CONVEYANCE &

DEEMED CONVEYANCE

CA . RAMESH S. PRABHU
(Chairman) M S W A

M O F A, 1963
CONSTRUCTION BOOM IN THE 60S
FLAT PURCHASERS WERE
UNPROTECTED
BUILDERS TOOK FULL ADVANTAGE
MANY IRREGULARITIES SURFACED
GOVT. IMPLEMENT AN ACT IN 1963
KNOWN AS M O F A, 1963

UNDER M O F A, 1963
Flat Owners get Statutory Rights
Can demand Building relevant
papers
Get the Agreement Registered
Agreement in Specific Format
Maintain property till society
formed

MOTHER OF FLAT ACT

MAHARASHTRA OWNERSHIP FLAT ACT, 1963

Applicable
All Over
Maharashtra

All connected
Central & State
Laws applicable

Related to
Owning / acquiring
Rights

Concerned
with Flats

Freehold Rights

Leasehold Rights

4) MOFA : INDEPENDENT UNITS

Residential
Flat

Office

Shop

Developed
Plot

Garage

Bungalow

Industrial
Gala

Any Constructed
Any Permanent
or to be Constructed
Structure
Structure

Provided or agreed to be provided by the Promoter

To the Purchaser for a Consideration

PARTIES ON WHOM OBLIGATIONS

ARE MADE APPLICABLE

Promoter

Land Owner

Flat Buyer/s

Builder /
Developer

Single

Group

1. Individual, 2. Firm. 3. Company, 4. Assn of Persons,

5. Govt., 6. Semi Govt. 8. Local Authority 9. Trust
10. Society u/SRA,1860 11. Co-operative Society u/ MCS A of 1960
12. LLP or any other person or group of persons.

OBLIGATION OF THE BUILDER

Contractual Obligations

Statutory Obligations

Enter into Agreement1. Register Agemt on Receipt of

2. Complete the Building in all r
Registration of Agreement
3. Provide O.C., B.CC.
Receive the Flat
4. Provide Common Facilities
Consideration
5. Water Connection
4. Hand over the Possession
6. Electric connection
7. Disclose the information
of flat as agreed
1.
2.
3.

8. Provide all Documents

9. Registration of Society / Lega
10.Providing Conveyance

CONVEYANCE
Meaning of Conveyance :
Its the Document confirming the
transfer of title
Objects :
To become the legal owner
To make entries in Govt. Records
To have free and marketable title

ADVANTAGE OF CONVEYANCE
Transfer of Ownership Rights over
the land it is constructed on
All Commercial benefits come to
Society
Appreciation of Property .as also
Loan can be raised by mortgage
Balance F S I can be retained
Permission for redevelopment
possible

HAVE YOU READ SOMETHING LIKE THIS ?

May be a very few cases !

What in case if this happens?

Dont wait for a Situation

Like this to Happen

DOCUMENTS REQUIRED FOR

CONVEYANCE
Society Reg. Cert : With Society
Stamp Duty & Reg Paid Proof : Each
individual
Agreement for Sale : Promoter to
Purchaser
Commencement Cert : Municipal
Authority
C C / O. C : Concerned Authority to
Builder
Approved Building Plan : Municipal
Authority
7/12 Extract : Tahsildar /Concerned
Auth

DOCUMENTS REQUIRED FOR

CONVEYANCE
Form No 6 Mutation Entry : Revenue
Office
Search Report / Title Clearance :
Advocate
Index II : Sub Registrar of Assurances
Property Card : Thasildar
N A Order : Collector of Districts
Development Agreement : Land Owner
to Builder
Conveyance Deed or Sale deed : Builder
to Society

Mah.Ownership Flat Act, 1963

U/s 11. Promoter /Builder to complete
conveyance of land & building to
society
Promoter/builder to rectify, execute
and deliver all relevant documents of
title
Execute conveyance within 4 months
from the registration of society
U/s 13. Non-conveyance is an offence
Punishment :3 yrs Jail or fine or both

U/S11. TO CONVEY LAND AND BUILDING TO THE LEGAL

ENTITY WITHIN PRESCRIBED TIME &
DELIVER RELEVANT DOCUMENTS.

