CONVEYANCE &

DEEMED CONVEYANCE

CA . RAMESH S. PRABHU
(Chairman) M S W A
 M O F A, 1963
• CONSTRUCTION BOOM IN THE 60’S
• FLAT PURCHASERS WERE
UNPROTECTED
• BUILDERS TOOK FULL ADVANTAGE
• MANY IRREGULARITIES SURFACED
• GOVT. IMPLEMENT AN ACT IN 1963
• KNOWN AS M O F A, 1963
 UNDER M O F A, 1963
• Flat Owners get Statutory Rights
• Can demand Building relevant
papers
• Get the Agreement Registered
• Agreement in Specific Format
• Maintain property till society
formed
 MOTHER OF FLAT ACT
MAHARASHTRA OWNERSHIP FLAT ACT, 1963

Applicable Related to
Concerned
All Over Owning / acquiring
with Flats
Maharashtra Rights

All connected
Central & State Freehold Rights Leasehold Rights
Laws applicable
 4) MOFA : INDEPENDENT UNITS

Residential Industrial
Shop Garage Bungalow
Flat Gala

Any Constructed
Developed Any Permanent
Office or to be Constructed Structure
Plot
Structure

Provided or agreed to be provided by the Promoter

To the Purchaser for a Consideration
 PARTIES ON WHOM OBLIGATIONS
ARE MADE APPLICABLE

Promoter Flat Buyer/s

Builder /
Land Owner Single Group
Developer

1. Individual, 2. Firm. 3. Company, 4. Assn of Persons,

5. Govt., 6. Semi Govt. 8. Local Authority 9. Trust
10. Society – u/SRA,1860 11. Co-operative Society u/ MCS A of 1960
12. LLP or any other person or group of persons.
 OBLIGATION OF THE BUILDER
Contractual Obligations
1. Enter into Agreement
2. Registration of Agreement
3. Receive the Flat
Consideration
4. Hand over the Possession
of flat as agreed
Statutory Obligations
1. Register Agemt on Receipt of 20%
2. Complete the Building in all respect
3. Provide O.C., B.CC.
4. Provide Common Facilities
5. Water Connection
6. Electric connection
7. Disclose the information
8. Provide all Documents
9. Registration of Society / Legal Body
10. Providing Conveyance
 P
CONVEYANCE
• Meaning of Conveyance :
It’s the Document confirming the
transfer of title

• Objects :
– To become the legal owner
– To make entries in Govt. Records
– To have free and marketable title
 ADVANTAGE OF CONVEYANCE

• Transfer of Ownership Rights over

the land it is constructed on
• All Commercial benefits come to
Society
• Appreciation of Property …….as also
• Loan can be raised by mortgage
• Balance F S I can be retained
• Permission for redevelopment
possible
 HAVE YOU READ SOMETHING LIKE THIS ?

May be a very few cases !

What in case if this happens?

Don’t wait for a Situation

Like this to Happen ……
V
DOCUMENTS REQUIRED FOR
CONVEYANCE
• Society Reg. Cert : With Society
• Stamp Duty & Reg Paid Proof : Each
individual
• Agreement for Sale : Promoter to
Purchaser
• Commencement Cert : Municipal
Authority
• C C / O. C : Concerned Authority to
Builder
• Approved Building Plan : Municipal
Authority
• 7/12 Extract : Tahsildar /Concerned
Auth
DOCUMENTS REQUIRED FOR
CONVEYANCE
• Form No 6 Mutation Entry : Revenue
Office
• Search Report / Title Clearance :
Advocate
• Index II : Sub Registrar of Assurances
• Property Card : Thasildar
• N A Order : Collector of Districts
• Development Agreement : Land Owner
to Builder
• Conveyance Deed or Sale deed : Builder
to Society
 Mah.Ownership Flat Act, 1963
• U/s 11. Promoter /Builder to complete
conveyance of land & building to
society
• Promoter/builder to rectify, execute
and deliver all relevant documents of
title
• Execute conveyance within 4 months
from the registration of society
• U/s 13. Non-conveyance is an offence
• Punishment :3 yrs Jail or fine or both
 U/S11. TO CONVEY LAND AND BUILDING TO THE LEGAL
ENTITY WITHIN PRESCRIBED TIME &
DELIVER RELEVANT DOCUMENTS.

