What is Deemed Conveyance?
In India, when you buy a flat in a housing society, you own your apartment — but the land on which the building stands typically belongs to the builder until it is formally transferred to the housing society. This transfer of land title is called conveyance. It is the builder's legal obligation to execute this transfer after a majority of flats are sold and the society is registered.
In practice, thousands of builders across Maharashtra have delayed or refused this transfer for decades — often to retain control over parking revenues, open spaces, or future Floor Space Index (FSI) benefits. Residents lived in their flats for 20–30 years without their society actually owning the land beneath their homes.
Deemed Conveyance was introduced to fix this. Under Section 11 of the Maharashtra Ownership Flats Act (MOFA), if the builder does not voluntarily execute conveyance, the housing society can apply to the government authority, which can then deem the conveyance to have taken place — legally transferring the title to the society without the builder's signature.
Why Do Builders Delay Conveyance?
Understanding builder motivations helps societies anticipate resistance. Common reasons include:
| Builder's Motivation | What They Retain Without Conveyance |
|---|---|
| FSI Benefits | Right to use additional FSI on the plot for future construction |
| Parking Revenue | Control over open/stilt parking — can charge residents or third parties |
| Open Space Control | Ability to lease or develop open areas within the compound |
| Redevelopment Rights | First right to redevelop the building when it ages |
| Property Tax Avoidance | Delaying mutation and property tax liability transfer |
| Legal Disputes | Using title ambiguity as leverage in ongoing disputes with society |
Who Can Apply for Deemed Conveyance?
- The housing society must be registered under the Maharashtra Co-operative Societies Act
- At least 51% of the total flat buyers must have received possession of their flats
- The builder must have failed to execute voluntary conveyance within the stipulated time
- The society must have a valid managing committee in place
- All required property documents must be available with the society
Documents Required
Gathering complete documentation is the most critical — and time-consuming — step. Missing documents are the primary reason for application delays.
- Society registration certificate and bye-laws
- List of all members with flat numbers and possession dates
- All individual sale deeds / agreements for sale of member flats
- Original title documents of the land (7/12 extract, property card)
- Approved building plan and commencement certificate
- Occupancy Certificate (OC) or Completion Certificate
- Copy of builder's RERA registration (for post-RERA projects)
- Property tax receipts in society or builder's name
- Bank NOC confirming no mortgage on land (if applicable)
- Managing committee resolution authorising the application
The Deemed Conveyance Process — Step by Step
Form and Register the Housing Society
The society must be registered under the Maharashtra Co-operative Societies Act before applying. If not already registered, this is the mandatory first step. Minimum 10 members required for registration.
Send Legal Notice to Builder
Before filing the formal application, send a registered legal notice to the builder giving 2–4 weeks to execute voluntary conveyance. This demonstrates good faith and is often required by the authority. Some builders cooperate at this stage, avoiding the formal process.
Collect and Verify All Documents
Compile the complete document checklist. Engage a property lawyer to verify the title chain is clean and all documents are in order. Missing or disputed documents must be resolved before filing.
File Application in Form 7
Submit Form 7 (Application for Deemed Conveyance) to the District Deputy Registrar of Co-operative Societies along with all required documents, court fee stamp, and application fees.
Authority Issues Notice to Builder
The DDR issues formal notice to the builder, giving them an opportunity to respond, appear for hearing, and execute voluntary conveyance. The builder gets 30–60 days to respond.
Hearing and Order
If the builder cooperates, voluntary conveyance is executed — process ends here. If the builder does not respond or refuses, the DDR conducts hearings and, if satisfied, issues the Deemed Conveyance Order (DCO).
Registration and Mutation
The DCO is registered at the Sub-Registrar office with applicable stamp duty. The society then applies for mutation of property records in the municipal database — completing the title transfer.
After Deemed Conveyance — What Changes?
| Aspect | Before Deemed Conveyance | After Deemed Conveyance |
|---|---|---|
| Land Title | Builder / developer | Housing society |
| Redevelopment Rights | Builder has first right | Society decides independently |
| Parking Revenue | May go to builder | Goes to society |
| Bank Loan Eligibility | Limited — uncertain title | Society can mortgage property for renovation loans |
| Government Approvals | Builder's NOC required | Society applies directly |
| Property Tax | May be in builder's name | Transferred to society |
Related Terms
Frequently Asked Questions
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