Understanding the essential differences between conveyance deed and deemed conveyance can help property owners and housing societies make informed decisions.
Understanding Conveyance Deed and Deemed Conveyance
A conveyance deed is a legal document that officially transfers ownership of property from one party to another. It is a crucial part of property transactions, ensuring that the buyer legally acquires the property rights from the seller. This document includes important details such as the description of the property, the sale agreement, and the terms and conditions of the transfer.
Deemed conveyance, on the other hand, is an alternate legal mechanism used primarily by housing societies when a builder or developer fails to execute the conveyance deed. This process allows the housing society to obtain the ownership rights of the property directly from the competent authority, typically a government office, without the builder’s involvement. Deemed conveyance ensures that the property rights are secured in favor of the society, overcoming the challenges posed by uncooperative or absent builders.
Key Differences Between Conveyance Deed and Deemed Conveyance
The primary difference between a conveyance deed and deemed conveyance lies in their execution. A conveyance deed is a mutual agreement between the seller and buyer, requiring the consent and participation of both parties. It is executed voluntarily and is a standard part of property transactions.
Deemed conveyance, however, is a legal remedy available when the builder fails to execute the conveyance deed. It does not require the builder’s consent and is facilitated through a legal process involving the competent authority. This process ensures that housing societies can secure their property rights even if the builder is non-cooperative or untraceable.
Legal Implications and Benefits for Housing Societies
Obtaining a deemed conveyance has significant legal implications and benefits for housing societies. It legally secures the property rights of the society, ensuring that all members have a recognized stake in the property. This is crucial for protecting the interests of the residents and avoiding future legal disputes.
Additionally, deemed conveyance simplifies future property dealings, such as redevelopment or obtaining loans, as the society holds clear ownership of the property. It also empowers the society to make decisions regarding the maintenance and management of common areas, ensuring better governance and community living.
Eligibility Criteria for Deemed Conveyance
To be eligible for deemed conveyance, a housing society must meet certain criteria. Firstly, the society must be registered under the relevant cooperative societies act. The property in question should be fully constructed, and all payments to the builder must be settled.
Additionally, the society should have made reasonable efforts to obtain the conveyance deed from the builder, including sending legal notices. If the builder fails to respond or comply, the society can then approach the competent authority to apply for deemed conveyance.
Navigating the Application Process for Deemed Conveyance
The application process for deemed conveyance involves several steps. Firstly, the housing society must gather all necessary documentation, including the registration certificate, property tax receipts, and copies of legal notices sent to the builder. The society then submits an application to the competent authority, usually accompanied by a nominal fee.
The competent authority reviews the application and may conduct a hearing to assess the case. If satisfied with the evidence, the authority issues a certificate of deemed conveyance, transferring the property rights to the society. The entire process may take several months, depending on the complexity of the case and the responsiveness of the parties involved.