Legal Remedies Quasi Judicial Authority as per

Existing till 2005 MOFA-Amendment-2008

Civil Court Consumer Court Criminal Court Dy.Dist.Regr,

U/Specific Relief U/ Consumer U/S-13 of C.A notified
Act, 1963 Protection Act, 1986 MOFA 1963 as Competent
Authority

Amendment to Rules were made to implement the functioning

of Competent Authority and MOF (Amendment) Rules, 2010 notified
 REMEDIES WITH COMPETENT AUTHORITY

FOR VIOLATION OF STATUTORY OBLIGATIONS BY THE

PROMOTER FOR THE COMMON BENEFIT OF FLAT BUYERS

U/s 13(4) & 13(5)

U/s.10.
U/s11. To Inform
U/s.5. Formation of
To Convey Local Authority
Disclosure of Legal entity to
Land to Debar The
Information Manage
and Building Promoter from
of Money Common
to the Legal Construction
Collected Services,
Entity Activity for
for a Particular Area & Facilities
within 4 next 5 years
Purpose after
months & Deliver on conviction
Disposing
Documents. by court on
60% units
MOFA violation.
 U/S. 5 DISCLOSURE OF INFORMATION BY THE PROMOTER

COLLECTED MONEY FROM THE FLAT BUYERS FOR FOLLOWING

PURPOSE OTHER THAN SALE CONSIDERATION/ COST OF
FLAT TO BE DISCLOSED AND ACCOUNT STATEMENT TO BE PROVIDED..

Payable to
For Tax For For Common
Authorities for
Payments Maintenance Legal Entity
service

1.Development 1. BMC-Prop.Tax 1. Water Chgs 1.Share Money

Charges 2. N.A Tax 2. Elect.Chgs 2.Convy Chgs
2.Water Meter 3. Stamp Duty 3. Comm. Repairs 3.Corpus Fund
Deposit 4. Regn Fees 4. Service chgs 4.Adv. Maint.
3.Electic Deposit 5. MVAT Deposit 5. Insurance 5.Legal Fees
4. Premium to 6. Serv.Tax 6. Common 6.Others
Authorities etc Deposit Services
 U/S.10. FORMATION OF LEGAL ENTITY .
(MOFA-MOTHER OF FLATS ACT)

TO MANAGE COMMON SERVICES,

AREA & FACILITIES AFTER DISPOSING 60% UNITS BY PROMOTERS

Society or Other
Company Condominium
Federation Legal Entity

Mah.Co-op. Companies Act, Mah. Aprt.

Soc.Act, 1960 1956 at ROC Own. Act, 1970
At Dy. Regr. At Sub-Regr.

Association Trust Firms PSU & GU Others

u/SRA, 1860 u/BPT,1950 u/IPA, 1932 u/Act of Pimt LLP etc.
 U/S11. TO CONVEY LAND AND BUILDING TO THE LEGAL
ENTITY WITHIN PRESCRIBED TIME &
DELIVER RELEVANT DOCUMENTS.

Legal Remedies Quasi Judicial Authority as per

Existing till 2005 MOFA-Amendment-2005

Civil Court Consumer Court Criminal Court Dy.Dist.Regr,

U/Specific Relief U/ Consumer U/S-13 of C.A notified
Act, 1963 Protection Act, 1986 MOFA 1963 as Competent
Authority

Amendment to Rules were required to implement the functioning

of Competent Authority and MOF (Amendment) Rules, 2009 notified
11) AMENDMENT IN MOFA IN 2008- PURPOSE

1.To provide a Competent (Quasi Judicial) Authority

in addition to existing Legal Remedies.
2. To order & Implement the remedial steps by
Competent Authority in the common
interest of flat buyers.

