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.

 Advocate for Agreement and Sale Deed

Want to purchase a Flat? If Yes, Please Be Carefull so you may not fall prey to  the frivilious offers by decietfull builders and developers .

While purchasing the Flat Property you should take the following care/ due diligence.

1. Prefer a ready to move property rather an under construction property.If property is ready to move see that if the project has any tie ups with nationalised banks ,if so the project is safe to invest because bank offers assitance to a project or scheme, after due diligence.Or else first thing to do is,to get the title search done.If title is clear than go for bank loan, because banks while granting loan takes due diligence while lending financial assistance. This again will be a safety check for verification and authentication of builder as well as project, if there are any existing encumbrances on the said property.If the bank is ready to sanction loan means there is absence of encumbrances like mortgage or lease.
2. The next comes in the checklist, is verification  with RERA.whether the builder/ scheme is registered with RERA, if so, confirm that he has not been blacklisted by the Authority.
3. Another thing to take into account while considering ready to move property is whether the scheme has been assigned completion certificate and occupancy certificate which validates, that it is ready to move property.
4. If it is under construction property before giving the token amount, check whether builder has got commencement certificate and other approvals from the  public authorities like MSEB,MUNICIPAL CORPORATION or N.O.C from environmental dept.as well as fire and safety department.

FOR MORE QUERIES PLEASE DO CONNECT WITH VEDLEGAL

MAIL ID – [email protected]

CONTACT- +919763040088 

Advocate for Agreement of Sale

The agreement of sale shows the willingness of the parties to buy/sell the property in future upon the satisfaction of certain terms and conditions. However, since it does not involve an immediate transfer of ownership, the buyer has no right and interest in the property in question until the execution of the sale deed and full and final payment towards consideration agreed upon by the concerned parties to the agreement.

This agreement specifies the terms and conditions under which the property may be transferred.

This instrument of an agreement of sale shall contents the following terms:

• Detailed description of the property and concerned parties
• Disclaimer that the property is free from legal encumbrances
• Value of the property including payment details
• Delivery of the original documents on the final payment
• Execution of sale deed and registration of the same if the titles are found good
• Method of property delivery
• Payment refund in case of improper titles
• Action course for non-completion of sale on the part of the seller
• Loss of advance payment if the purchaser fails to complete the transaction
• Remedy if legal issues besiege the property
• Transfer of tax-related certificates
• All other matters related to the proposed sale

FOR MORE DETAILS DO CONNECT WITH VEDLEGAL

MAIL ID – [email protected]

CONTACT- +919763040088 

DEEMED CONVEYANCE PROCEDURE FOR CHS BECOMES EASY

The Maharashtra government has relaxed the terms for the deemed conveyance (DC)-ownership right of plot certificate from the builder, by bringing down the number of documents required from 12 to 8 and stipulating that DC will be given even if the society does not have an Occupation Certificate (OC) or the Building Completion Certificate (CC).

It is mandatory for land-owners or developers to convey the title of the plot within four months of the formation of the housing society. In many cases, the builders fail to convey the title of properties to the housing societies, in the hope of availing more floor space index (FSI) that may become available in future, or to avail the benefits accrued to them in case the property is redeveloped.

If the builder fails to convey the property, the Maharashtra Ownership Flats Act (MOFA) allows societies to apply for DC. However, having OC was mandatory and was insisted upon by the officials of the cooperative registrar’s office. OC is given only when the building is complete in all respects and has complied with the mandatory norms laid down by the government authorities to make it ready for occupation. Since most of the builders abandon the projects before complying with the norms and conditions, OCs are not given to the societies. Developers just hand over the possession and exit the project, leaving the residents high and dry.

However now, the DC will be issued even if housing societies have submitted such documentary evidence as the formation of the society or the payment of property tax by the society.

As per the GR issued on 22 June 2018, by the state cooperation department, it has been made mandatory for the registrar of cooperative societies to register documents of the applicants within a day. Besides, as per the Maharashtra Right to Public Services Act, 2015, the DC should be issued within six months. If an official fails to provide and approve it within the prescribed period, then he or she will be penalized between Rs500 and Rs.5,000/-

The applicants should submit the applications with a court fee of Rs2,000. In case the FSI has already been consumed, a certificate of an architect that the total FSI has been consumed would suffice. In addition, they have to give an indemnity bond stating that they will take responsibility for the building and adhere to all required rules and regulations. If there are more than one society on one plot, the details of proportionate area and ground coverage should be furnished.

