Question 1

By when must the builder convey the land and building to our society?

Accepted Answer

For a MOFA project, within the period agreed in the sale agreements, and if none is agreed, within four months of the society's registration. That duty comes from law and cannot be postponed by a clause saying "after the whole project is complete". For RERA projects the promoter must also execute the conveyance within the period RERA sets. Section 11 of MOFA requires the promoter to take all necessary steps to complete his title and convey his right, title and interest in the land and building to the organisation of flat purchasers, and Rule 9 of the MOFA Rules fixes the time at four months from the society's registration where the agreements are silent. In Neelkanth Heights CHS Association v Abhinav Real Estate (2025) the Bombay High Court held that Rule 9 fixes a definite period, not an uncertain event such as completion of a whole township (para 20, approving the Flagship Infrastructure decision), and that the obligation to convey within four months "is not a matter of contract–it is a matter of law" (para 28). The 2014 bye-laws list obtaining conveyance as an object of the society (BL 5(a)) and make it the committee's duty, with general-body approval (BL 153); the draft 2026 bye-laws require the committee to start deemed-conveyance proceedings where the promoter defaults (dBL 146(b)). For RERA-registered projects, RERA requires the promoter to execute a registered conveyance in favour of the association within the period in the agreement or local law (commonly read as three months from the occupancy certificate) — confirm against the Act for your project.

Question 2

The builder will not execute the conveyance. How do we get a deemed conveyance?

Accepted Answer

Apply to the Competent Authority under MOFA s.11(3) — the District Deputy Registrar of Co-operative Societies — with the society's documents. After hearing the builder, the authority issues a certificate that it is a fit case, and the society's authorised officer then registers a unilateral deed of conveyance under s.11(4) without the builder's signature. Under s.11(3)-(4) of MOFA, where the promoter fails to convey, the flat purchasers' society may apply to the Competent Authority, which verifies the documents, gives the promoter a hearing and, if satisfied, certifies that the case is fit for a unilateral deemed conveyance; the registering officer then registers the deed. The Supreme Court in Arunkumar H Shah HUF v Avon Arcade Premises CHS (2025) described the Competent Authority's duty and the summary nature of the inquiry (see conveyance-005). The Bombay High Court in Neelkanth Heights (2025, para 36) listed what must be shown: the promoter was bound to convey (by statute and contract), a proper organisation of flat purchasers exists, and the promoter failed to convey in time. Typical papers: registration certificate, a general-body resolution authorising the application and an officer, the members' registered agreements, 7/12 extract or property card, approved plans, CC/OC (if any), architect's area certificate, title search, notices to the builder and proof of service. Keep all of these as permanent records (dBL 146(e)).

Question 3

The builder says conveyance will be given only after the entire layout or township is complete. Must we wait?

Accepted Answer

No. The Bombay High Court has held that the four-month duty under MOFA cannot be deferred to an uncertain event like completion of a whole township, and a contract clause to that effect does not override the statute. The society can apply for deemed conveyance of its entitled share. In Neelkanth Heights (2025) the promoter relied on township approvals and phased construction. The Court held that Rule 9 sets a fixed time and that the obligation "is not a matter of contract–it is a matter of law" (para 28), and that speculative future claims of the developer are outside the Competent Authority's inquiry (para 36). In a layout with several buildings, the society's claim is to its proportionate share as per the agreements and plans (conveyance-004); the builder's remaining rights, such as unused FSI he has lawfully reserved, may be contested in a civil court (para 40).

Question 4

How much land does the deemed conveyance cover — only the building footprint, or gardens, roads and open spaces too?

Accepted Answer

What the members' sale agreements, the sanctioned plans and the property records show as the society's entitlement. Where the extent is genuinely disputed, the Competent Authority should not stretch the certificate beyond what the documents support, and the dispute goes to the civil court. In Mazda Construction v Sultanabad Darshan CHS (2012) the Bombay High Court partly allowed the promoter's petition and confined a deemed conveyance to the land under the building (432.30 sq m of one CTS number), because gardens and access roads claimed as "proportionate" areas were not clearly shown in the agreements and were the subject of a pending suit; the Competent Authority ought to have gone by the agreements with the members (para 21), and the society remained free to file a civil suit to assert wider rights (para 25). Later decisions have allowed the authority to rely on property-register cards and architects' area certificates beyond the agreement schedule where the documents support it (further reading). Practical point: before applying, get an architect's certificate of the society's entitlement tied to the approved layout and the agreements, and a title search — this is what the authority will weigh.

Question 5

We got a deemed conveyance order, but the builder (or a landowner) has challenged it in the High Court. Is our order at risk?

