All You Need to Know About Society Conveyance Deed

For homeowners in a cooperative housing society, securing legal ownership of the land is crucial. But did you know that many societies operate without officially owning the land they are built on? This is where a Society Conveyance Deed becomes essential.

A Society Conveyance Deed is a legal document that transfers the ownership rights of land or property from the builder, real estate developer, or landowner to the housing society. Without it, societies may face legal hurdles in redevelopment, availing loans, or even selling flats with a clear title.

This blog covers the importance of a Society Conveyance Deed, key requirements, necessary documents, and the step-by-step registration process to help societies secure legal ownership without complications.

What is a Conveyance Deed?

A Conveyance Deed is a legal document that transfers the title of property from one person to another. It is executed during the transfer of immovable property, such as land, houses, apartments, etc.

What is a Society Conveyance Deed?

A Society Conveyance Deed is a legal document that transfers ownership rights of the land, building, or any other immovable property from the real estate developer or landowner to the housing society for proper management and functioning. This deed grants the cooperative housing society complete legal ownership of the property. 

In many cases, builders or real estate developers fail to transfer the property to society. This leads to ownership-related disputes and complications in redevelopment or obtaining government permissions.  

Due to this, the end buyer also faces difficulties when buying or investing in the property, as the ownership title remains unclear without this deed. Thus, a conveyance deed is crucial for societies to claim their ownership rights. 

Importance of Society Conveyance Deed

A Society Conveyance Deed is essential for various reasons, including:  

1. Legal Ownership: It legally transfers ownership of land, building or any other immovable property from the builder to an unauthorized housing society, making society the absolute owner.   
2. Protection Against Third-Party Claims: Without a conveyance deed, a builder may sell or mortgage the land, causing legal disputes for the residents. This leads to disputes not only among residents but also between builders and the housing society. So, this single deed protects everyone from any claims or disputes.   
3. Eligibility for Redevelopment: Many societies require redevelopment after a few decades. Without a conveyance deed, societies cannot obtain necessary approvals for redevelopment.   
4. Obtaining Property Card and Municipal Records: The conveyance deed allows the society to update land records, ensuring clear title ownership in municipal and revenue department records.   
5. Ease of Loan Approvals: Banks and financial institutions often require a conveyance deed to process loans for redevelopment or maintenance projects.   
6. Protection Against Builder's Malpractices: Some builders delay the transfer of ownership to maintain control over the property. Therefore, having a conveyance deed protects both the society’s and the buyer’s rights. 

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Key elements of Conveyance Deed

A Conveyance Deed includes various key elements that make it a legally valid document. These include: 

1. Names of the Parties Involved: The document must clearly state the full names, addresses, and other requisite details of the transferee (builder) and the transferor (seller).   
2. Description of the Property: It should provide a detailed description of the property including its exact boundaries, dimensions, location, and any other relevant identifying information.   
3. Transfer of Ownership Clause: A legal clause mentioning the transfer of ownership rights from the builder to the society.   
4. Consideration (Price Paid): The society conveyance deed should state the sale consideration, i.e., the amount paid or agreed to be paid by the buyer to the seller for the property.   
5. Rights and Liabilities: The deed should outline the rights and responsibilities of both parties before, during, and after the transfer.   
6. Signature of Both Parties: The document should be signed by both parties and witnesses to be legally valid.   
7. Stamp Duty and Registration Details: The conveyance deed must be executed on legally valid stamp paper and registered with the local sub-registrar's office.   
8. Recitals: The deed should include recitals that provide a brief history of the property, the capacity of the transferor to transfer the property, and the purpose of the deed.    
9. Delivery and Acceptance: A clause confirming that the possession of the property has been delivered by the transferor and accepted by the transferee.    
10. Schedule of the Property: A detailed schedule outlining the property's specifics, including measurements, boundaries, and any other pertinent details to clearly identify the property being transferred.

