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LAWYERS FOR FORMATION OF A NEW HOUSING SOCIETY

LAWYERS FOR 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).

In this meeting, necessary resolutions are passed like opening the account in a bank in the name of proposed society and for obtaining permission for reserving the name of the society. It is compulsory for SRA/ MHADA recognized societies, for the first meeting to be video-recorded.

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 It should be noted that the amount cannot be withdrawn from the Bank till the society is registered or its registration is refused, except with prior written permission of the Registrar.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.

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.

Documents required for Registration

  • 7/12 extract of the land or property card.
  • Certificate concerning non-agricultural land from the competent authority
  • The order of applicable or non-applicable of land ceiling Act
  • Construction layout duly approved by the competent authority
  • Letter of sanction for starting construction
  • Certificate regarding completion of construction work
  • Development Agreement if the land is taken for development
  • Letter of Power of Attorney of the land
  • Title search report of the land
  • The registered agreement of purchases of the flat with necessary stamp duty paid
  • Architect Certificate regarding construction
  • List of Members
  • Scheme of the Society
  • Application for reserving name
  • At least ten members are necessary for registration of society. On the other hand, the government has given permission subject to some conditions for the Housing society of fewer than 10 members by exercising powers. For registration proposal, the signature of sixty percent promoters, who participated in the registration proposal is necessary.
  • If the land is given by the government or undertaking agency of the government then its guarantee letter.
  • No objection certificates from the Charitable Commissioner if the land is of Trust.
  • Certificate of the competent authority regarding non-agricultural plot
  • While registering SRA/SRD and MHADA recognized Co-operative Housing Societies, it is obligatory to fulfill the necessary papers as per instructions are given by the authorities by their circulars in addition to above criterion.
  • Application for Registering Society (A form)
  • Table giving information of society (B Form)
  • Table giving details of the members (C Form)
  • Statement of Accounts of the Members (D Form)
  • Notarized Guarantee letter by the Chief Promoter of the society on the stamp Paper of Rs. 100/-
  • Notarized Guarantee letter by the Builder, Promoter on the Stamp Paper of Rs. 100/-
  • Affidavit of Members (Affidavit of Minimum 10 Promoters)
  • Two copies of bye-laws of the Society approved by the Commissioner, Co-operation and Registrar, Co-operative Societies and Maharashtra State, Pune
  • Proof of the bank balance of the promoter member (deposit of each share of Rs. 500 and admission fee of Rs. 100), after getting permission for reservation in the District Central Co-operative Bank
  • Challan of Rs. 2500/- deposited in the Government Treasury Registration fee for the Housing Society of the Backward class is Rs. 50/-

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.

By |February 10th, 2022|LAWYERS FOR FORMATION OF A NEW HOUSING SOCIETY IN PUNE|Comments Off on LAWYERS FOR FORMATION OF A NEW HOUSING SOCIETY
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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 |February 10th, 2022|Conveyance Services for Societies|Comments Off on CONVEYANCE SERVICES FOR SOCIETIES
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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 |February 9th, 2022|SOCIETY FORMATION AND HANDOVER PROCESS|Comments Off on SOCIETY FORMATION AND HANDOVER PROCESS BY BUILDER
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PROCEDURE OF DEEMED CONVEYANCE

PROCEDURE OF DEEMED CONVEYANCE

Stage 1- Preparation for Deemed Conveyance

During this stage the Managing Committee prepares the Members of the Co-

Operative Housing Society for Deemed Conveyance by approving resolution in the

GBM if Builder/Promoter fails to convey the land and building within prescribed

period.

Stage 2- Documentation for Deemed Conveyance

During this stage, once the Documents required for Deemed Conveyance get

collected/ organized & thereafter the Case/Application get prepared and submitted

to Dist. Dy. Registrar Office through Legal Representative/Advocate.

Stage 3- Legal Case for Deemed Conveyance

During this stage, once the case is filed before the Competent Authority i.e. DDR,

hearings get started for both the parties to the application i.e. Applicant &

Respondent by issuing summons/notices. And after contesting the said matter, the

Order & Certificate of Deemed Conveyance upholding the right of the Society will be

obtained.

Stage 4- Adjudication of Deemed Conveyance

During this stage, the Deemed Conveyance get Adjudicated by the office of JDR,

Thane, with proper Stamp Duty, Registration fee etc…

Stage 5- Registration of Deemed Conveyance

During this stage, the adjudicated & executed draft of Deemed Conveyance will get

registered in the office of Sub-Registrar.

