society conveyance deed all you need to know

society conveyance deed all you need to know

Soumya Shekhar
Soumya Shekhar
03 min read 23043 Views
Lk Blog
Last Updated: Jul 16, 2024

Did you know that a Conveyance Deed is required to acquire property in a housing society? Many people do not know that such a Conveyance Deed exists.  After developing a housing structure with a number of flats, common areas, etc., the developer sells these flats to multiple buyers for a price (making a profit in the process). The buyers come to own the individual flats, and they all have a common right to utilize the common areas. The flat-buyers then come together to form a housing society. The housing society regularly raises subscriptions from the members. It uses the proceeds to service the common areas, provide common services (such as electricity backup and water supply), hire employees for maintenance and housekeeping, and so on. Having a Conveyance Deed confers the legal ownership of the common areas of the housing society and plays an important role in proving legal ownership and later redevelopment projects. 

 

The Importance of a Conveyance Deed in Housing Societies

The ownership of the land is first transferred from the original landowner to the developer. With their newly acquired rights over the land, the developer can now develop society on this land. They commence construction and meanwhile begin marketing the to-be-completed society to prospective buyers. Those who agree to buy the completed flats enter into an agreement with the buyer. This agreement may be called by different names, such as ‘Sale Agreement’ or ‘Purchase Agreement’ and so on, but they are all the same in essence. There may be a number of clauses in this agreement. Amongst these, the most important one typically states that the developer promises to hand over the flats to the owners once the construction is completed.

When construction is completed, the developer hands over the flats to the respective buyers. However, there’s a catch. As a buyer, you have only acquired possession of your flat. The developer continues to own the whole land and all the buildings which stand on it. A possessor has some but lesser rights than an owner. Hence, in some sense, the developer can still continue to lord over you since they have more rights over the property than you do. To transfer the ownership of the whole land and the buildings standing on it to the respective buyers, the developer must execute a Conveyance Deed. 

A Conveyance Deed is a legal document that conveys some rights over an immovable property from one person to another. The developer must execute the Conveyance Deeds of flats and common areas to transfer their ownership rights to the respective owners and the housing society. Thus, the buyers will then become the owners of their respective flats, and all the buyers will then become the common owners entitled to jointly use the common areas.  

 

How to Execute the Conveyance Deed 

Keep the following pointers in mind while executing each required Conveyance Deed: 

  1. It must be written and signed by the parties. 

  2. It must be attested by at least two independent witnesses. 

  3. The required stamp duty must be paid. To ensure this, the Deed must be executed on non-judicial stamp paper of the same value as the stamp duty required to be paid. 

  4. It must be compulsorily registered with the local Sub-Registrar of Assurances. 

  5. It must clearly identify, at the very least, the land and other properties being transferred, the identity of the parties, the title history of the land and properties in question, and the fact that ownership rights are being transferred. 

 

People Also Read This: Buying a House? Have You done your Legal Checks?

Documents Required for Executing the Conveyance Deed

  1. The duly executed and stamped Conveyance Deed must be presented to the office of the local Sub-Registrar of Assurances for registration. 

  2. Some states may require the advocate, or registered deed-writer, who drafted the Conveyance Deed to affix a declaration, and their registration number, on the Deed. 

  3. Proof of payment of the registration fees payable, if any. 

  4. Identity, and Address, Proofs of all the parties and the attesting witnesses. 

Those who read this Article also Consulted a Lawyer about Conveyance deed.  

In practice, members of housing societies often have trouble getting developers to execute Conveyance Deeds for their buildings. In such cases, some states allow the members of the housing society to request the State Government to provide them a Deemed Conveyance Deed. For instance, Maharashtra allows members of housing societies in the state to request a Deemed Conveyance Deed

Deemed Conveyance Deed

Once the State Government provides a Deemed Conveyance Deed, although the developer has not really executed the required Conveyance Deed, the law will consider that it has been executed. This is a fiction of the law. Consequently, the members of the housing society will be entitled to the same rights they would have possessed had the developer executed the required Conveyance Deed. 

If your state allows you to obtain a Deemed Conveyance Deed, you have to file an application for this purpose before the competent authority, supported by the required documents. The authority will usually hear both the parties and pass a reasoned order. Accordingly, they will either accept or reject your application. If they accept the application, you will be able to obtain the Deemed Conveyance Deed. The documents typically required to obtain a deemed conveyance deed are:

  • Relevant land records, such as municipal records, land revenue records, etc. 

