DIFFERENCE BETWEEN CONVEYANCE
AND DEEMED CONVEYANCE
Conveyance –
A generic term for any written
document which transfers (conveys) real estate property or real property
interests from one party to another.
So by the
above definition its very clear that if someone willingly transfers their legal
right of the property to another party they would need to create a document
which transfers this right. Such a document is called Deed of conveyance.
The important
point here is – Willingly. Now in case of housing societies the
builder/promoters have to ideally create deed of conveyance and hand over it to
housing societies that to within 4 months after project completion. However,
due to lack of knowledge many builders do not create such documents. There have
been cases where builders have later on denied to create such documents and
asked additional money to provide signatures on these documents. You will find
all sorts of reasons for not creating the document. This results in issues for
societies in future. Therefore, government has amended the Maharashtra
Ownership Flats Act, 1963 (MOFA) to make sure if builders run way from such
responsibilities the societies do not suffer. This amendment is called Deemed
Conveyance. This amendment allows society owners to gain the legal rights of
the land even if the builder is not willing to transfer the rights, in front of
designated competent authority.
Deemed Conveyance –
The
Promoter (Builder/ Developer) is legally required to convey the land and the
building within 4 months of formation to the society or any legal body of the
flat purchasers. However, it has been the experience that many promoters
(Builders/Developers) have not conveyed the land and building to the legal
bodies. Therefore, government has amended the Maharashtra Ownership Flats Act,
1963 (MOFA) and provided for the deemed conveyance in favor of the legal
bodies. Under the provision, deemed conveyance means after the expiry of 4
months of formation of the legal body, the land and building is deemed to have
been conveyed to the legal body and to bring the same in the revenue record,
Competent Authority has been designated who will hear the parties on the basis
of applications received from the aggrieved party and transfers the title in
favor of the legal body by passing the necessary order and deemed conveyance
certificate and appoint an authorized officer to execute the conveyance deed in
favor of the society and execute on behalf of non-co-operative builder or the
land owner. Getting the title of land and building by adopting the above
procedure is known as deemed conveyance.
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