Thanks

Ved Legal

By |February 9th, 2022|Procedure For Deemed Conveyance|Comments Off on PROCEDURE OF DEEMED CONVEYANCE
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LIST OF REQUIRE DOCUMENTS FOR DEEMED CONVEYANCE

LIST OF REQUIRE DOCUMENTS FOR DEEMED CONVEYANCE

  1. Stamp duty proof Index-II/Agreements
  2. Layout plan (Blue Prints of all plans)
  3. Completion Certificate
  4. Commencement Certificate
  5. N.A. Order
  6. Latest 7/12 Extract/Property Card
  7. Development Agreement & Power of Attorney
  8. Society’s GB Resolution for Deemed Conveyance/Conveyance Deed
  9. Notice to Builder for Conveyance Deed
  10. Society Registration Certificate
  11. Search Title Report

Sample Agreement Between Builder & Flat Purchaser

By |February 9th, 2022|List of Documents Required for Deemed Conveyance|Comments Off on LIST OF REQUIRE DOCUMENTS FOR DEEMED CONVEYANCE
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SOCIETY REGISTRATION

SOCIETY REGISTRATION

 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).

In this meeting, necessary resolutions are passed like opening the account in a bank in the name of proposed society and for obtaining permission for reserving the name of the society. It is compulsory for SRA/ MHADA recognized societies, for the first meeting to be video-recorded.

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.

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.

Documents required for Registration

  • 7/12 extract of the land or property card.
  • Certificate concerning non-agricultural land from the competent authority
  • The order of applicable or non-applicable of land ceiling Act
  • Construction layout duly approved by the competent authority
  • Letter of sanction for starting construction
  • Certificate regarding completion of construction work
  • Development Agreement if the land is taken for development
  • Letter of Power of Attorney of the land
  • Title search report of the land
  • The registered agreement of purchases of the flat with necessary stamp duty paid
  • Architect Certificate regarding construction
  • List of Members
  • Scheme of the Society
  • Application for reserving name
  • At least ten members are necessary for registration of society. On the other hand, the government has given permission subject to some conditions for the Housing society of fewer than 10 members by exercising powers. For registration proposal, the signature of sixty percent promoters, who participated in the registration proposal is necessary.
  • If the land is given by the government or undertaking agency of the government then its guarantee letter.
  • No objection certificates from the Charitable Commissioner if the land is of Trust.
  • Certificate of the competent authority regarding non-agricultural plot
  • While registering SRA/SRD and MHADA recognized Co-operative Housing Societies, it is obligatory to fulfill the necessary papers as per instructions are given by the authorities by their circulars in addition to above criterion.
  • Application for Registering Society (A form)
  • Table giving information of society (B Form)
  • Table giving details of the members (C Form)
  • Statement of Accounts of the Members (D Form)
  • Notarized Guarantee letter by the Chief Promoter of the society on the stamp Paper of Rs. 100/-
  • Notarized Guarantee letter by the Builder, Promoter on the Stamp Paper of Rs. 100/-
  • Affidavit of Members (Affidavit of Minimum 10 Promoters)
  • Two copies of bye-laws of the Society approved by the Commissioner, Co-operation and Registrar, Co-operative Societies and Maharashtra State, Pune
  • Proof of the bank balance of the promoter member (deposit of each share of Rs. 500 and admission fee of Rs. 100), after getting permission for reservation in the District Central Co-operative Bank
  • Challan of Rs. 2500/- deposited in the Government Treasury Registration fee for the Housing Society of the Backward class is Rs. 50/-

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.

By |February 8th, 2022|SOCIETY REGISTRATION|Comments Off on SOCIETY REGISTRATION
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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 |February 8th, 2022|SOCIETY FORMATION AND HANDOVER PROCESS BY BUILDER|Comments Off on SOCIETY FORMATION AND HANDOVER PROCESS BY BUILDER
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CONVEYANCE DEED

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.

By |February 8th, 2022|Conveyance Deed - A Binding Contract|Comments Off on CONVEYANCE DEED
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A COMPLETE GUIDE TO DEEMED CONVEYANCE

 A COMPLETE GUIDE TO DEEMED CONVEYANCE

Most of the flat-owners of the newly constructed Societies/apartments do not have their sale deeds or conveyance deeds. Mostly in the newly constructed buildings, the builders provide for forming a housing co-operative society to which they shall transfer their interest in the property. Then the builders form the society but do not transfer the title of the property (read ownership) to the flat-owners or the society till he has transferred all the rights in the building/Societies/apartments. Thus the builders/promoters are benefiting from the buyers lack of awareness and information.