Legal Remedies
Existing till 2005

Civil Court
U/Specific Relief
Act, 1963

Consumer Court
U/ Consumer
Protection Act, 1986

Quasi Judicial Authority as per

MOFA-Amendment-2008

Criminal Court
U/S-13 of
MOFA 1963

Dy.Dist.Regr,
C.A notified
as Competent
Authority

Amendment to Rules were made to implement the functioning

of Competent Authority and MOF (Amendment) Rules, 2010 notified

REMEDIES WITH COMPETENT AUTHORITY

FOR VIOLATION OF STATUTORY OBLIGATIONS BY THE
PROMOTER FOR THE COMMON BENEFIT OF FLAT BUYERS

U/s.5.
Disclosure of
Information
of Money
Collected
for a Particular
Purpose

U/s 13(4) & 13(5)

U/s.10.
U/s11.
To Inform
Formation of
To Convey
Local Authority
Legal entity to
Land
to Debar The
Manage
and Building
Promoter from
Common
to the Legal
Construction
Services,
Entity
Activity for
Area & Facilities
within 4
next 5 years
after
months & Deliver
on conviction
Disposing
Documents.
by court on
60% units
MOFA violation.

U/S. 5 DISCLOSURE OF INFORMATION BY THE PROMOTER

COLLECTED MONEY FROM THE FLAT BUYERS FOR FOLLOWING
PURPOSE OTHER THAN SALE CONSIDERATION/ COST OF
FLAT TO BE DISCLOSED AND ACCOUNT STATEMENT TO BE PROVIDED..

Payable to
Authorities for
service

1.Development
Charges
2.Water Meter
Deposit
3.Electic Deposit
4. Premium to
Authorities etc

For Tax
Payments

For
Maintenance

For Common
Legal Entity

1. BMC-Prop.Tax
2. N.A Tax
3. Stamp Duty
4. Regn Fees
5. MVAT Deposit
6. Serv.Tax
Deposit

1. Water Chgs
2. Elect.Chgs
3. Comm. Repairs
4. Service chgs
5. Insurance
6. Common
Services

1.Share Money
2.Convy Chgs
3.Corpus Fund
4.Adv. Maint.
5.Legal Fees
6.Others

U/S.10. FORMATION OF LEGAL ENTITY .

(MOFA-MOTHER OF FLATS ACT)
TO MANAGE COMMON SERVICES,
AREA & FACILITIES AFTER DISPOSING 60% UNITS BY PROMOTERS

Society or
Federation

Mah.Co-op.
Soc.Act, 1960
At Dy. Regr.

Association
u/SRA, 1860

Company

Condominium

Companies Act,
1956 at ROC

Mah. Aprt.
Own. Act, 1970
At Sub-Regr.

Trust
u/BPT,1950

Firms
u/IPA, 1932

PSU & GU
u/Act of Pimt

Other
Legal Entity

Others
LLP etc.

U/S11. TO CONVEY LAND AND BUILDING TO THE LEGAL

ENTITY WITHIN PRESCRIBED TIME &
DELIVER RELEVANT DOCUMENTS.

Legal Remedies
Existing till 2005

Civil Court
U/Specific Relief
Act, 1963

Consumer Court
U/ Consumer
Protection Act, 1986

Quasi Judicial Authority as per

MOFA-Amendment-2005

Criminal Court
U/S-13 of
MOFA 1963

Dy.Dist.Regr,
C.A notified
as Competent
Authority

Amendment to Rules were required to implement the functioning

of Competent Authority and MOF (Amendment) Rules, 2009 notified

11) AMENDMENT IN MOFA IN 2008- PURPOSE

1.To provide a Competent (Quasi Judicial) Authority
in addition to existing Legal Remedies.
2. To order & Implement the remedial steps by
Competent Authority in the common
interest of flat buyers.