  • Copy of development agreement between landowner and builder. 

  • Copies of registered and stamped agreements of each flat

  • Approved building plan. 

 

In Maharashtra, the fee for deemed conveyance is INR 2000. Earlier, there was also a need to submit an occupation certificate from the builder, but now this requirement has been scrapped. The housing society can obtain an occupation certificate from the municipal corporation after the conveyance has been done. 

It is always preferable to take legal help while drafting a Conveyance Deed. Many builders do not adopt the traditional Conveyance method, and the flat-owners have to resort to deemed Conveyance.

Frequently asked questions

What are the benefits of conveyance deed?

A conveyance deed offers several benefits:

  • Legal Transfer: It legally transfers ownership of property from the seller to the buyer.
  • Clear Title: It provides a clear title of the property to the buyer, ensuring there are no disputes over ownership.
  • Right to Use: It grants the buyer the legal right to use the property as they wish, within the boundaries of the law.
  • Loan Facilitation: It is necessary for securing loans or mortgages against the property.
  • Sale and Resale: It simplifies future sales or transfers of the property.

Which is better, conveyance deed or sale deed?

A conveyance deed and a sale deed serve different purposes:

  • Conveyance Deed: It is a broad term that includes all types of property transfers, including sale, gift, lease, and exchange.
  • Sale Deed: It specifically pertains to the sale of property and is a type of conveyance deed.

Both are important, but a sale deed is crucial for purchasing property, as it explicitly documents the sale transaction. The choice depends on the type of transaction.

How to prepare a conveyance deed?

To prepare a conveyance deed:

  1. Hire a Lawyer: Consult a legal expert to draft the deed.
  2. Collect Documents: Gather necessary documents, such as title deeds, sale agreements, and identification proofs.
  3. Draft the Deed: Include details of the parties, property description, sale consideration, and terms of the transfer.
  4. Review and Sign: Both parties should review the deed and sign it in the presence of witnesses.
  5. Register the Deed: Submit the deed to the local sub-registrar office for registration.

Can a conveyance deed be challenged in court?

Yes, a conveyance deed can be challenged in court on various grounds, such as:

  • Fraud or misrepresentation.
  • Coercion or undue influence.
  • Lack of proper execution or registration.
  • Dispute over ownership or title defects.
  • Non-fulfillment of legal formalities.

What is a conveyance deed of society?

A conveyance deed of society refers to the transfer of land and building ownership from the developer to the housing society. It grants the society collective ownership of the property and common areas, allowing them to manage and maintain the premises.

What happens if conveyance deed is not registered?

If a conveyance deed is not registered:

  • The transfer of property is not legally recognized.
  • The buyer cannot claim legal ownership.
  • The buyer may face difficulties in obtaining loans or selling the property in the future.
  • It can lead to disputes and legal complications.

Should I buy a flat without a conveyance deed?

It is not advisable to buy a flat without a conveyance deed. Without it:

  • You may not have legal ownership.
  • You could face difficulties in getting loans or reselling the property.
  • It increases the risk of disputes and legal issues.

What is the difference between registry and conveyance deed?

  • Conveyance Deed: It is the document that legally transfers property ownership from one party to another.
  • Registry: It refers to the process of registering the conveyance deed with the local sub-registrar, making the transfer legally binding and part of public records.

 

Is it safe to share a conveyance deed?

Sharing a conveyance deed is generally safe, but it should be done with caution. Only share it with trusted parties such as:

  • Legal advisors.
  • Banks or financial institutions (for loans).
  • Potential buyers (during the sale process).

Avoid sharing sensitive information publicly to prevent misuse.

Who executes the deed of conveyance?

The deed of conveyance is executed by:

  • Seller: The person or entity transferring the property.
  • Buyer: The person or entity receiving the property. Both parties must sign the deed, and it should be witnessed by at least two individuals.

How do you cancel a conveyance deed?

To cancel a conveyance deed:

  1. Mutual Agreement: Both parties can mutually agree to cancel the deed.
  2. Legal Notice: Send a legal notice to the other party stating the intention to cancel.
  3. File a Suit: If there is no mutual agreement, file a suit in court to declare the deed void based on valid grounds such as fraud, misrepresentation, or non-fulfillment of conditions.
  4. Court Order: Obtain a court order for the cancellation, and register the cancellation deed with the local sub-registrar.

