All you wanted to know about Conveyance of the Land & all its assets appurtenant unto it;
Though the Conveyance Deed is one of the most important documents for the Assets owners i.e. flat owners- Society, many societies do not have it nor have they been explained of its importance in this fashion; Hence please circulate and create AWARENESS accordingly;
Here are some of the basic things we all must know & erase misconceptions- On what is a conveyance deed?
A conveyance deed is a document that conveys the title of ownership of a property from the original land owner & builders / Developers unto the ultimate purchaser. All the CHS / flat owners must obtain conveyance deed for their structures, to become true owners of the entire structure and land attached to it as against the contrary common belief that once you pay the stamp duty and register your flat agreement and thereafter you are in possession of property for more than 12 [Twelve] years the doctrine of Deemed Conveyance & or the Adverse position by possession would apply and or suffice to claim absolute ownership; which is not the fact nor the point in law;
What is the objective behind obtaining a conveyance deed?
As specified earlier, a conveyance deed is basically an instrument to transfers the ownership rights from the developer or the landowner to the flat owners. The first and foremost objective is to become the legal owners of the entire property. Obtaining free and marketable being the absolute title of the property is the most important objective, cost of which has already been paid as one of the components in purchase of the Flat / Asset.
When a particular person or society has paid full consideration and is in possession of the property but the title documents are in the name of the original owner (developer or landowner), the purchaser does not have a free, clear, absolute and marketable title of the said property. It is only after obtaining the conveyance that the buyers derive the free and marketable title over the property.
What are the advantages of holding the Conveyance in CHS?
Here are some advantages of obtaining the conveyance deed from the developer:
- Attaining the main objectives of the CHS formation by getting the proper & legal title & then paying the Statutory charges / taxes correspondingly, as per law;
- Retaining additional FSI, if any;
- Property will be free and marketable for generating income by putting up Mobile Towers/ Advertising Hoardings etc.
- Loan can be raised by repairs and mortgage too;
- Permission for Re-Development & or Reconstruction under Section 79A of the MCS Act of 1960, would be easily possible;
- Possible Construct additional floor/s by TDR;
- Receive monetary compensation on setback areas, unused FSI for transfer of property developmental rights / sale of FSI, if any.
How can the flat owners obtain a conveyance deed of their Assets / Building?
According to section 10 of Maharashtra Ownership Flat Act (MOFA), 1963, it is the duty of the promoter to submit an application to the Registrar for registration of a Co-operative Housing Society. This should be done within four months from the date on which minimum number (60 per cent of flats) of persons required to form such an organisation have taken flats.
Once the society is registered, it is the duty of the promoters, as specified in section 11, to perfect its title and then convey the clear and clean marketable – Rights, Title and Interest duly mutated unto the CHS name in all the statutory land records in favour of the society within four months.
What if the developer does not fulfil his Contractual & Legal obligations mandated / duties as specified in the MOFA?
According to section 13 of MOFA, if any promoter without any reasonable cause or legal withholdings or bar gives any lame excuses or fails to comply with or contravenes any of the mandatory requirements of section 3,5,6,7,7A,9,10 and 11 R/w 16 of the MOFA’1963, due to non-availability of title documents, non-cooperation by other promoters, fear of litigations, lack of knowledge, vested interest and or any reasons of violations of law in the housing construction project then, he can be punished with imprisonment for a term, which may extend up to three years & or with fine or both.
The CHS / flat owners, if they all appreciate and wish to enhance their asset’s economic values; then, they can come together and file the Application for DEEMED CONVEYANCE Entitlement before the Competent Authority and or Consumer complaint for compensation /losses inflicted or a civil suit and or criminal cases against the promoter for circumventing / contriving any of the above said provisions of the MOFA ~ Act.
What is the society expected to do once it obtains the conveyance deed?
After the conveyance deed is executed in favour of the society, the office bearers must apply to all the statutory authorities including the Talathi / Revenue Officer or the City survey officers for making necessary mutation / changes in the revenue records & recovery of its dues /arrears if any. There are no of prescribed forms to be filled in and filed correspondingly to make the necessary changes.
Even the landowner will have to give his/ her consent for making the changes. After the said changes are done in the revenue records, the property card, or the 7/12 extract, form 6 extracts will be issued in the name of the society. Once this is done, the society becomes the complete owner of the entire property worth the current market value / as per ready recokner value until then only that of the structure which is hardly worth nor more than Rs 3,500[Thirty-five hundred] per Sq Ft;
In case you need any more clarification /details; Primary advise is FREE, hence you can call any time on 093 222 666 17 // 0902 999 55 86 between 5.30pm until 7.30pm x 365 days or can even whats App your query without any hesitation & or even Email to us on: UMPrabhu@Hotmail.com / UMPrabhu@Consultant.com ; We are Globally & socially committed to keep your assets safe hence shall respond within 72 hours or less;
Actively at your Services;
Ln; UdayPrabhu-0902 999 55 86