To curb this practice, amendments were carried out in the Maharashtra Ownership Flats Act, 1963, in 2008 to appoint a Competent Authority (Registrar of Co-operative Housing Societies) to hear the grievances of such Societies/apartments owners and to safeguard their interest by executing deemed conveyance of such societies u/s 11(3) of Maharashtra Ownership Flats Act, 1963.

Ved Legal is having enough experience to deal with these kinds of Deemed Conveyance of Co-operative Housing Societies, in and around Mumbai, Pune. Any aggrieved society or apartment holder can get resolution from us in regards of the same. 

CONVEYANCE AND ITS SIGNIFICANCE

Conveyance is transfer the title of land and building by promoter/land owner in favour of housing society by execution of Conveyance Deed. As per the provision contemplated in Section 11 of Maharashtra Ownership Flat Act 1963, Conveyance is the right of Co-operative Housing Society and the Duty of the property Developer/Promoter to be executed within 4 months from date of Registration of Co-Operative Society.

After land and Building is conveyed in favour of Co-Operative Society and the title of property is fully and finally recorded in the property card and other revenue records then only the property becomes completely free and marketable.

As per Housing Society Bye-laws the main objective of formation of the society is to obtain conveyance and if conveyance is executed within 4 months from date of registration of society case can be filed against the promoter /landowner of the land to obtain the conveyance as per section 13 of MOFA 1963 failure to give conveyance is an offence and the promoter/landowner of land can be imprisoned upto 3 years or fine or both.  

MEANING OF DEEMED CONVEYANCE:

Deemed Conveyance occurs when the builder/land owner or the legal heir refuse to co-operate in handing over conveyance to the Co-operative Society under the Section 11(3) of Maharashtra Ownership Flats Act, 1963. In such case, the housing society has to appear before the District Deputy Registrar, who will hear the case of both parties i.e. the housing society and the builder and would pass the required order of Conveyance. It is a remedial measure obtained by the society against the builder/landowner who does not wish to convey the property since he/she sees a commercial gain out of the property in future. This could include usage of potential FSI for their personal gain.

Deemed Conveyance is final conveyance and the same can be registered. Once the designated Competent Authority has passed the order, there cannot be an appeal against it.

NEED FOR DEEMED CONVEYANCE:

In a situation when a promoter or owner of residential premises/ buildings does not transfer/convey the ownership of the flats to the housing society or association of persons (AOP), the society or AOP can make an application to Registrar of Co-operative Housing Societies, to transfer the ownership of the said flats to them. This process is carried on through Deemed Conveyance of the title of the buildings and land in favour of the Society or AOP without the need of the builder to do so.

IMPORTANCE & PROVISIONS OF LAW ON CONVEYANCE:

As per the Housing Society bye-laws, the main objective of formation of the Society is to obtain the Conveyance; and if Conveyance is not given by the Builder within four months from the date of registration of the Society, Case of Deemed Conveyance can be filed against the Builder to obtain the Conveyance before the District Deputy Registrar. As per Section 13 of Maharashtra Ownership Flats Act, 1963, failure to give Conveyance in favour of cooperative housing society  is an offence and the Builder can be imprisoned up to 3 years or fined or both.

ADVANTAGES OF CONVEYANCE:

  1. Getting a proper and legal title in the name of the Society.
  2. Retaining the additional FSI as per the Government announcements.
  3. Property will be free and marketable.
  4. Society can raise the loans for repairs and reconstruction by mortgage.
  5. Permission from planning authorities is possible if the building has to be reconstructed at a later date due to dilapidation of the structure due to age or by earthquake.
  6. Society can take the benefit of TDR.
  7. Members can receive compensation from Builder on redevelopment of the building.

DISADVANTAGES OF NOT HAVING CONVEYANCE DEED

Even though you have purchased ownership flat, you are not the owner of the land and building. 2. In the event of a building collapse or damage to the building, you cannot reconstruct the building without the permission of the Builder / Land owner.