Accepted Answer

Usually not. The Supreme Court has said a writ court should be slow to interfere with a deemed conveyance order unless it is manifestly illegal, because the proceedings are summary and the aggrieved party can always file a civil suit to establish title. The order does not finally decide title either way. In Arunkumar H Shah HUF v Avon Arcade Premises CHS (2025) the Supreme Court held that proceedings before the Competent Authority under s.11(3) are summary and cannot conclusively decide title (para 20), that aggrieved parties can file a civil suit (para 20), and that a writ court should generally be slow to interfere with such orders because that remedy remains open (para 35). It also treated the registering officer's role under s.11(5) as limited. The Bombay High Court in Neelkanth Heights (2025, para 40) likewise preserved civil remedies. So a builder's challenge mostly shifts the fight to a civil suit; the society should still defend the writ, register the deed promptly, and mutate the property records.

Question 6

Can the society go to the consumer commission against the builder for not giving conveyance or the occupancy certificate?

Accepted Answer

Yes. The Supreme Court has held that a builder's continuing failure to obtain the occupancy certificate is a deficiency in service and a continuing wrong, so limitation keeps running afresh; the National Commission has applied the same approach to failure to execute the conveyance. Consumer relief is in addition to deemed conveyance under MOFA. In Samruddhi CHS v Mumbai Mahalaxmi Construction (2022) the Supreme Court held that failure to obtain the occupancy certificate breaches the promoter's MOFA obligations, is a continuing wrong (para 18) and a deficiency in service (para 22); flat purchasers could claim the higher taxes and water charges they paid as a result. It also noted the promoter's duty under MOFA s.6 to pay outgoings until the property is transferred (para 16). In Dev Siddhi CHS v Siddhi Construction (NCDRC, 2024) the National Commission held the failure to execute the conveyance for over twenty years a deficiency in service, directed the OC to be obtained and ordered reimbursement of outgoings, with interest (paras 18, 24). The pecuniary jurisdiction of the district, state and national commissions depends on the value of the claim; a society can file as a consumer association or through its members — take advice on the right forum and on RERA (MahaRERA) for RERA projects.

Question 7

Who in the society decides and signs the conveyance, and what should members check before approving it?

Accepted Answer

The general body authorises the committee to obtain conveyance, approves the draft deed after the society's advocate has examined it, and the committee then executes and registers it. Members should check the land area, the property description, the FSI/TDR position and any reservations the builder keeps. BL 153 (2014): the committee, with general-body approval, takes steps for conveyance or deemed conveyance; examines the draft deed with the society's advocate and places it before the general body; on approval, executes it as per law. The first general meeting already authorises the committee to secure conveyance from the promoter (BL 87(a)(vi)). The draft 2026 bye-laws add registration and consequential actions (mutation), and permanent preservation of title deeds, conveyance documents and plans (dBL 146(d)-(e)). Checklist before the general body: land area and CTS/survey numbers against the property card and layout; whether common amenities (club house, open spaces) are included; any development rights, FSI or TDR the builder reserves; outstanding municipal dues; stamp duty and registration costs (who bears them under the agreements). Minute the discussion and attach the approved draft to the resolution.

Question 8

What is the difference between a conveyance, a deemed conveyance and a lease deed for our society?

Accepted Answer

A conveyance is the registered deed by which the builder (and landowner) transfers the land and building to the society. A deemed conveyance is the same transfer obtained without the builder's signature, on a certificate from the Competent Authority under MOFA. Where the land belongs to a public body such as MHADA, CIDCO or the Collector, the society usually receives a lease or assignment of lease rather than ownership. Under MOFA s.11 the promoter must complete his title and convey his right, title and interest in the land and building to the organisation of flat purchasers; the 2014 bye-laws make obtaining that conveyance the society's first object (BL 5(a)). If he fails, s.11(3)-(5) lets the society apply to the Competent Authority, which, after hearing him, certifies that the case is fit for a unilateral deed that is then registered without his signature — a deemed conveyance (see conveyance-002, conveyance-305). Both give the society the same record title; a deemed conveyance can later be questioned in a civil suit on title, but courts are slow to interfere (conveyance-005). On leasehold land, what passes is the builder's leasehold interest, subject to the lessor's terms (lease rent, permission for transfer or redevelopment, and sometimes a premium), so the society's document is a lease deed, assignment or tripartite agreement with the lessor. Check the 7/12 extract or property card and the original grant to know which applies before choosing the route.

Question 9

Who exactly is the Competent Authority for deemed conveyance, and how is the application filed?

