All about Conveyance
[ TNN ]
Though the Conveyance Deed is one of the most important documents for flat owners, many societies do not have it.Here are some things you must know
What is a conveyance deed?
A conveyance deed is a document that conveys the title of ownership of a property from the original owner to theultimate purchaser. All the flat owners must obtain conveyance deed for their structures, to become true owners of the entire structure and land attached to it.
What is the objective behind obtaining a conveyance deed?
As specified earlier, a conveyance deed transfers the ownership rights from the developer or the landowner to theflat owners. The first and foremost objective is to become the legal owners of the entire property. Obtaining free andmarketable title of the property is the most important objective.When a particular person or society has paid full consideration and is in possession of the property but the titledocuments are in the name of the original owner (developer or landowner), the purchaser does not have a free andmarketable title of the said property. It is only after obtaining the conveyance that the buyers derive free andmarketable title over the property.
What are the advantages of conveyance?
Here are some advantages of obtaining the conveyance deed from the developer: Getting the proper title Retainingadditional FSI, if any Property will be free and marketable Loan can be raised by mortgage Permission forreconstruction possible Construct additional floor/s by TDR Receive compensation on development
How can the flat owners obtain a conveyance deed of their building?
According to section 10 of Maharashtra Ownership Flat Act (MOFA), 1963, it is the duty of the promoter to submitan application to the Registrar for registration of a Co-operative Housing Society. This should be done within fourmonths from the date on which minimum number (60 per cent of flats) of persons required to form such anorganisation have taken flats.Once the society is registered , it is the duty of the promoter, as specified in section 11, to convey the right title andinterest in favour of the society within four months.
What if the developer does not fulfil his duties as specified in the MOFA?
According to section 13 of MOFA, if any promoter without reasonable excuse fails to comply with or contravenesmandatory requirements of section 10 and 11 then, he can be punished with imprisonment for a term, which mayextend up to three years or with fine or both. The flat owners can file civil or criminal cases against the promoter forcontriving the provisions of the 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 the Talathi / Revenue Officer or the city survey office for making necessary changes in the revenue records. There are prescribedforms to be filled to make the necessary changes.