Conveyance Problems

v     Stamp Duty and Registration

Many Societies avoid conveyance under the impression that they have to incur a lot of expenditure on stamp duty and registration.

The maximum registration fee is Rs.10,000/- for conveyance and if owners of all the flats/shop/galas of the Society have already paid the stamp duty and registered their agreement  with the sub-registrar, the additional stamp duty for conveyance will be negligible.

      The office bearers of the Society should contact the Sub-registrar of Assurances and obtain an estimate of the expenditure e.g. stamp duty and registration fees and prepare the conveyance deed at the earliest in their own interest.

v     Remidy

If the builder does not co-operate in executing the conveyance in favor of the society, the Society can file a Civil Suit under the Specific Relief Act in order to get the conveyance executed.

v     Conveyance is Compulsory

The Government of Maharashtra has recently introduced the bill (L. A. Bill No.XLVII of 2002) to amend the Maharashtra Ownership flats (Regulation of the promotion of construction, sale, management and transfer) Act, 1963. these amendments are o ease out various problems related to conveyance in favour of societies.

The amendments are:

(i)                 “If the promoter fails to execute the conveyance in favor co-operative society formed under section 10 or as the case may be the company of the association of apartment owners as provided by sub-section (1) within the prescribed period, the member/s of such co-operative society or as the case may be the  company or the association who have purchased the flats and all other relevant documents (including the occupation certificates) for issuing a certificate that such society, or as the case may be company or association is entitled to have an unilateral deemed executed in their favor and to have it registered.

(ii)               “When any promoter is convicted of any offence u/s. 12A, such promoter shall be disqualified from undertaking constructing of flats for a period of five years from the date of such conviction.