Conveyance Deed or Deemed conveyance is one of the important documents every society/apartment should have. It gives you the right of ownership of the land from the developer. However, we have seen that many societies are not aware of it (mostly old societies) and hence have never created those documents. In this blog we will highlight key benefits of this document.

  • Conveyance gives the society “ownership right of the land and building” else it remains with primary owners/developers for years together
  • The co-operative housing society’s registration is done with first object to get the conveyance from the owners and developers – Refer Bye law clause 5 on objects of CHS.
  • Additional FSI if any as per Development Control Rules go to the person in whose name 7/12 extract or Property card is there
  • Redevelopment is possible only if you have got the conveyance and name of co-operative housing society is there in PR card or 7/12
  • CHS planning for self-redevelopment can avail the loan from designated bank for self-Redevelopment provided conveyance and other formalities are clear so that mortgage is possible
  • The additional FSI potential of the land can be exploited by the CHS for its members in case of self-redevelopment provided conveyance is there
  • Housing societies have a better position to negotiate with the developers for corpus and additional area if conveyance is already done. This gives you upper hand over builder
  • In case something goes wrong with your old building not even having conveyance, then your owner may demand huge money to give you permission to reconstruct
  • The promoters i.e. owners and developers should convey your own society land including your own flat within 4 months once 51% sales are achieved, it’s their obligation under MOFA.
  • Deemed conveyance comes into picture when the above obligation is not met by the land owners and developers for years together and you as a society can move the deemed conveyance application with your own DDR who is a competent authority and executes your conveyance deed
  • You don’t need your land owners, developers etc. Just decide and go for deemed conveyance which is easiest and practicable way of getting your own land and building registered in society’s name
  • Retaining the additional FSI as per the Government announcements
  • Property will be free and marketable
  • Society can raise the loans for repairs and reconstruction by mortgage.
  • 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
  • Society can take the benefit of TDR.
  • Members can receive compensation from Builder on redevelopment of the building

Remember… “you have paid not only for construction cost but your huge portion of flat purchase amount is towards land cost” so it’s your right to get your flat as well as land conveyed in the name of the society.

So, dear members and MC members, pls think wise, take quick decision and be practical , be proactive and be bold in taking decision of deemed Conveyance at least in this AGM .

Disadvantages of Not Having Conveyance Deed

  • Even though you have purchased ownership flat, you are not the owner of the land and building.
  • 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.
  • The Builder/Developer may mortgage the property purchased by you as he is the legal owner and holding the Title Deeds of the Property.
  • The Builder/Developer may transfer the FSI/ TDR to his other projects and enjoy the commercial benefits, depriving the flat purchasers/Society of its legal entitlement.
  • The Builder may make profit by sale of open spaces, gardens, terrace, parking space belonging to the Society.
  • The Builder may demand a huge amount from the Society, if Conveyance is sought by the Society after a lapse of many years.
  • 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

Learn more about the process of conveyance deed and difference between conveyance deed and deemed conveyance.