How a Housing Association Can File for “Deemed Conveyance” and the Legal Process
When a builder fails to transfer the title of a property to your housing association, it creates a legal problem that can stall all future plans, from a simple repair to a full redevelopment. This is where “deemed conveyance” becomes your most powerful legal tool. It is a statutory right that allows your society to bypass an uncooperative or missing builder and secure legal ownership of the land. The process, while specific, is designed to empower you, the flat owners. The legal process involves filing an application with the Competent Authority, who can then legally transfer the title to the society.
Filing for deemed conveyance is a proactive step that every housing association must consider if they do not have a clear title to their property. It removes the legal uncertainty and protects the members’ financial investment. Engaging a skilled cooperative lawyer can make this complex legal journey smooth and efficient, ensuring all steps are followed correctly.
The Legal Framework Why Your Housing Association Can File for Deemed Conveyance
Deemed conveyance is a legal remedy under the Maharashtra Ownership Flats Act, 1963 (MOFA). Section 11 makes it a builder’s duty to transfer the land title to the society within four months of its formation.
If the builder fails, the society can apply to the Competent Authority for a unilateral or “deemed” transfer of title. This provision protects flat owners. It prevents builders from exploiting the land for personal gain, such as using it as collateral or selling development rights.
The Real Estate (Regulation and Development) Act, 2016 (RERA), Section 17, further reinforces the promoter’s duty to execute a registered conveyance deed in favour of the allottees’ association.
The Step by Step Legal Process
The deemed conveyance process has become more streamlined, with many parts now available online through government portals. However, because of the amount of documentation and the legal details involved, having an experienced housing society lawyers in Mumbai on your side is critical.
Step 1: Society Resolution and Document Preparation
Before you can file, your society must:
- Hold a Special General Body Meeting: Pass a resolution to pursue deemed conveyance and authorise at least three committee members to act as signatories.
- Issue a Legal Notice: Your cooperative lawyer should send a formal legal notice to the builder, demanding they execute the conveyance deed. This creates an official record of the builder’s non-compliance.
- Meticulously Collect Documents: This is the most crucial step. The required documents include:
- Society’s registration certificate and bye-laws.
- Original land revenue records (7/12 extract or Property Card).
- Approved building plans and the Commencement Certificate.
- Copies of all registered individual flat agreements (Index II).
- A list of all society members.
- A legal search and title report of the property.
Step 2: Online Application Submission
The Maharashtra government has digitised this process. Your society lawyer will assist you in filing the application online on the designated portal. This paperless process is faster and more transparent than traditional manual submissions.
- You will need to pay a nominal court fee of Rs. 2,000.
- The application must include all the scanned, self-attested copies of the collected documents.
Step 3: Hearing and Order from the Competent Authority
After the online submission, the Competent Authority (the District Deputy Registrar):
- Issues a Notice: They will send a notice to the builder or landowner, giving them a chance to present their side within a specified period (usually 30 days).
- Conducts an Inquiry: Even if the builder does not respond, the Authority will hold a hearing and scrutinise the documents you have provided.
- Passes the Order: If the Authority is satisfied that the society has a valid claim and has provided all the necessary documents, they will issue an order of deemed conveyance. This order, as clarified in the Supreme Court’s ruling in M/S Faime Makers Pvt. Ltd. vs District Deputy Registrar (April 2025), acts as a certificate of title.
Step 4: Execution and Registration of the Deed
The deemed conveyance order is not the final step. It must be legally registered.
- Stamp Duty Payment: The society must pay the required stamp duty, which is typically nominal if all members have already paid their individual stamp duty.
- Submitting to the Sub Registrar: The society, along with its authorised representatives, will submit the order to the Sub Registrar’s office for registration.
- Property Card Update: Once registered, the society can finally apply to the City Survey Office to have its name officially entered on the property card, securing its legal ownership for good.
Key Advantages of Deemed Conveyance
The legal process, though it may seem daunting, offers undeniable advantages:
- Clear Legal Ownership: It establishes a clear and undisputed title to the land and building.
- Access to Financing: It enables the society to secure bank loans for repairs, maintenance, or redevelopment.
- Prevention of Disputes: It protects the society from the builder’s potential misuse of the land or from any third-party claims.
- Facilitates Redevelopment: It allows the society to independently pursue redevelopment and select a builder of its own choice.
Key Takeaways
- A housing association can file for deemed conveyance when a builder fails to transfer the title within the legal timeframe.
- The legal process, supported by MOFA and RERA, is a statutory right and does not require the builder’s cooperation.
- The process involves a resolution, document collection, online application, a hearing by the Competent Authority, and finally, registration of the deed.
- A cooperative lawyer is essential to navigate the process smoothly and avoid delays.
Frequently Asked Questions (FAQs)
Q1: Can NRIs or OCIs apply for deemed conveyance remotely?
Yes. NRIs and OCIs can easily manage the entire process without travelling to India. They can grant a Power of Attorney (POA) to a trusted person or a cooperative lawyer in Mumbai to handle submissions and hearings.
Q2: What if the builder ignores the legal notice or the Authority’s summons?
The deemed conveyance process is designed for this exact situation. The Competent Authority can pass an “ex parte” order in the builder’s absence. As demonstrated in a November 2024 Bombay High Court ruling, a builder’s refusal to cooperate cannot halt the process.
Q3: How long does the online deemed conveyance process take in Maharashtra?
With the new online system launched in August 2025, the process has become significantly faster. While it depends on the promptness of document submission, it can now be completed in as little as one to three months, a massive improvement from the years it used to take.
Q4: What documents do NRIs or OCIs need for a remote application?
NRIs/OCIs will need their passport copies, proof of their status, and a valid POA. Their housing society lawyers in Mumbai will assist in collecting all other necessary property and society documents from the relevant authorities in India.
Q5: Will the deemed conveyance be affected if the builder has a dispute with the landowner?
No. As affirmed by the Bombay High Court in Ravi Jagannath Agarwal vs Prince Tower CHS Ltd. (2024), a society’s right to seek conveyance remains valid even if there are ongoing disputes over the land title. The deemed conveyance order ensures the society gets its legal right, irrespective of other legal battles.
Conclusion
The Maharashtra government’s commitment to simplifying the deemed conveyance process, through landmark rulings and digital portals, signals a strong future for housing association empowerment. By acting proactively, societies can secure their legal rights and unlock their full potential for redevelopment and self-governance.
In conclusion, deemed conveyance is a powerful legal process that allows your housing association to secure its ownership and protect the interests of all members. By leveraging the updated laws and the expertise of a professional society lawyer, you can ensure a smooth, legally compliant transfer of title and protect your most valuable asset.
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