  1. The Builder/Developer may mortgage the property purchased by you as he is the legal owner and holding the Title Deeds of the Property.
  2. The Builder/Developer may tap the benefits in case the building is later taken up for redevelopment or if the plot has some unutilized floor space index.
  3. The Builder may make profit by sale of open spaces, gardens, terrace, parking space belonging to the Society.
  4. The Builder may demand a huge amount from the Society, if Conveyance is sought by the Society after a lapse of many years.
  5. The Builder may sell the entire Development Rights and the Legal Rights on the land to third party and create a third party interest in the Property and the Society will have to incur a huge amount to clear the same.

CONDITIONS PRECEDENT FOR GETTING A DEEMED CONVEYANCE:

There are certain important conditions which need to be fulfilled to go ahead for deemed conveyance, some of them are:

1. At least 60% of the flats in that scheme should be sold.

2. A Co-operative Society or Association of Persons should have been formed of the flat-owners and at least 3-4 months should have been passed since then.

3. There should be communication between the builder and the society or AOP regarding Deemed Conveyance wherein the builder should have made a promise of completion of conveyance or refused to do the same.

4 . A Resolution must be passed

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 2,000 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.

DOCUMENTS REQUIRED:

Further, the application required to be made with the Registrar shall be accompanied by copies of certain 20 odd documents which the society shall have to prepare or get prepared.

The papers required for doing Deemed Conveyance are as follows:

  • Application Form 7 to the District Deputy Registrar, Co-operative Societies, affixing a court fee stamp of Rs. 2,000 on the application
  • Affidavit made before the Notary or Executive Magistrate True copy of the Society Registration Certificate
  • Stamp duty paid and registered agreement copy of 1 individual flats/ shops with Builder/Developer
  • List of members in prescribed format
  • Index-II for each member as issued by the Sub-Registrar of Assurance
  • Copy of the Development Agreement between land owner and builder
  • Copy of the Power of Attorney between land owner and builder
  • Copy of the legal notice issued to the original owner or developer for doing conveyance
  • Details of corresponding address telephone number etc. of the original owner or developer
  • Draft conveyance deed/ Declaration proposed to be executed in favour of the applicant

Documents to be obtained from City Survey Office, for submission:

  • City (CTS) Survey Plan
  • Property Registration Card or
  • 7/12 extract of the Land
  • Village form 6 (Mutation entries from Revenue Office)

Documents to be obtained from the Collector’s Office, for submission:

  • Copy of the Non-Agricultural Order
  • Certificate of the exclusion from Land Ceiling Act (ULC) Certificate

Documents to be obtained from the concerned Municipal Authority Office, for submission:

  • Copy of the approved plan
  • IOD
  • Commencement Certificate
  • Building Completion Certificate
  • Occupation Certificate (not compulsory)
  • Property taxes paid
  • Location plan of the building

Documents to be obtained from other professionals, for submission:

  • Search Report of the land issued by the Solicitor/Advocate
  • Title Certificate of the Property issued by the Solicitor/Advocate (Search by minimum for last 30 years)
  • Land Measurement Map/ Architect’s Certificate (layout plan of the plot)
  • Certified copy from Panel Architect about the utilization of full FSI or FSI if any left in respect of the said property /Plot.

After, the Application is heard by the Registrar he may grant an order for deemed conveyance which shall then be produced before a court for execution and hence the conveyance may be done by a court order.

PROCEDURE:

Stage 1- Preparation for Deemed Conveyance
During this stage the Managing Committee prepares the Members of the Co- Operative Housing Society for Deemed Conveyance.

Stage 2- Documentation for Deemed Conveyance
During this stage the Documents Required for Deemed Conveyance are collected/ organized & the Case is prepared.

Stage 3- Legal Case for Deemed Conveyance
During this stage the case is filed before the Competent Authority & after contesting the same the Order & Certificate upholding the right of Deemed Conveyance of the Society is obtained.

Stage 4- Registration of Deemed Conveyance
During this stage the Deemed Conveyance Deed is Adjudicated, properly Stamped & Registered.

Stage 5- Transfer of Property after Deemed Conveyance
During this stage the Society Name is incorporated in the Land Revenue Records.

  1. Preparation for Deemed Conveyance:

This is a very important stage where the Managing Committee prepares the Members of Co- Operative Housing Society for the Deemed Conveyance.

The Managing Committee convenes a Special General Meeting (SGM) of the Society by giving suitable notice highlighting the agenda.

The Managing Committee places before the SGM the difficulties faced for obtaining the Conveyance from the Land Owners/ Property Developers. The Managing Committee explains the effects of non- availability of Conveyance to the Members. The Managing Committee explains the Procedure & Benefits of Deemed Conveyance to the Members.