Legal consultation is advised for proper guidance through the cancellation process.

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Frequently asked questions

What are the benefits of conveyance deed?

A conveyance deed offers several benefits:

  • Legal Transfer: It legally transfers ownership of property from the seller to the buyer.
  • Clear Title: It provides a clear title of the property to the buyer, ensuring there are no disputes over ownership.
  • Right to Use: It grants the buyer the legal right to use the property as they wish, within the boundaries of the law.
  • Loan Facilitation: It is necessary for securing loans or mortgages against the property.
  • Sale and Resale: It simplifies future sales or transfers of the property.

Which is better, conveyance deed or sale deed?

A conveyance deed and a sale deed serve different purposes:

  • Conveyance Deed: It is a broad term that includes all types of property transfers, including sale, gift, lease, and exchange.
  • Sale Deed: It specifically pertains to the sale of property and is a type of conveyance deed.

Both are important, but a sale deed is crucial for purchasing property, as it explicitly documents the sale transaction. The choice depends on the type of transaction.

How to prepare a conveyance deed?

To prepare a conveyance deed:

  1. Hire a Lawyer: Consult a legal expert to draft the deed.
  2. Collect Documents: Gather necessary documents, such as title deeds, sale agreements, and identification proofs.
  3. Draft the Deed: Include details of the parties, property description, sale consideration, and terms of the transfer.
  4. Review and Sign: Both parties should review the deed and sign it in the presence of witnesses.
  5. Register the Deed: Submit the deed to the local sub-registrar office for registration.

Can a conveyance deed be challenged in court?

Yes, a conveyance deed can be challenged in court on various grounds, such as:

  • Fraud or misrepresentation.
  • Coercion or undue influence.
  • Lack of proper execution or registration.
  • Dispute over ownership or title defects.
  • Non-fulfillment of legal formalities.

What is a conveyance deed of society?

A conveyance deed of society refers to the transfer of land and building ownership from the developer to the housing society. It grants the society collective ownership of the property and common areas, allowing them to manage and maintain the premises.

What happens if conveyance deed is not registered?

If a conveyance deed is not registered:

  • The transfer of property is not legally recognized.
  • The buyer cannot claim legal ownership.
  • The buyer may face difficulties in obtaining loans or selling the property in the future.
  • It can lead to disputes and legal complications.

Should I buy a flat without a conveyance deed?

It is not advisable to buy a flat without a conveyance deed. Without it:

  • You may not have legal ownership.
  • You could face difficulties in getting loans or reselling the property.
  • It increases the risk of disputes and legal issues.

What is the difference between registry and conveyance deed?

  • Conveyance Deed: It is the document that legally transfers property ownership from one party to another.
  • Registry: It refers to the process of registering the conveyance deed with the local sub-registrar, making the transfer legally binding and part of public records.

 

Is it safe to share a conveyance deed?

Sharing a conveyance deed is generally safe, but it should be done with caution. Only share it with trusted parties such as:

  • Legal advisors.
  • Banks or financial institutions (for loans).
  • Potential buyers (during the sale process).

Avoid sharing sensitive information publicly to prevent misuse.

Who executes the deed of conveyance?

The deed of conveyance is executed by:

  • Seller: The person or entity transferring the property.
  • Buyer: The person or entity receiving the property. Both parties must sign the deed, and it should be witnessed by at least two individuals.

How do you cancel a conveyance deed?

To cancel a conveyance deed:

  1. Mutual Agreement: Both parties can mutually agree to cancel the deed.
  2. Legal Notice: Send a legal notice to the other party stating the intention to cancel.
  3. File a Suit: If there is no mutual agreement, file a suit in court to declare the deed void based on valid grounds such as fraud, misrepresentation, or non-fulfillment of conditions.
  4. Court Order: Obtain a court order for the cancellation, and register the cancellation deed with the local sub-registrar.

Legal consultation is advised for proper guidance through the cancellation process.

Online Consultations

LegalKart - Lawyers are online
LegalKart - Lawyers are online
LegalKart - Lawyers are online
+144 Online Lawyers
Lawyers are consulting with their respective clients
+21 Online Calls
Talk To Lawyer Or Online Consultation - LegalKart