U/s 5A of MOFA not below the rank of (D D R)

Dist. Dy.Registrar of Co-op.Soc. as per Notification
Dated. 25-06-08, have been notified to be Competent
Authority for their respective Jurisdiction

CONVEYANCE OF LAYOUT PLOT.

All the Societies ToSingle Society

With
Apply together For
To The Fed
1.100% Bldg &
Or Apex
1.100% Bldg &
Body With
2.Notional Net
The
Plot
2.Notional Net
Consent
Plot as per
FSI USED 3. Percentage of
All
Undivided
Legal
Rights area as per
3. Fedn to Manage
Entities
FSI
USED
common
Area & get title

SCRUTINY OF APPLICATION &

NOTICES TO PARTIES

Give the Acknowledgement to Applications

and Register in Register
Application to be incomplete, send the
notice for compliance as per form No. VIII
CA to issue notice for hearing within 15
days of registering the application
Notice to be served registered post,
Acknowledgement due.
CA to issue public notice inviting claims,
objections in local news papers having
wide circulation, if the notice is not served
on the builders/ opponents

APPEARANCE & NON APPEARANCE

(a)On Apt. Date Opp. To appear In person

File Reply. Adjournment not to exceed 15
the first instance.
(b)Only Appl Appears, CA to satisfy that no
on Opponents and Appl to justify prayers
and Decide the case ex-parte. If Oppone
sufficient cause for non-appearance, hea
the matter.
(c ) On hearing date, if applicant is absent,
hear the opponent and decide the matte
(d) On hearing date, the Opponent is absen
decide the matter after hearing the appl

PRODUCTION & INSP. OF DOCUMENTS

(a)Parties to file relevant documents in support

If CA is satisfied , that reqd. documents is w
CA may direct the concerned party to produc
The Appl. to file written say before demand
documents.
(b)The party ordered, fails to produce, CA may
inference against such party and original
will continue.
(c)CA is satisfied documents cannot be brought
to take inspection of such documents at site
(d)If CA is satisfied, on the basis of new docum
opponent has to give a written statement, th
be allowed.

PROCEDURE FOR HEARING

(a)On receipt of reply from Opponent/s, the
Applicant to prove his contents and deal
with opponents reply.
Opponent may file written say on next
date. No cross examination allowed.
(b) On receipt of replies, CA may hear oral
Arguments of the parties and close the
proceedings.
(c) Within 6 months after making such
enquiries , verifying the authenticity of
documents and giving sufficient hearing as
per law of natural justice to the parties,
pass such order as he deems fit.

JUDGEMENT, ORDER &

CERTIFICATE

SPEAKING ORDER AND

CERTIFICATE THAT THE
APPLICANT CASE IS A FIT CASE
ON GETTING UNILATERAL
CONVEYANCE to be issued by
the Competent Authority

REGISTRATION OF
DEEMED CONVEYANCE
Prepare Deemed Conveyance
deed
Send it for adjudication Stamp
Duty
Lodge for Registration with Sub
Registrar
Sub Registrar to issue Show
Cause Notice to Builder &

STAMP DUTY WAS PAYABLE

AFTER 1958
WHERE YOU COULD PAY..
AT THE TIME
OF
AGREEMENT
As per the
Article 5(h)on Rs.5/Stamp / Stamp
Paper

If not then at
the TIME OF
Possession or
Under the
Article 25 (d) of
B S Act, 1958 at
the time of
CONVEYANCE

STAMP DUTY PAYABLE

UNDER BOMBAY STAMP ACT, 1958

AT THE
TIME OF
AGREEMENT

AT THE TIME
OF
CONVEYANCE

AT THE TIME
OF
POSSESSION

24. Calculation Of Stamp Duty

Optional upto
10.12.85

Compulsory
after 10.12.85

As
per
Before
Mkt.Value
04-08-1980
As per
Ready
Reckoner
As per
As per Mkt.Value (to
Agreement value
be decided)
After
04-08-1980