Accepted Answer

The District Deputy Registrar of Co-operative Societies of the district where the property lies has been notified as the Competent Authority under MOFA s.11. The society applies in the prescribed form, signed by its authorised office-bearer under a general-body resolution, with the supporting documents, a court-fee stamp and copies for each opponent. The Co-operation Department also runs an online deemed-conveyance system on the MahaSahakar portal. Steps: (1) a general-body resolution authorising the committee to apply for deemed conveyance and naming the office-bearer who will sign and appear (BL 153(a); dBL 146(a)-(b)); (2) the application in the prescribed MOFA form (commonly Form VII of the MOFA Rules) setting out the society's details, the promoter and landowner as opponents, the land (survey/CTS number and area) and the failure to convey; (3) the document set (see conveyance-002), usually indexed and self-attested, with an affidavit verifying the facts; (4) the court-fee stamp and filing copies; (5) filing at the District Deputy Registrar's office or through the online system, after which the office gives a case number and issues notices. Keep proof of every filing and notice in the conveyance file, which is a permanent record (dBL 146(e); 2014 records list). An advocate or a consultant experienced in deemed conveyance can save months by getting the document set right the first time.

Question 10

Must the society send the builder a notice before applying for deemed conveyance, and what should it say?

Accepted Answer

It is standard, and the Competent Authority will look for it: a written legal notice to the promoter (and the landowner, if different) calling on him to execute the conveyance within a stated time, with proof of delivery. It shows that he was asked and failed, which is what s.11 turns on. MOFA s.11 is triggered by the promoter's failure to convey within the agreed time, or four months from the society's registration if no time was agreed (see conveyance-001). A notice makes the failure clear and gives him a last chance. What it should contain: the society's registration number and date; the land (survey/CTS number, area, village) and building; the members' agreements and the conveyance clause they contain; the date by which conveyance was due; a demand to execute and register the conveyance of the land and building within, say, 15 or 30 days, and to hand over title documents; and notice that the society will otherwise apply for deemed conveyance and pursue other remedies. Send it by registered post with acknowledgement and by email, to his last known address and registered office; if he cannot be found, publish it in newspapers (see conveyance-308). Keep the notice, postal receipts, tracking reports and any reply. A reply that raises a genuine dispute about the land area should go to the society's advocate before filing, because the certificate is limited to what the documents support (conveyance-004).

Question 11

How does the hearing before the Competent Authority work, and how long does deemed conveyance take?

Accepted Answer

The authority issues notices to the promoter, the landowner and anyone else interested, hears them and the society, and may call for documents or a site verification. It then passes an order and, if the case is fit, issues a certificate for a unilateral conveyance. MOFA expects a decision within a fixed period (commonly stated as six months); in practice timelines vary by district and objections. The proceeding is summary, not a full title trial: the authority checks that the promoter was bound to convey, that a proper organisation of purchasers exists, and that he failed to convey in time (the tests stated by the Bombay High Court in Neelkanth Heights, 2025; see conveyance-002). Typical course: notice by registered post and, if needed, newspaper publication; first date for appearance; written say by the promoter or owner; the society's rejoinder with documents; arguments; order. If the promoter does not appear, the matter can proceed without him. The certificate describes the land and building to be conveyed, based on the members' agreements, the sanctioned plans and the land records; where the documents do not support a claim to extra land, the authority should not stretch the certificate (conveyance-004). Delays usually come from missing documents, unclear land area, service problems and adjournments. Ask for the roznama (daily proceedings) and certified copies of the order.

Question 12

After the Competent Authority's certificate, who signs the deemed conveyance deed and how does it get registered?

Accepted Answer

The society's authorised person executes a unilateral deed of conveyance in the form the certificate supports and presents it, with the certified copy of the certificate and order, to the sub-registrar. The sub-registrar gives the promoter a chance to show cause and, if he does not, registers the deed without his signature. Present it promptly — registration law sets time limits from execution. Under MOFA s.11(4)-(5) the organisation of purchasers may submit a unilateral instrument of conveyance along with the Competent Authority's certificate to the registering officer, who issues a summons to the promoter to show cause why it should not be registered and, after considering any reply, registers it. Practical steps: get the draft deed prepared by the society's advocate strictly in line with the certificate (land area, survey/CTS numbers, building description, schedule); place it before the general body for approval (BL 153(b)-(c); dBL 146(c)-(d)); pay stamp duty on the valuation the sub-registrar accepts (conveyance-306); execute it through the authorised office-bearer; and present it at the sub-registrar's office. The Registration Act generally requires presentation within four months of execution. After registration take certified copies and Index II, then apply for mutation of the property card or 7/12 (conveyance-102).

Question 13

What stamp duty is payable on a deemed conveyance, and what if some members' old agreements were under-stamped?

Accepted Answer

The society pays stamp duty on the conveyance deed as assessed by the sub-registrar under the Maharashtra Stamp Act. Where members' flat agreements already bore full duty, the Government has allowed that duty to be taken into account; where agreements were under-stamped, the deficit (sometimes with penalty) may be demanded. Amnesty schemes have periodically reduced the penalty. Check the current position with the IGR. The deed transfers the land and building to the society, so it is chargeable as a conveyance on its market value, reduced where the law allows for duty already paid on the members' agreements for the same premises. Since duty paid on each agreement depended on the rates of its year, older agreements (especially from the 1970s–1990s) are often under-stamped by today's standards. The sub-registrar or the Collector of Stamps can assess the deficit before registration. The Government has from time to time run amnesty ('Abhay') schemes reducing or waiving penalty on deficit duty for old flat agreements. Practical approach: ask the sub-registrar for a valuation and adjudication before execution; collect from members only their own deficits (for their own agreements), and apportion the society's share of duty and fees as the general body decides; record everything in the conveyance file. Stamp-duty rates and remissions change — do not rely on figures quoted by others without checking the current IGR notification.

