PROCEDURE FOR FILING AN APPLICATION FOR DEEMED CONVEYANCE

After the above mentioned conditions are fulfilled, the following steps shall be taken:

Write a letter /email to builder/ promoter requesting him to provide a draft of the SALE DEED/ CONVEYANCE DEED or providing the draft to him and requesting him to sign the same.

If the Builder rejects or postpones the same, send him a legal notice through an advocate requesting for the same.
Even then if the builder refuses, File an application with the Registrar of Co-operative Societies together with all the relevant documents and 2000 Rs. Court stamp fees.
Self-attestation all the copies enclosed (by the society)
The Competent Authority will assess the application and if any documents are missing he will ask the applicant to correct the mistake within fifteen days.
Thereafter, notice would be sent to the promoter and the land owners.
After receipt of the notice by the land owners and the promoters, the authority will hear both parties in the first hearing and ask both parties to produce further evidences in next hearing.
Thereafter, second hearing would be held and if the builder or landowners do not attend both first and second hearing then the authority will pass an exparte order.
Thereafter, the third and final hearing would be held and the authority would be held and order would be passed unless a legal question is raised.
Normally the whole process is completed within a period of 6 months.

By admin|March 16th, 2019|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:

Co-operative Societies Act under which the same is registered whether it be under state Act or Central Act.
Co-operative Societies rules made there under whether it be central or state rules
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.
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.

By admin|March 15th, 2019|Laws Applicable to Co-Operative Society|Comments Off

COMPARISON BETWEEN 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.

By admin|March 15th, 2019|COMPARISON BETWEN CO-OPERATIVE HOUSING SOCIETY AND CONDOMINIUM|Comments Off

How to register the society and which documents required for it?

Ans: It is obligatory to apply for co-operative society or Association of Apartment within four months from the taking possession of galas/flats/shops/units by holders, necessary for forming the co-operative society or Association of Apartment according to provisions mentioned under section 10 of the Maharashtra Ownership Flat Act 1963 and rule 8 of Rules 1964 there under. While taking into consideration of these provisions it is necessary to make an application for getting permission for opening bank account by keeping the name of the proposed society reserve by the builder/promoters/chief promoter to the Registrar, co-operative societies in the concerned. It is necessary to make selection of the chief promoter in the primary meeting of the members. If not desire to work as Chief Promoter for some reason than in such situation, any member from the galas/flats/shops/units holder can be selected as a Chief Promoter. However while submitting proposal it is necessary to submit consent letter that builder promoters are ready to co-operate for the work of registering the society. Following papers are necessary for submitting the proposal for getting permission for opening the bank account.

Application for opening the bank account by reserving the name of the proposed society in the prescribed format. (On adhesive court fee stamp of Rs.25/-)
Copy of the minutes of primary meeting (in the prescribed format)
Photo copy of the sale deed/development agreement executed between the original owner of the land and builder promoter.
Photo copy of the 7/12 extract or the Property Registered Card.
Photo copy of the power of attorney if given to the builder, promoter by the original owner.
Copy of the order form competent office under Urban Land Ceiling Act 1976.
Detailed scheme of the proposed society and its nature
List of the proposed members.

It is necessary to submit the proposal for official registration within three months of the date of getting permission for opening bank account by reserving the name of the proposed society for registration. If for some inevitable reasons, it was not possible to submit the registration proposal in the prescribed time limit then it is necessary to submit an application for extension of time limit for submitting the proposal of registration by the Chief Promoter.

In case of registration, the chief promoter should have to submit following documents:-

Application for registration in the prescribed format under rule 4(1) of the Maharashtra Co-operative Societies Rules 1961-Form A (Annexure A)

If the number of galas/flats/shops/units mentioned in the application submitted for registration is more than 10 then inclusion of promoter members for 51 per cent galas/flats/shops/units out of the total galas/flats/shops/units built or to be built in the said application. Otherwise, by preserving such proposal as immature, it is denied for registration. It is necessary that 51 per cent members out of the total members included in the application for registration should have to sign be their name. It is necessary that 10 members of the different families (Definition of the family) includes mother, father, son, husband, wife, unmarried daughter). Similarly minimum 10 members should be the residence in the jurisdiction of the society. As per prevalent policy of the government even less than 10 member’s society can be formed. However in such proposals the carpet /built up area of each galas/flats/shops/units should not be more than 700 sq. ft. Similarly it is also necessary to ensured that the entire F.S.I to be available as per prevalent constructions rules has been used and there is no possibility of additional construction work.

