Published On: Tue, Jun 6th, 2017

Regulations for Builders to Transfer Property Ownership

In the Mumbai Metropolitan Region (MMR) it is found that more than 40,000 societies presently do not possess a conveyance deed. Hence, no proper ownership of the land on which the building is erected belongs to the society. Conveyance is one of the most important documents that a society should possess to establish its rightful holding of the land.

Under the recently introduced RERA, with an aim to regulate the real estate sector, now, if any builder sells more than 50 percent flats in a building or obtains an Occupation Certificate (OC), then, within three months the builder has to hand-over the conveyance deed of the property to the society. If he fails to do so, a penalty of five percent will be charged initially and if he fails to comply with the order, another five percent of the project cost will be levied.

In RERA, sections specifically mention that within three months of the builder selling 51 percent of the total flats or obtaining an OC, the builder is bound to give conveyance of the land to the society.

This move aims to instill discipline among builders. In the long run, residents will benefit from the conveyance deed as it is an important aspect to prove ownership of land.

According to Dr Sanjay Chaturvedi, editor of Accommodation Times, a real estate newspaper, conveyance deed is a crucial piece of instrument that permits the society to stake its claim on the land over which the building stands.

Arqam Shaikh, of Arc Associates said that redevelopment will not begin unless societies have a conveyance deed. It’s a prerequisite that establishes ownership of society over the land.

The absence of the conveyance deed poses as a hurdle especially when old buildings have to undergo redevelopment.

© 2014 Media N Press Communications. All Rights Reserved.
Subscribe to Infrabuddy Newsletter