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.

CONVEYANCE OF SOCIETY 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.