Form-B : Information of proposed society (In prescribed format)
Form-C : Information of Promoter Members
Form-D : Accounts statement (In prescribed format)
Detailed scheme of the proposed societies and its nature.
Balance statement of saving accounts in the Pune District Central Co-operative Bank (Share Capital of Rs.500 and in addition Admission fee of Rs.100/- of each promoter member and its total amount)
Original chalan of payment of Rs. 2,500/- as a co-operative housing societies registration fee paid in the Government Treasury.
A photo copy of the sale deed or Development agreement executed between original land owner and builder/promoters.
Photo copy of the 7/12 extract or Property Registration Card.
Photo copy of the Power of Attorney given to the builder promoters by the original land lord.
Photo copy of the NOC from the Charity Commissioner if the land is of Public Trust.
A photo copy of the land search report or title certificate from the advocate.
Photo copy of the order issued by the competent officer under Urban Land Ceiling Act.
True copy of the construction lay out approved by the Municipal Corporation.
Photo copy of the permission for commencing construction or of completion certificate issued by the Municipal Corporation.
Architect certificate endorsing to the construction of the building of the proposed society.
Minimum 10 persons affidavit on the stamp paper of Rs.20 (individual) regarding they are residence in the jurisdiction of the society and there is no residential house, open plot in their name or in the name of the other persons in the family depend on them in the jurisdiction of the society. (Affidavit should be made before the competent officer)
Guarantee letter of the Chief Promoter on the stamp paper of Rs.20/- in the prescribed format registered before the competent officer.
Guarantee letter of the builder promoters on the stamp paper of Rs.20/- in the prescribed format ‘Z’ registered before the competent officer and in accordance with that information in A B C D Table.

Table A: number of galas/flats/shops/units sale, name to whom it sale, area of the galas/ flats/shops/units and its price.

Table B: number of galas/flats/shops/units not sold and its area.

Table C: Name of the person to whom the galas/flats/shops/units was sold and total amount received from him.

Table D: Details of the expenditure, name of the person to him galas/flats/shops/units was sold, amount of the share capital, amount of the admission fee and price of the galas/flats / shops /units .

A photo copy of the registered agreement executed between the builder promoters and galas/flats/shops/units holder.
A photo copy of the receipt of the payment made in respect of the registration fee of the galas/flats/shops/units and stamp duty of the promoter members mentioned in the application made for registration.
The signature of the minimum 10 promoter members at the end of model bye laws no 175 is necessary.

Main objects of formation of a Society?

Ans: The main objects of the formation of a Housing Society are as under:

To obtain conveyance from the owner/Promoter (Builder), in accordance with the provisions of the Ownership Flats Act and the Rules made there under, of the right, title and interest, in the land with building/buildings thereon as described in the application for registration of the Society;
To manage, maintain and administer the property of the society;
To raise funds for achieving the objects of the society;
To undertake and provide, for on its own account or jointly with cooperative institution, social cultural or re-creative activities;
To provide Co-operative Education and Training to develop co- operative skills of its Members, Committee Members, Officers and Employees of the Society.
To do all things, necessary or expedient for the attainment of the objects of the society, as specified in the bye-laws.

By admin|March 15th, 2019|How to register the society and which documents required for it?|Comments Off

Process of Co-operative Housing Society Registration

Process of Co-operative Housing Society Registration

60 % of the Promoters are must be ready to form Co-op. Housing Society. · If flats are sold as per the Maharashtra Ownership Flats Act,1963 [MOFA] then it is the duty of the Builder / Developer to form society and hand over the Account + Documents to Provisional Working Committee [PWC] In this case the builder become CP and other flat owners become Promoters for Registration purpose. This society registers under Cooperation.
When the builder is not registering society due to some reasons or not support to registered society then flat purchasers can apply for registration of Co-operative Housing Society under Non Co-operation. In this case one of the flat owners should be elected as CP for Registration purpose. In this case some more time is taken to registered society as registrar is issue notice to builder for Non Co-operation. If no response then ex-party decision are taken for registration of the society. Now all the case of Non Co-operation Registration decisions is given by District Deputy Registrar [DDR] then society is registered
All flat owners should hold meeting and elect Promoter. All power for Registrations, documentation etc. should be given to promoter. The resolution should be passed and must be sign by all flat owners who wish to become member of the Co-operative Housing Society · Appoint Consultant / Legal Advocate for registration and ask him to comply all requirements. All members together also can do work for registration.
For registration of Co-op. Hsg. Society the following documents should be filed to Dy. Registrar / Asst. Registrar of Co-operative Department area concern in order as follow

