In a move to protect homebuyers and ensure timely transfer of property rights, the Real Estate (Regulation and Development) Act, 2016 (RERA) sets a clear timeline for developers (referred to as promoters in the Act) to handover conveyance to housing societies. Yes, there is a specific timeline: the promoter must execute a registered conveyance deed in favor of the allottee or the association of allottees within three months from the date of issue of the occupancy certificate, as outlined in Section 17(1) of the RERA Act.
Understanding Section 17(1) of RERA
Section 17(1) of the RERA Act deals with the “Transfer of Title.” It states: “The promoter shall execute a registered conveyance deed in favor of the allottee along with the undivided proportionate title in the common areas to the association of the allottees or the competent authority, as the case may be, and hand over the physical possession of the plot, apartment or building, as the case may be, to the allottees and the common areas to the association of the allottees or the competent authority, as the case may be, in a real estate project, and the other title documents pertaining thereto within specified period as per sanctioned plans as provided under the local laws.”
The proviso to this section adds: “Provided that, in the absence of any local law, conveyance deed in favor of the allottee or the association of the allottees or the competent authority, as the case may be, under this section shall be carried out by the promoter within three months from date of issue of occupancy certificate.”
This provision ensures that once a project receives its occupancy certificate (OC), signifying that the building is ready for habitation, the developer cannot delay the legal transfer of ownership. If local laws (such as state-specific real estate regulations) do not specify a different timeline, the three-month period becomes mandatory.
What is a Conveyance Deed?
A conveyance deed is a legal document that formally transfers the ownership rights of a property from one party (the seller or developer) to another (the buyer, allottee, or housing society). It includes details such as the property description, boundaries, rights, and any encumbrances. Once registered with the sub-registrar’s office, it serves as proof of absolute ownership, replacing any provisional agreements like the agreement for sale.
Why is a Conveyance Deed Necessary for a Housing Society?
For a housing society (or association of allottees), a conveyance deed is essential because it grants full legal title to the land and common areas of the project. Without it:
- The society cannot independently manage, maintain, or redevelop the property.
- Individual flat owners may face issues in selling or mortgaging their units, as banks and buyers require clear title.
- It protects against future disputes with the developer over land rights or amenities.
- It enables the society to obtain utilities, property tax assessments, and other services in its own name.
In essence, the deed empowers the society to function as the true owner, fostering self-governance and preventing developers from retaining undue control post-completion.
It is mandatory for developers to execute this conveyance deed within the three-month timeframe from the OC issuance. Failure to comply can lead to penalties under RERA, including fines, project de-registration, or legal action by allottees through the Real Estate Regulatory Authority. Homebuyers and societies are advised to monitor OC dates and pursue remedies if developers delay.
Also Read: Conveyance Deed has to be registered within 3 months of Receiving OC
