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Stamp duty for conveyance deed

(Querist) 20 November 2011 This query is : Resolved 
This question is regarding state of Maharashtra.
After forming co-op. housing society of flat purchers, it is necessary to prepare conveyance of land and building to the co-op. housing society. What amount of stamp duty and registration fees required to pay? what documents are necessary to attach ?
Shailesh Kr. Shah (Expert) 20 November 2011
A fit query for Shri Ajay Sethi.
prabhakar singh (Expert) 20 November 2011
Yes !
mr.shah is right.
Raj Kumar Makkad (Expert) 20 November 2011
It is the duty of the Builder to form a Society or any other legal body once he sells more than 60% of the flats in the building. He is also statutorily bound to give Conveyance of land and building within four months from the formation of the legal body. Invariably, they fail to give Conveyance on one pretext or the other. The only remedy to flat purchasers is to approach the Consumer or Civil Court against the grievances and that takes years to get justice. About 80,000 Housing Societies are waiting for a quick and easy remedy and that has paved the way for Deemed Conveyance.

Only after executing the Conveyance, the legal ownership of the land and building will be with the Society; till such time, the Society will have only possession rights without any legal rights for redevelopment or for earning any commercial benefit.

There are five stages to complete the Conveyance of land and building in favour of the Society even under Deemed Conveyance.

Collect the relevant Documents such as Society Registration Certificate, Property Card or 7/12 Extracts, Building Approved Plan, Copies of Agreement for Sale of flat purchasers, Registration Receipts, Stamp Duty paid proof, Non Agricultural Order, ULC Order, Search Report, Layout Plan, City Survey Map, Architect Certificate about the utilization of FSI and the proportionate land entitlement Occupation Certificates, Draft Conveyance Deed etc.

Make an application before Competent Authority, make a written submission, attend the hearing, argue the case and obtain the Order.

Prepare a Conveyance Deed and submit the same before the Collector of Stamps for determining the payment of Stamp Duty along with the proof of payment of Stamp Duty by all individual flat purchasers including chain of Agreements and Registration Receipts. Pay the deficit Stamp Duty, if any; and obtain the certified copy of the Conveyance Deed.

Submit before the Sub-Registrar for registration of the same under Indian Registration Act, 1908 by paying necessary registration fees and all relevant annexure. Obtain the original Conveyance Deed and also certified copy of Index II from the Sub-Registrar.

Apply to the City Survey Office or Talati Office to incorporate the name of the Society in the Property Card or in 7/12 extract. The City Survey Officer or the Talati Officer shall carry out the necessary enquiry; carry out the survey and then make necessary changes in their record.

Societies should take all efforts to get the Order of Deemed Conveyance from the Competent Authority as it is equivalent to the Civil Court Order and the Society shall get the legal rights over the land and the building. Thereafter, the builder or land owner cannot demand any money from the Society for Conveyance nor will the builder be able to utilise the additional FSI or TDR and carry out additional construction on such land. The Competent Authority as per MOFA is bound to give judgment within six months from the date of filling applications.

The payment of Stamp Duty, Registration Fees etc. can be done after obtaining the Deemed Conveyance Order. The Association has also represented before the Government to register Deemed Conveyance Deed and recovery of pending Stamp Duties separately from individual members and not to make Societies responsible for the same.

A Special Cell has been started by the Maharashtra Societies Welfare Association at A-1/ 207, Laram Center, Opp: Railway Station, Andheri (W), Mumbai, to provide guidance on Deemed Conveyance. You can contact them on 26248589/ 65 / 26705682 / 26705482. A number of public seminars are being conducted at various places and booklets are being made available. Interested Societies can also invite experts to visit their Societies for guidance.

prabhakar singh (Expert) 20 November 2011
Sorry! Final say can come from my senior,Dhingra G.
Rajeev Kumar (Expert) 21 November 2011
I agree with above experts
Devajyoti Barman (Expert) 21 November 2011
Why Dhingra ji?
What is happening, I can't understand.
M V Gupta (Expert) 21 November 2011
The query posed relates to the amount of the stamp duty payable on the conveyance to be obtained by the Society. The answer is if all the flat buyers have paid stamp duty and registered their respective agreemnerts for sale, the stamp duty payable on the conveyance will be the duty as determined on the basis of the current market value minus the duty already paid by the flat buyers on their respective agreements for sale. Pl see Article 25 of the Bombay stamp Act.
ajay sethi (Expert) 21 November 2011
1) yes it is necessary to execute conveyance in favour of society

2) The Promoter( Builder/ Developer) is legally required to convey the land and the building within 4 months of formation to the society or any legal body of the flat purchasers

3)proof that all flat owners have duly paid stamp duty on flat purchases and that agreement is duly registered .

4)The Stamp Duty already paid on purchase of units by the members will be adjusted towards total stamp duty leviable on the conveyance as per explanation – 1 to the Article 25 of Bombay Stamp Act, 1958
Raj Kumar Makkad (Expert) 21 November 2011
I do agree with Gupta ji and I pay special thanks for correcting me.
Raj Kumar Makkad (Expert) 21 November 2011
Prabhakar singh G! Your claimed Senior Dhingra G has not come as on date so whether the replies submitted by all other experts are ;perfect; as per your version or not?
ajay sethi (Expert) 21 November 2011
Co-operative Housing society Registration Certificate : It is issued by the Registrar of Co-operative Societies.

7/12 land Record Ledger Extract : It is issued by Talathi (Village Accountant) of the concern land authorities issue this documents giving details of survey number, area, date of which current owner registered.

Form No. 6 extract of the Property Register : This document is giving details of survey numbers, are, date of current registration and also gives how the name of present owner has appeared in the revenue records.

Search report and title Certificate : This title certificate is issued by an advocate after conducting a search on the title of the property, which is intended to be purchased.

Index-II record copy : The sub-registrar of assurances issues this document. It means the name of the sellers and purchasers and description of the property.

Conveyance Deed (Land Transfer Agreement) : This is a deed documents by which the title of the property is conveyed by the seller to the purchaser. This is the document of the land, which belong to the society.

N.A. Order of Tahsildar / Collector : Order by Collector of the district for the grant of permission to use the land concerned for non-agricultural purpose.

Development Agreement between Landlord and Builder : This is agreement generally accompanied by a power of attorney in favour of the developer.

Approved Plan of the building : The plan approved by the Municipal Corporation permitting the developer to begin construction of the society building.

prabhakar singh (Expert) 22 November 2011
Suffering!
DEVENDRA (Querist) 23 November 2011
Thanks for valuable contribution. But my query is about amount of stamp duty and registration fees. I know all other definitions. Revenue authorities do not bother about deemed conveyance. They need registered document. Whether it can be registered at Rs. 100/- stamp paper by paying registration fees of Rs. 100/- or any other amount, is the main problem. ( It is presumed that all flats are sold. In case of unsold flats, it is necessary to pay on unsold. )Who is the competent authority ? I havn't find ay competent authority. Even so called competent authority does not know the procedure. Therefore, please help me in this respect.


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