Is Your Building Conveyed?
A deemed conveyance is important as it establishes the ownership of flat owners on the land on which the society has come up.
Conveyance is transferring the rights, title, interest and ownership of the land and building from the land ownerproperty developer to the co-operative housing society. "Land is an important, tangible and valuable asset and hence, the society should have the same conveyed to itself," says Rohit Poddar, MD, Poddar Housing and Development Ltd.
The importance of conveyance for the co-operative housing societies is immense. It gives proper and legal title of the property (land and structures) in the name of the society, which in turn will make that property free and marketable. It enables retention of additional Floor Space Index (FSI) granted by change of development regulations.
"Raising funds by means of loans for repairs and reconstruction by mortgage of the society's property is made possible," says Vipul Shah, MD, Parinee Group. It also aids in getting permission for reconstruction from the planning authorities. "Additionally, deemed conveyance enables easier approval (for redevelopments) of the property by constructing new building using TDR and members can get the additional area (fungible FSI), new amenities and corpus fund. They can also generate additional revenue from advertising hoarding and telecommunication tower," adds Shah.
A developer is required to convey the land and the building within four months of formation to the society failing which, the land and building is deemed to have been conveyed to the legal body. "To bring the same in the revenue record, a competent authority has been designated who will hear the parties on the basis of applications received from the aggrieved party and transfers the title in favour of the legal body by passing the necessary order and deemed conveyance certificate. This will be followed by appointing an authorised officer to execute the conveyance deed in favour of the society and execute on behalf of non-co-operative builder or the land owner," explains Ashok Mohanani, Vice-president, NAREDCO West.