Applications for Name to be reserved for Proposed Society’s
Form of resolution electing a CP and Promoter and giving them authority for doing certain acts on behalf of the proposed society
Application form “A” 4 copies
Information in Annexure ” A ” ” B ” ” C ” 4 copies
Bye-Law of the Society 2 copies
Details of Accounts Annexure “D” 2 copies
Bank Balance Certificate in Original 1 copy in Original
Agreement of Flat 1 copy
Advocate Search Report 2 copy [Title Certificate]
Society’s Building Plan 2 copies
Layout Plan 2 copies
Sanction Plan from Authority 2 copies
O.C / C.C copy 2 copies
Promoter’s Guarantee in form ” X ” On Rs. 100/- Stamp paper & notarized 1 copy
Guarantee in form ” Y ” On Rs. 100/- Stamp paper & notarized 1 copy
Guarantee in form ” Z ” On Rs. 100/- Stamp paper & notarized 1 copies
7/12 or City Survey Revenue Record of Land [not more than 1 month old] 1 copy
Promoters Affidavit on Rs. 100/- Stamp paper & notarized 1 copy
Indemnity Bond on Rs. 100/- Stamp paper & notarized 1 copy
NA Certificate / ULC 2 copy
Plot area Land Map 2 copies
Scheme
Registration Fee Challan for Rs. 2500/- 1 copy original
Builder Non Co-operation form Z on Rs. 100/- Stamp paper & notarized if required 1 copy
CP Affidavit for Child Labour on Rs. 100/- Stamp paper & notarized 1copy

All this forms are available at your District Co-operative Housing Society Federation.

On submission of above document the Dy./Asst. Registrar will go through the papers And document. If found OK he will make order for issue of Registration Certificate. If any deficiencies are found then the applicant will be inform accordingly and documents will be corrected wherever necessary. When all papers are in order, he will issue order for issue of Registration Certificate.

Registration Certificate is issued with covering letter and Officer’s name is mentioned who will attend First General Meeting. Normally the Officer concern is not attending meeting. In absence, all members have to hold meeting and have to elect Provisional Working Committee [PWC] whose working period will be ONE Year. After electing PWC the member of PWC has to submitted the M-20 bond on Rs. 100/- stamp paper with the sign of Officer’s whose name is in Covering latter to Dy./Asst. Registrar. All Rule and Regulations ,resolution and minutes which is written in AGM Register must be sign by Officer’s name is mentioned in covering letter it is the most important step.[Many society forget this which create problem latter] After First Annual General Meeting PWC is replaced with new Working Committee [WC] whose working period will be FIVE Year. The new WC election can conduct before PWC time over with proper election process. WC also has to submit the M-20 bond on Rs. 100/- stamp paper with the sign of election officer to Dy./Asst. Registrar

When application for Name reservation of Society has given , the Dy./Asst. Registrar give instruction to Open Bank Account in Dist. Central Co-op. Bank The Account has to opened in the name of CP And deposit all money of Share Capital Contribution [per member Share Money is Rs. 50*10 = Rs. 500 i.e. 10 share of 50 rupees each ] and Member ship Fees of Rs. 100/- i.e. Per member you have to deposit Rs. 600/- in bank and obtain Bank Balance Certificate and submitted it to Dy./Asst. Registrar. After First Annual General Body Meeting the Bank Account has to transfer in the name of Society. For bank Account operation Chairman sign must and either Secretary and Treasurer. Expenditure has to be made as per provision of Bye-Laws. Bank and Cash Transaction [Collection and Payment] are handled by Treasure when Billing Clerk or Accountant are not been kept.

By admin|March 15th, 2019|Process of Co-operative Housing Society Registration|Comments Off

Registration of Deemed Conveyance

On receipt of the Deemed Conveyance Order, the Deemed Conveyance Deed between the Competent Authority & the Society is prepared. The Competent Authority appears in the Deed on behalf of the defaulting Land Owners & Property Developers.

The Deemed Conveyance Deed is submitted to the Office of Competent Authority for Approval & their Signature with Authority Stamp & Seal.

