MahaRERA Directs Promoter to Execute Conveyance Deed, Clarifying Direct Recourse for Housing Societies

Transfer of Legal Title Under Section 17

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has reiterated the mandatory obligation of real estate promoters to execute a conveyance deed in favour of an association of allottees. Under Section 17 of the Real Estate (Regulation and Development) Act, 2016 (RERA Act 2016), a promoter is legally obligated to execute a registered conveyance deed and hand over legal title along with undivided proportionate interest in common areas within the period stipulated by state rules or local laws.

Under Rule 9 of the Maharashtra Real Estate (Regulation and Development) (Registration of real estate projects, registration of real estate agents, rates of interest and disclosures on website) Rules, 2017, promoters must execute the conveyance deed in favour of a co-operative housing society or apex body within three months from the date of issuance of the Occupancy Certificate (OC), in the absence of a period prescribed under local laws.

Direct Forum for Allottee Associations

Historically, co-operative housing societies in Maharashtra facing developer non-compliance often resorted to the lengthy process of obtaining a unilateral Deemed Conveyance under Section 11 of the Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 1963 (MOFA) before district competent authorities.

The regulatory mechanism under MahaRERA provides housing societies with a direct adjudication forum to hold non-compliant developers accountable:

• Specific Performance: Societies can directly petition the regulatory authority to mandate execution of the registered conveyance instrument.
• Common Area Title Handover: Promoters are compelled to transfer complete right, title, and interest in common amenities, access paths, and open spaces as sanctioned in layout approvals.
• Enforcement Powers: Failure to comply with authority directions exposes promoters to penal sanctions and daily default penalties under Section 63 of the RERA Act 2016.

Verification of Layout Approvals

Regulatory authorities have also cautioned allottees against relying purely on builder assertions regarding project approvals. Legal practitioners recommend that buyers and housing societies conduct independent due diligence via the MahaRERA portal. Buyers must verify whether the approval pertains solely to a master layout or to the specific individual phase, confirming that sanctioned layout plans match actual site execution prior to seeking title transfer.