Deemed Conveyance - Builder/Promoter refuses to convey building and land to Co-operative Housing Society (CHS):

When trying to sell his/her property, many flat owners are faced with this dilemma: He/She wants to sell, a buyer wants to buy but the builder won't issue an "NOC of builder" to complete the sale. Some builders demand money in your face, whereas others resort to delay tactics to extort money from you.

Thanks to Govt of Maharashtra by official notification in Gazzette on 27 Sept 2010 has finally taken care of this hardship of Flat owners.

As we can form and registered a CHS under non-cooperation of builder, nearly with similar ease now CHS can also get the deemed conveyance by applying to its local area competent authority and follow certain procedures and get the building and the land transferred in CHS’s name… so that the importance of Builder diminishes completely for so called NOC or any other reason, as required by authorities for transfer of a Flat in new buyer’s name.

Once the Flats are sold, and the building is occupied, why should builder be there? When he has already sold the flats/shops on ownership basis; received his contractual compensation, perhaps more than what he was expecting from the common flat buyers. What else he wants from the buyers?

Legally, he should in fact convey the building and the land as soon as (max in 4 months) the completion certificate and occupation certificate are issued and flats are occupied by the buyers. The word “building owner” should formally be replaced by “CHS” sooner than later.

For any further query/procedure on this issue, please feel free to contact:


Ibrahim Deshmukh
Senior Legal Consultant

[email protected]

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