U/s 5A of MOFA not below the rank of (D D R)

Dist. Dy.Registrar of Co-op.Soc. as per Notification
Dated. 25-06-08, have been notified to be Competent
Authority for their respective Jurisdiction
 CONVEYANCE OF LAYOUT PLOT.
All the Societies To Single Society
Apply together For With
To The Fed
1.100% Bldg &
Or Apex
1.100% Bldg &
Body With
2.Notional Net
The
2.Notional Net Plot
Consent
Plot as per
FSI USED 3. Percentage of
All
Undivided
Legal
3. Fedn to Manage Rights area as per
Entities
common FSI USED
Area & get title
 SCRUTINY OF APPLICATION &
NOTICES TO PARTIES
(a) Give the Acknowledgement to Applications
and Register in Register
(b) Application to be incomplete, send the
notice for compliance as per form No. VIII
(c) CA to issue notice for hearing within 15
days of registering the application
(d) Notice to be served registered post,
Acknowledgement due.
(e) CA to issue public notice inviting claims,
objections in local news papers having
wide circulation, if the notice is not served
on the builders/ opponents
 APPEARANCE & NON APPEARANCE
(a) On Apt. Date –Opp. To appear In person or Auth.Rep
File Reply. Adjournment not to exceed 15 days in
the first instance.
(b) Only Appl Appears, CA to satisfy that notice is served
on Opponents and Appl to justify prayers on next Dat
and Decide the case ex-parte. If Opponent shows
sufficient cause for non-appearance, hear his say in
the matter.
(c ) On hearing date, if applicant is absent, the CA may
hear the opponent and decide the matter as per merit
(d) On hearing date, the Opponent is absent, the CA may
decide the matter after hearing the applicant.
PRODUCTION & INSP. OF DOCUMENTS
(a) Parties to file relevant documents in support of their say.
If CA is satisfied , that reqd. documents is with other party
CA may direct the concerned party to produce the same.
The Appl. to file written say before demanding such
documents.
(b) The party ordered, fails to produce, CA may draw adverse
inference against such party and original Appl hearing
will continue.
(c) CA is satisfied documents cannot be brought, CA may orde
to take inspection of such documents at site within 7 days.
(d) If CA is satisfied, on the basis of new documents, the
opponent has to give a written statement, the same may
be allowed.
 PROCEDURE FOR HEARING
(a) On receipt of reply from Opponent/s, the Applicant
to prove his contents and deal with opponents reply.
Opponent may file written say on next date. No
cross examination allowed.

(b) On receipt of replies, CA may hear oral Arguments

of the parties and close the proceedings.

(c) Within 6 months after making such enquiries ,

verifying the authenticity of documents and giving
sufficient hearing as per law of natural justice to the
parties, pass such order as he deems fit.
 JUDGEMENT, ORDER &
CERTIFICATE
SPEAKING ORDER AND
CERTIFICATE THAT THE
APPLICANT CASE IS A FIT CASE
ON GETTING UNILATERAL
CONVEYANCE to be issued by
the Competent Authority
 REGISTRATION OF
DEEMED CONVEYANCE
• Prepare Deemed Conveyance deed
• Send it for adjudication – Stamp Duty
• Lodge for Registration with Sub Registrar
• Sub Registrar to issue Show Cause Notice
to Builder & Landlord
• Decides the fate of registering the
Conveyance deed
 STAMP DUTY WAS PAYABLE
AFTER 1958
WHERE YOU COULD PAY…..

AT THE TIME OF If not then at the

AGREEMENT TIME OF Possession
As per the Article or Under the
5(h)- on Rs.5/- Article 25 (d) of
Stamp / Stamp B S Act, 1958 at the
Paper time of
CONVEYANCE
 STAMP DUTY PAYABLE
UNDER BOMBAY STAMP ACT, 1958

AT THE AT THE TIME

TIME OF OF
AGREEMENT CONVEYANCE

AT THE TIME
OF
POSSESSION
 24. Calculation Of Stamp Duty

Optional upto Compulsory

10.12.85 after 10.12.85

Before After As per

04-08-1980 Mkt.Value
04-08-1980
As per
Ready Reckoner
As per As per Mkt.Value
Agreement value (to be decided)
 No. 5 / Stamp Duty 06 / Ltr. No. 58/06/1224
Inspector General at Registration & Stamp
Maharashtra State, Pune Office, Pune.

To, Date : 10/08/2006

The Superintendent of Stamps,
Mumbai.
Sub : Levy of Stamp Duty on the Deeds of Agreements made prior to 10/12/1985
Reference : Your Letter No.BOM/5064/06 dtd. 03/08/2006
Referring to the points raised in the above letter we explain as follows :
On the Sale Agreements executed before 10/12/1985, Stamp Duty applicable was as per
the article 5(h) of Bombay Stamp Duty Act, 1958 and not as per Article 25 of the Act.
This is as per the judgment given by Honorable Mumbai High Court in the case of
Padma Nair V/S Dy. Collector, Stamps & Adjudication and others.
If the State Agreements executed before 10/12/1985 are submitted under Article 31, the
Collector of Stamps cannot give any remark on such Agreements under Article 32 C (A)
& (B).
Instead of issuing any order, under Article 33 or Amnesty Scheme you can issue a letter
in following format to concerned persons who have submitted such Documents.
“Your Sale Agreement Deed is executed before 10/12/1985. At the time of execution of
your Sale Deed, the Agreement for sale was not treated as a Part Conveyance and
provision for collection of stamp duty was not applicable at that time. As such the
Agreement is considered properly stamped under the article 5 (h). However it must
be noted that when ever you proceed to procure the Conveyance you would be
liable to pay the full Stamp Duty on the Current Market Value of your Property as
applicable under the rules.
Inspector General of Registration and Controller of Stamps
Maharashtra State, Pune
 A Few ACTS & RULES APPLICABLE

• REGISTRATION ACT, 1908 –

For registration of Conveyance deed
• BOMBAY STAMP ACT, 1958 –
for Stamp Duty Verification and calculation
• M.C.S. ACT, 1960-
under which society is registered
• INCOME TAX ACT, 1961 –
To Verify Tax Liabilities of the Vendor
• MAH. OWNERSHIP FLATS ACT, 1963-
under which Flats are purchased
 ACTS & RULES APPLICABLE

• ULC- For verifying any violations under the Act

• Criminal Procedure Code / Civil Procedure Code
and Consumer Protection Act– For proceeding
against the builder
• BMC – Development Control Rules, 1991-
For Legality of the Building construction
• LAND REVENUE CODE –
Where Land Records Order kept

. BYE-LAWS: Applicable to all the societies

 28) DEPARTMENTS INVOLVED for
CONVEYANCE
• City Survey Office – for Property Card
• BMC – For Approved Plan
• Collector of Stamps – For Stamp Duty
• Sub Registrar – For Registration of Copv
• Assessment Dept– For Change in the Prop. Tax
Bill
• Collector office : For N.A. Order
• Revenue Dept : ULC order
• Many more dept on case to case basis
 Shri. Ashok Chawan
Hon’ble C M of Maharashtra
was felicitated for signing the bill

Shri. Sanjay Nirupam, M.P, C.A. Ramesh Prabhu Welcomes

Shri. Ashok Chawan Shri. Ashok Chawan
Hon’ble Chief Minister of Maharashtra &
C A. Ramesh Prabhu, Chairman (MSWA)
Hon’ble Chief Minister of Maharashtra
 Shri. Ashok Chawan
Hon’ble Chief Minister of Maharashtra Releases the book on
DEEMED CONVEYANCE

Shri. Sanjay Nirupam,

Shri. Ashok Chawan Hon’ble Chief Minister of Maharashtra,
C A Ramesh Prabhu, Chairman (M.S.W.A)
MAHARASHTRA SOCIETIES WELFARE ASSOCIATION
A/1, R.No.207, Laram Center, Above Federal Bank,
Opp. Railway Station, Andheri (West), Mumbai 400058

Presented By :
CA. Ramesh S Prabhu Chairman (M S WA)
Shri. Prabhakar Churi Hon. Consultant (MSWA)
Tel Nos : 26248565 / 26248589