Deemed Conveyance is a legal provision that empowers housing society members to obtain ownership rights of the land and building from the builder or developer when they fail to execute the conveyance deed. Many housing societies face delays and disputes in this process, making it essential to understand the rights, procedures, and benefits associated with Deemed Conveyance. This FAQ section addresses the most common questions to help societies and members gain clarity on the subject.

Frequently Asked Questions about Deemed Conveyance

Q.1) What is Conveyance?

Ans: Conveyance refers to the granting of a lease or the transfer of lease of land by CIDCO (City and Industrial Development Corporation) to a Co-operative Housing Society, Apartment Owners’ Association, or a Company.

Q.2) How is Conveyance done?

Ans:
For granting or transferring a lease by CIDCO, the following procedure is followed:

1. A detailed procedure is available with the Estate Department for granting of lease.

2. For transfer of lease, a Tripartite Agreement is executed between the Transferor, the Transferee, and CIDCO Authority.

3. The agreement must be properly stamped and registered with the Stamp Duty Registrar’s office.

4. Appropriate charges (such as transfer charges, service charges, water charges, etc.) payable to CIDCO must be cleared.

Once these steps are completed, the transfer of lease i.e., Conveyance is finalized.

Q.3) What is Deemed Conveyance?

Ans:
If the Transferor does not agree to sign the Tripartite Agreement for transfer of lease, the housing society can apply for Deemed Conveyance.
Under Section 11 of the MOFA Act, 1963, the Competent Authority may grant a unilateral conveyance to the Society, Apartment Owners’ Association, or Company, and register the instrument as Deemed Conveyance after following the due legal procedure.

Q.4) Is my Society eligible for Deemed Conveyance?

Ans:
Your society is eligible for Deemed Conveyance if:

1. The plot of land is tendered by CIDCO to an individual or company for construction of multiple tenements under the MOFA Act, 1963.

2. The land is leased to PAPs (Project Affected Persons) under the 12.5% Scheme for development.

Q.5) What is the procedure of Deemed Conveyance?

Ans:

• After registration of a Society, Apartment Owners’ Association, or Company, the promoter must execute conveyance within four months.

• If the promoter fails, the organization can apply in writing to the Competent Authority with true copies of the registered sale agreements of its members.

• The Joint Registrar of Co-operative Societies, CIDCO will verify the documents, provide an opportunity of hearing to the promoter, and if satisfied, issue a certificate to the Sub-Registrar under the Registration Act, 1908 for unilateral execution of the Conveyance Deed.

• After registration and payment of CIDCO’s necessary charges, the Deemed Conveyance is considered executed.

Q.6) What documents are necessary to apply for Deemed Conveyance?

Ans: The following documents are required:

1. Application for Deemed Conveyance (Format VII)

2. Society Registration Certificate

3. Sale Agreement copy of Chairman/Secretary

4. Copies of Registration Agreements of all members

5. List of flat & shop owners on society letterhead

6. Agreement to Lease with CIDCO

7. Development Rights / Power of Attorney given to Builder

8. Occupancy Certificate copy

9. Commencement Certificate (C.C.) copy

10. Draft Deemed Conveyance Agreement (Deed of Assignment)

11. Society Resolution for Deemed Conveyance

12. Architect’s Certificate

13. Title Certificate

14. Plan copy

15. Court Fee of ₹2000/-

16. Affidavit

17. Indemnity Bond

18. Verification

19. Bandhapatra

20. Notice given to Builder & Land Owner

(Ref: Housing Department, Maharashtra)

Q.7) What are the Stamp Duty and Registration Charges for Deemed Conveyance?

Ans:

• If all individual members have already paid stamp duty and registered their documents, then minimum stamp duty is payable.

• Maximum registration charges are ₹30,000.

• The exact stamp duty is determined by the Adjudicating Authority under the Registration Act, 190

Q.8) What are Transfer Charges and other dues of CIDCO?

Ans: CIDCO levies transfer charges based on the carpet area and the type of property. The charges vary depending on whether the property is in developed nodes (like Airoli, Vashi, Nerul, CBD Belapur, Kharghar, Panvel, etc.) or other nodes (like Ghansoli, Ulwe, Kalamboli, Kamothe, Dronagiri, etc.).

Q.9) Is it necessary to hire an advocate for the process of Deemed Conveyance?

Ans: No. Hiring an advocate is not mandatory. Members of the society can apply for Deemed Conveyance themselves by following the due procedure.

Q.10) After obtaining the unilateral Deemed Conveyance certificate from the Competent Authority, within how many days should the conveyance be executed?

Ans: There is no time limit prescribed for execution of conveyance after obtaining the unilateral Deemed Conveyance Certificate.

Q.11) If a flat is purchased as resale (not directly from the promoter), is it necessary to have all previous chain of documents registered?

Ans: No. For the purpose of Deemed Conveyance, the government has dispensed with the necessity of chain of documents.
👉 Refer: Housing Department, Maharashtra

Q.12) After obtaining Deemed Conveyance, is CIDCO’s permission required for redevelopment of the building?

Ans: Yes. Deemed Conveyance only transfers the leasehold rights of the promoter to the society. All rules and regulations of CIDCO remain applicable, and the society must obtain necessary permission from CIDCO for redevelopment.

Q.13) If the builder (promoter) is not a member of the society and holds some unsold flats, is the society liable to pay stamp duty on those flats?

Ans: No. The society is not obliged to pay stamp duty on the builder’s unsold flats.
👉 Refer: Government Resolution – Housing, Maharashtra

Q.14) If a society is formed by people who purchased flats directly from CIDCO, is Deemed Conveyance applicable?

Ans: No. In such cases, CIDCO acts as the promoter under MOFA Act, 1963. Since MOFA is not applicable to CIDCO, the society will receive a lease deed directly from CIDCO, not Deemed Conveyance.

Q.15) Does a co-operative housing society get freehold title after Deemed Conveyance?

Ans: No. The society will receive only leasehold rights after deemed conveyance. This is because land in Navi Mumbai acquired by the Government of Maharashtra and vested with CIDCO is allotted strictly on a leasehold basis.

Q.16) What are the benefits of Deemed Conveyance?

Ans:

• Without conveyance, the society does not have a clear legal title of the plot.

• The promoter (builder) continues to retain ownership rights, which prevents societies from exercising their full rights.

• After executing Deemed Conveyance, the society gains a clear title to the land and building.

• Only after obtaining Deemed Conveyance can a society exercise rights such as redevelopment or reconstruction of the building.