Background: 1. Builder has got a Co-op Housing Society formed. The property was earlier submitted under Maharashtra Apartment Ownership Act. Accordingly, Deed of Declaration and 75 Deed of Apartments were signed. Total residents are 820. 2. However, builder didn't get DOD, DOA cancelled and formed society without information of facts to Deputy District Registrar. 3. Now, 4 months have passed since Co-op Housing Society registration certificate was issued. But no conveyance deed done by the builder Questions 1. Builder himself is insisting on getting Deemed Conveyance done rather than Conveyance. What could be the possible reason for such an approach by builder? 2. How much does it approximately cost to get a Deemed Conveyance done? Is it a percentage of the total property cost (no of flats etc)? 3. Is Deemed conveyance costlier than conveyance? 4. Who has to bear the costs for deemed conveyance? Flat owners or builder? Is there any applicable act/clause enforcing builder to bear the cost? 5. The builder has some project loan on the said property. How does it affect the conveyance?
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1) once deed of declaration executed by builder he could not have formed cooperative housing society
2) hence he wants s the society to seek deemed conveyance
3) deemed conveyance would be more expensive than conveyance
4) costs have to be borne by flat owners
5) builder would refuse to pay the expenses
6) builder has to repay the loan
Dear Ajay ji, Thanks for the clarity. Just need your further help to understand connection between point 1 & 2: 1) once deed of declaration executed by builder he could not have formed cooperative housing society 2) hence he wants s the society to seek deemed conveyance How does having a deed of declaration affect conveyance? Will appreciate if you can elaborate
1) Builder has got a Deed of Declaration filed under Maharashtra Apartment Ownership Act, 1970 (MAOA) forming an Association of ApartmenT
2) Further builder has already executed deed of apartment in respect of 75 flats
3) Once deed of declaration executed by builder in respect of same property society could not have been formed
4) once Deed of declaration is registered, you are already a part of condominium and without revocation of deed of declaration cannot directly form society. If still society forms are submitted to Co-op Society registrar office without revoking Deed of Declaration of Condominium, your process/application will be null & void
5) builder cannot execute conveyance deed in favour of society and hence wants members to go in for deemed conveyance
Ajayji...Thanks again for the detailed advice. Just a few more doubts - why is deemed conveyance costlier than conveyance? Secondly, under what circumstances is builder supposed to bear conveyance costs?
Deemed conveyance would be costlier as you have to make application before competent authority , enclose relevant documents ,notice is issued to builder , engage lawyer to appear before competent authority who will pass orders on your application .
1. A deed of conveyance is a signed legal document that shows a title or deed has been transferred. It is used to prove ownership in a piece of property. A deed of conveyance is signed, witnessed, and notarized by the seller and the buyer as well as anyone else with a vested interest in the property being transferred.
Deemed conveyance means that The Promoter (Builder/ Developer) is legally required to convey the land and the building within 4 months of formation to the society or any legal body of the flat purchasers.
With the meaning and the difference between the two, you can understand the reason for the builder's proposed act based on the prevailing situation.
2. The procedure for deemed conveyance involves lot of procedural work and the cost and the expenses depends on the fee and other charges which are local and can be enquired locale.
3. A Conveyance Deed can transfer the legal title of property from one person to another in case of a gift, an exchange, a lease (i.e. on a temporary basis), mortgage or other circumstances. if a Conveyance Deed in entered into for transferring the legal title of property from one person to another via a sale, then that Conveyance Deed would be termed as a Sale Deed. Hence, it can be said that a Sale Deed is actually a form or a type of Conveyance Deed. Deemed conveyance is a differnt subject, hence the comparison between both cannot be made cost wife.
4. In deemed conveyance The Promoter (Builder/ Developer) is legally required to convey the land and the building within 4 months of formation to the society or any legal body of the flat purchasers.
5. The loan on the project is the problem of the builder, he has to sort out this and not to pass it on the buyers.
1. The Deed of Declaration (DoD) is a document that describes the property, i.e., the building, all of its apartments, the common facilities such as lifts, generators, fire fighting equipment, pool, gym etc., along with the ownership scheme giving the percentage share of each apartment.
2.Registered Deed of Declaration.This is an essential document shall contain the following particulars, namely;
(a) description of the land on which the building and improvements are or are to be located; and whether the land is freehold or leasehold;
description of the building stating the number of storeys and basements, the number of apartments and the principal materials of which it is or is to be constructed;
the apartment number of each apartment, and a statement of its location, approximate area, number of rooms, and immediate common area to which it has access, and any other data necessary for its proper identification;
description of the common areas and facilities;
description of the limited common areas and facilities, if any, stating to which apartments their use is reserved;
value of the property and of each apartment, and the percentage of undivided interest in the common areas and facilities appurtaining to each apartment and its owner for all purposes, including voting; and a statement that the apartment and such percentage of undivided interest are not encumbered in any manner whatsoever on the date of the Declaration;
statement of the purposes for which the building and each of the apartments are intended and restricted as to use ;
and so on.
The difference between both as explained above shall throw light to your question.
why is deemed conveyance costlier than conveyance? Secondly, under what circumstances is builder supposed to bear conveyance costs?
The builder shall or may have to bear the conveyance costs when it is a deemed conveyance.