The state of Maharashtra has always found a sense of equity and security in the concept of cooperative housing societies for creating communities and housing societies. That said, a sizable number of societies and residents therein remain unaware that without legal ownership of land on which the society’s structures are built, they remain vulnerable to legal and financial complications. To mitigate the issue and provide a measure of relief is the “Deemed conveyance”, a crucial provision that transfers ownership rights from developers to societies, ensuring complete legal control.
Thus, it is essential and urgent that people understand more about this document, its implications, and ways to obtain it to protect one’s property rights, enable redevelopment, and ensure compliance with legal mandates.
Understanding the significance of a Deemed Conveyance
Conveyance is the legal process by which ownership of land is transferred from the Developer to the Cooperative Housing Societies (CHS). Under the Maharashtra Ownership Flats Act (MOFA) of 1963, developers must execute the conveyance deed within four months of the society’s formation or within an agreed timeframe. This provision inadvertently tilted things in favour of the developers, with CHS and residents being left out with little legal recourse.
Legal luminaries, aware of the likelihood of such a situation, had in the earliest law, the Maharashtra Cooperative Societies Act of 1960, included the provision of a “deemed conveyance” enabling societies to obtain legal ownership through a declaration by the Competent Authority- even in the absence of the builder’s cooperation.
Significance of Deemed Conveyance
- Establishing Legal Ownership
Without a valid conveyance deed, as per law, societies do not legally own their land. This situation, quite understandably, causes complications in redevelopment, mortgage loans, and approvals. Deemed conveyance takes away this uncertainty and brings much-needed legal security. - Facilitating redevelopment
Beyond a point, ageing buildings need urgent redevelopment. Without relevant documents to evidence ownership, societies struggle to negotiate favourable agreements and permissions. Deemed conveyance simplifies all of these processes. - Protection Against Builder’s Exploitation
In some cases, developers (inadvertently or otherwise) delay the issuance of conveyance deeds to retain control over a property. Deemed conveyance is the panacea that empowers societies, preventing exploitation and unauthorised claims. - Ease of Property Transactions
CHS members who want to sell their tenements or apply for home loans need legal proof of ownership. In the absence of a conveyance deed, transactions become tedious. The presence of deemed conveyance resolves this issue. - Compliance with Legal Mandates
Maharashtra Ownership Flats Act (MOFA) mandates timely ownership transfer with delays attracting penalties from developers. Deemed conveyance thus ensures societies too comply with legal requirements and avoid disputes.
The Process of Obtaining Deemed Conveyance in the normal course
- Application Submission
Societies apply to the District Deputy Registrar (DDR) of Cooperative Societies with essential documents such as the registration certificate, Index II copies, property tax receipts, and approved building plans. - Scrutiny and Hearing
The Competent Authority verifies documents and conducts hearings to resolve objections in a time-bound manner. - Issuance of Deemed Conveyance Order
If valid, the Competent Authority grants a Deemed Conveyance Certificate and executes the conveyance deed in favour of the society. - Registration and Mutation
The society registers the deed with the Sub-Registrar and updates land records to reflect its legal ownership.
Securing a Society’s Future Through Deemed Conveyance
Deemed conveyance is thus an essential for cooperative housing societies (CHS) in order to secure their legal rights, facilitate redevelopment, and ensure financial stability. Societies must proactively complete the process to protect their interests, comply with regulations, and eliminate dependency on developers. Obtaining the deemed conveyance document paves the way for future growth and security.
Adv. Mukesh B. Zende
B. Sc. LL.B. MBA, (Corporate Law)
Patent Attorney On Record
+919822268068
[email protected]
B. Sc. LL.B. MBA, (Corporate Law)
Patent Attorney On Record
+919822268068
[email protected]
