Deemed conveyance: when the builder never handed over the land
A great many housing societies discover, often decades after the last flat was sold, that the land under their building was never transferred to them. The developer still holds it. Deemed conveyance is the mechanism the state provides for fixing that without the developer's cooperation, and it matters considerably earlier than most members realise.
What should have happened
Under Maharashtra's flat ownership framework, a promoter who sells flats is obliged to form the society and then convey the land and building to it within the prescribed period.
Conveyance is the transfer of the land title to the society. Until it happens, members own their flats but the society does not own the ground the building stands on, which is a strange and consequential position.
Developers frequently do not complete this step. Sometimes it is neglect, sometimes the entity has dissolved, and sometimes it is deliberate, because retaining the land preserves rights over unused development potential.
Members generally have no idea. The flat is registered, possession was taken years ago, and nothing in daily life reveals the gap.
- The promoter must form the society and convey the land to it
- Until then, members own flats but the society owns no land
- Non-completion is often deliberate, to retain development rights
- Nothing in daily life makes the omission visible
Why it matters before redevelopment
Redevelopment is where the problem usually surfaces, because a society cannot sensibly redevelop land it does not own. Our note on redevelopment in Navi Mumbai covers why this is the first prerequisite.
But the consequences arrive earlier. Without conveyance, the society's control over its own premises is incomplete, and the developer may retain rights over open spaces, terraces, parking areas and any unconsumed development potential.
It can also affect individual transactions. Buyers' lawyers examine the conveyance position, and an unresolved one becomes a question in every sale, sometimes affecting financing.
And it affects the society's ability to deal with its own property confidently, including major repairs and any dealings that touch the land rather than only the structure.
What deemed conveyance provides
Where a promoter fails to convey, the law allows the society to apply to the Competent Authority for a certificate of deemed conveyance, which permits the transfer to be registered unilaterally.
The point is that it does not require the developer's signature or cooperation. That is precisely why the mechanism exists, since developers who have not conveyed voluntarily rarely become cooperative when asked.
The society applies, the authority examines whether the statutory conditions are met, hears the promoter if they appear, and issues the certificate where satisfied.
The conveyance is then registered and stamp duty paid, at which point the society holds the land in its own name.
- Applies to the Competent Authority, not to the developer
- Does not require the promoter's signature or cooperation
- The promoter is heard if they choose to appear
- Certificate is followed by registration and stamp duty
What a society needs to assemble
The society's registration certificate and its list of members, along with the registered agreements of the flats, which collectively evidence the sales the promoter made.
The property card or land records, the approved plans and the occupancy certificate for the building.
Evidence of the demand made on the promoter to convey, since the application rests on their failure to do so.
Assembling this is the slow part, particularly in older societies where records have been kept casually and committee members have changed many times. Starting early matters more than any other single factor.
The costs and who bears them
Stamp duty on the conveyance is the largest item, and societies are frequently surprised by it because they think of the process as an administrative correction rather than a property transfer.
Professional fees for the consultant or lawyer preparing the application are the second, and this is not work to attempt without competent help given the documentation involved.
The cost falls on the society and therefore on members, typically through a levy. That is a difficult conversation in a society where many members do not understand why they are paying to receive something they assumed they already had.
It is nonetheless considerably cheaper than the alternative, which is discovering the problem when it blocks a redevelopment worth many times the cost of resolving it.
How to find out where your society stands
Ask the managing committee directly whether conveyance has been completed and, if so, to see the registered document. A committee that answers immediately with paperwork is in good order.
Hesitation or vagueness is informative. Many committees genuinely do not know, and the question prompting an investigation is itself useful.
Buyers should ask this during diligence rather than after purchase. Our resale flat checklist includes it among the society questions worth asking, and our note on title verification covers how it fits the wider picture.
In Navi Mumbai there is an additional layer, since much land is CIDCO leasehold and the position interacts with CIDCO's own requirements. Our guide to which authority governs your flat covers how the bodies divide.
- Ask the committee and ask to see the registered conveyance
- Vagueness usually means nobody has checked
- Buyers should establish this before purchase, not after
- In Navi Mumbai the CIDCO lease position interacts with it
If your society has not conveyed
Raise it formally at the general body rather than informally, so the discussion is recorded and the committee has a mandate to act.
Appoint a competent consultant early. The documentation requirements are the binding constraint, and someone who has done this before will identify gaps far faster than a committee working it out.
Budget honestly and communicate the reason clearly to members. Resistance usually comes from members who think they are being asked to pay for nothing, and it dissolves once the redevelopment implication is explained.
And do not wait for redevelopment to force the issue. A society that resolves conveyance while it has time negotiates from strength; one that discovers the gap when a developer is at the table does not.