During this SGM the following Resolutions are typically passed.

  1. Resolution for going ahead with Deemed Conveyance
  2. Resolution for Appointment of Authorized Representative
  3. Resolution for Appointment of Legal Consultant for Deemed Conveyance
  4. Resolution for Per Member Contributions

2. Documentation for Deemed Conveyance:

This is the most crucial step in obtaining deemed conveyance. It is a very meticulous job and make sure all the documents are lined up within the right format. You would require land revenue records, municipal corporation records, society records, property development records and professional certificates.

All these documents can be obtained from various departments such as Land revenue records from City Survey Office, Tahasildar/Talathi Office & District Collector Office, municipal corporation records from Building Proposal Department of the Municipal Corporation. Society records and certificates can be obtained from society offices and professionals.

Once all the documents are lined up, society needs to fill in Deemed Conveyance Application- Form VII and attached all the related documents. In case of deemed conveyance, a legal notice is sent to the developer for their consent. In regular conveyance procedures, since the developers or promoters are willingly providing the rights lot of documents can be easily recovered from them.

Once the form is filled up and all documents are annexed it is submitted to the Competent Authority- the District Deputy Registrar of Co- Operative Societies of the particular District.

3. Legal Case for deemed conveyance:

Once the application is submitted to the authorities they issue Deemed Conveyance Scrutiny Report- Form VIII within 1 month. Once the compliance is provided the authorities issues Summons & Newspaper Notices to the Land Owners & Property Developers for appearing for the hearing.

During the hearing process authorities take into consideration the arguments of the both parties. The process takes place within 3-4 months. Once all the arguments are documented the office issues a Deemed Conveyance order within 1 month. The whole process is completed within 6 months as this is a time bound activity.

4. Registration of deemed conveyance:

A deemed conveyance deed is created during this phase and is signed by both societies and developers. If developers do not appear for hearing in the prior stage (Which is the case in deemed conveyance), authorities have the power to sign the deed on behalf of developers.

The society needs to conduct a meeting and appoint 3 members to sign the deed. Post that the deed is submitted to district stamp office for adjudication. If all the members have paid their stamp duty and if there is no balance FSI, the office issues adjudication certificate. (Note – Deed only requires Rs 100 stamp duty). The adjudication certificate needs to be then franked from local bank and resubmitted to registration office.

The registration office then issues notice to land owner/developer to verify if there is any stay order against the deed of conveyance. (Note – The developer can get the stay order only from high court). If there is no stay order the deed of deemed conveyance is registered and then the office issues scanned documents and Index II. This mark end of registration process and the society becomes the owner of the land and structure.

 5. Transfer of property:

In this phase a new application is submitted to various departments to make mutation entries in their records. This would make the process complete.

FOR MORE DETAILS CALL:

VED LEGAL,

Adv. GajananRahate

Mob: 9763040088

E_mail: [email protected]

By |February 8th, 2022|A complete guide to Deemed Conveyance|Comments Off on A COMPLETE GUIDE TO DEEMED CONVEYANCE
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SHARE CAPITAL UNDER BYE-LAWS FOR SOCIETY FORMATION

SHARE CAPITAL UNDER BYE-LAWS FOR SOCIETY FORMATION

The Authorized Share Capital of the Society shall be Rs …………………………..divided into …………… shares of Rs. 50 each

  1. A Share Certificate, prescribed in bye-laws, bearing distinctive number and indicating the name of the Member, the number of shares issued and the value paid there on, shall be issued by the Society to every Member for the shares subscribed by him, within a period of six months of the allotment of the shares.
  • The Committee of the Society shall issue a duplicate share certificate, “So Marked”, on application to its members on production of following documents.

1. if the share certificate is lost – copy of police complaint lodged, and an affidavit in that regard.

2. if the share certificate is soiled, burnt, torn, disfigured etc. affidavit in that regard. 10. Every such Share Certificate shall bear the seal of the Society and be signed by the Society’s Chairman, the Secretary and one Member of the Committee, duly authorized by the Committee. The same shall be issued by the Secretary of the Society.

By |February 5th, 2022|SHARE CAPITAL UNDER BYE-LAWS FOR SOCIETY FORMATION|Comments Off on SHARE CAPITAL UNDER BYE-LAWS FOR SOCIETY FORMATION
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