Housing society conveyance

Amendment to the Maharashtra Ownership of Flats Act, 2005, makes it mandatory for developers to execute the conveyance deed, the document transferring the plot to the housing society or the flat purchasers. In case of failure to do so, developers could end up facing imprisonment for a period ranging from six months to a year as well as a fine of up to Rs 50,000. Furthermore, such a developer will not be given permission to undertake any new construction project for a period of five years.

Several builders hold on to the conveyance deed for decades after sale of flats because in case the building is later taken up for redevelopment or if the plot has some some unutilised Floor Space Index, the builder could tap that in the future.

The amendment now gives the district deputy registrar the power to act as a competent authority. If the developer fails to execute the deed in favour of the housing society, residents can approach the competent authority with stamp duty and other registration documents.

The authority can in turn direct the sub-registrar to issue a deemed conveyance and at the same time penalise the builder with a jail term and fine.