MahaRERA: Sending a Draft Conveyance Deed Doesn't Meet Builder's Legal Duty

MahaRERA has pulled up a builder for trying to evade its legal obligation to convey ownership of a building to the flat owners' housing society by simply forwarding a draft deed and taking no further action. Acting on a complaint by Nirmaan Milestone Co-operative Housing Society in Kiwale, Pimpri-Chinchwad, MahaRERA Member Mahesh Pathak directed developer Nirmaan Venture to finalise the conveyance deed draft within 30 days and complete its registration in the society's name within the following 30 days.

What 'conveyance' means and why it matters

Conveyance is the legal transfer of land and building ownership from the builder to the housing society, giving the society, and through it every flat owner, clear legal title to the property. Under Section 17 of the Real Estate (Regulation and Development) Act, 2016, executing this conveyance is a statutory duty of the promoter, not a discretionary courtesy. In this case, the society had objected that the draft deed understated the building's area compared to sanctioned plans and RERA registration documents, and the builder had gone quiet after sending the draft.

What this means for housing societies

• A builder cannot claim compliance just by emailing or handing over a draft deed; the deed must actually be finalised and registered in the society's name.
• A dispute between the builder and the landowner is not a valid excuse to delay conveyance; the society's rights cannot be held hostage to that separate dispute.
• The conveyance must cover all common areas, access roads, and undivided rights exactly as shown in the sanctioned plans and project registration records, not a reduced figure.
• Non-compliance can trigger action against the builder under Section 63 of the RERA Act, which allows for penalties.

Societies still waiting on a builder who has sent only a draft deed, without registration, now have a clear MahaRERA precedent to cite. Committees can file a complaint before MahaRERA if the builder does not act, and should keep documentation comparing the draft deed's stated area against the sanctioned building plans and RERA project registration, since discrepancies there were central to this order.