Question 14

Some members never registered their flat agreements or have lost them. Can the society still apply for deemed conveyance?

Accepted Answer

Usually yes, but prepare for the gaps. MOFA s.11(3) asks for true copies of the registered agreements for sale that each member executed with the promoter — copies, not originals — so for lost originals the society obtains certified copies or Index II extracts from the sub-registrar. Agreements that were never registered are a real gap: the members concerned should regularise them where the law allows, and the gap should be explained to the Competent Authority. The Competent Authority needs to see that the flats were sold to purchasers who formed the society and that the promoter was bound to convey. MOFA s.11(3) says the application is to be accompanied by true copies of the registered agreements for sale executed with the promoter by each individual member, and all other relevant documents — copies, not originals. Steps: prepare a table of all flats with the member, the agreement date, registration number and stamp duty; for lost originals, apply to the sub-registrar for certified copies or Index II (conveyance-102 for how certified copies are obtained); for older unregistered agreements (common before registration became routine), ask the member to get them adjudicated and stamped, and consider registration if still possible; attach the share certificates and the society's register of members as further proof of membership. Under the June 2026 Rules a new member must now produce a certified copy of a stamped and registered agreement for admission (Rule 106C-4(b)), so regularising old gaps also helps future transfers. Where a few agreements remain missing, disclose it in the application rather than leave it for the promoter to raise.

Question 15

The builder has died, his firm has closed or he cannot be traced. Can we still get a deemed conveyance?

Accepted Answer

Yes. Deemed conveyance exists precisely for a promoter who does not convey. Notices go to the last known address, the legal heirs or the firm's partners or the company's directors, and by newspaper publication where needed; if nobody appears, the Competent Authority can proceed and the unilateral deed can be registered. What changes is service and parties: (1) for a deceased individual promoter, name his legal heirs (from the family, death certificate, or probate/succession records if available) as opponents; (2) for a partnership, name the firm and its partners on record; (3) for a company, check its status on the Ministry of Corporate Affairs portal — if struck off or in liquidation, name the liquidator or note the status, and take advice, because property of a dissolved company can vest in the Government; (4) serve by registered post at every known address and publish a public notice in one English and one Marathi newspaper circulating locally, keeping the cuttings. The certificate and the sub-registrar's summons follow the same service rules. Also name the original landowner if he was a party to the members' agreements (conveyance-309). Expect objections from heirs or lenders who claim an interest; the authority decides only whether the case is fit for a unilateral conveyance, and title disputes go to civil court.

Question 16

The land still stands in the original landowner's name, not the builder's. Can the conveyance bind the landowner too?

Accepted Answer

Usually the landowner is joined as an opponent, because MOFA speaks of the promoter completing his title and conveying, and the landowner commonly signed the members' agreements as a confirming party or gave the builder development rights. Whether the certificate can require the landowner's interest to pass depends on those documents; if the builder never acquired rights from the owner, deemed conveyance may not be enough. MOFA obliges the promoter to take all necessary steps to complete his title and convey (s.11(1)); in most projects the builder held development rights under an agreement and power of attorney from the landowner, and the landowner confirmed the flat agreements. In such cases the Competent Authority can include the landowner as an opponent, and the unilateral deed can convey the land to the society on the strength of the chain of documents. Problems arise where the development agreement was terminated, the power of attorney revoked, the owner was never paid, or the land is under litigation; then the certificate may be refused or limited, and the society may need a civil suit for specific performance or declaration. Before applying, have a title search done (30 years is common) and list every document in the chain. The Supreme Court (Arunkumar H Shah HUF, 2025) stressed the summary nature of the proceeding and the civil court's role for title disputes (see conveyance-005). The certificate under s.11(4) is for conveying "the right, title and interest of the promoter" in the land and building, so a deemed conveyance cannot pass more than the promoter held or was authorised to convey.

Question 17

Our project is registered with MahaRERA. Can MahaRERA order the builder to execute the conveyance?

