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  • Developer's Obligation to Convey - The developer is statutorily required under the MOFA Act and Rules to execute a conveyance deed within four months of society registration. Failure to do so can lead to deemed conveyance or unilateral action by the society. However, if the building is constructed without sanctioned approval or if the developer claims the building is made without proper sanction, this complicates the obligation to convey. The developer's assertion that the building is made without sanction building plain suggests that purchase should not pressure the developer into executing the conveyance ["2025 0 Supreme(Bom) 442"], ["2025 0 Supreme(Bom) 1130"], ["2025 Supreme(Online)(Bom) 4025"].

  • Developer's Right to Postpone Conveyance - The developer's claim that the building was constructed without proper sanction or that the building is made without sanction building plain indicates that the developer may have grounds to delay or refuse conveyance until compliance or approvals are obtained. The developer's contention that the building is constructed without sanction can serve as a legitimate reason to not execute the deed immediately, and purchase pressure should not override this legal position ["2025 0 Supreme(Bom) 442"], ["2025 0 Supreme(Bom) 1130"].

  • Legal Framework and Deemed Conveyance - Under Section 11(3) of MOFA, if the developer neglects or refuses to execute conveyance within the prescribed period, the society or purchaser can invoke deemed conveyance. Nevertheless, if the building is not sanctioned or if there are legal challenges regarding the building's legality, this may impact the enforceability of such conveyance ["2025 0 Supreme(Bom) 442"], ["2025 Supreme(Online)(Bom) 4025"].

  • Main Insight - The main point is that the developer's assertion that the building is made without sanction building plain provides a valid reason that purchase should not create undue pressure on the developer to execute the deed. The legal obligation to convey is subject to compliance with sanctioned plans and approvals, and building legality issues can justify delays or refusals to execute conveyance ["2025 0 Supreme(Bom) 442"], ["2025 0 Supreme(Bom) 1130"].

Conclusion:While statutory provisions obligate developers to execute conveyance within a specified period, if the building is constructed without proper sanction or is made plain without legal approval, this provides the developer with a valid reason to delay or refuse execution. Therefore, purchase should not be used as a basis to pressure the developer into executing the deed where such legal or sanction issues exist.

Can Property Buyers Compel Conveyance for Buildings Constructed Without Sanctioned Plans?

Can Buyers Force Conveyance on Unauthorized Buildings?

Purchasing a flat in a new building is exciting, but what happens when the developer reveals it was constructed without a sanctioned building plan? A common question arises: While the developer expressed that the building is made without sanction building plan then the purchase should not create pressure to execute the deed of conveyance in his favour? This scenario raises critical issues under Indian property laws, particularly the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA).

In this post, we break down the legal position, drawing from court judgments and statutory principles. Note: This is general information based on case law and should not be taken as specific legal advice. Consult a qualified lawyer for your situation.

Main Legal Finding

Generally, if a developer constructs a building without the necessary sanctioned building plan, purchasers cannot use their purchase to pressure or compel the execution of a conveyance deed. Unauthorized construction violates building regulations, rendering the structure illegal until regularized. Courts have consistently held that buyers lack enforceable rights to conveyance until the developer fulfills legal requirements, such as obtaining sanctions. 2008 5 Supreme 76

Key quote from relevant judgments: Construction without sanctioned building plan is illegal and constitutes a violation of building regulations. 2008 5 Supreme 76

Key Points from Case Law

  • Illegality of Unauthorized Construction: Buildings built without approved plans are deemed unauthorized, subjecting them to demolition notices from municipal authorities. Purchasers cannot leverage this for title transfer. 2008 5 Supreme 76
  • No Enforceable Pressure on Developer: The developer's admission of lacking sanctions does not obligate conveyance. Courts refuse to enforce deeds on illegal structures. 2008 5 Supreme 76 2010 0 Supreme(SC) 1109
  • Compliance First: Developers must regularize the building before conveyance obligations arise. The building was constructed with certain deviations which were condonable only when the total plot area was taken into account. 2010 0 Supreme(SC) 1109

Detailed Analysis: Legality and Conveyance Rights

Impact of Unauthorized Construction

Under municipal laws and MOFA, sanctioned plans are mandatory. Deviations or complete lack of sanctions make the building unlawful. In one case, municipal notices highlighted violations, and courts stressed that such buildings do not confer conveyance rights. 2008 5 Supreme 76

Purchasers may face risks like demolition, making pressure tactics ineffective. Unauthorized constructions are subject to demolition and cannot be used to enforce conveyance rights. 2008 5 Supreme 76

Developer's Disclosure and Obligations

When developers openly state the building lacks sanctions—as in the query—agreements remain subject to regulatory compliance. Courts rule that buyers cannot compel deeds without legalization. The law recognizes that unauthorized construction cannot create enforceable pressure on the developer to transfer title. 2008 5 Supreme 76

This aligns with MOFA's Section 11, which mandates promoters to convey title post-compliance, not before.

