This might sound strange but 80% of the Co-operative Housing Societies have not received Conveyance of land and building for which they have already paid in full. As result, Conveyance of the land remains in the name of the builders. To curb the exploitation of Co-operative Housing Society in the hand of the property owners or the builders, the Government of Maharashtra brought the provision of Deemed Conveyance. Legally it is the duty of the builder or the land owner to convey the titles of the property in the name of the Co-operative Housing Society but this largely remain ignored by the sake of the vestige interest of the land owners or the property developers. Government made amendment in laws to introduce Deemed Conveyance in order to stop this malpractice by the land owners or the property Developers.
To curb this practice amendment were carried out in the MOFA in 2008 to appoint a Competent Authority (Registrar of Co-operative Housing Societies). To here grievance of the such apartment owners and save guard the interest of such a society.
The concept of unilateral Deemed Conveyance to take care of the situation in which the recalcitrant promoter fails to execute the conveyance even at the risk of prosecution and other consequences. This was done by inserting under Section 11 of MOFA and sub-section (3), (4) and (5) provides that if the promoter fails to execute the conveyance in favor of the Society/Association/Company/AOP, the members of such organization may make an application in writing to the Competent Authority (CA) accompanied by the true copies of the agreement for sale executed by each individual member or the occupation certificate, if any, for issuing a certificates that such society/association is entitled to have an unilateral conveyance executed in its favor and to have it registered.
Without a Conveyance Deed of Housing Society, there is huge impermeable loss like – In the event of building collapse or damage to the building, you cannot reconstruct the building without the permission of Builder/Land Owner. The builder/Developer may mortgage the property purchased by flat holder as he is the legal owner and holding the title deed of the property. The builder/Developer may transfer the FSI/TDR to his other projects and enjoy the commercial benefit, depriving the flat purchaser / Society of its legal entitlement. The builder may make profit Open space, Terrace, Gardens, Parking space belonging to the society. The builder may sell the entire development rights and the legal rights on the land to third party and create a third party interest in the property and the society will have to incur a huge amount to clear the same. Therefore it requires to do the Deemed Conveyance for ownership and free marketable title of land of Housing Societies.
