What Changes Has the Maha Govt Proposed for Conveyance Deeds in Residential Projects?
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Synopsis
In a groundbreaking initiative, the Maharashtra government has introduced a bill aimed at amending the Maharashtra Ownership Flats Act. This pivotal change seeks to empower flat owners and housing societies while addressing long-standing issues related to conveyance deeds. Discover how this could reshape the real estate landscape in Maharashtra.
Key Takeaways
- Maharashtra government proposes key amendments to MOFA.
- Introduces deemed conveyance for new residential projects.
- Aims to protect flat owners’ rights.
- Addresses gaps in the current legislation.
- Bill to be discussed shortly in the assembly.
Nagpur, Dec 12 (NationPress) In a pivotal step intended to safeguard the rights of flat owners and housing societies, while also tackling the unethical practices of developers who withhold property titles, the Maharashtra government has introduced a significant amendment to the long-standing Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1963 (MOFA).
The proposed change is focused on rectifying a crucial legal gap regarding conveyance deeds for newer residential projects that are registered under the Real Estate (Regulation and Development) Act (RERA), 2016.
The bill for amending the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1963 was presented on Friday by Pankaj Bhoyar, the Minister of State for Housing.
A discussion on the bill is anticipated to occur on Saturday.
The essence of the proposed amendment is to incorporate a provision for deemed conveyance for housing projects that are governed by RERA.
This bill is designed to address multiple loopholes. Presently, buildings constructed after the implementation of RERA in 2016 are not adequately protected under MOFA's rules for deemed conveyance. This gap has led to numerous societies and flat owners facing challenges in securing legal ownership of the land from developers who procrastinate or neglect to execute the conveyance deed.
The bill aims to bolster the rights of flat owners. Deemed conveyance is a legal mechanism through which a housing society can obtain the title of the land directly from an authorized entity when the promoter (builder/developer) fails to transfer it within the legally mandated timeframe (usually three months post-formation of the society or receipt of the Occupation Certificate).
Given that RERA is a central law, the state government cannot amend its provisions directly. Consequently, the state plans to leverage the existing MOFA framework to include RERA-registered properties under the provisions of deemed conveyance, thereby ensuring the safeguard of flat buyers, as stated in the bill.
The housing department noted that MOFA, 1963 has historically served as the primary legislation in Maharashtra that regulates the construction and sale of flats.
Although it encompasses provisions for taking legal action against errant developers and includes the crucial 'deemed conveyance' mechanism, the advent of RERA led to an overlap, leaving newer projects without MOFA's specific protections for acquiring land ownership.
“RERA does not explicitly require developers to deliver the conveyance deed within a defined short period after the Occupation Certificate (OC), which is vital for societies to gain full control and management of their properties,” the department stated.
Point of View
This legislative amendment represents a significant shift in the real estate regulatory framework. It aims to strengthen the position of flat owners and enhance accountability among developers. The initiative reflects the government's commitment to improving housing conditions and protecting consumer rights in the real estate sector.
NationPress
12/12/2025
Frequently Asked Questions
What is the significance of the proposed amendment?
The proposed amendment is crucial as it aims to protect flat owners' rights and ensure they can secure land ownership through deemed conveyance when developers fail to act.
How does deemed conveyance work?
Deemed conveyance allows housing societies to obtain land title directly from a competent authority if the developer does not transfer it within the legally required timeframe.
Why were newer projects left unprotected under MOFA?
Due to the overlap created by the introduction of RERA, newer projects constructed after 2016 were not specifically covered under MOFA's provisions for deemed conveyance.
Who presented the bill for the amendment?
The bill was presented by Pankaj Bhoyar, the Minister of State for Housing, on behalf of the Maharashtra government.
When will the bill be discussed?
The bill is expected to be discussed on Saturday following its presentation.
