With an aim to regulate the real estate sector, now, if any builder sells more than 50 per cent 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 per cent will be charged initially and if he fails to comply with the order, another five per cent of the project cost will be levied under the recently introduced RERA.
A rough estimate shows that currently, more than 40,000 societies in the Mumbai Metropolitan Region (MMR) 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.
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.
“In RERA, sections specifically mention that within three months of the builder selling 51 per cent of the total flats or obtaining an OC, he is bound to give conveyance of the land to the society,” said Chaturvedi.
The absence of the conveyance deed poses as a hurdle especially when old buildings have to undergo redevelopment.
Arqam Shaikh, of Arc Associates said, “Redevelopment will not begin unless societies have a conveyance deed. It’s a prerequisite that establishes ownership of society over the land.” Ramesh Prabhu, of Maharashtra Societies Welfare association said, “On failure of providing conveyance, the penalty is five per cent of the estimated project cost, and another five per cent if they fail to comply.”
Analysis
With this move, the aim is 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.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Builders")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}