The Special General Body of the Society is called to approve the Deemed Conveyance Deed & to nominate 3 Members of the Society to sign the Deed.

The Deemed Conveyance Deed is executed by the signature of the Competent Authority & the signatures of the 3 nominated Members of the Society.

On execution of the Deemed Conveyance Deed, it is forwarded to the District Stamp Office for Adjudication. If all the Members of the Society have paid the Stamp Duty on their respective Flat/ Shop Agreements & there is no balance FSI, the Deemed Conveyance Deed attracts only Rs. 100/- Stamp Duty. The Stamp Office issues the Adjudication Certificate.

On receipt of the Adjudication Certificate, the Society pays the required Stamp Duty & gets the Deemed Conveyance Deed Franked from local Bank.

After Franking of the Deemed Conveyance Deed, the same is submitted to the Registration Office for Registration. The Registration Office issues a notice to the Land Owners & Property Developers to verify whether they have received any Stay Order from Proper Court against the Deemed Conveyance Order.

The Proper Court for issuing the Stay Order against the Deemed Conveyance Order is High Court. It is very difficult for the Land Owners & Property Developers to obtain the Stay Order from High Court against the Deemed Conveyance Order.

If there is no Stay Order received, the Registration Office Registers the Deemed Conveyance Deed. The Competent Authority is exempted from appearing for the Registration & hence the 3 Members nominated by the Society only appear for Registration.

After Registration of the Deemed Conveyance Deed, the Registration Office issues the Scanned Document & Index II typically within 15 days.

The complete Procedure of Registration of Deemed Conveyance Deed is typically completed within 3- 4 Months.

On receipt of the Index II, the Registration Process of the Deemed Conveyance Deed is successfully completed & the Society becomes the owner of the Land & Structure.

By admin|March 15th, 2019|Registration of Deemed Conveyance|Comments Off

Documentation for Deemed Conveyance

Documentation is a very important & crucial stage in the Procedure for Deemed Conveyance. It requires absolute focus & meticulous handling to ensure that all the required documents are obtained & organized in an appropriate manner.

The Land Revenue Records of recent origin are obtained by making applications to the respective Government Departments like City Survey Office, Tahasildar/ Talathi Office & District Collector Office. These documents are obtained typically within 8- 10 weeks.

The Municipal Corporation Records are obtained by making application to the Building Proposal Department of the Municipal Corporation. These documents are obtained typically within 8- 10 weeks.

In case it is difficult to obtain the Land Revenue Records & Municipal Corporation Records, Right to Information (RTI) may be invoked.

The Society Records are obtained from Society Office & the Professional Certificates are obtained from Professionals.

Following Documents are required to be prepared.

Deemed Conveyance Application- Form VII
Synopsis of the Case
Vakalatnama
Roznama
Society Special General Body Resolution
Letter of Authority
Affidavit by Authorised Representative
Affidavit by Society Secretary
List of Society Members including their Flat/ Shop Agreement Details

During the Documentation Stage, a Legal Notice is to be sent to the Land Owners & Property developers.

The complete set of the above Documents is to be annexed with the Deemed Conveyance Application- Form VII & to be filed in a neat & tidy manner.

The complete Deemed Conveyance Application- Form VII is to submitted to the Competent Authority- The District Deputy Registrar of Co- Operative Societies of the particular District.

The Documentation Stage from beginning to submission of Deemed Conveyance Application- Form VII can be successfully completed within 90 to 120 days.

By admin|March 15th, 2019|Documentation for Deemed Conveyance|Comments Off

Need for Deemed Conveyance

A Co- Operative Housing Society is the owner of the Land & Building & individual member enjoys the ownership right of the Flat/ Shop based on the Share Certificate issued by the Co- Operative Housing Society.

A vast majority of Co- Operative Housing Societies does not have the Conveyance in their favour & hence are not the owners of their Land & Building. In this situation, even though each member of the Co- Operative Housing Society has paid full consideration and is in possession of the Flat/ Shop allotted, he does not enjoy the benefits of title ownership of the Flat/ Shop.

In case of Co-Operative Housing Societies formed long back, many of the Buildings are in dilapidated condition and their repairs are not economically viable. The best solution available for these Co- Operative Housing Societies is to go ahead with Redevelopment. The non- availability of the Conveyance & therefore free/ marketable Title affects the Redevelopment Process badly.

