Legal & Documents
Conveyance vs Deemed Conveyance
One of these is what is supposed to happen. The other is what a great many societies actually have to do.
The short answer
Conveyance is the builder transferring the land and building to your society — voluntarily, as they are obliged to.
Deemed conveyance is your society obtaining that title without them, through a Competent Authority, because they didn't.
The second exists because the first, in enormous numbers, simply did not happen.
The comparison
| Conveyance | Deemed Conveyance | |
|---|---|---|
| Who does it | The builder, voluntarily, as they are obliged to | The society, unilaterally, when the builder won't |
| When it happens | After the society is formed and all flats are sold. Maharashtra's MOFA requires it within 4 months of society formation. | When the builder has failed, refused, or vanished |
| Who signs | Builder and society | The Competent Authority signs in the builder's place |
| Where you apply | Sub-registrar, as a normal registration | The Competent Authority — in Maharashtra, the District Deputy Registrar of Co-operative Societies |
| Time | Weeks, if the builder cooperates | 6 months to 2 years. Sometimes longer. |
| Cost | Stamp duty + registration on the land value | The same, plus legal costs and a great deal of your time |
| Builder can block it? | They simply don't do it — that's the problem | No. That is the entire point of the mechanism. |
Deemed conveyance exists because ordinary conveyance so often didn't happen. Maharashtra pioneered it. If a builder had reliably done what they were obliged to do, the law would never have needed inventing.
Why it matters — the day it matters
For twenty years, nobody in a building thinks about conveyance. The flats work. The lifts run. Nobody asks who owns the land, because nobody needs to.
Then the building turns forty. The plumbing fails. The structure needs serious work. Redevelopment becomes the sensible answer — knock it down, build higher, everyone gets a bigger flat and the developer takes the extra FSI.
And that is the day the society discovers it does not own the land.
Redevelopment requires the landowner's consent. If the builder still holds the land — and has not answered a letter since 2009, or no longer exists as a company — the society is stuck.
Meanwhile the builder may still hold unused FSI on your plot, which they can use or sell. There are Indian societies who have watched a new tower go up in their own open space, entirely lawfully, because the land was never conveyed.
How to avoid ever needing deemed conveyance
- Form the society early. Nothing can happen before it exists.
- Ask for conveyance in writing — formally, by registered post — as soon as the society is registered. Not a phone call. A letter.
- Ask while the builder still has flats to sell in your project. This is the moment of maximum leverage, and it is short.
- Keep the correspondence file. Every letter, every receipt. If you ever need deemed conveyance, this file is the evidence the whole application rests on.
- Put it in the agreement. A clause obliging conveyance within a stated period, at the builder's cost, is worth asking for before you sign.
- Chase it. Societies that got conveyance are usually societies where one determined person would not let it drop.
A builder still selling flats in your project cares what residents say to prospective buyers. A builder who has sold the last flat and moved on does not.
Ask for conveyance while they still have something to lose. That window is measured in months, and it closes quietly.
If you're buying a resale flat
One question, asked of a resident — not the seller, not the broker:
"Has conveyance been completed?"
| Answer | What it means |
|---|---|
| “Yes, in 2019.” | Excellent. The society owns its land. Redevelopment is possible. Move on to your other checks. |
| “No, we're pursuing deemed conveyance.” | Honest, and the society is organised. It will take time and money, but they're on it. |
| “No, the builder says it's coming.” | How long have they been saying it? Ask. The answer is often 'about eleven years'. |
| “I don't know.” | Ask the secretary. If nobody knows, that itself is the answer — and it tells you how this society is run. |
None of these is necessarily a reason not to buy. All of them are things you should know before you do.
Frequently asked questions
What is the difference between conveyance and deemed conveyance?
Conveyance is the builder voluntarily transferring title in the land and building to the society, as they are legally obliged to. Deemed conveyance is the society obtaining that title unilaterally, through a Competent Authority, when the builder refuses or fails to act. The builder cannot block a deemed conveyance.
Why do I need conveyance if I already own my flat?
Because owning the flat is not owning the land. Until conveyance, the builder still holds title to the land your building stands on — and without it, your society cannot redevelop the building when it eventually needs rebuilding. The builder may also still hold unused FSI on your plot, which they can use or sell.
How do I make sure conveyance actually happens?
Form the society early, ask for conveyance in writing by registered post as soon as it's registered, and ask while the builder still has flats to sell in your project — that is the window of maximum leverage, and it is short. Keep every letter. Societies that get conveyance are usually societies where one determined person wouldn't let it drop.
What should I ask before buying a resale flat?
Ask a resident — not the seller — whether conveyance has been completed. If the answer is 'the builder says it's coming', ask how long they have been saying it. The answer is often about eleven years.