FAQs on deemed Conveyance

FAQs on Deemed Conveyance.

Q1. What is the meaning of deemed Conveyance? Q2. What is the difference between the deemed Conveyance and the Regular Conveyance.? Q3. Is there any further problem / litigation in getting the deemed Conveyance, if the builder/ Landowner Does not co-operate? Q4. What is the provisions for payment of stamp duty on deemed conveyance? Q5. How the conveyance in favour of the legal body will be done in case of layout plot where the builder carries out the construction in phases? Q6. What is the procedure followed by the competent Authority to give the deemed Conveyance? Q7. What documents are required to be submitted along with application to get the deemed conveyance?

Faq On Deemed Conveyance answered by CA Ramesh Prabhu, Active Member Of The Committee Constituted By The Government For Framing The Rules On Deemed Conveyance. Q1. What is the meaning of Deemed Conveyance? Ans: 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, a 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. Q2. What is the difference between the deemed Conveyance and the Regular Conveyance? Ans: In case of regular conveyance, the builder/ Developer/ Landowner prepare a conveyance deed, execute the same and appear before the Sub-Registrar of assurance for admitting their signature. Without any problem, the legal bodies get the conveyance with the co-operation of the builder/ landowner. In case of deemed conveyance, the builder/ land owner or their legal heirs are not co-operating, therefore, the aggrieved parties appear before the Designated Competent Authority, who hears all the parties and passes the necessary order of conveyance. Deemed Conveyance is obtained as a legal remedy against the defaulter builder/ landowner who don’t want to part with the land and the building in favor of the society. Q3. Is there any further problem / litigation in getting the deemed Conveyance, if the builder/ Landowner Does not co-operate? Ans: Deemed Conveyance is a final conveyance. There will not be any problem. Once the Deemed conveyance is passed by the Competent Authority, the conveyance deed will be executed by the Authorized Officer in favor of the Legal Body. Further, the same will be registered. There is no appeal against the deemed conveyance order passed by the competent Authority. Once the deemed conveyance order with conveyance deed is executed, the index II has to be obtained and submitted to the Talati office or City Survey office to incorporate the name of the legal body in the 7/12 extracts or in the property card as the case may be. Q4. What are the provisions for payment of stamp duty on deemed conveyance? Ans: Like regular conveyance, even on deemed Conveyance, the stamp duty will be only Rs.100/-, if all the flat owners have paid the stamp duty and have done the registration of their respective flats including on all the transactions (Chain of Agreements) done in those flats. In case there are some flat owners who have not paid the stamp duty or has escaped the duty, the same will have to be paid at the time of registration of the deemed conveyance deed by the legal bodies and the same can be recovered from such flat owners. Q5. How the conveyance in favor of the legal body will be done in case of layout plot where the builder carries out the construction in phases? Ans: In case of layout plot, the provision for part conveyance has been done in the new proposed Rule No9 (2). It has been clearly pointed out that in case of layout plot, the legal body will be entitled to get the proportionate undivided rights, title and interest in the layout plot based on the FSI/TDR used for the respective building out of the total development potential of the entire layout plot as on the date of conveyance of the land and the building and as per the disclosure made by the builder. In case the builder has not disclosed the same, the entire balance FSI/TDR will be transferred to the legal bodies proportionately otherwise it will be available to the builder. Q6. What is the procedure followed by the competent Authority to give the deemed Conveyance? Ans: Normally, the aggrieved party has to make the application to the competent Authority in the prescribed form with documents available against the builder, if he fails to convey the land and building to the legal body within 4 months of its formation. The Competent Authority shall scrutinize the application, collect the documents from the promoter/ builder or from the authorized officer appointed by him and get the application admitted. After the admission of the application, the competent Authority shall conduct the hearing and then take the appropriate decision, whether the applicant or the legal body is a fit case for granting the deemed conveyance. If he passes a favorable order, then he appoints an authorized officer, who shall execute the conveyance deed. (The same is given in the following flow chart for the simplicity.

