Why should housing societies go in for deemed conveyance?

Conveyance means the action of conveying the title to a property from one person to another by an instrument. Without getting conveyance in the name of the society, you cannot go in for redevelopment. Some of the key objects of conveyance are as follows:

·        To become the legal owners of the property:

Any movable/immovable property ownership is identified on the basis of title documents for example; immovable properties are recorded and identified on the basis of Survey No., Hissa No. and such other identity marks in Government Records like 7/12 extract property card etc. then only, the purchaser become the legal owner.

·        To make entries in the government records:

When the property transactions are recorded in Government records, it becomes conclusive evidence of ownership of property. To make entries in Government records, a Conveyance Deed has to be executed.

·        To also have the free and marketable title:

When a particular person/society has paid full consideration and is in possession of the property but the title documents are continued in the original owners name, the purchase will not have a free and marketable title on the said property. It is only after proper conveyance – the purchaser will derive free and marketable title over the property.


What are the key benefits of getting the deemed conveyance?

Following are the advantages of getting the conveyance of land and building in the name of the legal bodies.

  • Getting the proper title.

  • Retaining additional FSI, which has been granted by change of regulations.

  • Property will be free and marketable from any en-cumbrances charges.

  • Loan can be raised by mortgage for repairing of the buildings.

  • Permission for reconstruction will be given by the planning authorities.

  • Construct new building by using TDR or give the redevelopment rights to the builder and get the additional area and the corpus with new amenities.

  • Receive compensation on development like hoarding rents, tele communication tower rent etc.



What is the difference in procedure between getting the normal conveyance vis-à-vis the deemed conveyance?

In case of regular conveyance, the builder / Developer / Landowner prepare a conveyance deed, execute the same and appear before the Sub-Registrar of assurance for admitting their signature.

Without any problem, the legal bodies get the conveyance with the co-operation the builder / landowner.

In case of deemed conveyance, the builder / land owner or their legal heirs are not co-operating, therefore, the aggrieved parties appear before the Designated Competent Authority, who hears all the parties and passes the necessary order of conveyance.

Deemed Conveyance is obtained as a legal remedy against the defaulter builder / landowner who do not want to part with the land and the building in favour of the society.