Society Registration How to Force Your Builder to Complete Registration and Transfer Ownership
When your builder refuses to hand over control of the common areas, claiming that the Society Registration process is incomplete, you may feel frustrated and worried about your investment. However, this is a common housing dispute in India. Fortunately, the law provides clear and actionable steps. Through these measures, you can compel the builder to complete registration and transfer ownership. You have the power to take back control of your community.
The builder’s refusal is typically a tactic to retain financial control over maintenance funds and the property title. By acting promptly and collectively, you can successfully leverage the Real Estate (Regulation and Development) Act, 2016 (RERA), and state-specific Cooperative Acts to secure the legal handover.
Legal Steps to Force Builder to Complete Society Registration and Conveyance
Residents must follow a systematic and legally sound approach, focusing on collective action and statutory compliance.
1. Form a Provisional Committee and Collect Documents
You cannot wait for the builder to act. Take the initiative to form a provisional Advisory Committee of residents, which is the first step toward Cooperative society formation.
- Gather the Minimum Members: First, collect at least ten flat owners, or the majority required by your state’s Cooperative Act. For instance, under RERA or MOFA, this may mean 51% of allottees. Next, these members can then elect a chief promoter. Finally, the promoter initiates the Society Registration process.
- Initial Meeting: Hold a meeting and pass a resolution to apply for Apartment society registration yourself.
- Collect All Agreements: Ensure the committee has copies of all builder buyer agreements, allotment letters, and payment receipts. These are essential for the New society application.
2. Demand Registration and Documents via Legal Notice
Firstly, send a formal and robust legal notice to the builder through an advocate, citing the statutory deadlines.
- Statutory Obligation: Next, demand that the builder immediately facilitate Society Registration under the Societies Act. Additionally, request the preparation of all required formation documents, including the Conveyance Deed, which are mandatory under law.
- RERA Deadline: Then, refer to RERA Section 11(4)(e). It requires the builder to form the society within three months of selling 51% of flats. This also applies if a majority of allottees have taken possession.
- Conveyance Deadline: Finally, demand execution of the Conveyance Deed to transfer land and common areas. Typically, this must happen within three months after obtaining the Occupancy Certificate (OC).
Apply Directly to the Registrar of Societies
If the builder continues to delay or ignores your legal notice, then you must bypass their refusal. Consequently, proceed with Society Registration independently.
- Prepare Formation Documents: First, compile all necessary documents. This includes draft Society Bye Laws, member lists, and required fees (e.g., ₹2,500 as per state rules).
- Submit to the Registrar: Next, file the new society application directly with the Registrar of Societies or the competent authority.
Deemed Registration: Moreover, many state acts provide a remedy. For instance, if the Registrar does not issue the certificate within the statutory timeframe, the society is deemed registered upon completion of all formalities..
The Power of RERA and Deemed Conveyance
These two legal mechanisms are your most effective tools for forcing compliance and securing ownership, especially for resolving a prolonged Housing Dispute.
Filing a Complaint with RERA
The Real Estate (Regulation and Development) Act, 2016 (RERA) is the ultimate authority for builder non-compliance.
- Refusal to facilitate society formation: You must file a complaint under RERA Section 31. RERA directs the builder to comply and may impose substantial penalties (up to 5% of the project cost).
- Failure to transfer common areas/documents: File a complaint under RERA Section 17 for non-execution of the Conveyance Deed. RERA orders the immediate handover of documents (OC, CC, approved building plans) and the common areas.
- Delay in Handover/Maintenance Concerns: File a complaint for deficiency in service or defect liability. The builder is forced to rectify defects within 30 days and/or pay compensation.
Actionable Insight: Firstly, RERA complaints are resolved much faster than civil suits. Furthermore, the authority has the power to fine the builder and even attach their assets to ensure compliance. Therefore, this approach serves as the frontline legal strategy.
Compelling Transfer through Deemed Conveyance
If the builder refuses to sign the Conveyance Deed even after the society is registered, then you must pursue Deemed Conveyance. This option is available in states with supporting legislation, for example, the Maharashtra Ownership Flats Act (MOFA).
- Purpose: Deemed Conveyance is a unilateral process that legally transfers the ownership of the land and building to the society, entirely bypassing the builder’s refusal.
- Procedure: The registered society applies to the District Deputy Registrar, Cooperative Societies (the Competent Authority), providing proof of their right to conveyance (registered agreements, Society Registration Certificate, etc.).
- The Order: The Competent Authority conducts a hearing and, if satisfied, passes an order granting Deemed Conveyance. This order is the legal equivalent of a registered Conveyance Deed, securing the society’s title.
Addressing Common Concerns and Escaping Builder Control
The builder’s goal in delaying the handover is often linked to the financial control of the community.
- Misuse of Corpus/Maintenance Funds: Demand an audit of all funds collected under RERA. Upon registration, pursue Recovery of Society Dues by requesting the Registrar’s direction under Section 79A.
- Disputes over Common Areas: File a RERA complaint for non-handover, citing the definition of ‘common areas’ under RERA, Section 2(n).
- Delay in Housing Society Formation: Self-initiate the Cooperative act registration process (Step 3). The builder’s delay does not stop your right to organise.
- Lack of Approved Bye Laws: Adopt and finalise the provisional Society Bye Laws at the first Annual General Meeting (AGM Compliance), a necessary step after registration.
Expert Advice: For NRIs and OCIs, first appoint a local representative with a registered Power of Attorney (POA). Then, they can coordinate the submission of legal registration steps and attend hearings. Moreover, many RERA and Registrar platforms now facilitate e-filing, making the process more convenient.
FAQs on Society Registration
1. Can residents register the society without the builder?
Yes. Under the Cooperative Act, residents can apply directly to the Registrar of Societies using formation documents and ownership proof.
2. How long does society registration take?
Typically 30–90 days, depending on submission of formation documents and verification by authorities.
3. What if the builder refuses to hand over common areas?
Residents can file a civil suit or approach the consumer forum to compel handover of assets.
4. Are there penalties for builders delaying registration?
Yes. Courts can order compensation for loss of control, delayed maintenance, or misuse of society funds.
5. What documents are essential for society registration?
Key documents include: conveyance deed, draft Society Bye Laws, approved building plans, and owner details.
Conclusion
You do not have to live under the builder’s control. Indian law strongly mandates the transfer of control and ownership of common areas to the residents. By forming your provisional committee, pursuing Society Registration directly through the Registrar of Societies, and enforcing your rights through the swift mechanism of RERA or Deemed Conveyance, you will force the builder to comply and secure the legal governance of your home. Act decisively to protect your investment and initiate the legal steps today.
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