August 2018 - Ved Legal

Advocates For Company Registration Process

There are 5 types of companies that can be registered in India
• Sole Proprietorship Firm
• Partnership Firm
• One Person Company
• Limited Liability Partnership
• Private Limited Company
1. SOLE PROPRIETORSHIP FIRM
A sole proprietorship business is where a single individual runs the business. There is no separation between the legal identities of the business and the businessman. In other words, business debts are the businessman’s own debts. His liability is unlimited and he is personally responsible to bear all losses of the business.
 Following are some essential features of a sole-proprietorship:
• Easy to form
• One person ownership
• Unlimited liability
• No separation between business and business owner
• Freedom of decision making
• Secrecy.
• Tax benefits.
• Business exists as long as the owner does.

 Registration of Sole Proprietorship Firm
There is no formal process for registering a Sole-proprietorship in India. Therefore, the existence of a sole proprietorship business can be established only through opening a bank account in the name of the proprietorship firm or obtaining licenses required for conducting the business under various other acts such as:
• Shops and Establishments, for the premises.
• FSSAI License Food License, if you are thinking to start food truck, restaurants, food joints, food item or consumable item packaging, food item or cosumable item delivery etc.
• GST Registration It is a mandatory for all Business or Professional entities with turnover exceeding INR 20 lakhs are required to obtain Goods & Services Tax (GST) registration compliance
• Trade License, issued by the municipal corporation of a city, allows a business owner to carry on an activity or manufacture or exchange of any commodity.
• Import Export Code (IEC), if you want to import or export.

However, please note that you don’t need to register under all these acts. The kind of registration will depend upon a) type of your business b) expected annual turnover and c) location.
2. PARTNERSHIP FIRM
A partnership firm is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed. All the partners have unlimited liability, which means they are personally liable for the debts of the business.
 Following are some essential features of a Partnership:
• Aim is to share profits and not losses.
• Losses, if any, will be borne by partners in their profit sharing ratio.
• Only persons who are competent to contract# can form a partnership.
• A minor cannot be a partner in a partnership. But, he is allowed to share the profits from a partnership business.
• No partner is allowed to transfer his share in partnership to any other person without the consent of all the other partners.
• There is a presumption of utmost good faith between partners.
• Every partner contributes to the business in some form or the other. It may be in the form of time, money, skills and/or goodwill.

 Registration of Partnership Firm:
A partnership firm can be registered whether at the time of its formation or even subsequently. You need to file an application with the Registrar of Firms of the area in which your business is located.
 Ensure that the following documents and prescribed fees are enclosed with the registration application :
• Application for Registration in the prescribed Form – I
• Duly filled Specimen of Affidavit
• Certified copy of the Partnership deed
• Proof of ownership of the place of business or the rental/lease agreement.

 Application for partnership registration should include the following information:
• Name of your firm
• Name of the place where business is carried on
• Names of any other place where business is carried on
• Date of partners joining the firm
• Full name and permanent address of partners.
• Duration of the firm
• Every partner needs to verify and sign the application

Once the Registrar of Firms is satisfied that the application procedure has been duly complied with, he shall record an entry of the statement in the Register of Firms and issue a Certificate of Registration.
3. ONE PERSON COMPANY
The concept of One Person Company (OPC) was introduced by the Companies Act of 2013. It is a cross or hybrid between the sole proprietorship and company forms of business and combines the best features of both. As the name suggests, it allows a single individual to form a company. It combines the freedom of a sole proprietorship business with the limited liability and various other benefits that come with operating as a company.
 Following are some essential features of a One Person Company:
• Any natural person can form a company. i.e. an individual
• The person must be an Indian citizen or a person who is resident in India
• Such person will be the shareholder and member of the company. No other shareholder is required.
• Such shareholder must nominate a person to act as his nominee to act as the shareholder/member in the event of his/her death incapacity.
• Consent must be obtained from a person before designating him/her as the nominee.
• An OPC must have a minimum of one director.
• The person forming the company may also act as the director.
• Such company can only be incorporated as a private company.
• It may be a company limited by shares, by guarantee, or an unlimited company.
• Minimum capital requirements are the same as applicable to a private company i.e. INR One (1) Lakh.

