Conveyance Deed: A Legal Obligation Developers Must Not Ignore

One of the most overlooked yet legally mandatory responsibilities of a real estate developer is executing the Conveyance Deed in favor of the housing society or individual flat owners. Despite its importance, many developers delay or avoid it—creating long-term issues for residents and violating legal norms.

This blog explains what a Conveyance Deed is, why it matters, and the legal responsibilities of developers regarding conveyance.

📄 What is a Conveyance Deed?

A Conveyance Deed is the legal document through which the developer transfers the ownership of the land and common areas (like lobbies, lifts, terrace, gardens, etc.) to the housing society or association of flat buyers. This deed provides the society legal ownership rights over the entire property.

Without it, the residents technically do not own the land or common areas, even if they own their individual flats.

⚖️ Legal Framework and Developer Responsibility

Under the Real Estate (Regulation and Development) Act, 2016 (RERA), it is mandatory for developers to execute the conveyance deed within a specified time—usually within 3 months of the issuance of the Occupancy Certificate (OC).

Failing to do so is a punishable offense and may lead to:

• Legal action from buyers or societies

• Heavy penalties under RERA

• Refusal of building completion formalities by local authorities

• Long-term reputation damage

🔑 What Should Developers Do?

1. Prepare and Register the Deed
   Draft the deed through a legal professional and get it registered at the sub-registrar’s office.

2. Include All Common Assets
   Clearly mention land details, common areas, clubhouses, utility rooms, etc., in the deed.

3. Do It in Time
   Execute the conveyance within the timeframe defined by law. Don’t wait for society demands or reminders.

4. Avoid Litigation
   Timely conveyance helps developers avoid being dragged into legal battles that can delay future projects or damage goodwill.

🧾 Real-World Insight

Many buyers assume that once the OC is received, they automatically own their flats and land. But without a Conveyance Deed, the legal title remains with the developer. This blocks the society from getting building insurance, redevelopment rights, or availing loans using common property as collateral.

By completing this step, developers fulfill their final legal and ethical commitment.

📣 Final Thoughts

Conveyance is not just paperwork—it’s a fundamental right of the property buyer. As a responsible developer, executing the deed reflects your integrity, transparency, and respect for your buyers.

Don’t let a legal formality become a legal liability.