Deemed Conveyance in Maharashtra: A Complete Guide for Housing Societies

Introduction

Deemed Conveyance in Maharashtra is the ultimate legal remedy for cooperative housing societies that have been denied the ownership of their land and building by the developer or builder. Many housing societies in cities like Mumbai and Pune operate for years without realizing that they do not actually “own” the land they stand on. This guide will walk you through everything you need to know about securing your society’s future.

1. What is Conveyance?

Conveyance is the legal process of transferring the “Title” or ownership of the land and the structure (building) from the owner (usually the builder or the original landlord) to the Cooperative Housing Society (CHS).

In simpler terms, while individual members own their flats via the Agreement for Sale, the Society must own the land and the common areas. This transfer is executed through a legal document known as a “Conveyance Deed.” Without this deed, the builder remains the legal owner of the plot in the government records (PR Card/7-12 Extract).

2. Why it is Necessary?

Obtaining Deemed Conveyance in Maharashtra is not just a formality; it is a necessity for the following reasons:

• Legal Ownership: The society’s name is entered in the 7/12 extract or Property Card.
• Redevelopment Rights: If the building becomes old, you cannot go for redevelopment without the land ownership in the society’s name. The builder might claim the extra FSI (Floor Space Index) or TDR if conveyance is not done.
• Loan Approval: Members find it easier to get home loans or sell their properties when the society has a clear title.
• Obtaining Permissions: For major repairs or structural changes, the municipal authorities (like BMC or PMC) require the society to be the legal owner.

3. When Builder is Supposed to Give it to Society?

Under the Maharashtra Ownership Flats Act (MOFA), 1963, the builder is legally obligated to transfer the title to the society within a specific timeframe:

• The builder must form a society within 4 months of the date on which the minimum number of flat purchasers is reached.
• The builder must execute the Conveyance Deed within 4 months from the date of the society’s registration.

If the builder fails to do so within this period, it is a breach of the MOFA Act.

4. What if Builder Doesn’t Give? Apply for Deemed Conveyance in Maharashtra

If the builder is non-cooperative, untraceable, or demanding extra money to sign the deed, the society doesn’t need to panic. You can apply for a “Deemed Conveyance” to the District Deputy Registrar (DDR).

“Deemed” means “assumed.” If the builder is not providing the conveyance, the Registrar, after hearing both sides, has the power to sign the conveyance on behalf of the builder. This is a quasi-judicial process designed to protect the interests of flat buyers.

5. Documents Required

To apply for Deemed Conveyance in Maharashtra, the society needs to compile a comprehensive “Application Folder.” The key documents include:

• Application Form (Form 7): Court fee stamp of ₹2,000.
• Society Registration Certificate: Copy of the registered bylaws.
• List of Members: In the prescribed format.
• Index-II: For every single member (proving the chain of ownership).
• Development Agreement: Between the landlord and the builder.
• Copy of the Registered Agreement for Sale: (At least one sample or the first member’s agreement).
• Building Plan Approval: Commencements Certificate (CC) and Occupation Certificate (OC).
• Property Card / 7-12 Extract: Issued within the last 6 months.

6. How to Apply: The Role of 79A, 7/12, and the Registrar

The process of Deemed Conveyance in Maharashtra, follows a structured legal path:

• Resolution: The Managing Committee must pass a resolution to apply for Deemed Conveyance.
• The 79A Direction: Under Section 79A of the Maharashtra Co-operative Societies Act, the government issues directions to streamline society management, including the mandate for conveyance.
• Filing with DDR: The application is filed online and a physical copy is submitted to the District Deputy Registrar (DDR) office.
• Public Notice: The DDR issues a public notice in two local newspapers to check if there are any objections from the builder or original landowners.
• Hearing: The DDR conducts hearings. If the builder doesn’t show up or cannot provide a valid reason for delay, the DDR passes the “Deemed Conveyance Order.”
• Registration: Once the order is received, the society must pay the stamp duty (if not already paid by members) and register the deed with the Sub-Registrar. Finally, the 7/12 extract or PR Card is updated via the Tehsildar or City Survey Office.

Conclusion:

Securing Deemed Conveyance in Maharashtra is the most significant milestone for any housing society. It transitions the society from a “manager of a building” to the “owner of the land.” While the process involves paperwork and legal hearings, the long-term benefits—especially during redevelopment—are invaluable. Do not wait for the builder to act; the law has empowered the society to take what is rightfully theirs.

Disclaimer

This article on Deemed Conveyance in Maharashtra, is for informational purposes only and does not constitute legal advice. Laws and government resolutions (GRs) regarding housing societies can change. Readers are advised to consult a legal expert or a professional society consultant before proceeding with legal applications.

Frequently Asked Questions