Exceptions via Deemed Conveyance?

While direct pressure fails, MOFA offers 'deemed conveyance' remedies. However, even here, legality matters. In 2025 0 Supreme(Bom) 495, courts allowed deemed conveyance despite no occupancy certificate (OC) for unauthorized builds, provided societies submit self-declarations. The Competent Authority can grant deemed conveyance even if the building is unauthorized, as the objective of the Act is to prevent promoters from benefiting from their own defaults. 2025 0 Supreme(Bom) 495

Yet, this doesn't permit 'pressure' pre-regularization. Another ruling clarifies: Competent Authorities must verify documents under Rule 3(5) of MOFA Rules, ensuring promoter compliance. 2023 0 Supreme(Bom) 539

In phased developments, proportionate conveyance is possible, but unauthorized status complicates it. 2024 0 Supreme(Bom) 607

Broader Context from Related Cases

MOFA cases reveal nuances:

  • Proportional Land Rights: Developers can't withhold conveyance pretexting incomplete work if disclosed. Societies may get proportionate land via deemed conveyance. 2025 0 Supreme(Bom) 1683 The Developer has challenged order of deemed conveyance... Court emphasized that a developer cannot withhold conveyance on the pretext of incomplete construction.
  • Limits on Competent Authority: Deemed conveyance sticks to Section 4 agreements; can't add post-agreement rights like 'right of way'. 2024 0 Supreme(Bom) 353 The Competent Authority under MOFA cannot include rights not recognized in agreements executed under Section 4 in a unilateral deemed conveyance certificate.
  • Promoter Defaults: Even without OC, societies can pursue deemed conveyance to avoid developer advantage in redevelopment. 2025 0 Supreme(Bom) 495
  • Agreement Scrutiny: Oral or incomplete agreements don't bind for conveyance without proof.

    Ricky Chandra VS Sudeep Ghosh

These highlight that while buyers have protections, unauthorized builds shift leverage until regularization.

Implications for Buyers and Developers

For Flat Purchasers

  • Verify sanctions and OC before purchase.
  • Avoid pressure; opt for legal remedies like MOFA applications.
  • Post-regularization, enforce via courts or Competent Authority.

For Developers

  • Disclose sanction status upfront.
  • Regularize deviations promptly to avoid disputes.
  • Complete conveyance post-compliance to prevent deemed orders.

Courts have refused to support any pressure tactics on developers, emphasizing that the law does not support enforcement of conveyance where the building is unauthorised. 2010 0 Supreme(SC) 1109

Recommendations and Key Takeaways

  • Buyers: Demand sanctioned plans in agreements. If issues arise, apply for deemed conveyance under MOFA Section 11, but expect scrutiny. 2024 0 Supreme(Bom) 299
  • Developers: Obtain sanctions before sales. Use self-certification where allowed, but comply fully.
  • Legal Route: Approach Competent Authority first; civil suits for title disputes. Authorities can't adjudicate complex titles. 2024 0 Supreme(Bom) 353

Summary:- Unauthorized buildings bar conveyance pressure. 2008 5 Supreme 76- Regularization unlocks rights.- MOFA protects buyers via deemed conveyance, even in gray areas. 2025 0 Supreme(Bom) 495

In conclusion, while the law favors buyers against errant developers, it upholds building regulations. Unauthorized construction typically prevents enforced conveyance until fixed—protecting public safety over individual claims. Stay informed, verify documents, and seek professional advice.

This post references judgments like 2008 5 Supreme 76, 2010 0 Supreme(SC) 1109, 2025 0 Supreme(Bom) 495, and others for educational purposes.

#RealEstateLaw, #ConveyanceDeed, #MOFA
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