Society Formation and Conveyance: Why Maharashtra Buyers Should Care

title: "Society Formation and Conveyance: Why Maharashtra Buyers Should Care" tag: "Due Diligence" category: "Due Diligence" description: "Guide to cooperative society formation and conveyance deed in Maharashtra — why it matters, how to verify, and what happens when builders delay conveyance." readTime: "10 min" views: "4.5K" publishedAt: "2025-08-08" primaryKeyword: "society formation conveyance maharashtra" secondaryKeywords:

• "conveyance deed maharashtra"
• "cooperative society formation mumbai"
• "deemed conveyance maharashtra"

Why Conveyance Matters in Maharashtra

In Maharashtra, most apartment buildings are structured as cooperative housing societies. The conveyance deed transfers ownership of the land and common areas from the builder to the society. Without it, the builder still legally owns the land your apartment sits on.

The Problem: Delayed Conveyance

An estimated 40-50% of Mumbai housing societies do not have conveyance executed. Builders delay conveyance because:

• They retain development rights for additional FSI
• They control common areas for commercial use
• Legal complications from JDA (Joint Development Agreements)
• Simple negligence or refusal

What Is Conveyance?

How to Check Conveyance Status

1. Ask the society secretary for a copy of the conveyance deed
2. If no conveyance, ask what steps have been taken
3. Check with the District Deputy Registrar's office
4. Verify registration of conveyance deed at sub-registrar office

Deemed Conveyance Process

If the builder refuses voluntary conveyance, the society can apply for deemed conveyance under the Maharashtra Ownership Flats Act (MOFA):

1. Pass a resolution in general body meeting for deemed conveyance
2. Appoint an architect to prepare plans and survey
3. Apply to District Deputy Registrar with required documents
4. Registrar issues notice to builder (30 days to respond)
5. If builder doesn't respond, registrar can execute deemed conveyance
6. Timeline: 6-18 months

What to Verify Before Buying (Resale)

Red Flags to Watch For

1. No conveyance after 4+ years — builder may be holding land for future development
2. Builder refusing to form society — creates ownership limbo
3. No share certificate — your ownership in the society is not documented
4. Society with pending litigation — check for any ongoing cases

Verify RERA with RERA Verification Tool. For conveyance guidance, book a consultation.

Frequently Asked Questions

Can I get a bank loan for a property without conveyance?

Yes, banks typically lend on properties without conveyance, based on the sale deed and society share certificate. However, properties with conveyance are considered more secure collateral.

Is deemed conveyance free?

The deemed conveyance process has government fees (stamp duty and registration charges) but these are significantly lower than normal conveyance. The society bears these costs, usually shared among members.