About Conveyance Its Advantages And Disadvantages Meaning of Conveyance:
Conveyance Deed is a document executed to transfer the title of land and building in favor of Society.
Importance and provision of law on Conveyance:
As per the Housing Society bye-laws, the main objective of formation of the Society is to obtain the Conveyance; and if Conveyance is not given by the Builder within four months from the date of registration of the Society, a case can be filed against the Builder to obtain the Conveyance. As per Section 13 of Maharashtra Ownership Flats Act, 1963, failure to give Conveyance is an offence and the Builder can be imprisoned up to 3 years or fined or both.
Advantages of Conveyance:
1. Getting a proper and legal title in the name of the Society.
2. Retaining the additional FSI as per the Government announcements.
3. Property will be free and marketable.
4. Society can raise the loans for repairs and reconstruction by mortgage.
5. Permission from planning authorities is possible if the building has to be reconstructed at a later date due to dilapidation of the structure due to age or by earthquake.
6. Society can take the benefit of TDR.
7. Members can receive compensation from Builder on redevelopment of the building.
DISADVANTAGES
AUTHORISED COMMITTEE TO GET DEEMED CONVEYANCE OF LAND & BUILDING IN THE NAME OF THE SOCIETY TO AVOID FOLLOWING CONSEQUENCES
1. Even though you have purchased ownership flat, you are not the owner of the land and building.
2. 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.
3. The Builder /Developer may mortgage the property purchased by you as he is the legal owner and holding the Title Deeds of the Property.
4. The Builder / Developer may transfer the FSI / TDR to his other projects and enjoy the commercial benefits, depriving the flat purchasers / Society of its legal entitlement.
5. The Builder may make profit by sale of open spaces, gardens, terrace, parking space belonging to the Society.
6. The Builder may demand a huge amount from the Society, if Conveyance is sought by the Society after a lapse of many years.
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.
Deemed Conveyance Procedure For legal/advocate for Deemed Conveyance
There are mainly five steps/stages involved to complete the Conveyance of land and building in favor of the Society under Deemed Conveyance.
Relevant Documents Required
-Society Registration Certificate
-Property Card or 7/12 Extracts
-Building Approved Plan
-Copies of Agreement for Sale of flat purchasers
-Registration Receipts
- Stamp Duty paid proof
- Non Agricultural Order
- ULC Order
-Search Report
-Layout Plan
-City Survey Map
-Architect Certificate about the utilization of FSI and the proportionate land entitlement Occupation Certificates
- Draft Conveyance Deed etc.
Application before Competent Authority
Make a written submission, attend the hearing, argue the case and obtain the Order
Preparation of Conveyance Deed
-Submit it before the Collector of Stamps to determine the payment of Stamp Duty along with the proof of payment of Stamp Duty by all individual flat purchasers including chain of Agreements and Registration Receipts
-Pay the deficit Stamp Duty, if any; and obtain the certified copy of the Conveyance Deed
Submit before the Sub-Registrar
For registration of the same under Indian Registration Act, 1908 by paying necessary registration fees and all relevant annexure. Obtain the original Conveyance Deed and also certified copy of Index II from the Sub-Registrar.
Apply to the City Survey Office
To incorporate the name of the Society in the Property Card or in 7/12 extract. The City Survey Officer or the Talati Officer shall carry out the necessary enquiry; carry out the survey and then make necessary changes in their record
Societies should take all efforts to get the Order of Deemed Conveyance from the Competent Authority as it is equivalent to the Civil Court Order and the Society shall get the legal rights over the land and the building
Thereafter, the builder or land owner cannot demand any money from the Society for Conveyance nor will the builder be able to utilise the additional FSI or TDR and carry out additional construction on such land. The Competent Authority as per MOFA is bound to give judgment within six months from the date of filling applications.
The payment of Stamp Duty, Registration Fees etc. can be done after obtaining the Deemed Conveyance Order. The Association has also represented before the Government to register Deemed Conveyance Deed and recovery of pending Stamp Duties separately from individual members and not to make Societies responsible for the same.
