Deemed conveyance: Who is responsible, CHS or the builder?
Vinod Sampat 22 November 2013

To avoid problems like Campa Cola later on, home buyers and cooperative societies must ensure that the issue of conveyance deed is sorted so that the CHS becomes title holder of the society land

In the final piece in the run up to Vinod Sampat event to be held on 23 November 2013 in Mumbai, Mr Sampat talks about one of the most pressing issues that home buyers, cooperative societies and apartment owners face today: conveyance deed or deemed conveyance. To avoid major problems later on, or to avoid problems such as Campa Cola compound residents, you will need to first resolve the issue of becoming legal title holder of the land through conveyance deed or deemed conveyance. In the Campa Cola compound case, since the builder constructed illegal floors, it never handed over the land of the plot to the Society (deemed conveyance) as mandated under the laws.

 

Whose responsibility is it to convey the title?

As per the provisions of section 11 of the Maharashtra Ownerships Flats Act (MOFA), the promoter is duty-bound to complete his title and convey the same to the organisation of persons who had bought the flat (i.e. cooperative society, CHS, home buyer, apartment owner, etc). The Conveyance has to be executed and the promoter or builder has to deliver the title relating to the property. It is also the duty of the promoter to file a copy of the conveyance with the flat purchasers and the competent authority under section 11(2).

 

The buyer after forming a cooperative society (or CHS) also can approach the competent authority for obtaining a unilateral deemed conveyance in favour of the legal entity i.e. cooperative society, CHS, apartment or a company.

 

The competent authority on receiving such application shall within reasonable time but in any case, not later than six months after making such enquiries as deemed necessary, after verifying authenticity of the document submitted, after giving the promoter reasonable opportunity for being heard, shall issue a certificate to the sub-registrar or any other appropriate registration authority under The Registration Act, 1908. This certifies that there is a fit case for enforcing unilateral execution of Conveyance Deed, conveying the right title and interest of the promoters in the land and building in favour of the applicant as Deemed Conveyance.

 

Submissions made by the cooperative society or apartment owner to the sub-registrar shall, (or the appropriate registering authority), on the basis of the certificate issued by the competent authority, along with the unilateral instrument of conveyance, notwithstanding anything contained in The Registration Act, 1908, issue summons to the promoters as to why unilateral instrument should not be registered as Deemed Conveyance.

 

After giving the promoter reasonable opportunity of being heard, after being satisfied that is a fit case for unilateral conveyance, (the competent authority or sub-registrar) shall register instrument as deemed conveyance.

 

Deemed conveyance in our view is doomed conveyance
 

You should approach consumer forum where you can get the property card transferred directly besides daily compensation for not getting building completion certificate. In Environ Emmanual CHS Ltd, an order was passed in 128 days by consumer forum. However, normally it takes one to two years. Interim order may be passed in about four hearings.
 

“Speed money” in deemed conveyance is an open secret ALLEGED by one MP. Despite political will, a small percentage of the societies have got deemed conveyance order. Irrespective of the claim of authorities not even 25 societies, in our view, have got the property card transferred in their name till date.
 

Other conveyance-related issues covered by Moneylife in the past can be accessed below:

Many housing societies are keen for redevelopment but they cannot go for redevelopment for want of conveyance. Advocate KK Ramani, an expert on realty issues, spoke recently at a Moneylife Foundation seminar, explained the intricacies of the laws governing housing societies. Check out the entire write up here:
 

The video of the KK Ramani’s Deemed Conveyance seminar event can be accessed here:
 

New Housing Bill in Maharashtra: How builders gain and customers lose
 

Previous parts can be accessed below:

 

Check the first part over here

Check the second part here

Check the third part here

Check the fourth part here

 

 

NOTE:
Those seeking help or advice on CHS issues can contact
Moneylife Foundation’s Legal Resource Centre (LRC) ( http://moneylife.in/lrc.html )

 

(Adv Vinod Sampat is a practising lawyer since past 28 years. He has authored several articles on property-related matters and written 46 books on cooperative societies, transfer of flats, recovery of dues, registration and stamp duty matters. He has been an Hon. Patron member of the Estate Agents Association of India. He is also the Hon. Advisor of the Federation of Accommodation Industry of India and is an advisor to the Maharashtra Chamber of Housing Industry as well as the Federation of Accommodation Industry in India, apart from being part of many committees and winning several honours.)

Comments
almira1313
9 months ago
H
Reshma Nair
8 years ago
Hello Sir,

I am Reshma Nair living in Bhayandar east, KamadhenuC.H.S. I have my own flat which is located in 1st floor, we have an extra space outside the living room(like a open terrace)which can be access thru the living room if we break the wall. So i want to know whether i can take that open space for use what are the legal formalities in order to claim that space.

(our society consist of 100 flats and 30 shops. Society has decided to get conveyance deemed from the builder and for that each house owner has to pay RS.2700 towards that.)

So please reply considering the above situation as well.


Thank You,
Reshma Nair
9821844369
[email protected]
Vishrut Patel
Replied to Reshma Nair comment 7 years ago
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