In case of Co- Operative Housing Societies formed recently, the Redevelopment at the moment is not on the agenda. However the non- availability of the Conveyance and free and marketable Title may affect its present Revenue and may be a hindrance in Redevelopment process in future.

Therefore Deemed Conveyance is in the larger interest of the Co- Operative Housing Societies (and their each and every member) who are denied their right of Conveyance by the Land- Owners & Property Developers.

By admin|March 15th, 2019|NEED FOR DEEMED CONVEYANCE|Comments Off

Essential Elements in a Conveyance Deed

Essential Elements in a Conveyance Deed

The term “Deed” means a written legal contract that binds the parties to its terms and can be proved in the court as evidence.

The term ‘Conveyance’ is used when there is transfer of ownership or legal title in a property from one person to another. Hence, a conveyance deed is a legal document between a transferor and a transferee, which proves that a title or ownership in the property along with all other rights related to the property have been transferred from one person to another.

It informs that the property is free from any restrictions and disputes. Both parties sign it and it can be produced in a court if any dispute relating to the agreement arises in future.

However, a conveyance deed is a wide term which not only includes a sale of the property but also other kinds of transfers such as gift, exchange, lease, mortgage, relinquishment and other transfers.

A conveyance deed is valid only when the property is sold for a valid consideration (usually money) except in the case of a gift deed which results out of love and affection.

It can be signed for either movable or immovable property.

A conveyance deed is executed in accordance with the legal provisions under the Transfer of Property Act 1882, Registration Act 1908 and Indian Stamp Act, 1899.

In order to be valid and acceptable in a court, a conveyance deed needs to contain some essential elements. For instance, it must:

* Establish exact boundaries of the property to avoid any dispute relating to land ownership,

* State that all the rights relating to the property have been transferred along with the property,

* Provide details regarding delivery and acceptance of the property,

* State all terms and conditions relating to the transfer,

* Be made on a non-judicial stamp paper and signed by both parties,

* Mention full names, addresses and other requisite details of the seller and the buyer,

* State that the property is free from any disputes and restrictions,

* Be signed by at least two witnesses

* Be in writing and notarized, and

* Be registered through the local registrar’s office by submitting appropriate registration fee. Registration is proof that the property is free from any disputes and has been transferred to the buyer permanently with a clean title.

Once the registration is complete, the buyer becomes the absolute owner of the property and the conveyance process gets over officially. A lawyer and a real estate agent can help two parties compose, sign, and register a deed of conveyance during a transaction. The government obtains its revenue from the stamp duty and registration fees.

By admin|March 15th, 2019|Essential Elements in a Conveyance Deed|Comments Off

WHY A CO-OPERATIVE HOUSING SOCIETY IS BETTER THAN APARTMENT OWNERS ASSOCIATION?

*WHY A CO-OPERATIVE HOUSING SOCIETY IS BETTER THAN APARTMENT OWNERS ASSOCIATION?

The builder is interested in using the increased FSI which will be awarded by the govt. for that area at any time in future. If the ‘Society’ is formed, then upon the transfer and conveyance of land in favour of the Society, the increased FSI will be owned by the Society and the builder shall not have any right over it. But if it is an Apartment, then the builder owns that increased FSI and can use it anywhere. Thus, the builder will keep taking advantage of every increase in FSI throughout in the future.
In an Apartment, the builder retains the ownership of the open spaces which are not included in the saleable area. Example – Terrace or any open parking/stairs space which is not included in the saleable area. But in case of Society, the builder cannot retain any right on any of these areas and has to hand over everything to the Society. The Maharashtra Apartment Ownership Act also provides for the ownership of an individual Apartment in a building and to make such Apartment heritable and transferable property.
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. 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. However, while the Society disputes are resolved in a separate Court i.e. Co-operative Court dealing with Society matters and hence they are fast resolved whereas, the Apartment matters have to be taken to the normal Civil Court and hence they typically take years and decades to resolve.
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. 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. There are many instances in Mumbai wherein finally the dilapidated buildings had to be forcefully vacated by an eviction order from Court since they became unlivable. Thus, while the decisions are taken on a ‘majority’ basis in Society, the Apartment goes with rule of ‘Acceptable by Everybody’. So if the builder has retained even one flat in an Apartment, he will play a veto card in his favour at the time of redevelopment.

By admin|March 14th, 2019|WHY A CO-OPERATIVE HOUSING SOCIETY IS BETTER THAN APARTMENT OWNERS ASSOCIATION|Comments Off

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