4. LIMITED LIABILITY PARTNERSHIP
An LLP is a unique mode of doing business which offers a combination of the flexibility of a partnership and limited liability of a company. It is governed by the Limited Liability Partnership Act, 2008. An LLP is the most preferred route taken by startups to incorporate their business.
 Following are some essential features of a LLP:
• It is a corporate body.
• It is a legal person separate from its partners.
• All the partners have limited liability.
• It provides perpetual succession to the business.
• Requires at least two partners and at least two individuals as designated partners.
• At least one designated partner must be a resident of India.
• Winding up may be voluntary or may be initiated by a tribunal/High Court.
• The Indian Partnership Act does not apply to an LLP.
• The Central Government is allowed to apply provisions of Companies Act to an LLP.

5. PRIVATE LIMITED COMPANY
Generically defined, a private company would be an association of persons who share a common purpose and pool their resources in order to achieve that purpose.
As per The Companies Act, 2013, a minimum of two persons can form a private company.

 Following are some essential features of a Private Limited Company:

• Huge capital
• Raise capital from angel investors, venture funds etc.
• Maximum number of members is 200 for private company.
• Limited Liability of all the members.
• Separate Legal Entity
• The memorandum must state the word ‘private limited’ with the name of the company.
• Minimum number of directors is 2 for a private company.
• Right to transfer shares is restricted in the case of a private company.
• The minimum capital requirement of INR 1 lakh for private companies
• Use of common seal is optional.

 Private Limited Company – The most successful business type.
In a private company, the business owners hold all shares of the company privately. Shareholders may operate the business themselves, or hire directors to manage the company on their behalf. Registering a private limited company results in protection of personal assets, access to more resources, financial assistance and greater credibility.
 Limited Liability Partnership (LLP) – A corporate form of Partnership
It exhibits elements of both partnership and corporation. In LLP, one partner is not responsible or liable for another partner’s misconduct or negligence unlike a traditional partnership in which each partner has joint and several liability.
All these three forms of business have the feature if Limited Liability and Separate Legal Entity, ie, the members or partners have no personal liability. Yet, they are different from each other in various aspects.
 One Person Company (OPC) – A corporate form of Proprietorship.
One Person Company (OPC) has been recently introduced in India to promote business enterprises that are owned and managed by a single Entrepreneur. OPC allows for a single individual to own and manage the business. One Person Company is therefore a viable option for those looking to start an unregistered Proprietorship.
 Documents required for Private Limited Company Registration
For Directors/Shareholders
• One Photograph.
• Copy of PAN Card.
• Copy of Address proof – Aadhaar Card/Driving License/Passport/Voter ID.
• Copy of Bank Statement/Mobile Phone/Landline Telephone Bill.
• Copy of Aadhaar Card.

For Company Address
• Proof of Registered Address – Sale Deed/Rental Agreement
• Copy of Utility bill – Electricity/Landline telephone/Gas Bill – not older than two months.
• No Objection Certificate for use of premises, if required

It usually takes 15-20 days to Register a Private Limited Company through SPICe INC-32 (A single application for Reservation of Name, Incorporation of Company and Allotment of DIN), subject to ROC processing time.
These are four major steps:
• Acquiring Digital Signature Certificate(DSC)
• Acquiring Director Identification Number(DIN)
• Filing an e-Form or New user registration
• Incorporate the company

It’s necessary to get registered yourself to run your business without any legal problem. India is a land of opportunity, no matter in which field your business is operating the chances of getting success is very high, so it just needs a start. starting an entrepreneurship in India would fetch you great success. fallow this post sincerely till you incorporate your final claim for your company. We assure one will end up in getting their business registered after following this procedure.
Private company may have two directors, but a public company must have at least three directors.

FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

By admin|August 31st, 2018|Uncategorized|Comments Off

Advocates for agreement in Pune

There are various ways through which you can transfer a property that you own. It could be by way of sale, Will or gift. A commonly used method, especially when transferring to a family member or friend, is executing a gift deed in favour of the recipient. Though no monetary transaction is involved, it is still necessary to register the gift deed to make the transfer valid.
1) At time of Sale of Immovable Property, we come across the market value of the property. What exactly is the meaning of market value of property?
It means the price which such property would have fetched if sold in open market on the date of execution of such Document or the consideration stated in the document whichever is higher. However the Stamp office uses Ready Reckoner for referring to prevalent value of the property.
Stamp Duty is paid on the Market Value of the property and not on the amount of consideration stated in the Document.
2) Why Stamp duty is required to be paid?
It is kind of Tax like Sales Tax or Income Tax. And it must be paid in full and on time to the government. When there is a delay in payment, penalties are imposed. If it is properly paid as per the approved rate and after ascertainment of market value of the property, then the instrument / document/ agreement is treated as duly stamped document which can be admitted as evidence in any lawful transaction or in the court. if they are not properly stamped, Court or the Competent Authority may impound the same or will not be accepted as evidence.

FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

By admin|August 31st, 2018|Uncategorized|Comments Off

FORMATION OF A NEW HOUSING SOCIETY

First general body meeting (before registration)
In this meeting under Society’s Model Bye-law 3(iii), the Chief Promoter (could be the builder) is primarily selected by the promoters, who are members co-signing the registration application before the Registering Authority, under Bye-law 3(xii).
Application for registration
Normally, the name reservation proposal should be accompanied with the society resolutions and signatures of at least 10 Promoters who have attended the meeting. On allotment of name and permission to open a bank account by the Registrar, the Chief Promoter has to collect Share Capital, Entrance Fees from promoters and deposit the same in the branch of the bank permitted by the Registrar. It should be noted that the amount cannot be withdrawn from the Bank till the society is registered or its registration is refused, except with prior written permission of the Registrar. The Chief Promoter should submit registration proposal to the registering authority within a period of 3 months from the date of issue of Letter of Reservation in the name of the proposed society.
Co-operative Societies Commissioner & Registrar’s GR No. SAGRUVO/1094/Pra.Kra 277/14C dated 10 March 1995 says “By exercising the powers in section 7 of the Co-operative Societies Act 1960 the government is pleased to exempt the provision of minimum 10 members for registering co-operative Housing society under sub-clause 1 in Section 6 of the said Act subject to the conditions that the plinth area of each flat in the proposed co-operative Housing Society should not be more than 700 sq. ft and FSI should not be balance for utilization in the proposed societies land/ building.
If builder/ promoter is not co-operating in registering the Co-operative Housing Society, then in that case, the application for registration of society be submitted in Form 6 (Rule 12) before the District Deputy Registrar, who has been given power under section 10(1) of the Maharashtra Ownership Flats Act 1963. While submitting the said proposal, a Notarized Indemnity Bond of the members who applied for the registration of society on the stamp paper of Rs. 200 is required.
Approval by Registrar
It is the duty of the concerned Registrar to register the Co-operative Housing Society, by scrutinizing the proposal submitted after fulfillment of above mentioned documents, and shall make an arrangement of issuing certificate of registration society under Section 9(1) of the Maharashtra Co-operative Society Act 1960, and copy of the registered bye-law, memorandum regarding registration of society to the chief promoter. The order regarding registration of society should have been sent for publishing in government gazette to the Government Printing Press for appropriate action. It is necessary to take decision on the registration of the society within a period of two months from the date of the proposal of the society submitted to the Registrar.
If proposal of society registration is denied or no decision is taken within two months then it is necessary to send that proposal to the Divisional Joint Registrar, Co-operative Societies under Section 152 of the Maharashtra Co. operative societies Act, can be approached.
First General Body Meeting obligatory Agenda (after registration):
• To elect a Chairman for the meeting
• To admit persons to membership who have applied for membership of the society.
• To elect a provisional Managing Committee
• To receive and approve the statement of account as prepared by the Chief Promoter of the society up to 14 days prior to the first general body meeting of the society.
• To authorize the committee to secure conveyance of right title and interest in the property in the name of the society from the promoter builder
• To impose restrictions on raising loan amount from outside
• To appoint internal auditor and to fix his remuneration
• To authorize one of the members of the provisional committee to call the first meeting of the provisional committee
• To take decision about taking membership of District Housing Federation and other institutions
• To give power to one member of provisional management committee to call meeting of the managing committee
• To consider the matters raised by the member except these matters which are necessary for giving advance notice with the permission of chairman and eleventh hour matter and to make resolution in that regard.

FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

By admin|August 31st, 2018|FORMATION OF A NEW HOUSING SOCIETY|Comments Off

CONVEYANCE SERVICES FOR SOCIETIES

In most of the cases people believe that a Purchase Agreement is the final document they need to own. However, a mere purchase agreement does not pass on the developer’s rights on the land to the society. Societies need to make sure they have the complete right to the land, and mere society registration and formation does not provide those rights.
A Conveyance Deed helps societies to gain the right of their land. Post this builder relinquishes his legal right on the land.
We the “VED LEGAL” provide end-to-end conveyance services to the societies including execution of Conveyance Deed, Deemed Conveyance, and Deed of Apartments. We work closely with co-operative societies and government officials and make sure the complete process is hassle free.
With our team of legal advisers and professional approach, we have handled more than 100 cases across Pune. We guide our clients through the complete process of transferring builder’s rights, allocation of additional space and finally establishment of society rights, as per the law.
Our conveyance services include:
Apartment formation:
• Deed of Declaration • Deed of Apartment
Co-operative Societies Conveyance:
• Conveyance deed with builder’s consent • Deemed Conveyance – without builder’s consent

FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

By admin|August 31st, 2018|Uncategorized|Comments Off

Laws Applicable to Co-Operative Society

The Cooperative Societies Act, 1912 expanded the sphere of cooperation between its members and provided for supervision by central organization. A cooperative society, which has its object the promotion of the economic interests of its members in accordance with the co-operative principles may be registered with limited or unlimited liability by filing application to the registering authority with requisite documents to be submitted by them
A Co-operative Society has to conduct itself as per the following listed below:
1. Co-operative Societies Act under which the same is registered whether it be under state Act or Central Act.
2. Co-operative Societies rules made there under whether it be central or state rules
3. Bye-laws approved by the registrar at the time of registration and amendments made from time to time and approved by the registrar, these bye-laws have to be formed by the concerned members themselves and present it to the registration authority for its approval.
4. Notification and Orders by the concerned Government
The following steps have to be followed while forming a Co-operative society, they are
Step 1: Ten Individuals together who are desirous of forming a Society
To form a society, law mandates that 10 members minimum must show intention to be part of the society having same aim and objective to be achieved through the society for their mutual benefit and thereby be desirous to be part of it.
Step 2: Provisional Committee to select Chief Promoter
Once a group of individuals have a desire to form a society the next step should be there must be a provisional committee of which everyone is part of and all of them should by mutual consent or by majority whichever their prefer must choose a person who will be a chief promoter of the society which is going to be formed by them.

Step 3: A Name for the Society has to be selected
Thereafter once a chief promoter is selected by set of individuals among them, they have to select a name for the co-operative society which they wish to form
Step 4: Application has to be made to the Registration Authority
Once the name of the society is selected by the members then they have to make a application to the registration authority stating that they have a intention to form a society and the name of the society has to be given to the authority for its approval and registering authority has to confirm that name is in conformity with laws and issue a confirmation certificate to the members. Then when the members get their name approval from the authority it is valid for 3 months from the date of approval.
Step 5: entrance fees and share capital
Thereafter once name approval comes from the concerned authority, the entrance fee and the share capital must be collected from the concerned prospective members to meet the statutory requirements under law and it can be prescribed by the members themselves or society act mandates certain fees to be paid by them.
Step 6: Bank Account
Thereafter once the prescribed fee and share capital is collect from the prospective members, then as per the directions of the registering authority promoter has to open a bank account in the name of the society and deposit the said fees and share capital in that account and a certificate has to be obtained from the bank to that effect
Step 7: Application for registration
Once the bank formalities are completed then the promoter has to apply for the society formation to the registration authority and it has to be accompanied with set of documents, they are
Form No. A in quadruplicate signed by 90% of the promoter members
1. List of promoter members
2. Bank Certificate
3. Detailed explanation of working of the society.
4. Four copies of proposed bye-laws of the society.
5. Proof of payment of registration charges.
6. other documents such as affidavits, indemnity bonds, any documents specified by the Registrar also have to be submitted.
All these documents have to be submitted at the time of applying for registration of the society to the registering authority and the authority after it is satisfied with the documents submitted to it has to apply its mind to whether or not to register the said society.
Step 8: Registrar has to acknowledge
After the submission of the said documents has mentioned in step 7, the registrar of that municipal ward has to enter the particulars in the book called the “register of Application” which is generally specified in form B and give it a serial number to the application. Thereafter the registrar has to issue a receipt to that effect and give it to prospective members to know the status of the application when it is pending.
Then the registrar after perusal of the records submitted to him/her has to make a decision whether has to issue a certificate of registration or not and if there are any discrepancies noticed then he/she has to inform the members of the same and get it rectified if any.
Step 9: Registration
Last step is that the registering authority after being satisfied with the documents meeting the legal requirements will notify the registration of the society in the official gazette mentioned by the state or central government and should issue the registration certificate of the society and give it to the members of the society.
Conclusion
In India, Co-operative Societies were regarded as ideal instruments to motivate the people to come together and help themselves in the process of eliminating the unscrupulous middlemen making a huge profit at the expense of the society.
The main guiding factor if an individual or group of individuals want to form a society must be whether all the concerned members have common goal to achieve or not, it is important factor because only when they share common desire or intention then only society is desirable otherwise the whole purpose of forming a society will be defeated.
Societies like any other business structure come with certain advantages and disadvantages, they are:
Advantages
• Cooperative stores supply quality goods unlike other shops wherein adulterated foods maybe given to its consumers and thus saved them from adulteration and other malpractices.
• As consumers or members of the society are the owners and managers of such stores, genuine requirements of the majority of consumers can be met. In other words, goods required by a majority of the customers or members of the society are always dealt by such stores.
• Cooperative societies are an important form of democratic business enterprise because ownership is not vested in one person completely so as a result, no single group can secure control over the organization.
Disadvantages
• It only caters to the needs of small and medium-income groups so when there are large group with higher economic interest then it is preferable to choose another business model.
• There is much dependence on the honesty, integrity and loyalty of members and workers and once there are trust issues between the members it is hard to transact business thereafter.
• It is limited to certain objectives hence profits are minimal.
• Management of society usually rests in the hands of people with less managerial experience due to which society will suffer and many do not invest in hiring professionals to handle the society due to lack of funds or interest so henceforth growth of the society maybe put to stake by its own members.

