Understanding the Ownership Gap and How to Fix It
Many flat owners in Pune are shocked when they learn this simple fact: You own your apartment, but you do not own the land it stands on.
In a Cooperative Housing Society, the land and the building structure must be legally transferred to the Society’s name. This process is called Conveyance.
Ideally, the Builder should do this within 4 months of forming the Society. In reality, thousands of builders refuse to hand over the land. They keep the land rights to exploit future benefits like FSI or TDR. If your builder is refusing to cooperate, the solution is Deemed Conveyance.
1. The Risks of Not Having Conveyance
If the land title is not in the Society’s name, you are essentially living as a tenant on the builder’s land.
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- No Redevelopment: You cannot demolish and rebuild the building in the future without the land title. The builder will demand a heavy premium to give consent.
- Loss of FSI Benefits: If the government increases FSI limits, the builder gets the benefit of that extra construction potential, not the flat owners.
- Legal Liability: If a wall collapses or an accident occurs, the legal liability might still fall on the builder, but the Society suffers the damage.
2. What is Deemed Conveyance?
The Maharashtra Government introduced “Deemed Conveyance” to help Societies held hostage by builders.
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- The Concept: It is a legal remedy where the Competent Authority (District Deputy Registrar) hears the Society’s case.
- The Order: If the builder fails to execute the conveyance, the Authority passes an order declaring the Society as the legal owner.
- Execution: The Authority appoints an officer to sign the Conveyance Deed on behalf of the defaulting builder.
3. The Step-by-Step Process
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- Documentation: The Society must gather proofs like the Agreement for Sale (of individual members), 7/12 extracts, Architect Certificate, and Society Registration Certificate.
- Legal Notice: A formal legal notice is sent to the builder requesting conveyance.
- Hearing: If the builder ignores the notice, we file an application with the District Deputy Registrar (DDR). The DDR hears both sides.
- Registration: Once the order is passed, it is adjudicated and registered at the Sub-Registrar’s office. The Society’s name is then finally added to the Property Card or 7/12 extract.
4. Why Do Builders Delay?
Builders rarely delay out of laziness. It is strategic. They delay to:
Utilize the unused FSI of your plot for nearby projects.
Retain control over open spaces and terraces.
Demand money from the Society later for “consenting” to redevelopment.
5. Action Plan
Check your Society’s 7/12 Extract or Property Card today. If it still shows the Builder’s or Landowner’s name, your Society is at risk. Initiate the Deemed Conveyance process immediately to secure your property rights.