Do Not Miss Out On This Document While Buying A Property
Buying a property is a long process which includes contacting the right brokers, sellers, legalities and much more. While the former two might be easy and doable, a lot of property owners find themselves confused when it comes to completing the legal requirements. It is a tedious process which involves completing formalities like title verification, seller identity verification, occupancy certificates and so on. One of the important legal compliances is a “Conveyance Deed”. The framing and compilation of this document is an exhausting one.
What are the responsibilities of a builder?
A builder has to construct buildings and sell the flats to purchasers. After the completion of work, he can form an apartment condominium or a Cooperative Housing Society, company, etc. As per MOFA 1963 and RERA Act, the Builder has, as per law, the additional responsibility of forming a Cooperative Housing Society. He also needs to execute a deed of conveyance within the specified period. In the case of apartments, the Deed of Declaration is the conveyance deed.
What is a conveyance deed?
A conveyance deed is a legally binding document that transfers the rights, title, and ownership of a property from the seller to the buyer. A conveyance deed is different from a sale agreement in the essence that a conveyance deed can also include gift, exchange, mortgage and lease deeds.
What is a deemed conveyance?
The Builder or 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, if this is not executed, a deemed conveyance is the legal remedy according to the Maharashtra Ownership Flats Act, 1963 (MOFA). A deemed conveyance ensures that 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 update the same in the revenue record, a Competent Authority has designated an authorized officer to execute the conveyance deed in favour of the society. The authorised officer executes it on behalf of the 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.
What are these documents required?
Deemed conveyance is similar to a conveyance deed. Both are executed by the builder and are legal as well as valid. The only difference is that of the procedure.
In the case of builders not fulfilling their responsibilities as mentioned above, a deed provides a regulatory and legal umbrella to the residents. The remedy is filing a civil case for specific performance or in a consumer court. This will reduce the hardships in case of an unexpected withdrawal of duties by the builder.
They also ensures the following :
- Society enjoys all the benefits as the owner
- The rights remain protected in case of demolition of building due to natural calamities
- Redevelopment of the property becomes easier
- The benefits of remaining for additional FSI can be enjoyed.
What are the contents of a conveyance deed?
1. A true copy of the registration certificate of the cooperative society OR deed of declaration for an apartment.
2. 7 by 12 extract OR property card extract.
3. A copy of sale deed for the purchase of flat/shop.
4. List of members with details of
a)Flat and shop number b) Name of the member c) Area in square metre d)Amount of stamp duty paid e)Agreement registration number f) Date registration fees paid and remarks
5. Copy of power of attorney given by the landlord to the promoter /builder (if available)
6. Title search report at the time of purchase of flat / shop.
7. N.A. order copy.
8. Copy of Building Plan duly approved by the Corporation/competent Authority.
9. Completion certificate.
10. Commencement Certificate.
11. Development Agreement.
What is the Procedure for Formation and Compilation of Conveyance Deed?
1. Apply with all the necessary documents for the Certificate of Deemed Conveyance with the Cooperative Department District Registrar.
2. djudication of stamp duty is to do done by the Inspector General of Registration and Controller of Stamps.
3. Then the deemed conveyance has to be registered with the Sub Registrar of Assurances.
4. Finally, the Revenue Department will enter the name of the society on 7/12 extract as the owner.
We at Society Now understand that this process can become too complicated and time taking. We aim to fill this time lag by providing professional services in legal documentation and compliances. We provide the society management with the resources to complete all the legal requirements in time to ensure the smooth facilitation of society management. This also protects the society in case of any unexpected events which might need a regulatory and authoritative framework.