What is Conveyance
Deed?
A generic term for any written
document which transfers/conveys real estate property or real property
interests from one party to another.
If someone willingly transfers
their legal rights, title, interest and ownership 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”.
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.
A valid conveyance
deed must contain the following:
1. The actual demarcation of
the property.
2. Other rights annexed to
the property and its use.
3. The full chain of titles,
that is, all legal rights up until the present seller.
4. The method of delivery of
the property to the buyer.
5. A memo of the consideration,
stating how it has been received.
6. Any further applicable
terms and conditions for the full transfer of ownership rights.
Important points to
consider, to ensure smooth purchase/sale of a property:
The seller is
required to certify that the property is free of any legal encumbrance.
If a loan was taken
against the property in question, then, the mortgage must be cleared before the
deed is signed. Buyers have the option of having this checked at the local
sub-registrar’s office.
The conveyance deed
should state the exact date on which the property will be handed over to the
buyer.
Within four months
of the execution of the deed, all the original documents related to the sale of
the property, need to be produced for registration before the local registrar.
The deed is required to be
signed by at least two witnesses.
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