Accepted Answer

Yes, a complaint can be filed. RERA s.17 requires the promoter to execute a registered conveyance in favour of the allottee and of the association for the common areas within the period in local law, or within three months of the occupancy certificate, and MahaRERA can direct compliance on a complaint under s.31. The MOFA deemed-conveyance route before the District Deputy Registrar remains available. RERA s.11(4)(f) and s.17(1) require the promoter to execute a registered conveyance deed of each apartment in favour of the allottee, with the undivided proportionate title in the common areas to the association of allottees, and to hand over physical possession and the title documents (s.17(2)). Where local law fixes no period, conveyance is due within three months of the occupancy certificate. On the promoter's failure, the association or allottees can file a complaint with MahaRERA under s.31; MahaRERA can issue directions and impose penalties, and its orders are enforceable, with appeal to the Appellate Tribunal (see builder_handover-312). A RERA order does not itself register a deed; if the promoter still does not sign, the society will usually complete the transfer through deemed conveyance (MOFA s.11) or execution proceedings. Many societies run both: RERA for directions and interest, the DDR for the deed.

Question 18

We are one of several buildings in a layout. Who takes conveyance of the internal roads, garden and common amenities?

Accepted Answer

Each building's society normally takes its building with its share of land, and the common roads, open spaces and amenities of the layout go to an apex body — a federation, or, since June 2026, a registered Co-operative Housing Association of the societies on the same layout — as the sale documents and sanctioned layout provide. The June 2026 Rules provide for an Association of Societies and a Co-operative Housing Association: a Co-operative Housing Association is formed by at least two societies or legal bodies on the same layout or plot, with an architect's certificate that they are part of it, applying in Form Y-2 (Rule 106C-2(2)); the draft bye-laws define it as an association for maintaining common amenities or conveyance of land and common amenities in respect of a plot or layout (dBL 4(xi)). The practical sequence: map what land and amenities each building's members were promised (agreements and layout plan); agree among the societies which parts go to each society and which to the apex body; form the association; and then apply — jointly or separately — for conveyance or deemed conveyance. Where one building acts alone, the authority should not convey more than the documents support (conveyance-004), and the promoter cannot hold back all conveyances until the whole layout is finished (conveyance-003).

Question 19

The builder says he will keep the unused FSI and TDR potential even after conveyance. Can he?

Accepted Answer

Only if the members' agreements clearly disclosed and reserved it. Under MOFA the promoter must disclose the FSI he proposes to use and cannot make additions or alterations to the building without the purchasers' consent; under RERA changes to sanctioned plans need the written consent of at least two-thirds of allottees. Once conveyance is executed, the land and its potential normally belong to the society, subject only to reservations validly made. Agreements under MOFA must state the FSI used and proposed to be used on the plot (s.4 read with the form of agreement), and s.7 bars the promoter from making alterations or additional structures without the flat purchasers' previous consent, except as allowed there. For RERA projects, s.14(2) requires the prior written consent of at least two-thirds of the allottees (other than the promoter) for alterations or additions to the sanctioned plans and specifications of the building or common areas. So: check each agreement for an express reservation of future FSI/TDR in the builder's favour; check the conveyance draft for any clause reserving potential to the builder, and do not approve it without advice (conveyance-007); if the builder claims FSI that was not validly reserved, the society can resist in the deemed-conveyance proceedings and before the planning authority. Unused potential is often the society's main asset for future redevelopment, so the general body should decide on any reservation with full information.

Question 20

The builder mortgaged the land or building to a bank. Does that block the conveyance?

Accepted Answer

It complicates it but does not defeat the purchasers. MOFA bars the promoter from mortgaging after he has executed flat agreements without the purchasers' consent, and RERA says such a charge does not affect allottees' rights. The society should name the lender, ask for a release of the members' flats and the land, and raise the mortgage before the Competent Authority. MOFA s.9 restricts the promoter from mortgaging or creating a charge on the flat, land or building after executing an agreement for sale without the purchaser's previous consent; RERA s.11(4)(h) provides that after executing an agreement for sale the promoter shall not mortgage or create a charge on the apartment or building, and any such charge shall not affect the allottee's right and interest. Steps: search the sub-registrar's records and the Central Registry (CERSAI) for charges; write to the lender with the members' agreement dates, asking for a no-objection or release of the society's land and building; join the lender as a party in the deemed-conveyance application where the charge is recorded; and, if the lender has begun recovery proceedings (for example under SARFAESI), take an advocate's help immediately, because timing matters. Loans the builder took on his unsold flats are his liability; they do not become the society's.

Question 21

The District Deputy Registrar rejected or returned our deemed-conveyance application. What now?

Accepted Answer

Read the order for the reason. If it was returned for missing documents or defects, cure them and re-file. If it was rejected on merits, MOFA provides no regular appeal; the usual remedy is a writ petition in the Bombay High Court, and a title dispute can be taken to civil court. Take an advocate's advice quickly. Common reasons: incomplete documents (members' agreements, land records, plans, architect's certificate); unclear area or property description; the promoter's claim that the time for conveyance has not arrived (which cannot be deferred to an uncertain future event — conveyance-003); a landowner or lender objection (conveyance-309, conveyance-313); or a pending civil suit. Options: (1) where the order says the application is incomplete, obtain the missing papers and file afresh; (2) where the authority has decided a legal point against the society, a writ petition under Article 226/227 is the usual challenge — the High Court and the Supreme Court have said writ courts interfere only when the order is manifestly illegal (conveyance-005), which cuts both ways; (3) civil suit for specific performance of the promoter's obligation to convey or for a declaration; (4) in RERA projects, a MahaRERA complaint (conveyance-310). Keep a certified copy of the order and note the date; delay weakens a writ.