Procedure to Obtain the Deemed Conveyance Order Flat Owners/ Apartment Owners to apply with documents & prescribed fees/ Court fees ↓ Competent Authority to verify Documents from his officials or the Authorized officer and obtain the report to that effect. ↓ Enquiries if any will be conducted and spot visit will be done by officials of Competent Authority or his authorized officer and admit the application for conveyance. ↓ Competent Authority will issue Notice to Promoter/ Opponent and other interested parties on the said land and building. ↓ Hearing to be conducted by Competent Authority. ↓ Submission of Written Arguments by the opponents/ Builder / Land Owner and other interested parties. ↓ The Competent Authority may direct the Opponent to produce certain Documents in support of the statements made by the Builder / opponent based on the arguments of the applicant. ↓ To hear the other parties on the documents produced by the party as per the directions of the Competent Authority and to decide on the same by the competent authority based on written submission and the oral arguments made by all the parties. ↓ Public Notice will be Issued as per the Order of competent Authority in two local News papers of which one shall be in Marathi at the cost and expense to be incurred by the applicant at the cost of Builders/ opponent. ↓ Relevant Documents which are required by the Competent Authority to ascertain the authenticity of the Application and to arrive at the Final Decision about granting the conveyance shall be obtained by the Competent Authority through authorized officer at the cost and expense of the Society. ↓ Vetting of Draft conveyance deed from the authorized officer appointed by the Competent authority. Get Professionals to Draft the Conveyance Deed. To admit any person as intervening party in response to Public Notice or who claim to interested parties against the application and decide about the same by the competent authority ↓ Interested party to file its say and also deliver a copy to the applicant and all other parties made in the application. ↓ Receive the written reply from the Applicant and other opponents based on the submission made by the interested party in response to Public Notice. ↓ Oral Arguments of the applicant, Opponents and the interested parties on the submissions made by each of them and to submit the necessary documents in support of their arguments. ↓ Speaking Order and Certificate of Deemed Conveyance to be Issued by Competent Authority or speaking order for rejecting the application. ↓ Competent Authority to Appoint and Authorized officer to execute the Conveyance deed and register and admit the execution before the sub-registrar of assurance at the time of registration of the same. ↓ Deemed Conveyance order shall be passed or Application for the same to be rejected within a period 6 months from the date of receipt of application by the competent authority subject to receipt of relevant documents.

Q7. What documents are required to be submitted along with application to get the deemed conveyance? Ans: Following documents may be attached with the application for deemed conveyance. i) the registered Agreement for sale entered into with the promoter/opponent party ii) 7/12 Extract and Village form No.6 (Mutation entries) iii) Property card, iv) Location Plan v) City survey plan or survey plan from the revenue department. vi) Layout Plot plan approved by the local authority vii) Architect certificate about the entitlement of undivided interest in the entire Layout Plot, common areas and the facilities by each of the entity or the structure constructed or to be constructed on such Layout Plot. viii) Latest Title and Search Report for last 30 years from an advocate, ix) Non-Agricultural Order x) Certificate under Urban Land Ceiling Act, 1976 xi) Building/ Structure Plan approved by the appropriate authority, xii) Commencement Certificate, xiii) Completion Certificate, xiv)Occupation Certificate, xv) List of Flat Purchasers xvi)Proof of payment of Stamp Duty xvii) Proof of Registration, etc. , xviii) Development agreement or power of attorney or agreement for sale executed by the landlord with the promoter for development or for transferring the right, title and the interest in the land in favour of the promoter. xix) Any other land or building related documents papers in support of the application. xx) Legal notices send to the Promoter and other interested parties to execute the conveyance deed or declaration as provided under Maharashtra Apartments Act, 1970 in favour of the applicant/s. xxi) Draft conveyance deed / Declaration proposed to be executed in favour of the applicant.

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