Documents Required for Society Conveyance Deed 

To execute a Society Conveyance Deed, the following documents are required: 

1. Society Registration Certificate: An official document issued by the Registrar of Societies upon the registration of a society under the Societies Registration Act, 1860.   
2. Builder Buyer Agreement: It is a legal document that states the builders’ and the buyer’s responsibilities. It covers every aspect of a property purchase, which includes the payment, possession, clarity on ownership and the legal rights of builder & buyer.   
3. Copy of Approved Building Plan: An approved building plan is a layout or blueprint sanctioned by the local governing body that will be used for the construction of the project.    
4. Occupancy Certificate (OC): An Occupancy Certificate is a legal document which is issued to certify that the building complies with the approved plans and is safe for occupation.   
5. List of Society Members and Their Flats: This is a document which contains all the details of the registered members of a housing society with their allotted flat numbers. This document serves as proof of ownership and membership in society.   
6. Property Card: Property card is a government issued document. It records property ownership details in urban areas.   
7. 7/12 Extract: 7/12 extract is a land record document maintained in rural areas. It provides information about ownership of land, the types of land and any encumbrances.   
8. Latest Municipal Tax Bills and Receipts: Official bills of property tax which are issued by the municipal corporation with payment receipts. This is attached to confirm that property taxes are paid and up to date.    
9. Development Agreement between Landowner and Builder: Development agreement is a legal contract between a landowner and a builder/developer. It outlines the terms for developing a property that includes revenue sharing, timeline of the project and the responsibility of both the parties.   
10. No Objection Certificate (NOC) from Local Authorities: A no objection certificate is a formal document issued by municipal or regulatory authorities. It states that there are no objections to the construction or transaction of the property and is required for approvals and registrations.   
11. Legal Notices Sent to Builder (if applicable): Any official complaint sent to the builder regarding construction delays, defects, or any violation of contractual terms.   
12. Commencement Certificate: It is a certificate issued by the local municipal authority to permit the builder to start construction after ensuring that it complies with the legal and planning regulations.   
13. Building Completion Certificate: The local authorities issue this certificate after inspecting the completed building. It is done to check whether the building adheres to the approved plan, safety standards, and regulations.    
14. Search Report and Title Certificate from Advocate: A Search Report is a legal document that is prepared by an advocate after the verification of land records to confirm ownership of property and any encumbrances.  Learn more in our blog on Property Document Verification.   A Title Certificate is issued by a lawyer confirming the legal title of the property. This ensures that the property is free from any disputes and encumbrances.   
15. Urban Land Ceiling (ULC) Clearance Certificate: This certificate is issued by the competent authority stating that the property does not fall under the Urban Land (Ceiling and Regulation) Act, 1976 or that the necessary clearance has been obtained.   
16. Non-Agricultural (NA) Order: It is a legal order permitting the conversion of agricultural land into non-agricultural use.   
17. NA Tax Receipt: This is proof of payment of non-agricultural land tax to revenue department.    
18. Architect's Certificate on Layout and FSI: A certificate issued by the architect confirming that the building layout complies with the approved building plan and the permitted Floor Space Index.  

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Conveyance Deed Execution and Registration Process 

The Conveyance Deed Registration process is explained below:  

1. Formation of Cooperative Housing Society: The registration of the cooperative housing society is the first step of this process.    
2. Requesting the Builder: The society after registration requests the builder for the execution of the society conveyance deed and transfer the property.    
3. Drafting the Conveyance Deed: A professional, such as a lawyer, should be hired who shall draft a valid conveyance deed, including essential property details.    
4. Stamp Duty and Registration: The society conveyance deed is stamped, and the applicable duties are paid. After that it is registered at the local Sub-Registrar's office.   
5. Deemed Conveyance (If required): In case the legal heir or builder/owner of the property refuses to co-operate to provide the society conveyance deed, the society can apply for ‘Deemed Conveyance’.     
6. Final Registration: The society officially becomes the legal owner of the land or building once the executed deed is registered, making the transaction legally binding.

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Get Your Society Conveyance Deed with DigiLawyer

If your society hasn’t secured its Society Conveyance Deed yet, now is the time to act! Don’t let legal uncertainties stand in the way of your property’s rightful ownership.

With DigiLawyer, India’s leading legal help platform, you get end-to-end support to simplify the entire conveyance deed process—from documentation and legal compliance to hassle-free registration.

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