2019|Uncategorized|Comments Off

Deemed Conveyance Why it is important?

A cooperative housing society is registered if it has a minimum of 10 flats. The conveyance deed is not issued in the name of an individual. A flat owner while buying a flat from a builder takes only a purchase agreement. He/she thinks that he/she owns the flat as well as the land on which the housing scheme stands, but that is not the case. The housing society members should have a conveyance deed to be the legal owners of the land, otherwise the builder continues to be the legal owner of the land and can sell it. Such transfer of rights is required if some changes like construction or removal of some property is to be done within the society or for some space or infrastructure is to be rented or the building is to be reconstructed. If the society loses some of its land in road widening, it can get additional floor space index and can undertake additional construction.

VED LEGAL SPECIALIZED FOR DEEMED CONVEYANCE.

By admin|August 14th, 2019|Uncategorized|Comments Off