Conveyance Deed is a document executed to transfer the title of land and building in favor of Society.
Importance and provision of law on Conveyance:
As per the Housing Society bye-laws, the main objective of formation of the Society is to obtain the Conveyance; and if Conveyance is not given by the Builder within four months from the date of registration of the Society, a case can be filed against the Builder to obtain the Conveyance. As per Section 13 of Maharashtra Ownership Flats Act, 1963, failure to give Conveyance is an offence and the Builder can be imprisoned up to 3 years or fined or both.
Advantages of Conveyance:
1. Getting a proper and legal title in the name of the Society.
2. Retaining the additional FSI as per the Government announcements.
3. Property will be free and marketable.
4. Society can raise the loans for repairs and reconstruction by mortgage.
5. Permission from planning authorities is possible if the building has to be reconstructed at a later date due to dilapidation of the structure due to age or by earthquake.
6. Society can take the benefit of TDR.
7. Members can receive compensation from Builder on redevelopment of the building.
DISADVANTAGES
AUTHORISED COMMITTEE TO GET DEEMED CONVEYANCE OF LAND & BUILDING IN THE NAME OF THE SOCIETY TO AVOID FOLLOWING CONSEQUENCES
1. Even though you have purchased ownership flat, you are not the owner of the land and building.
2. 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.
3. The Builder /Developer may mortgage the property purchased by you as he is the legal owner and holding the Title Deeds of the Property.
4. The Builder / Developer may transfer the FSI / TDR to his other projects and enjoy the commercial benefits, depriving the flat purchasers / Society of its legal entitlement.
5. The Builder may make profit by sale of open spaces, gardens, terrace, parking space belonging to the Society.
6. The Builder may demand a huge amount from the Society, if Conveyance is sought by the Society after a lapse of many years.
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.
Deemed Conveyance Procedure For legal/advocate for Deemed Conveyance
There are mainly five steps/stages involved to complete the Conveyance of land and building in favor of the Society under Deemed Conveyance.
Relevant Documents Required
-Society Registration Certificate
-Property Card or 7/12 Extracts
-Building Approved Plan
-Copies of Agreement for Sale of flat purchasers
-Registration Receipts
- Stamp Duty paid proof
- Non Agricultural Order
- ULC Order
-Search Report
-Layout Plan
-City Survey Map
-Architect Certificate about the utilization of FSI and the proportionate land entitlement Occupation Certificates
- Draft Conveyance Deed etc.
Application before Competent Authority
Make a written submission, attend the hearing, argue the case and obtain the Order
Preparation of Conveyance Deed
-Submit it before the Collector of Stamps to determine the payment of Stamp Duty along with the proof of payment of Stamp Duty by all individual flat purchasers including chain of Agreements and Registration Receipts
-Pay the deficit Stamp Duty, if any; and obtain the certified copy of the Conveyance Deed
Submit before the Sub-Registrar
For registration of the same under Indian Registration Act, 1908 by paying necessary registration fees and all relevant annexure. Obtain the original Conveyance Deed and also certified copy of Index II from the Sub-Registrar.
Apply to the City Survey Office
To incorporate the name of the Society in the Property Card or in 7/12 extract. The City Survey Officer or the Talati Officer shall carry out the necessary enquiry; carry out the survey and then make necessary changes in their record
Societies should take all efforts to get the Order of Deemed Conveyance from the Competent Authority as it is equivalent to the Civil Court Order and the Society shall get the legal rights over the land and the building
Thereafter, the builder or land owner cannot demand any money from the Society for Conveyance nor will the builder be able to utilise the additional FSI or TDR and carry out additional construction on such land. The Competent Authority as per MOFA is bound to give judgment within six months from the date of filling applications.
The payment of Stamp Duty, Registration Fees etc. can be done after obtaining the Deemed Conveyance Order. The Association has also represented before the Government to register Deemed Conveyance Deed and recovery of pending Stamp Duties separately from individual members and not to make Societies responsible for the same.