Question 22

What does deemed conveyance cost the society, and can it recover the cost from the builder?

Accepted Answer

Costs usually include survey and architect's certificates, land-record extracts, title search, advocate or consultant fees, court-fee stamp, newspaper notices, stamp duty and registration. The general body approves the budget and how it is shared. Recovery from the builder is possible only through a forum that awards costs or compensation — a civil court, consumer commission or RERA. The Competent Authority's certificate does not normally award the society its expenses. To recover them, the society can claim costs and compensation where the forum allows: a consumer complaint for deficiency in service (the Supreme Court treats a builder's failure to deliver the OC as a continuing deficiency, and the National Commission has taken a similar view on conveyance — conveyance-006); a MahaRERA complaint and compensation before the Adjudicating Officer (builder_handover-312); or a civil suit. Inside the society, the committee should obtain quotes, put a budget before the general body (BL 153(a); dBL 146(a)) and decide how members contribute. Stamp duty on the conveyance is generally shared in proportion to flats or area, while deficits on individual agreements fall on those members (conveyance-306). Keep every receipt; the auditor will look for general-body approval of the expenditure.

Question 23

Can the society take conveyance while the builder still owns some unsold flats in the building?

Accepted Answer

Yes. The duty to convey does not wait for every flat to be sold. The builder continues to own his unsold flats as a member of the society for them, paying charges like any member; the conveyance transfers the land and building to the society with those flats included. MOFA ties the conveyance deadline to the agreements and the society's registration (conveyance-001), not to sale of the last flat, and the Bombay High Court has refused to let promoters defer conveyance to an uncertain future event (conveyance-003). In a co-operative society the land and building vest in the society, and each flat holder, including the builder for his unsold flats, holds shares with the right to occupy. The builder remains liable for outgoings on unsold flats and must pay the society's charges (builder_handover-002, builder_handover-304), and when he later sells a flat the buyer applies for membership with a registered agreement (Rule 106C-4(b)). In drafting the conveyance, make sure it does not carve out the unsold flats or any common area for the builder beyond what the agreements validly reserve (conveyance-312). The builder's votes as a member do not let him block the society's conveyance action (builder_handover-010).

Question 24

Our building is registered as an apartment owners' association under a deed of declaration, not as a co-operative society. Does deemed conveyance apply to us?

Accepted Answer

Yes, MOFA covers you. The promoter's duty to convey runs in favour of an association of apartment owners as well as a society, and the deemed-conveyance route in MOFA s.11(3)-(5) is open to "the association of apartment owners" by name. Under the Maharashtra Apartment Ownership Act the documents differ — a deed of declaration and deeds of apartment rather than a conveyance to a society — so take an advocate's advice on the exact deed to seek. Many buildings, especially those with several owners of large units, are organised as condominiums under the Maharashtra Apartment Ownership Act 1970 rather than as co-operative societies. There the land is not conveyed to a society; ownership is individual, each owner holds an undivided share in the common areas, and the association manages common areas under its registered bye-laws. MOFA s.11(1) obliges the promoter to convey his right, title and interest to the organisation of flat takers, expressly including an association of apartment owners, and s.11(3)-(5) let the members of "the association of apartment owners" apply to the Competent Authority (the District Deputy Registrar) for a certificate that they are entitled to a unilateral deemed conveyance, which the sub-registrar then registers after hearing the promoter. If your building has no deed of declaration yet, the owners can press the promoter to execute it and, if he refuses, use this route or a civil remedy. Whether to become a co-operative society instead is a separate decision; it changes how transfers, dues and redevelopment are governed (the MCS Act and the 2019 directive apply only to societies). Take an advocate's advice on which path fits your documents.

Question 25

Does a builder who does not convey face any penalty, or only a civil remedy?