The documents required for conveyance include society registration certificate, approved layout, 7/12 extract, sale deed of each flat owner or heir document, list of registered members of the society, occupation certificate, non-agriculture certificate of that particular plot and notice copy etc. In the absence of sale deeds of all members, the sale deed of even one member would be sufficient, states the GR.

While submitting the conveyance application and documents to the registrar, a copy of the same application also needs to be submitted to the stamp duty and registration department for its speedy approval. The applications will be accepted online as well as offline. The officials of the concerned department such as urban, cooperative, forest and revenue department will have to work in unison so that the applicants are not required to shuttle from one department to another.

The system of issuing DC was started three years ago. However, due to stringent conditions there was no response from cooperative societies. Commenting on the issue, Ramesh Prabhu, Chairman, Maharashtra Societies Welfare Association said “This was a positive step. In many cases, the builders exited the project without getting the OC, and the residents had to bear the brunt. This relaxation will ensure that majority of the societies get deemed conveyance. By a fair estimate over 10,000 cooperative housing societies in Mumbai and neighboring areas, are yet to get the DC. Now they should come forward to take advantage of these relaxed norms.” There are a sizable number of housing societies in Mumbai that are struggling to get the DC. In absence of DC, redevelopment of some of the societies has been delayed. Some of the developers used to sell the flats till they held the ownership right of the layout and were misusing this right, causing impediment in the way of redevelopment.

FUNDS, THEIR UTILISATION AND INVESTMENT UNDER BYE-LAWS FOR SOCIETY FORMATION

• Raising of Funds :-

The funds of the Society may be raised in one or more of the following ways: Modes of raising the funds of the Society

a. by entrance fees,

b. by issue of shares,

c. by loans and subsidies,

d. by deposits,

e. by voluntary donations, (but not from Transferor and Transferee)

f. by contributions towards cost of building or buildings,

g. by fee on transfer of shares, along with the occupancy right, assignment h. by premium on transfer of occupancy right over the flats,

i. by corpus fund from Promoter Builder

j. by any other mode permitted under these bye-laws,

k. by way of statutory requirements.

l. by way of non-occupancy charges, leasing / hiring of open spaces m. by way of corpus fund, in case of redevelopment

Cessation of Membership

The person shall cease to be the Member of the Society:

a. On his resignation from Membership of the Society having been accepted by the committee.

b. On transfer of all his shares and interest in the capital/property of the Society.

c. On his death.

d. On his expulsion from the Membership of the Society.

e. On being adjudged as an insolvent or legally disabled from continuing as Member.

f. If the whereabouts of the Member are not known for continuous seven years and if his shares & interest in the property/capital of the Society is not claimed by anybody else.

g. On cessation of right/title & interest of a Member in the property of the Society, by way of legal attachment or sale.

h. Any transfer if void as provided under bye law number 38 (d) The Committee shall take further action in the matter as indicated in the bye-law No.61.

The person shall cease to be the Associate Member of the Society, when the Member, whose name stands first, ceases to be the Member of the Society or on the death of the Associate Member or on the acceptance of the resignation of the Associate Member by the Committee.

However the associate member shall not cease to be Associate Member when the First Member ceases to be the member of the society if Associate Member holds title and interest in the property jointly with the member.

The Committee shall take further action in the matter as indicated in the Bye-law No. 61.

If there is a Nominal Member, occupying the flat on behalf of the firm, company or any other body corporate he shall cease to be as such Member of the Society :

a. On his death.

b. On the acceptance of his resignation by the Committee.

c. On cessation of Membership of the original Member on whose behalf he occupies the flat in the Society.

d. On cessation of his nomination on account of expulsion of the original Member.

e. On intimation from the original Member of termination of the occupants nomination

The Committee shall take further action in the matter as indicated in the bye-law No.58.

