CONVEYANCE AND ASSIGNMENT THE DISTINCTION
ONCE THERE IS A DEED OF ASSIGNMENT EXECUTED BY THE LESSOR IN FAVOUR OF THE LESSEES CAN THERE BE DEEMED CONVEYANCE? Why am I writing this blog? You must be wondering! No noting without cause. Nowadays, in the name of redevelopment societies are collecting huge funds like 20-30 lakhs for Deemed Conveyance. But I am saying it’s wrong? The answer is this society already had a Deed of Assignment executed and registered in its name way back in 1970s. Now this is connivance or illiteracy of the committee that depends on documentary evidence. But this is no less serious offense. Why? It amounts to embezzlement of society funds by way of misrepresentation and fraud. ANALYSIS Let us analyse the question herein is to ascertain as to whether the deed in question is a deed of assignment of lease hold rights. Article 63 of Schedule 1-B of the Indian Stamp Act or would be an outright sale so as to be termed as ‘Conveyance” and would be covered by Article 23 of Schedule 1-B of the Indian Stamp Act. The word ‘sale’ has not been defined under the Indian Stamp Act, 1899. Section 2 (10) of the Act defines “Conveyance” as including a conveyance on sale and every instrument by which property, whether movable or immovable property is transferred inter vivos and which is not otherwise specifically provided for by Schedule 1-A or Schedule 1-B, as the case may be. Now let us see the difference in common parlance: Deed of Assignment: This document transfers interest in property from one person or entity to another. Purpose: It’s used when someone wants to transfer their interest in a property to someone else, such as in property sales or lease assignments. Nature of Transfer: It involves transferring existing property rights, not creating new ones. The Transfer is conditional subject to the terms of Lease Agreement and in case of breach the Lessor/Owner steps in. Execution: It requires the consent and signature of the person or entity giving up their rights. Stamp Duty and Registration: Depending on local laws, it may or may need to be stamped and registered with the land authority. Deed of Conveyance: This document transfers property ownership from a seller to a buyer. Purpose: Confirming Agreement for Sale to establish the buyer’s legal ownership. Nature of Transfer: It creates new property ownership and rights, transferring everything about the property to the new owner. Execution: Both the seller and the buyer must sign it. Requires to be stamped and registered mandatorily. Registration: It typically needs to be registered to show the change in property ownership. In short, Deeds of Assignment transfer existing property rights, while Deeds of Conveyance create new property rights and prove ownership. The word ‘Sale” has been defined under Section 54 of the Transfer of Property Act, 1882 which reads as under:- “Sale is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.” “Lease” has been defined under Section 105 of the Transfer of Property Act, 1882 and also in sub-section (16) of Section 2 of the Stamp Act, 1899 which […]
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Collectors Land in Mumbai and Transfers
An interesting question was asked on Twitter on collectors’ land. The question was whether it is legal to ask for transfer charges by Collector Mumbai for issuing NOC of flats in Society standing on land belonging to Collector? In Mumbai Collector owns nearly 1282 properties on which development is permitted and sanctioned on Lease. As per the latest data available about 517 properties’ Lease has been expired and in Mumbai leases of about 149 properties have been expired. The government has given this land on meager yearly lease rent. So the Government prescribed a policy for the increase in ground rent on 5th October 1999. Which was challenged and directions were given to give a hearing to those whose lease has been expired and also give an opportunity to convert occupancy to Class II occupants on one-time payments as specified in the Circular. The lease of land for purposes other than Agriculture is granted under provisions inter-alia of the Maharashtra Land Revenue Code, 1966 (“ Said Code” ) and the Maharashtra Land Revenue (Disposal of Government Lands) Rules, 1971 ( Said “ Rules”) . The Said Rule B-26 -27 empowers Collector to Grant Land for Residential use. It reads as under B. Grant of land for residential use 26. Disposal of building sites :- (1) Except as otherwise provided in these rules, the occupancy rights in building sites shall be disposed of by the Collector under Section 20 read with Section 31 by publication to the highest bidder, unless for reasons to be recorded in writing, the Collector thinks that in any particular case, there is reason for granting the land without auction. (2) Where a building site is to be disposed of without auction under sub-rule(1), the Collector shall dispose of the site in occupancy right under Section 20 read with Section 31 on inalienable tenure [If the occupancy price determined under sub-rule(3) does not exceed Rs. 25,000 and with sanction of the Commissioner, if the occupancy price exceeds Rs. 25,000 but does not exceeds Rs. 1,00,000 and with the sanction of the State Government, in other cases.] (3) The Collector shall determine the occupancy price of the site, regard being had to the following factors that is to say, (a) the sale prices of similar lands in the locality; (b) the situation of the building site; (c) the availability of, and demand for, similar lands; (d) factors which are taken into account in determining the value of land under the Land Acquisition Act, 1894. 27. Grant of land housing schemes :-Building plots may be granted by the State Government for various housing schemes undertaken by any housing board, local authority or co-operative housing society constituted under any law for the time being in force, in occupancy rights under Section 40 on inalienable and impartible tenure on payment of such concessional occupancy price as the State Government may, from time to time fix, regard being had to the nature of the scheme, and in the case of a co-operative housing society, to the income of the members, thereof, such income being ascertained after making such inquiries […]
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