Conveyance Deed and Society Formation: What Flat Buyers in Pune Must Know

You registered your flat. You moved in. You pay maintenance. But the land your building stands on may still be legally owned by the builder — until a Conveyance Deed is executed in the society’s name.

This is not a minor technicality. Without conveyance, your society cannot:

• Sell, mortgage, or develop common areas
• Obtain a fresh sanction for any construction (terrace, parking, amenities)
• Assert title against the builder’s creditors if the builder goes into insolvency

The Maharashtra government introduced Deemed Conveyance in 2008 specifically because most builders refuse to execute conveyance voluntarily. Here’s what every Pune flat owner needs to know.

What is a Conveyance Deed?

When you buy a flat, the builder:

1. Transfers the flat to you via a Sale Deed / Agreement for Sale (registered at sub-registrar)
2. Should separately transfer the underlying land and common areas (lobby, parking, terrace, garden, pumps, pipes) to the registered Co-operative Housing Society

The document that does #2 is the Conveyance Deed. Without it, the builder remains the legal owner of the land and all common areas — even after all flats are sold.

Why Builders Avoid Giving Conveyance

Builders delay or refuse conveyance because:

• Retained FSI / TDR: Remaining development rights on the plot have commercial value. Once conveyed to the society, the builder loses access.
• Commercial space control: Ground-floor shops and commercial units may be in their name; conveyance would clarify (and potentially challenge) this.
• Ongoing disputes: If there are unsettled amounts from buyers, the builder uses conveyance as leverage.
• Negligence: Smaller builders simply never follow through because there’s no penalty until recently.

Society Formation: The Prerequisite

Before applying for conveyance, the Co-operative Housing Society must be formally registered under the Maharashtra Co-operative Societies Act 1960.

When should a society be formed? As soon as 60% of flats are sold and occupied (or within 4 months of receiving OC — whichever is earlier), the builder is legally obligated to facilitate society formation. In practice, many builders delay this too.

How to form a society:

1. Minimum members: 10 flat owners must sign the application (or more than 50% of units)
2. Registration: Apply to the Dy. Registrar of Co-operative Societies for the relevant ward/district
3. Documents required:
   • List of all members with flat details
   • Copy of registered sale agreements
   • Proposed bye-laws (standard template available at Registrar’s office)
   • Proof of building (OC/CC, layout plan)
4. Registration fee: Nominal (₹2,000–₹5,000 depending on member count)
5. Timeline: 3–6 months from complete application to registration certificate

Flat owners can form a society without the builder’s cooperation — the builder’s involvement is not required after the sale deeds are done.

Deemed Conveyance: When the Builder Won’t Cooperate

The Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act 1963 (MOFA) required builders to execute conveyance within 4 months of society registration. Most ignored this.

In 2008, Maharashtra amended the law to create Deemed Conveyance — allowing a registered society to apply directly to the District Deputy Registrar to have the land deemed conveyed to the society, bypassing the builder.

The Deemed Conveyance Process:

Step 1: Gather Documents

• Society registration certificate
• Index II (registered sale deeds) of all flat owners
• 7/12 extract of the land (available at Tehsildar office)
• Property card (from City Survey office)
• Approved building plan + OC
• Development agreement (if available)
• Building completion certificate

Step 2: Apply to District Deputy Registrar File Form 7 under MOFA to the District Deputy Registrar (Co-operative Societies) for your area. In Pune, this is the Pune City DDR office (for PMC areas) or Pimpri-Chinchwad DDR (for PCMC).

Step 3: Hearing The builder/developer is given notice to appear and present their objections. If they don’t respond within the notice period, or their objections are overruled, the DDR proceeds.

Step 4: Deemed Conveyance Certificate The DDR issues a certificate deeming the land conveyed to the society. This is equivalent in legal force to an actual conveyance deed.

Step 5: Stamp Duty and Registration The Deemed Conveyance certificate must be stamped (stamp duty applies based on market value of land) and registered at the Sub-Registrar of Assurances. After registration, the society’s name is recorded in the 7/12 extract.

Timeline: 12–24 months from filing, depending on builder cooperation (or lack thereof) and the DDR’s caseload.

Cost: Stamp duty (variable — typically a few lakh for a mid-size society plot in Pune), advocate fees (₹50,000–₹2 lakh depending on complexity), and DDR fees (nominal).

What Changes After Conveyance?

Once conveyance is obtained:

1. Title clarity: Society is the clear owner of common areas; no builder claims over terrace, parking, pump rooms, corridors
2. MCGM/PMC records updated: Society name appears in property records
3. Freedom to develop: Society can apply for additional construction (terrace gym, solar, car lifts) on its own FSI without builder’s NOC
4. Insolvency protection: If builder goes bankrupt, society’s land is not attachable by builder’s creditors
5. Better resale value: Buyers of flats in conveyed societies face less title risk; banks are more willing to lend against them
6. Easier redevelopment: Societies considering redevelopment (very relevant in older Pune buildings) must have conveyance before approaching developers

Co-operative Society vs. Apartment Owners Association

Many newer buildings, especially in PCMC and peripheral PMC areas, are registered as Apartment Owners Associations (AOA) under the Maharashtra Apartment Ownership Act 1970 rather than as Co-operative Housing Societies.

The key difference for conveyance:

For AOA-structured buildings, review your individual sale deed — if it mentions “undivided share in land,” the conveyance may already be effectively done via the sale deed itself. Consult a property lawyer to confirm.

What Flat Owners Should Do Now

If your society is not yet registered: Organise 60%+ of residents, appoint a working committee, and file for society registration with the Dy. Registrar. Do not wait for the builder.

If society is registered but no conveyance: Check if a deemed conveyance application has been filed. If not, pass a resolution at the AGM to authorise the committee to apply. Engage a property lawyer experienced in deemed conveyance (many in Pune specialise in this).

If builder is offering to execute conveyance: Have a lawyer review the conveyance deed before signing. Ensure:

• All land parcels (including parking areas and amenity spaces) are included
• No encumbrances or mortgages remain on the land
• The deed is registered, not just stamped

If builder is in insolvency (NCLT): Engage a lawyer immediately. If an insolvency resolution professional (IRP) has been appointed, the society may need to file its conveyance claim in the NCLT proceedings.

Pune Societies That Have Obtained Deemed Conveyance

Over 15,000 housing societies in Maharashtra have obtained deemed conveyance since 2010. In Pune district, concentrated activity is in:

• Kothrud: Older MHADA-adjacent societies built in 1990s–2000s
• Aundh / Baner: Mid-2000s developments where builders have since dissolved
• Hadapsar / Kharadi: IT-era buildings where builder’s remaining FSI claims were contested
• Camp / Shivajinagar: Older buildings with complex title histories

Related Reading

• 10 Apartment Buying Mistakes Pune Buyers Make
• Encumbrance Certificate Guide Pune 2026
• Property Mutation Guide PMC PCMC Pune
• Subletting Rules in Housing Societies Pune 2026

Facing a builder who won’t execute conveyance? Our legal partners handle deemed conveyance applications across Pune. WhatsApp us to connect with an experienced property lawyer.