Has your Society got Conveyance ?
Dear Chairman / Secretary,
Has your Society got Conveyance ?
Several housing societies in Mumbai have, till date, not obtained 'deemed conveyance'.
Is your society one of them?
We tell you why it's vital to acquire the document without further delay.
The ownership of land is "an odd thing” when you come to think of it. How deep, after all, can it go?
If a person owns a piece of land, does he own it all the way down, in ever-narrowing dimensions, till it meets all other pieces at the centre of the earth? Or does ownership consist only of a thin crust under which the friendly worms have never heard of trespassing? Do we own the land on which our homes are constructed? Is one of the biggest assets for an individual secure from any unforeseen circumstances?
What is deemed conveyance?
"As per section 11(1) of the Maharashtra Ownership Flats Act, 1963, read with Rule 9 of the Maharashtra Ownership Rules, 1964, the developer and the land owners are required to convey the right, title and interest in the land and building in favour of the society/company or the association of flat purchasers within four months of its registration."
"After the expiry of the statutory period of four months, the said land and building are 'deemed' to have been 'conveyed' to the registered legal body and the legal body thereafter, can represent before the competent Authority (District Deputy Registrar) to convey the same, in favour of them by giving sufficient opportunities to the builder and land owner within six months of making such application. This process of getting the land and building conveyed in favour of the legal body of the housing complex through the competent authority is called deemed conveyance.”
Legally speaking, the society members only have the possession rights of their flat and not the land on which their building stands. Hence, it's very important that once the society is formed, the members put in all their efforts to secure conveyance for their building.
Why does the housing society require deemed conveyance?
What is deemed conveyance?
"As per section 11(1) of the Maharashtra Ownership Flats Act, 1963, read with Rule 9 of the Maharashtra Ownership Rules, 1964, the developer and the land owners are required to convey the right, title and interest in the land and building in favour of the society/company or the association of flat purchasers within four months of its registration."
"After the expiry of the statutory period of four months, the said land and building are 'deemed' to have been 'conveyed' to the registered legal body and the legal body thereafter, can represent before the competent Authority (District Deputy Registrar) to convey the same, in favour of them by giving sufficient opportunities to the builder and land owner within six months of making such application. This process of getting the land and building conveyed in favour of the legal body of the housing complex through the competent authority is called deemed conveyance.”
Legally speaking, the society members only have the possession rights of their flat and not the land on which their building stands. Hence, it's very important that once the society is formed, the members put in all their efforts to secure conveyance for their building.
Why does the housing society require deemed conveyance?
It is essential for a resident of a housing society or an apartment complex to be aware of and understand the concept of deemed conveyance. "The housing society requires deemed conveyance to get absolute rights, title, interest and ownership of its property.”
To add to it, for any housing society, it is of utmost importance to obtain deemed conveyance and have the land named after their society, failing which, a housing society cannot go through the process of redevelopment. "In metros such as Mumbai and several others, there are numerous housing societies, which were constructed several years ago, and need to be redeveloped. Deemed conveyance is a reformatory measure, mandatory for a society to acquire eligibility for redevelopment.”
Why are most societies unable to acquire deemed conveyance?
Approximately 90 percent of the housing societies in Mumbai have till date, not acquired a deemed conveyance. The primary reason is mostly attributed to the lack of awareness among society members about such an important right.
"Many co-operative societies do not complete the conveyance procedure due to the promoter builder developer not executing the conveyance." Not availing professional help, a lack of proper documents, a lack of awareness are also said to be the reasons why many societies do not have deemed conveyance.
The role of the developer and government:
As per section 11 of Maharashtra Ownership Flats Act, 1963, read with Rule 9 of the Maharashtra Ownership Rules, 1964, it is the statutory duty of the developer to clear the title of the land and building and convey the same to the society or the company or the association of flat purchasers within four months of its registration.
Deemed conveyance is a legal document through which the society will get absolute rights, title, interest and ownership of its property (land and structures) in the name of the society. If the society fails to acquire this document, the builder continues to be the legal owner of the land and can sell it at any given point of time.
Therefore, it's important that the society members take the initiative and acquire this document at the earliest.
Approximately 90 percent of the housing societies in Mumbai have till date, not acquired a deemed conveyance. The primary reason is mostly attributed to the lack of awareness among society members about such an important right.
"Many co-operative societies do not complete the conveyance procedure due to the promoter builder developer not executing the conveyance." Not availing professional help, a lack of proper documents, a lack of awareness are also said to be the reasons why many societies do not have deemed conveyance.
The role of the developer and government:
As per section 11 of Maharashtra Ownership Flats Act, 1963, read with Rule 9 of the Maharashtra Ownership Rules, 1964, it is the statutory duty of the developer to clear the title of the land and building and convey the same to the society or the company or the association of flat purchasers within four months of its registration.
Deemed conveyance is a legal document through which the society will get absolute rights, title, interest and ownership of its property (land and structures) in the name of the society. If the society fails to acquire this document, the builder continues to be the legal owner of the land and can sell it at any given point of time.
Therefore, it's important that the society members take the initiative and acquire this document at the earliest.
The government has simplified the process of acquiring conveyance for the stakeholders and this will create a win-win situation for both, the government as well as the housing societies in the city.
In case your society requires any assistance in the above you can contact Dayanand Nene, Sahakarsutra on 8879528575 and seek an appointment to discuss your matter.
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