Regarding obtaining deemed conveyance or conveyance
2 months ago
Sir, if a cooperative housing society wants to get deemed conveyance or conveyance but had been demolished 10 years back by BMC under dilapidated structure and since then the property tax is pending to be paid. Now society treasury is empty. Can the society still go for seeking conveyance. Kindly guide on this.
A.Yes, the society can go for deemed conveyance, if all the flat owners are having registered sale agreement
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A.Dear Client,
A conveyance or deemed conveyance is an important and legal document that ensures ownership of the property regardless of its nature or class that may be bare land with or without structure. When a society is registered under the Maharashtra Co-operative Societies Act, 1960, then the law casts a duty on a builder to execute the conveyance deed within four months of the formation of the society irrespective of the class or nature of the land. As this has not been done, the builder is guilty of violating the law and there is a deficiency in the service rendered by him. Demolition of the dilapidated structure of any building by BMC is the routine process of civic authority carried out considering the safety and security on receipt of the permission of the competent authority or Court and has no role to play in the non-execution of conveyance deed or deemed conveyance. Even after the lapse of 10 years, builders failed to execute conveyance deeds in favor of society with ulterior motives to delay or withhold conveyance to take advantage of any subsequent increase in FSI(Floor Space Index), which is not legally permissible. The conveyance deed has to be executed within four months of the formation of the Society and in case any additional FSI is available, its benefit accrues to the society which is the real owner of the land. In this context, the decision of the Consumer Forum of Mumbai Suburban District passed in the case of Mamta - D Cooperative Housing Society Vrs. Gundecha Builders may be referred. Thus the action on the part of the Builder amounted to a deficiency in service and unfair trade practice. In a judgment passed in the year 2019, the Bombay High Court ruled that Conveyance is the ownership right to the building and the plot on which the structure is built. Deemed conveyance is the one obtained through the competent authority if the developer doesn’t give it. A housing society can apply for deemed conveyance if the developer fails to do so within a stipulated time period. So, in the prevailing situation, the society needs to file a complaint on the ground of continued cause of action against the Builder under Sec.35 of the Consumer Protection Act, 2019 before the concerned Dist./State Consumer Commission, as the case may be, over alleged deficiency in service and unfair trade practices for an appropriate direction to the Builder for execution of deed of conveyance claiming a hefty amount of compensation for harassment and cost of litigation.
A conveyance or deemed conveyance is an important and legal document that ensures ownership of the property regardless of its nature or class that may be bare land with or without structure. When a society is registered under the Maharashtra Co-operative Societies Act, 1960, then the law casts a duty on a builder to execute the conveyance deed within four months of the formation of the society irrespective of the class or nature of the land. As this has not been done, the builder is guilty of violating the law and there is a deficiency in the service rendered by him. Demolition of the dilapidated structure of any building by BMC is the routine process of civic authority carried out considering the safety and security on receipt of the permission of the competent authority or Court and has no role to play in the non-execution of conveyance deed or deemed conveyance. Even after the lapse of 10 years, builders failed to execute conveyance deeds in favor of society with ulterior motives to delay or withhold conveyance to take advantage of any subsequent increase in FSI(Floor Space Index), which is not legally permissible. The conveyance deed has to be executed within four months of the formation of the Society and in case any additional FSI is available, its benefit accrues to the society which is the real owner of the land. In this context, the decision of the Consumer Forum of Mumbai Suburban District passed in the case of Mamta - D Cooperative Housing Society Vrs. Gundecha Builders may be referred. Thus the action on the part of the Builder amounted to a deficiency in service and unfair trade practice. In a judgment passed in the year 2019, the Bombay High Court ruled that Conveyance is the ownership right to the building and the plot on which the structure is built. Deemed conveyance is the one obtained through the competent authority if the developer doesn’t give it. A housing society can apply for deemed conveyance if the developer fails to do so within a stipulated time period. So, in the prevailing situation, the society needs to file a complaint on the ground of continued cause of action against the Builder under Sec.35 of the Consumer Protection Act, 2019 before the concerned Dist./State Consumer Commission, as the case may be, over alleged deficiency in service and unfair trade practices for an appropriate direction to the Builder for execution of deed of conveyance claiming a hefty amount of compensation for harassment and cost of litigation.
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A.Dear Client,
Section 17 of the Real Estate (Regulation and Development) Act, 2016 mentions the promoter to execute a registered conveyance deed and hand over physical possession and other title documents to the association of allottees or competent authority within the specified time as per provisions of local laws. In the absence of local laws, it gives three months to execute the conveyance deed from the date of issuance of the occupancy certificate.
The complete process of applying deemed conveyance is online. However, there are details that the parties need to pay attention to before submitting the application. The first thing to be done by the CHS or flat owners is to write a formal email or a letter to the Promoter/builder/developer requesting them to provide the SALE DEED or CONVEYANCE DEED draft. In case there is no reply to the formal communication, the legal body should do the following.
1. Send the developer a legal notice via an advocate and request the developer to provide the deed with due signatures. 2. File an application with the Registrar of Co-operative Societies by attaching the relevant documents (along with self-attestation and copies) and INR 2000 court stamp fees.
3. Once the Competent Authority is satisfied that all the required documents are presented, a notice will be sent to the landowners/promoter/developer.
4. After receiving the notice, the Authority will hear arguments from both parties and ask them to present further evidence in the next hearing.
5. In case of the absence of the Promoter or the CHS, the Authority will pass an ex-parte order.
If no legal question is raised in the third hearing, the Competent Authority will pass the order.
Section 17 of the Real Estate (Regulation and Development) Act, 2016 mentions the promoter to execute a registered conveyance deed and hand over physical possession and other title documents to the association of allottees or competent authority within the specified time as per provisions of local laws. In the absence of local laws, it gives three months to execute the conveyance deed from the date of issuance of the occupancy certificate.
The complete process of applying deemed conveyance is online. However, there are details that the parties need to pay attention to before submitting the application. The first thing to be done by the CHS or flat owners is to write a formal email or a letter to the Promoter/builder/developer requesting them to provide the SALE DEED or CONVEYANCE DEED draft. In case there is no reply to the formal communication, the legal body should do the following.
1. Send the developer a legal notice via an advocate and request the developer to provide the deed with due signatures. 2. File an application with the Registrar of Co-operative Societies by attaching the relevant documents (along with self-attestation and copies) and INR 2000 court stamp fees.
3. Once the Competent Authority is satisfied that all the required documents are presented, a notice will be sent to the landowners/promoter/developer.
4. After receiving the notice, the Authority will hear arguments from both parties and ask them to present further evidence in the next hearing.
5. In case of the absence of the Promoter or the CHS, the Authority will pass an ex-parte order.
If no legal question is raised in the third hearing, the Competent Authority will pass the order.
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