The Nominal Member, who is the sublettee, licensee or care-taker or possessor in any other manner of the flat or the part there of shall cease to be as such Member of the Society:

a. On his death.

b. On his resignation having been accepted by the Committee.

c. On the cessation of the Membership of the original Member.

d. On the expiry of the period for which the flat or part thereof was permitted to be sub-let, given on leave and license or care-taker basis or occupied in any other manner. The Committee shall record the facts of cessation of Members Membership of the Society under the bye-law No. 54 and of Associate and Nominal Member’s Membership respectively under the bye-laws Nos. 55, 56 and 57, in the Minutes of its Meetings and accordingly the Secretary of the Society shall inform the concerned Members in writing within 7 days of the dates of such decision of the committee.

MEMBERS, THEIR RIGHTS, RESPONSIBILITIES AND LIABILITIES

I. MEMBERSHIP

• Classes of Members 16. The Membership of the Society shall consist of (i) Members, including Associate Members and (ii) Nominal Members.

(B) Eligibility for Membership

1. No individual shall be admitted as a Member of a Society except the following that is to say –
2. Individual who is competent to contract under the Indian Contract Act, 1872;
3. a Firm, Company or any other Body Corporate constituted under any Law for the time being in force, or a Society registered under the Societies Registration Act, 1860;
4.  a Society registered, or Deemed to be Registered, under the Act;
5.  the State Government or the Central Government;
6.  a Local Authority;
7. a Public Trust registered under any Law for the time being in force for the registration of such trusts;
8. A minor or a person of unsound mind, inheriting shares and/or interest of the deceased Member in the capital/property of the Society, or if nominated may be eligible for admission to Membership of the Society through his guardian or legal representative on an application in the prescribed form, along with undertakings / declarations, in the prescribed forms, mentioned in the application.
9. Notwithstanding anything contained in these bye-laws, admission of a person to Membership of the Society directly or as a result of Transfer of Shares and interest of the existing Member, in the capital/property, of the Society, shall be subject to the approval of the concerned Competent Authorities such as Collector of the District and the land grant terms as applicable, (provided if the Society has been given land by Government/CIDCO/MHADA/SRA” or any other authority )

A Firm registered under the Indian Partnership Act, 1932, a Company registered under “the Indian Companies Act, 1949, a Society registered under the Societies Registration Act. 1860 or a Co-operative Society registered or deemed to be registered under the Maharashtra Co-op. Societies Act, 1960, a Local Authority, the State/Central Government, a Public Trust or any other Body Corporate, registered under the law for the time being in force, as provided under Section 22(1) (b), (c), (d), (e) and (f) of the Act may be eligible for admission to Membership of the Society. However, admission of Firms and Companies to Membership of the Society and holding of flats by them shall be regulated in accordance with the notifications issued by the State Government from time to time under the Second Proviso to Section 22 of the Act.

Conditions for Membership

a. An individual / applicant who is eligible to be the Member and who has applied for Membership of the Society in the prescribed form, may admitted as Member by the Committee on complying with the following conditions :-

i. Applicant has fully tendered the value of at least Ten shares of the Society, along with his Application for Membership;

ii. Applicant has paid the Entrance Fee of Rs. 100/-, along with the Application for Membership;

iii. Applicant has submitted the application as prescribed, of the particulars in regard to any house, plot or flat owned by him or any of the Members of his family, anywhere in the area of operation of the Society;

iv. Applicant has submitted undertaking in the prescribed form to the effect that he shall use the flat / unit for the purpose for which it was purchased by him;

v. Applicant has furnished an undertaking in the prescribed form, if he / she has no independent source of income;

vi. Applicant has submitted, along with the application for Membership of the Society, a certified copy of the agreement, duly stamped and registered entered into by him / her/ them with the Promoter Builder or Transferor under Section 4 of the Maharashtra Ownership of Flats Act;

1. Applicant has furnished such other undertakings/declarations, in the prescribed forms as are required under any law for the time being in force and such other information as is required under the Bye-laws of the Society along with the application for Membership.
2. In case of Societies registered under the jurisdiction of special planning Authority like CIDCO / MHADA / SRA / MMRDA etc. the applicant should be eligible person as per the provision of respective Act and the directives of the Govt. / the Planning Authorities, if any.

