What is Deemed Conveyance?

As a resident of a housing society or an apartment complex, it is vital that one understands what is deemed conveyance? In Mumbai and several cities like the financial capital of the country, there are many housing societies which are old and would go into redevelopment soon. For any housing society, it is vital to acquire conveyance or deemed conveyance and have the land named after their society. The ideal scenario is acquiring the conveyance certificate. Failing to do so, a housing society cannot go under redevelopment. There are several documents which are required to apply for deemed conveyance. Documents like – list of members in the prescribed format and index-II for each member as issued by the Sub-Registrar of Assurance can be Most housing societies often end up looking for these documents at the last minute.

The Basic Concept

Deemed conveyance occurs when the builder/land owner or the legal heir refuse to co-operate in handing over conveyance certificate to the apartment complex management committee. In such case, the housing society has to appear before the designated competent authority 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 the 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.

What does the law say?

Under section 11 of Maharashtra Ownership Flats Acts (MOFA), in case of Regular Conveyance, the Builder/ Developer/ Landowner/ Promoter are duty bound to co-operate with the CHS and execute a Conveyance deed before the Sub-Registrar and the original documents are handed over the new owners after completing all the necessary procedure.

How to obtain deemed conveyance?

When the developer i.e. the builder and the landowners are ready to sign the deed, the housing society can process the conveyance deed. When the builder or their heir create a hurdle is when the housing society can opt for deemed conveyance. The housing society needs to file an application in the prescribed format before the sub-registrar. Once submitted, the competent authority, within a reasonable time which is not more than 6 months. After verifying the authenticity of the documents, the plea of the builder is heard. Once the competent authority is convinced that the society’s case is stronger, he/she issues the instrument of deemed conveyance. There are a list of documents which are required in order to file a deemed conveyance for the housing society.