The conveyance of land plays a crucial role in the establishment and functioning of various societies, particularly for re-development. In simple terms, conveyance refers to the transfer of ownership or title of land or property from one party to another. For housing societies, the conveyance of land is an essential legal process that helps formalize the transfer of land with common facilities, amenities from the land owner / developer to the society. 

This process can be complex and varies depending on the legal and contractual framework involved and hence an expert Advocate in this field is essentially appointment by the cooperative housing society. Many disputes are pending in the court because of not taking consultation and legal advice at right time. The conveyance of land generally includes several stages:

1. Agreement between the Builder and Society: The land owner / developer and the housing society must enter into an agreement to transfer the title of the land to the society.
2. Stamp Duty and Registration: The transfer of title is subject to the payment of stamp duty and registration with the relevant authorities to make it legally valid.
3. Society Resolution: The society’s general body must pass a resolution approving the conveyance deed.
4. Final Conveyance Deed: A formal document, the conveyance deed, is executed between the builder and the society, outlining the rights and responsibilities of both parties.

For any housing society, securing the conveyance of land is essential for several reasons:

• Ownership Rights: It gives the society full rights to manage the land, including the common areas, facilities, amenities, etc. thereby getting rights to transfer, sell, or mortgage it.
• Legal Recognition: It provides legal recognition to the society as the owner of the property, ensuring that it can enforce rights over the land especially required for redevelopment.

What is Deemed Conveyance?

This provision aims to simplify the process of transfer of land in the name of housing society when land owners / developers are unwilling to transfer the land in the name of the society, often due to legal or financial disputes.

The concept of deemed conveyance is particularly relevant under the Maharashtra Ownership Flats Act (MOFA), 1963, which addresses the concerns of flat owners and societies in cases where developers fail to transfer the land’s title. According to Section 11 of the MOFA, once the flats are sold and possession is handed over, the builder is obligated to convey the title to the society. If the builder neglects this, the society can apply for deemed conveyance under the relevant provisions.

Steps Involved in the Deemed Conveyance Process:

1. Filing an application: The society, after exhausting efforts to obtain voluntary conveyance from the land owner / developer, files an application for deemed conveyance before the relevant authorities (Registrar of Cooperative Societies or the Sub-Registrar).
2. Verification of Documents: The authority verifies that the society is legally constituted and has fulfilled all requirements for the deemed conveyance, such as the completion of construction and possession of flats.
3. Notice to Builder: A notice is issued to the land owner / developer, who must respond within a prescribed period, explaining why the land transfer has not taken place.
4. Hearing: If the land owner / developer fails to appear or provide a satisfactory response, a hearing is conducted where the society presents its case. The authority may then proceed to grant the deemed conveyance.
5. Deemed Conveyance Certificate: Upon approval, the authority issues a deemed conveyance certificate, which transfers the land title to the society.

The provision of deemed conveyance is a significant legal remedy for housing societies to ensure that societies are not left in limbo due to the builder’s inaction. While deemed conveyance offers an important avenue for housing societies to gain ownership of land, there are several challenges:

• Delays in the Process: The process of obtaining deemed conveyance can be lengthy, with multiple steps involved in legal proceedings and verification.
• Builder Resistance: Builders may contest the process of deemed conveyance, delaying the transfer even further.
• Legal Complexity: The legal process is complex and may require expert legal advice, which can be expensive and time-consuming.

While the conventional conveyance process involves cooperation from both the developer and the society, deemed conveyance serves as an alternative legal remedy when builders fail to transfer the land title. However, before starting the conveyance process, an expert legal advice is recommended to be taken to understand its challenges and all possible legal solutions. So that, the redevelopment process will be smooth when all the prior steps are completed without any rush.