Ved Legal - 2024 July

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 society’s 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.

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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.

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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.

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DIFFERENCE BETWEEN CONVEYANCE AND DEEMED CONVEYANCE

DIFFERENCE BETWEEN CONVEYANCE AND DEEMED CONVEYANCE

Conveyance –

A generic term for any written document which transfers (conveys) real estate property or real property interests from one party to another.

So by the above definition its very clear that if someone willingly transfers their legal right of the property to another party they would need to create a document which transfers this right. Such a document is called Deed of conveyance.

The important point here is – Willingly. Now in case of housing societies the builder/promoters have to ideally create deed of conveyance and hand over it to housing societies that to within 4 months after project completion. However, due to lack of knowledge many builders do not create such documents. There have been cases where builders have later on denied to create such documents and asked additional money to provide signatures on these documents. You will find all sorts of reasons for not creating the document. This results in issues for societies in future. Therefore, government has amended the Maharashtra Ownership Flats Act, 1963 (MOFA) to make sure if builders run way from such responsibilities the societies do not suffer. This amendment is called Deemed Conveyance. This amendment allows society owners to gain the legal rights of the land even if the builder is not willing to transfer the rights, in front of designated competent authority.

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

By admin|July 9th, 2024|DIFFERENCE BETWEEN THE DEEMED CONVEYANCE AND THE REGULAR CONVEYANCE|Comments Off

SOCIETY FORMATION AND HANDOVER PROCESS BY BUILDER

SOCIETY FORMATION AND HANDOVER PROCESS BY BUILDER

The Registration process and requirements are governed by Maharashtra State Co-operative Society Act 1960.

To Register Co-op. Housing Society, Minimum 10 member are required.

Less than 10 members Societies are also Registered as per M. S. Govt. Ordinance No. 1094 and 277/14 Dated 10/03/1995. But such member’s flats should be less than 700 Sq.ft. Carpet Area

As per M.S. Govt. Notification dated 24/07/1992 conditions for registrations are liberalized.

51 % 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 Co-operation.

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
Notice to Builder
Application form “A”
Information in Annexure ” A ” ” B ” ” C ”
Bye-Law of the Society 2 copies
Details of Accounts Annexure ” D ”
Bank Balance Certificate in Original
Namuna 6
Agreement of 1 Flat
Advocate Search Report [Title Certificate]
Society’s Building Plan
Lay Out Plan
Sanction Plan from Authority
Commencement Certificate
Completion Certificate
Promoter’s Guarantee in form ” X ” On Rs. 100/- Stamp paper & notarized
Guarantee in form” Y ” On Rs. 100/- Stamp paper & notarized
Guarantee in form ” Z ” On Rs. 100/- Stamp paper & notarized
Latest 7/12 or City Survey Revenue Record of Land [not more than 1 month old]
Promoters Affidavit On Rs. 100/- Stamp paper & notarized
Indemnity Bond On Rs. 500/- Stamp paper & notarized
NA Order
ULC Order
Development Agreement and Power of Attorney
List of Members in the society
Scheme/Yojana Form
Registration Fee Challan for Rs.2500
Builder Non Co-operation form Z On Rs. 100/- Stamp paper & notarized if required 1 copy

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 has to hold meeting and has 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 submitted 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|July 9th, 2024|SOCIETY FORMATION AND HANDOVER PROCESS BY BUILDER - THANE|Comments Off

Conveyance Deed – A Binding Contract

CONVEYANCE DEED

In case of housing societies the builder/promoters have to ideally create deed of conveyance and hand over it to housing societies that to within 4 months after project completion. However, due to lack of knowledge many builders do not create such documents. There have been cases where builders have later on denied to create such documents and asked additional money to provide signatures on these documents. You will find all sorts of reasons for not creating the document. This results in issues for societies in future. Therefore, government has amended the Maharashtra Ownership Flats Act, 1963 (MOFA) to make sure if builders run way from such responsibilities, the societies do not suffer. This amendment is called “Deemed Conveyance”. This amendment allows society owners to gain the legal rights of the land even if the builder is not willing to transfer the rights, in front of designated competent authority.

A valid conveyance deed must contain the following:

1. The actual demarcation of the property.

2. Other rights annexed to the property and its use.

3. The full chain of titles, that is, all legal rights up until the present seller.

4. The method of delivery of the property to the buyer.

5. A memo of the consideration, stating how it has been received.

6. Any further applicable terms and conditions for the full transfer of ownership rights.

Important points to consider, to ensure smooth purchase/sale of a property:

The seller is required to certify that the property is free of any legal encumbrance.

If a loan was taken against the property in question, then, the mortgage must be cleared before the deed is signed. Buyers have the option of having this checked at the local sub-registrar’s office.

The conveyance deed should state the exact date on which the property will be handed over to the buyer.

Within four months of the execution of the deed, all the original documents related to the sale of the property, need to be produced for registration before the local registrar.

The deed is required to be signed by at least two witnesses.

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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|July 5th, 2024|Registration of Deemed Conveyance in Pune|Comments Off

PROVISIONS FOR DEEMED CONVEYANCE UNDER MOFA

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)

By admin|July 5th, 2024|PROVISIONS FOR DEEMED CONVEYANCE UNDER MOFA|Comments Off

What is Conveyance Deed?

What is Conveyance Deed?

A generic term for any written document which transfers/conveys real estate property or real property interests from one party to another.

If someone willingly transfers their legal rights, title, interest and ownership of the property to another party they would need to create a document which transfers this right. Such a document is called “Deed of Conveyance”.

Now in case of housing societies the builder/promoters have to ideally create deed of conveyance and hand over it to housing societies that to within 4 months after project completion. However, due to lack of knowledge many builders do not create such documents. There have been cases where builders have later on denied to create such documents and asked additional money to provide signatures on these documents. You will find all sorts of reasons for not creating the document. This results in issues for societies in future. Therefore, government has amended the Maharashtra Ownership Flats Act, 1963 (MOFA) to make sure if builders run way from such responsibilities, the societies do not suffer. This amendment is called “Deemed Conveyance”. This amendment allows society owners to gain the legal rights of the land even if the builder is not willing to transfer the rights, in front of designated competent authority.

A valid conveyance deed must contain the following:

1. The actual demarcation of the property.

2. Other rights annexed to the property and its use.

3. The full chain of titles, that is, all legal rights up until the present seller.

4. The method of delivery of the property to the buyer.

5. A memo of the consideration, stating how it has been received.

6. Any further applicable terms and conditions for the full transfer of ownership rights.

Important points to consider, to ensure smooth purchase/sale of a property:

The seller is required to certify that the property is free of any legal encumbrance.

The conveyance deed should state the exact date on which the property will be handed over to the buyer.

Within four months of the execution of the deed, all the original documents related to the sale of the property, need to be produced for registration before the local registrar.

The deed is required to be signed by at least two witnesses.

By admin|July 5th, 2024|What is Conveyance Deed?|Comments Off

CONVEYANCE SERVICES FOR SOCIETIES:-

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

By admin|July 5th, 2024|CONVEYANCE SERVICES FOR CO-OPERATIVE SOCIETIES IN PUNE|Comments Off

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