In Focus

Deemed Conveyance Aims To Correct Malpractice

By Gajanan Khergamker

By law, the builder or the developer of a property is bound to convey the land and the building within four months of formation to the cooperative housing society formed.

That said the reality at grass-root level is starkly different. A majority of promoters which include builders and developers refuse to convey the land and building to legal entities as laid down by the law. And, it is for this very reason that the State amended the Maharashtra Ownership Flats Act, 1963 providing the option for deemed conveyance to check the practice.


Following the amendment, things have changed for the better. Now, after the expiry of four months of formation of the legal entity, the land and building is ‘deemed’ to have been conveyed to it. And, in order to include it in the revenue records, a designated Competent Authority shear the parties on the basis of applications received from the aggrieved party and transfers the title after passing the necessary order and deemed conveyance certificate. The authority even appoints an authorised officer to execute the conveyance deed in favour of the society and execute it on behalf of a non-cooperative builder or the land owner.

Normally, the builder or developer prepares a conveyance deed, executes the same and appears before the Sub-Registrar of Assurance for admission, but in the case of the developer or their heirs failing to cooperate the aggrieved parties have little choice but to opt for deemed conveyance.

Then, the parties appear before the Designated Competent Authority who, after hearing the parties, passes the necessary order of conveyance. Once passed by the Competent Authority, the deemed conveyance deed will be executed by the Authorised Officer in favour of the legal entity in question before it is registered. Additionally, there is no appeal against the deemed conveyance order passed by the competent authority.

After the deemed conveyance order and conveyance deed is executed, Index II has to be obtained and submitted to the Talati office or City Survey office to incorporate the name of the legal body in the 7/12 extract or in the property card.

According to the process of law, the affected party makes an application to the competent authority in the prescribed form with documents available against the developer who fails to convey the land and building to the said party within four months of its formation.

After scrutinising the application, the Competent Authority will collect the documents from the developer or from the authorised officer appointed by him and get the application admitted. Once the application has been admitted, the competent Authority conducts a hearing and decides whether the legal entity is a fit case to be granted the deemed conveyance. Once an order to the same effect is passed, he appoints an authorized officer who executes the conveyance deed.

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