No. 5 / Stamp Duty 06 / Ltr. No. 58/06/1224

Inspector General at Registration & Stamp
Maharashtra State, Pune Office, Pune.
To,
Date : 10/08/2006
The Superintendent of Stamps,
Mumbai.
Sub : Levy of Stamp Duty on the Deeds of Agreements made prior to 10/12/1985
Reference : Your Letter No.BOM/5064/06 dtd. 03/08/2006
Referring to the points raised in the above letter we explain as follows :
On the Sale Agreements executed before 10/12/1985, Stamp Duty applicable was as per
the article 5(h) of Bombay Stamp Duty Act, 1958 and not as per Article 25 of the Act.
This is as per the judgment given by Honorable Mumbai High Court in the case of
Padma Nair V/S Dy. Collector, Stamps & Adjudication and others.
If the State Agreements executed before 10/12/1985 are submitted under Article 31, the
Collector of Stamps cannot give any remark on such Agreements under Article 32 C (A)
& (B).
Instead of issuing any order, under Article 33 or Amnesty Scheme you can issue a letter
in following format to concerned persons who have submitted such Documents.
Your Sale Agreement Deed is executed before 10/12/1985. At the time of execution of
your Sale Deed, the Agreement for sale was not treated as a Part Conveyance and
provision for collection of stamp duty was not applicable at that time. As such the
Agreement is considered properly stamped under the article 5 (h). However it must
be noted that when ever you proceed to procure the Conveyance you would be
liable to pay the full Stamp Duty on the Current Market Value of your Property as
applicable under the rules.
Inspector General of Registration and Controller of Stamps
Maharashtra State, Pune

A Few ACTS & RULES APPLICABLE

REGISTRATION ACT, 1908
For registration of Conveyance deed
BOMBAY STAMP ACT, 1958
for Stamp Duty Verification and calculation
M.C.S. ACT, 1960under which society is registered
INCOME TAX ACT, 1961
To Verify Tax Liabilities of the Vendor
MAH. OWNERSHIP FLATS ACT, 1963under which Flats are purchased

ACTS & RULES APPLICABLE

ULC- For verifying any violations under the Act
Criminal Procedure Code / Civil Procedure Code
and Consumer Protection Act For proceeding
against the builder
BMC Development Control Rules, 1991For Legality of the Building construction
LAND REVENUE CODE
Where Land Records Order kept

BYE-LAWS: Applicable to all the societies

28)

DEPARTMENTS INVOLVED for

CONVEYANCE

City Survey Office for Property Card

BMC For Approved Plan
Collector of Stamps For Stamp Duty
Sub Registrar For Registration of Copv
Assessment Dept For Change in the Prop. Tax
Bill
Collector office : For N.A. Order
Revenue Dept : ULC order
Many more dept on case to case basis

Shri. Ashok Chawan

Honble C M of Maharashtra
was felicitated for signing the bill

Shri. Sanjay Nirupam, M.P,

Shri. Ashok Chawan
Honble Chief Minister of Maharashtra &
C A. Ramesh Prabhu, Chairman (MSWA)

C.A. Ramesh Prabhu Welcomes

Shri. Ashok Chawan
Honble Chief Minister of Maharashtra

Shri. Ashok Chawan

Honble Chief Minister of Maharashtra Releases
the book on DEEMED CONVEYANCE

Shri. Sanjay Nirupam,

Shri. Ashok Chawan Honble Chief Minister of Maharashtra,
C A Ramesh Prabhu, Chairman (M.S.W.A)

MAHARASHTRA SOCIETIES WELFARE ASSOCIATION

A/1, R.No.207, Laram Center, Above Federal Bank,
Opp. Railway Station, Andheri (West), Mumbai 400058
Presented By

CA. Ramesh S Prabhu Chairman (M S WA)

Shri. Prabhakar Churi Hon. Consultant (MSWA)
Tel Nos : 26248565 / 26248589