Advantages of Deemed Conveyance
Conveyance means the titles of the property is legally transferred from the property owners and the land developers to the owners/occupants who have paid full price for the property/shop or the building to own it. There has been majority of case where the property builders and land developers have been reluctant in transferring the titles of the property in the name of the individual or the Co-Operative Housing Society to make use of FSI in the later date.
In this case the Co-Operative Housing Society will have to work legally to obtain the title of the property through Deem conveyance issued by the competent authority constituted by the Maharashtra Government.
Key Advantages of deemed conveyance
Once the title of the property and land is issues in the name of Co-Operative Housing Society, the Government and legal system recognizes the Co-Operative Housing Society as the legal owner of the property and the land. For example all future municipal tax bills are raised in the name of the Co-Operative Housing Society.
Benefits of additional FSI
FSI is Floor Space Index and it is measured in terms if square meter. FSI denotes the space area on the plot where construction can be done. FSI varies depending upon the location and the zone of the plot. Once the deemed conveyance is given in the name of the Co-Operative Housing Society, the benefits of FSI can be availed by the Co-Operative Housing Society.
Property will become free and marketable
When possession of the land and the property is vested with the Co-Operative Housing Society, the property is maintained by the individual owners or the Co-Operative Housing Society. But the title of the property continues to be in the name of original owner or the land developer. Because the property documents continue to be in the name of the owner or the land developer, the purchaser doesn’t have the free or marketable title. It is only after proper conveyance of title that the purchaser or the Co-Operative Housing Society attains the free and marketable title over the land or the property.
Loans can be raised via mortgage
Often major building repairs require heavy investment. If the society doesn’t have the funds, it can raise the funds by seeking loan by mortgaging the property. If the property titles are not in the name of the Co-Operative Housing Society, it cannot secure loans by mortgaging the property, since it still is not the legal owner of the property or the building.
Permission for reconstruction of property
If the Co-Operative Housing Society has the conveyance done, it can apply for no-objection-certificate for reconstruction of the building from their respective town planning department of the Municipal authority. If the conveyancing is done then the Co-Operative Housing Society will have to approach the original owners of the property to obtain their consent for re-construction of the property. Many a times, it is seen in such situation the property owners intentionally delay the reconstruction proposal and in same case even demand compensation (even though it may sound unethical).