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Many flat purchasers assume that once they buy a flat, they automatically become complete owners of the property. In reality, ownership rights, redevelopment rights, common area control, and future legal authority largely depend on whether the project is structured as a co-operative housing society or under the Apartment Act.
In this discussion, I share insights from my experience as a co-operative housing society lawyer in Pune, covering important legal issues relating to society formation, apartment declarations, deemed conveyance, redevelopment disputes, and builder related matters. Over the years, I have advised housing societies and apartment owners on navigating these complex legal and procedural challenges.
This article answers some of the most practical questions flat purchasers and housing societies face today.
Under the Maharashtra Ownership Flats Act (MOFA), especially Section 10, builders are legally required to form a legal body for flat purchasers. This can be a cooperative housing society, apartment association, or another lawful structure.
However, in many projects, builders intentionally delay society formation.
One major reason is future development control.
For example, a builder may construct one building within a larger sanctioned layout while planning future expansion on adjoining plots. Once a cooperative housing society is formed, the builder may require society consent or No Objection Certificates (NOCs) for future revised layouts, additional construction permissions, or amended sanctions.
If promised amenities, infrastructure, or commitments remain incomplete, societies may refuse to grant approvals. Because of this, many builders continue extending projects phase by phase while delaying registration of earlier societies.
This issue has been widely observed in older areas of Pune, particularly in Peth areas where old wada redevelopments took place but society formation was never completed.
Many purchasers focus only on buying the flat and obtaining possession. However, ownership of four walls alone does not automatically give control over the land or redevelopment rights.
Without proper society formation and conveyance:
Adv. Shreeya Ghorpade explained that these complications are frequently discovered during deemed conveyance proceedings, where original landowners or legal heirs sometimes reappear decades later because proper conveyance was never completed.
Yes. Awareness has increased significantly over the last few years, particularly because banks and financial institutions now conduct stricter title verification before sanctioning loans.
Nationalized banks increasingly examine:
This scrutiny has improved public awareness regarding legal ownership structures.
Under newer RERA compliance requirements, builders are now required to initiate formation of societies or associations once approximately 50% bookings are completed.
Earlier, many builders delayed society formation for years. Current regulatory changes have made the process stricter for new projects.
However, many older projects completed before RERA still suffer from delayed or incomplete society formation.
Adv. Shreeya Ghorpade explains this difference very practically:
A co-operative housing society operates under a structured legal framework with stronger regulatory control, member rights, and governance mechanisms.
Under the Apartment Act structure, ownership works differently.
In an apartment system:
In many apartment projects, builders retain control over commercially valuable portions such as terrace spaces used for telecom towers, advertisements, or future FSI benefits.
In contrast, after proper conveyance in a co-operative housing society, ownership of the sanctioned property area transfers collectively to the society.
Yes, this is one of the major concerns in apartment structures.
If the Deed of Declaration is drafted in a certain manner, builders may attempt to retain rights over:
Adv. Shreeya Ghorpade referred to cases where builders retained terrace rights and continued earning rental income from telecom towers even after residents occupied the building.
Such disputes often continue for years and may reach the High Court or Supreme Court.
Not always.
Many builders unilaterally register Deeds of Declaration without proper participation or approval from flat purchasers.
According to legal guidelines and judicial observations, formation of apartment structures generally requires participation of flat purchasers through an ad hoc committee process.
Several builders fail to follow this procedure properly.
Adv. Shreeya Ghorpade explained that many residents are completely unaware that apartment declarations have already been registered behind their backs.
In some matters handled by her office, even the Supreme Court observed that unilateral declarations may be invalid if proper legal procedure is not followed.
Even if the Agreement for Sale mentions an apartment structure, flat purchasers are not permanently bound by the builder’s preference.
If the majority of flat purchasers decide that they want to form a co-operative housing society instead of continuing under the Apartment Act, they can legally proceed with society formation.
The decision of the majority residents carries significant legal importance.
Builders cannot force apartment structures upon residents merely by relying upon agreement clauses.
If residents approach the District Deputy Registrar with majority support, authorities may permit formation of the co-operative housing society.
Flat purchasers can still proceed legally.
Residents may:
Builder cooperation is helpful, but it is not always mandatory for society formation.
Once a co-operative housing society is formed, the builder is legally expected to transfer ownership rights through a Conveyance Deed.
If the builder fails to do this within the prescribed period, the society can apply for Deemed Conveyance through the Competent Authority under the 2010 legal provisions.
Through this process:
This process is extremely important for long term ownership security.
Generally, no.
Once proper society formation and conveyance are completed, common areas belong to the society.
However, complications arise when builders deliberately retain portions through apartment structures or incomplete conveyance arrangements.
In large layouts containing multiple buildings, current practice often involves:
This creates a legally structured ownership system.
According to Adv. Shreeya Ghorpade, many society related legal battles are carried forward by only a few active residents.
Formation, conveyance, deemed conveyance, title correction, and legal compliance often require continuous follow up, documentation, and litigation.
Once societies finally obtain conveyance or ownership rights, many residents lose the motivation to pursue further action against defaulting builders.
This is one reason why several builder violations remain practically unchallenged despite existing legal provisions.
The most important takeaway is this:
Flat purchasers collectively hold stronger legal rights than many people realize.
If residents act together with proper legal guidance, they can:
Timely legal action and awareness are critical for protecting the long term interests of housing societies and future redevelopment rights.