Accepted Answer

Both. MOFA s.13 makes a promoter's failure, without reasonable excuse, to convey under s.11 an offence punishable with imprisonment up to three years, a fine, or both, and a convicted promoter is barred from building flats for five years. For RERA projects, ignoring MahaRERA's orders attracts a penalty of up to 5% of the project cost. Prosecution is slow; most societies rely on deemed conveyance, RERA directions and consumer remedies. MOFA s.13(1): a promoter who, without reasonable excuse, fails to comply with or contravenes ss.3, 4, 5, 10 or 11 is punishable on conviction with imprisonment up to three years, or fine, or both; under s.13(4)-(6) a convicted promoter is disqualified from undertaking construction of flats for five years, and the Competent Authority tells the local authorities not to grant him permissions. A Metropolitan Magistrate or Judicial Magistrate First Class tries the complaint (s.13A); MOFA does not require prior sanction to prosecute. For RERA projects, a promoter who fails to comply with MahaRERA's orders is liable to a penalty for each day of default up to 5% of the estimated project cost (s.63); failure to comply with the Appellate Tribunal's orders is punishable with imprisonment up to three years or a fine up to 10% of that cost, or both (s.64); unpaid interest, penalty or compensation is recoverable as arrears of land revenue (s.40). In practice: use the penalty provisions as leverage in the notice (conveyance-303), pursue deemed conveyance for the deed itself, and claim costs and compensation in a forum that awards them (conveyance-315). A criminal complaint is a serious step; consult an advocate before filing.

Question 26

What title documents should the builder hand over along with the conveyance?

Accepted Answer

The originals (or certified copies) of the title chain — the landowner's title deeds, the development agreement and power of attorney, NA and conversion orders, land records, sanctioned plans, commencement, occupancy and completion certificates, and the search report — so that the society can prove title for mutation, repairs, loans and redevelopment. RERA expressly requires the title documents to be handed over. RERA s.17(2) requires the promoter, after executing the conveyance, to hand over physical possession of the common areas to the association and the necessary documents and plans, including of common areas, and s.11(4) obliges him to deliver title documents; MOFA s.3 lists what the promoter must disclose and s.11 requires him to complete his title and convey. The 2014 bye-laws' list of records includes all agreements and correspondence about conveyance, and the draft bye-laws make title deeds, conveyance documents and sanctioned plans permanent records (dBL 146(e)). A practical checklist: title deeds for the land with 30-year search; development agreement and power of attorney; NA order and any conversion or premium receipts; 7/12 or property card and CTS plan; layout and building plans with all revisions; IOD/CC/OC/BCC; lift, fire and other statutory certificates (builder_handover-307); receipts for development charges and property tax; and any court orders affecting the land. For a deemed conveyance, ask the Competent Authority to direct the promoter to hand them over, and record which originals remain untraced.

Question 27

How do the 2014 bye-laws, the June 2026 Rules and the draft 2026 bye-laws differ on conveyance?

Accepted Answer

The 2014 bye-laws make conveyance the society's first object, authorise it at the first general meeting and have the committee obtain it with general-body approval of the draft deed. The June 2026 Rules say little about conveyance itself but create the Co-operative Housing Association for layouts. The draft 2026 bye-laws make initiating deemed conveyance an express duty of the committee and title records permanent. 2014 bye-laws: object to obtain conveyance under the Ownership Flats Act (BL 5(a)); corpus fund from the promoter builder as a mode of raising funds (BL 7(i)); first general meeting authorises the committee to secure conveyance from the promoter builder (BL 87(a)(vi)); committee takes steps for conveyance or deemed conveyance with GB approval, advocate examines the draft, GB approves, committee executes (BL 153). June 2026 Rules (binding): registration forms (Y-1, Y-2) and the Co-operative Housing Association for societies on one layout (Rule 106C-2(2)); admission on a registered agreement with the promoter builder (106C-4(b)); nothing that changes MOFA's deemed-conveyance procedure. Draft 2026 bye-laws (not in force): first meeting authorises conveyance (dBL 88(a)(vi)); committee with prior GB approval takes all steps; where the promoter fails within the prescribed period "it shall be the duty" of the committee to initiate deemed conveyance; advocate's review; GB approval; execution, registration and consequential actions; permanent preservation of title and plans (dBL 146(a)-(e)); due diligence before redevelopment includes completing conveyance (dBL 155(b)).

Question 28

Our committee has done nothing about conveyance for years. What can ordinary members do?

Accepted Answer

Members can requisition a special general meeting (one-fifth of members) to authorise and fund a deemed-conveyance application, raise it at the AGM, and, if the committee still does not act, complain to the Deputy Registrar, who can issue directions to the society. Under the draft 2026 bye-laws, initiating deemed conveyance would be an express duty of the committee. The committee acts on conveyance with general-body approval (BL 153(a)), and the general body is the supreme authority whose decisions bind the committee (Rule 106C-13(3)(a)). Steps for members: (1) write to the committee asking for the status and a plan; (2) if nothing happens, one-fifth of members can requisition an SGM (BL 95-98; see meetings_gb) with an agenda to authorise the committee, approve a budget and appoint an advocate or consultant; (3) at the AGM, ask that conveyance be reported under "matters requiring GB sanction"; (4) complain to the Deputy Registrar, who can issue directions to housing societies under s.154B-21. The draft 2026 bye-laws make it the committee's duty to start deemed-conveyance proceedings when the promoter fails (dBL 146(b)); once adopted, persistent failure could be treated as a breach of duty. Individual members generally cannot file for deemed conveyance on the society's behalf; the application is by the organisation.