COMPARISON BETWEN CO-OPERATIVE HOUSING SOCIETY AND CONDOMINIUM
Act – Co-operative Society, which is regulated by the Maharashtra Co-operative Societies Act, 1960.
Act – An alternative to a Co-operative Housing Society was introduced by the Maharashtra Apartment Ownership Act, 1970. Condominium is a Building or Complex of Buildings containing a number of individually owned Apartments or houses. ownership of common areas is shared by all.
Requirement for formation – Generally require minimum 10 members/Flats to form CHS.
Requirement for formation – In Condominium, even one person who owns the entire building can form a Condominium provided there are at least five Apartments in the building.
Conveyance Deed of the land – The title of the land and the building is transferred and conveyed to the Society, which becomes the owner thereof.
Conveyance Deed of the land – The title of each Apartment rests with the Apartment owner, who also has a proportionate undivided interest in the land on which the building stands the common areas and facilities of the building.
Share Certificate – A Society issues certain shares to its members as per the Bylaws and the Share Certificate becomes an important title deed, since the allotment of the premises are related thereto.
Share Certificate – This is not so in a Condominium of Apartments/Buildings.
Management Committee – The affairs of the Society are managed by the Managing Committee which is elected by the members of the Society. The Managing Committee elects a Chairman, Secretary, and a Treasurer. Election conducted by State Co-op Election Authority(SCEA)
Management Committee – Similarly, the affairs of a Condominium are managed by the Board of Managers who is elected by the members of the Apartment Owners Association. The Board also elects a President, Vice-President, Secretary and a Treasurer.
Share Charges & Flat Transfer fee – Under the Model Bylaws, a Society can charge only Rs. 500/- as Transfer Fee with a maximum of Rs 25,000/- as a premium.
Share Charges & Flat Transfer fee – The Bylaws can be more flexible and the amount of Transfer Fee can be provided therein.
Renting Out Flats – In a Society, permission of Managing Committee including ‘Police Verification’ & Register L&L is required.
Renting Out Flats – In a Condominium, the owner can give his Apartment on lease or leave and license basis without the approval of the Board of Managers
Voting Rights – Every member has one vote, irrespective of the area of their premises.
Voting Rights – Every Apartment owner has a voting right in proportion to the value of his premises which is generally as per the area of the Apartment owned by him and which is defined while forming the Condominium.
Dispute Resolution – In a Society, disputes are generally referred to the Registrar appointed under the Act or to a Co-operative Court, depending on the nature of the dispute.
Dispute Resolution – The Court having jurisdiction over the area in which the Condominium is located, hears the disputes.
Membership cease & Expel – A Society can expel its member under certain extreme circumstances.
Membership cease & Expel – In case of a Condominium, there is no such provision. However, if an Apartment owner fails to comply with the Bylaws or the Rules and Regulations, either damages or injunctive relief or both can be claimed against him.
Nomination – In a Society, a member can nominate a person in whose favour shares of the Society should be transferred upon the member’s death.
Nomination – No such facility is available in a Condominium. An Apartment can be transferred to a person to whom the Apartment owner bequeaths the same by his will or to the legal representative of the Apartment owner’s estate.
Bye Laws of society – Bye-laws and Rules of ‘Society’ are binding on all the residents and nobody can act as per his/her whims. Hence, if the Society decides to ban any objectionable commercial activities in the flats such as noise-making music classes or using the flat for catering or courier activities etc or not to rent out to bachelors etc, then all the residents have to abide by it
Bye Laws of society – But if it is an Apartment, then owners can violate the Apartment Rules and the Apartment Body can just file a case in the Civil Court.
Redevelopment – When the building contemplates redevelopment after 25-30 years, the Society’s decision will be final and hence the Society members will have negotiation power with the builder at that time.
Redevelopment – But if in case of an Apartment, the consent of every Apartment-owner is required and hence it goes into an endless delay due to lack of a common decision acceptable to everybody.

FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

By admin|August 30th, 2018|Laws Applicable to Co-Operative Society|Comments Off

Advocates for Agreement to Sale

FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

By admin|August 30th, 2018|Uncategorized|Comments Off

ADVOCATES FOR REGISTRATION OF HOUSING SOCIETY

A co-operative society is the perfect fit for a residential building as flat-owners have common needs (water connection, watchmen, etc) and interests (maintenance of common areas, such as the terrace and compound). If you’ve purchased a flat in a new building, it would probably be best if you took interest in forming a society. The builder may also be statutorily obligated to form a society. For example, under Maharashtra Flat Ownership Act, 1963, a builder must form a society within four months of selling 60% of the flats.
But you needn’t wait for the builder to form the society. In many states, including Delhi and Maharashtra, ten flat-owners are enough to promote a co-operative housing society. A building without a housing society usually indicates that there is a dispute between members or a general lack of interest. If you’re considering buying a house in a building where the society has not been formed, find out what the problem is. If the builder does not form a society, rights to the terrace and the compound continue to rest with him.
We, the “VED LEGAL” provide registration and formation services which help you at every step of society formation, right from inception to final handover. We look after all the legal complications involved in society formation and carry out necessary negotiations with developers.
We have also completed the registration process for various projects. We specialize in society formation of housing societies, commercial societies, maintenance societies and large townships. We help developers and societies with complex registration process during society mergers, society split, and federation registrations.
Our specialized services include:
• Initial screening
• Gap identification and ratification
• Process documentation and finalization
• Dispute resolution
• Society name reservation at respective co-operative departments
• Account formation and legal documentation

FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

By admin|August 30th, 2018|ADVOCATES FOR REGISTRATION OF HOUSING SOCIETY|Comments Off

WHY CONVEYANCE DEED IS AN IMPORTANT DOCUMENT?

A deed is a written document or an instrument that is sealed, signed and delivered by all parties to the contract (buyer and seller). It is a contractual document that includes legally valid terms, and is enforceable in a court of law. It is mandatory that a deed should be in writing, and that both parties involved must sign the document.
There are different kinds of deeds, such as lease deeds, partnership deeds, trust deeds, gift deeds etc.

A conveyance deed is essentially one wherein the seller transfers all rights to legally own, keep and enjoy a particular asset, immovable or movable. In this case the assets under consideration are immovable, namely property.

On signing a conveyance deed, the original owner transfers all legal rights over the property in question to the buyer, against a valid consideration (usually monetary). This consideration, however, is irrelevant in the case of gift deeds, as they are based on fraternal or familial bonds.

A ‘conveyance deed’ or ‘sale deed’ implies that the seller signs a document stating that all authority and ownership of the property in question has been transferred to the buyer.
It is required to contain the following:

• Defined demarcation of the boundaries of the property
• Other rights (if applicable) annexed to the property and its use
• The chain of title i.e. all legal rights to the present seller.
• The method of delivery of the given property to the buyer.
• A memo of the consideration, stating how it has been received
• Any other terms and conditions that are applicable as far as the transfer of ownership rights are concerned.

Once the conveyance (or sale) deed has been executed on non judicial stamp paper, it needs to be registered. This can be done by presenting it at the Registrar’s office, and remittance of the registration fee.

Once the registration is done, the transfer moves into the public domain. The Government obtains its revenue in the form of Stamp Duty and Registration Fees, and at this point the process of conveyance is officially over.

get the rights for re-construction of the building only when the deemed conveyance is executed.

FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

By admin|August 30th, 2018|Uncategorized|Comments Off

CONVEYANCE VS DEEMED CONVEYANCE

Conveyance Deed is a document executed to transfer the title of land and building in favour of Society.

MEANING OF DEEMED CONVEYANCE:

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 favour 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 favour of the legal body by passing the necessary order and deemed conveyance certificate and appoint an authorized officer to execute the conveyance deed in favour 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.

DIFFERENCE BETWEEN THE DEEMED CONVEYANCE AND THE REGULAR CONVEYANCE

In case of regular conveyance, the builder/ Developer/ Land owner 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 favour of the society.

FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]

By admin|August 30th, 2018|Uncategorized|Comments Off

PROVISIONS FOR DEEMED CONVEYANCE UNDER MOFA

Amendments in Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 2005 giving a huge relief to hundreds and thousands of flats purchasers in Maharashtra. Conveyance to the societies was a burning issues which have integrated many problems like property tax, housing finance documentations and major repairs or redevelopment.

The highlights of the amendments are as under:
• Builder/s will have to execute the conveyance.
Power is given to the District Deputy Registrar to act as Competent Authority. (Sec. 5A)
• Power is given to Competent Authority for registration of Co-operative Society under the provisions of Maharashtra Co-operative Societies Act, 1960. (Sec. 10(1) )
• It is the duty of the promoter (builder) to file with the Competent Authority within the prescribed period a copy of the conveyance executed by him (Sec. 11(2))
• If the promoter fails to execute the conveyance in favour of Co-operative Society, Company or Associations or Apartment Owners as the case may be, then the flat purchasers can approach the Competent Authority with true copy of registered agreement of all the flat purchasers including Occupation Certificate, Registration Certificate of the society then in such circumstances the Co-operative Society, Company or Associations is entitled to have unilateral deemed conveyance (Sec. 11(3))
• The proceedings before the Competent Authority have to be completed within a period of 6 months. The Competent Authority must verify the authenticity of the document produced before him and after giving a reasonable opportunity to the promoter, if satisfied will issue a certificate to the Sub-Registrar or any other Registration Officer under the Registration Act, 1908, certifying that it is a fit case for enforcing unilateral execution of conveyance deed conveying the right, title and interest of the promoter in the land and the building in favour of the applicant, as deemed conveyance(Sec. 11(4))
• The sub registrar after receipt of the certificate issued by the Competent Authority along with the unilateral instrument of conveyance can issue summons to the promoter to show cause why the unilateral instrument should not be registered as deemed conveyance. However, reasonable opportunity of being heard may be given to the promoter. If the Sub-Registrar is satisfied then he will register the unilateral conveyance as ‘deemed conveyance’. (Sec. 11(5))
• The Competent Authority has been created who has powers to award criminal imprisonment to the builder/s for a period not less than 6 months and not more than 1 year and / or along with fine ranging from Rs 10,000/- to 50,000/-. (Sec. 13(3)(a) & 13(3)(b))
• The builder/s if convicted will not be able to carry on construction activities for a period of five years. However, the disqualification shall not affect the permission for construction of flats already granted. (Sec. 13 (4), 13(5) & 13(6) )
• The Competent Authority shall be deemed to be a public servant as per the provisions of Indian Penal Code. (Sec. (13B)
• Proceedings before Competent Authority shall be aimed to be judicial proceedings as per the provisions of Indian Penal Code. (Sec. 13C)
• Competent Authority shall be deemed to be a Civil Court for certain purposes. (Sec. 13D)
• No action can be taken against the Competent Authority for acts done in good faith by the Competent Authority. (Sec. 13E)

FOR MORE DETAILS CALL:
VED LEGAL,
• Adv. Gajanan Rahate
• Mob: 9763040088
• E_mail: [email protected]

By admin|August 29th, 2018|PROVISIONS FOR DEEMED CONVEYANCE UNDER MOFA|Comments Off

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