b. An Individual, a Firm, a Company or a Body Corporate, registered under any Law for the time being in force, who/ which is eligible to be an Associate Member and who/which shall apply through Member in the prescribed form for such Membership, along with the entrance fee of Rs. 100/-, may be admitted as Associate Member by the Committee

c. A Firm, Company or any other Body Corporate, registered under any law for the time being in force, which is eligible to be a Member of the Society and has made an application for Membership of the Society in the prescribed form may be admitted as a Member by the Committee of the Society on complying with the following conditions:-

i. Applicant has sent, along with application for Membership of the Society, a certified copy of the agreement duly stamped entered into by it, with the Promoter(Builder) or transferor under Section 4 of the Ownership Flats Act.1963,with certified copy of resolution of the firm or company as the case may, authorizing to sign the application.

ii. Applicant has paid, along with application for Membership, full value of at least 10 shares and entrance fee of Rs. 100/-.

iii. Applicant has complied with the conditions mentioned in the notifications, issued by the State Government, from time to time, under the Second Proviso to Section 22 of the Act.

iv. Applicant has furnished the undertakings / declarations in the prescribed forms required under any law for the time being in force along with the application for Membership.

20. A sublettee, a licensee, a care-taker, or occupant who is eligible to be a Nominal Member and who shall apply through Member for such Membership in the prescribed form applicable, along with entrance fee of Rs. 100/- may be admitted as Nominal Member by the Committee. 21. The procedure for disposal of Application for Membership of the Society, as laid under the bye-law No. 65 (a) to (g) shall be followed by the Secretary and the Committee of the Society.

MEMBERS, THEIR RIGHTS, RESPONSIBILITIES AND LIABILITIES

I. MEMBERSHIP

• Classes of Members 16. The Membership of the Society shall consist of (i) Members, including Associate Members and (ii) Nominal Members.

(B) Eligibility for Membership

1. No individual shall be admitted as a Member of a Society except the following that is to say –
2. Individual who is competent to contract under the Indian Contract Act, 1872;
3. a Firm, Company or any other Body Corporate constituted under any Law for the time being in force, or a Society registered under the Societies Registration Act, 1860;
4.  a Society registered, or Deemed to be Registered, under the Act;
5.  the State Government or the Central Government;
6.  a Local Authority;
7. a Public Trust registered under any Law for the time being in force for the registration of such trusts;
8. A minor or a person of unsound mind, inheriting shares and/or interest of the deceased Member in the capital/property of the Society, or if nominated may be eligible for admission to Membership of the Society through his guardian or legal representative on an application in the prescribed form, along with undertakings / declarations, in the prescribed forms, mentioned in the application.
9. Notwithstanding anything contained in these bye-laws, admission of a person to Membership of the Society directly or as a result of Transfer of Shares and interest of the existing Member, in the capital/property, of the Society, shall be subject to the approval of the concerned Competent Authorities such as Collector of the District and the land grant terms as applicable, (provided if the Society has been given land by Government/CIDCO/MHADA/SRA” or any other authority )

A Firm registered under the Indian Partnership Act, 1932, a Company registered under “the Indian Companies Act, 1949, a Society registered under the Societies Registration Act. 1860 or a Co-operative Society registered or deemed to be registered under the Maharashtra Co-op. Societies Act, 1960, a Local Authority, the State/Central Government, a Public Trust or any other Body Corporate, registered under the law for the time being in force, as provided under Section 22(1) (b), (c), (d), (e) and (f) of the Act may be eligible for admission to Membership of the Society. However, admission of Firms and Companies to Membership of the Society and holding of flats by them shall be regulated in accordance with the notifications issued by the State Government from time to time under the Second Proviso to Section 22 of the Act.

FUNDS, THEIR UTILISATION AND INVESTMENT UNDER BYE-LAWS FOR SOCIETY FORMATION

• Raising of Funds :-

The funds of the Society may be raised in one or more of the following ways: Modes of raising the funds of the Society

a. by entrance fees,

b. by issue of shares,

c. by loans and subsidies,

d. by deposits,

e. by voluntary donations, (but not from Transferor and Transferee)

f. by contributions towards cost of building or buildings,

g. by fee on transfer of shares, along with the occupancy right, assignment h. by premium on transfer of occupancy right over the flats,

i. by corpus fund from Promoter Builder

j. by any other mode permitted under these bye-laws,

k. by way of statutory requirements.

l. by way of non-occupancy charges, leasing / hiring of open spaces m. by way of corpus fund, in case of redevelopment