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Conveyance Deed: Importance and documents required

-Manisha Prabhu
What is the meaning of conveyance?
The word conveyance means to convey the title of a property from one person
to another by an instrument. Conveyance deed is a legal document in writing
between the seller and purchaser evidencing the transfer of right, title and
interest in immovable and movable property in favour of the purchaser. It is final
documents which a builder/land owner is supposed to give while transferring the
ownership of land on which society building is constructed. Execution of
Conveyance deed should comply legal provisions of the Acts such as Transfer of
Property Act 1882, Registration Act 1908, Indian Contract Act, 1872, Income Tax
Act 1961, Maharashtra Ownership Flat Act 1963.
Before execution of conveyance deed by a builder/developer/landowner it is
essential to make the housing complex a legal entity. As per Section 10 of
Maharashtra Ownership Flats Act (MOFA) 1963, as soon as a minimum number of
persons required to form a cooperative society has taken flats, the promoter
within a prescribed period has to submit an application to the Registrar for
Registration of the organisation of persons who take the flats as cooperative
society. Thus MOFA has made obligatory for builder/ developer to form a society
within 4 months of sale of minimum no. of flats. As per Bye law no. 5 the main
object of the society shall be To obtain conveyance from owner/promoter/
builder in accordance with the provisions of the ownership Flats Act and Rules
made there under, of the right, title and interest, in the land with building /
buildings. This shows that the main objective of formation of society is to get the
conveyance of land. Thus, first step is formation of housing society.
As per section 11 of MOFA, 1963 it is the responsibility of the Promoter/ Builder
to take all necessary steps required to convey the land and the building within
four months of formation of the society and also deliver all documents related to
title of property which may be in his possession or power.
There are very few builders who take steps and convey land in the name of the
society but many avoid doing so or delay the matter to get future benefits
attached to the land such as additional Floor Space Index (FSI), Transfer of
Development Rights (TDR), Redevelopment rights, etc.

In most of the cases office bearers of societies are ignorant about the conveyance
of land for which full payment has been made by all the members to the builder.
In such cases the benefits directly go to the builder as title of land is in the name
of the builder or land owner.
To avoid such loss we should know the benefits of having conveyance of land in
favour of society
1. Legal title When the land and building is conveyed/ transferred in the
name of the society, which means the society gets legal title of the
property.
2. Additional FSI (FSI means Floor Space Index, which is the ratio between the
built up area allowed and plot area available) - The advantage of additional
FSI can be gained by Cooperative housing society only after obtaining
conveyance.
3. Free and marketable property Only after obtaining conveyance the
buyers have free and marketable title over property, until then the land
and building continues to be in the name of original owner.
4. Loan can be raised Society can raise loan from bank and other financial
institutions for major repair work only if conveyance is completed.
5. Benefit of Transfer of Development rights (TDR) Society can take benefit
of TDR during redevelopment of building/s.
6. Reconstruction of building No Objection Certificate for reconstruction of
building can be obtained from Municipal authorities only when conveyance
is obtained by society.
7. Compensation from builder on redevelopment Society can redevelop
building/s with additional FSI and purchasing TDR from others.
Consequences if Conveyance is not done in favour of society
1. Even though a person has purchased a flat, the member is not the owner of
land and building.
2. Name of society is not recorded in Government records like on property
card and 7/12 ledger extract.
3. The builder/developer may transfer FSI/TDR to his other projects, depriving
the society who is legally entitled for it.
4. The builder/developer may mortgage the property as he still holds legal
title of the property.

5. After lapse of many years the builder may demand compensation from
society for execution of conveyance deed.
6. In case of non cooperation by builder or if builder is untraceable the society
will have to sought for deemed conveyance which is a lengthier, time
consuming and comparatively expensive procedure.
7. Society cannot go for redevelopment unless and until conveyance of land is
done.
8. Housing Societies do not receive tax bills and common amenities bills in
their name but in the name of land owner.
9. In case of unfortunate incidences like land slide or earthquake, the original
land owner can always claim title of the land as still the legal title is in his
name.
Documents required for Conveyance
1. Registration certificate of the society
2.

7/12 land Record Ledger Extract

3.

Property card

4. Development Agreement between Landlord and Builder/


copy of Power of Attorney
5.

Sanctioned plan copy from BMC

6.

Approved Plan of the building

7.

Completion Certificate and occupation certificate

8.

Urban land ceiling order

9.

Conveyance deed of earlier owners

10. NA Tax paid receipts


11. Agreement of sale with the developer/ builder (All pages)
12. Stamp duty paid proof by the flat purchasers
13. Title clearance certificate
14. Search report of last 30 years

Procedure for execution of Conveyance deed


1. Authorization The General Body of the society should authorize the
managing committee members to take initiative and fulfill the formalities
required for execution of conveyance of land and building. Pass a resolution
accordingly.
2. Draft of conveyance deed The draft of conveyance deed of land and
building prepared by the builder, place the same before the meeting of the
General body for its approval. After receiving approval managing
committee members can proceed with the procedure.
3. Submission of application and documents - Submit all the copies of
documents listed above and make an excel sheet which will have columns
as below with details filled in it as per the agreement of sale copies
received from members
a. Sr. no.
b. Flat no. / shop no. / Unit no.
c. Name of the member
d. Built up area
e. Date of execution of agreement
f. Property value
g. Stamp duty paid
h. Registration Document no.
i. Remark (Whether okay or incomplete)
4. Verification of payment of Stamp duty The society has to submit the
copies of agreement to the office of collector for determining if any stamp
duty is payable on such deeds. If the agreement of sale of flat is not
registered and stamp duty is not paid during purchase of flat than the flat
purchaser have to pay the stamp duty on the present market value before
registration of Deed of Conveyance.

If any flat holder is paid less than the required stamp duty, the difference
will have to be paid before registration of deed of conveyance.
If all the flat purchasers have paid stamp duty at the time of agreement
than the society has to pay just Rs. 100/- and need not pay anything extra.
5. Registration of deed of conveyance After completion of all procedure the
conveyance deed has to be registered before the sub registrar within four
months from the date of execution. For the purpose of Registration both
the transferor and transferee have to attend registrar office and sign the
original document before the Registration authority. Two witnesses are
also required to sign the documents.
6. Documents required to be taken for registration of deed of conveyance
a. Original daft of conveyance deed
b. Identification card and photos of builders and managing committee
members (who are authorized by the general body of the society).
c. Two witnesses and their identification card.
d. Pan card Xerox of builder, office bearer and witnesses.
e. Latest property card copy (should not be older than 6 months).
f. Occupation certificate copy
g. Certificate of urban land ceiling
h. Registration certificate of the society
i. Latest property tax bill
j. Block plan of the land
k. Resolution copy of authorization
l. Pay order for registration fee as per market rate

After the conveyance deed is executed in favour of society, the


managing committee members will have to make application to city

survey office for making changes in the property card and 7/12 ledger
extract, which is most important.
Traumatic Gujarat Earthquake occurred on 26th January 2001, is enough to
convince us the importance of Conveyance of land and building.