Question 29

Our building stands on leasehold land of MHADA, CIDCO or the Collector. How does conveyance work there?

Accepted Answer

The society cannot receive more than the builder had — a leasehold interest. So the transfer is usually a lease deed, an assignment of lease or a tripartite agreement with the public landlord, subject to its permission, lease rent and any transfer charges. Start with the landlord's current policy for societies. On such land the original allottee (often the builder or a predecessor society) holds a long lease with conditions — use, transfer with permission, lease rent, and premium or charges on transfer or additional FSI. MOFA's duty to convey applies to the promoter's interest, so the society should obtain the lease interest in its own name; where the promoter refuses, deemed conveyance may still be sought for that interest, but the public landlord's consent or recognition is usually needed for its own records. Practical steps: get the original allotment letter and lease; check arrears of lease rent and service charges with the landlord; ask the landlord's estate office for its procedure and charges for recording the society; and plan for the landlord's rules in any future redevelopment (the 2019 directive's PMC must consider MHADA, SRA or municipal regulations depending on ownership — cl. 14(c)). Some public bodies have run schemes to convert leasehold to freehold on payment; check whether one currently applies.

Question 30

Does MOFA conveyance also cover a premises society of shops and offices, or a mixed building?

Accepted Answer

Yes. MOFA's 'flat' includes premises used for residence, office, shop, showroom, godown or industrial use, so the promoter's duty to form the organisation and convey applies to commercial and mixed buildings too. A premises society applies for deemed conveyance in the same way. MOFA defines a flat broadly as a separate and self-contained set of premises used or intended for residence, office, showroom, shop, godown, business or industry (s.2(a-1)), and ss.10-11 require the promoter to form an organisation of the purchasers and convey to it. The June 2026 Rules list 'premises society' among the housing societies for registration purposes (Rule 106C-2(1)(ii)). So a building of shops and offices, or a residential building with commercial units on the lower floors, follows the same deemed-conveyance route. Points to watch in mixed buildings: whether commercial units hold separate areas (such as frontage or terraces) under their agreements; how common charges are apportioned (the June 2026 Rules shift several levies to carpet area — Rule 106C-12(4)); and, for redevelopment, how commercial members' entitlements and rent are to be treated, which the PMC's report must cover (cl. 14(d)).

Question 31

Why do people say we must get the conveyance (or deemed conveyance) done before we think of redevelopment?

Accepted Answer

Because without conveyance the land and building still stand in the builder's or landowner's name. The society cannot then give a developer clear development rights, cannot sign a development agreement as owner, and planning approvals and bank finance become difficult. The draft 2026 bye-laws list completing conveyance or deemed conveyance as a due-diligence step before redevelopment. Under MOFA the promoter must convey title to the flat purchasers' society (s.11). If he does not, the society can obtain a deemed conveyance (s.11(3)-(4); see conveyance-002). Until then the society holds its building only through the members' agreements with the promoter. Redevelopment needs the owner of the land to grant development rights. The development agreement and the permanent alternate accommodation agreements are registered documents (s.79A directive, cl. 18(4)). The planning authority checks title. A developer's lenders also want clear title. The draft 2026 bye-laws make this explicit. Before redevelopment the society verifies title and property records and completes conveyance or deemed conveyance (dBL 155(a)-(b)). The PMC identifies title deficiencies needing rectification (dBL 154(a)-(b)). Practical order: conveyance or deemed conveyance, then property-card mutation (see conveyance-102), then the redevelopment steps. Some developers offer to obtain conveyance as part of the deal; the society should understand what that costs it before agreeing.

Question 32

We have the conveyance (or deemed conveyance) deed. How do we get the society's name on the property card or 7/12 extract?

Accepted Answer

Apply to the land-records office for mutation on the strength of the registered deed. That is the City Survey Office for a property card in a city, or the talathi for a 7/12 extract. The mutation records the society as holder. Until it is done, many offices will still treat the builder or landowner as owner. A registered conveyance or deemed-conveyance deed transfers title. The revenue records are a separate step. Under the Maharashtra Land Revenue Code 1966 a person acquiring rights in land reports the acquisition, and the record-of-rights or property-card entry is changed after notice to interested parties. Typical papers, to be confirmed with the office: - certified copy of the registered deed, and for a deemed conveyance the Competent Authority's order; - the society's registration certificate; - a committee or general-body resolution authorising an office-bearer; - the current property card or 7/12 extract, and the layout or plan. A builder or landowner may object at the mutation stage. The officer then decides after a hearing, with an appeal under the Code. Keep the mutated property card with the title records permanently (dBL 146(e)). Redevelopment, bank finance and municipal assessment in the society's name all rely on it.

Conveyance & deemed conveyanceअभिहस्तांतरण व मानीव अभिहस्तांतरण