The government has consistently worked to improve the effectiveness and performance of numerous legal processes in the real estate industry over the years. The goal has been to make it easier for the promoter and the flat owners to apply online, hence eliminating the over-reliance on in-person application entries.
The government has taken another significant step in this direction by introducing the Deemed Conveyance process. This process enables the legal transfer of ownership of a property from the developer to the homeownerâ€™s association.
It is important to understand what deemed conveyance is, how it works, and what documents are required for the process.
What Is Deemed Conveyance?
A deemed conveyance is the legal transfer of ownership of a property from the developer to the association of allottees. The purpose of this process is to provide clarity and certainty to buyers about their ownership rights. It also helps protect buyers from any potential disputes that may arise between them and the developer in the future.
The process of deemed conveyance was set out by governed by a Government Resolution. Under this process, the developer is required to execute a deed of the property on which the building is standing in favor of the association of allottees. This deed must then be registered with the office of the Sub-Registrar. Once the registration is complete, the association of allottees becomes the legal owner of the property.
Importance of Deemed Conveyance
The land is assumed to have been transferred to the association of allottees e.g. (co-operative housing society, an apex body, etc.) by applying for the same to the concerned authority, only in case the Developer fails to convey the land within 3 months from the date of occupancy certificate according to the provisions of the Real Estate (Regulation and Development) Act, 2016 or as may be specifically agreed by the parties. It is kept in the revenue records and is officially recorded as the owner of the land. Deemed conveyance is important because it:
- Prevents illegal construction on the land
- Helps in getting loans from financial institutions
- Ensures that the property can be transferred or sold without any legal complications
- Makes it easier to get government approval for construction projects
Deemed Conveyance Procedure
The association of allottees may file an application before the appropriate authority for deemed conveyance with the details of the land, the name of the developer, etc. as per the prescribed format.
Once filed, the appropriate authorities must decide it within a reasonable amount of time, not to exceed six months. The developerâ€™s argument is heard once the documents’ veracity has been confirmed. The instrument of presumed transfer is issued once the competent authority is persuaded that the current case of association is stronger.
Benefits of Obtaining the Deemed Conveyance Certificate
- The apartment owners will have a clear title to the property.
- They can avail of bank loans by mortgaging the property.
- It will help in boosting the resale value of the property.
- The apartment owners can form a resident welfare association (RWA) and take up developmental work for their society.
Documents Required for Deemed Conveyance
The following documents are required for deemed conveyance gr. 21:
1. Title deeds
2. Land records
3. Encumbrance certificates
4. Layout plans approved by competent authorities
5. Building plans approved by competent authorities
6. Sanctioned plans, if any modification has been made to the original plans
7. Approved clubhouse plans, if any
8. Memorandum of Association (MoA) and Articles of Association (AoA) of the society
9. Resolution passed by the general body authorizing the office bearers to take action for deemed conveyance
10. List of members of the society with their contact details
11. list of occupants of each flat with their contact details
12. No objection certificate (NOC) from the mortgagee, if any
13. Audited accounts of the society for the last three years
The Bottom Line
A deemed conveyance is the legal recognition of the ownership of a property that has been unregistered for a certain period. The registration of the property is necessary for the ownership to be transferred to the rightful owner and provides certain benefits and protections.
Disclaimer- This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim/disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein