The Shift in Property Conveyance: From Pure MOFA to the RERA Framework

The Shift in Property Conveyance: From Pure MOFA to the RERA Framework

The process of transferring land ownership to a collective of flat purchasers from promoters (builders, developers, and landowners) has been a core obligation under the Maharashtra Ownership Flat Act, 1963 (MOFA, 1963). However, the legal landscape governing this transfer, known as conveyance, has undergone a significant transformation, moving from the simple single-plot developments initially contemplated under MOFA to the complex realities of modern multi-structure layouts.  

This doctrinal shift is illuminated by the Bombay High Court's judgment in the Marathon Era v The Competent Authority & Ors case and the subsequent 2018 Government Resolution.  

🏗️ The Era of Pure MOFA Conveyance

In the time of MOFA's enactment, the vision was primarily one of a single plot development.  

A single building structure would consume the total built-up area.  

Flat purchasers would form a Co-operative Housing Society.  

The Promoter/Developer would transfer the ownership of the land to the society as specified in the agreement.  

In this "pure" MOFA scenario, the developer could only build up to the maximum permissible built-up area on that single plot, with a clear statutory obligation to convey the title.  

🏙️ The Challenge of Multi-Layout Structures

The difficulty arises when development occurs on a large tract of land comprised of several amalgamated plots, sanctioned as a single layout. These projects feature a multiplicity of structures, internal roads, common amenities, and recreational areas intended for common use.  

Key characteristics of these complex layouts:

Phased Development: Construction, sales, and marketing are necessarily undertaken in phases.  

Pooled FSI: The development potential (or maximum permissible built-up area, FSI) is calculated for the entire layout as a single planning unit, not plot-by-plot.  

Severance of Area: The built-up area consumed by a particular structure is often completely severed from the FSI theoretically attached to its individual plot boundary. A single tower might consume FSI far exceeding its theoretical plot-specific FSI, yet remain lawful because it's absorbed within the layout's total sanctioned buildability.  

In such multi-building, multi-phase layouts, the central question emerged: at what precise point does a society acquire the statutory right to obtain a unilateral deemed conveyance?.  

📜 The 2018 Government Resolution: Bringing Clarity.

The Government Resolution dated June 22, 2018, was issued to address persistent difficulties in the MOFA deemed conveyance mechanism. It was intended to establish a uniform and streamlined procedure.  

The Resolution provides express legal sanction for the form of conveyance applicable to layout developments. Specifically, it guides the Competent Authority on issuing a deemed conveyance order:  

Partially Completed Layouts: For a single parcel with multiple buildings, where some are incomplete, the Competent Authority must grant deemed conveyance to the completed buildings based on their constructed area, footprint, and corresponding appurtenant and common areas.  

TDR (Transferable Development Rights): Where TDR is part of the approval, conveyance for completed buildings is strictly referenced to the plinth area and appurtenant land.  

Withheld Completion: If the promoter has withheld completion due to the expectation of additional FSI or TDR, the conveyance must nevertheless be granted to the extent of the buildings already constructed under the approved plans.  

The Synergy of MOFA and RERA

An important clarification stemming from the legal discussion is that MOFA is still in force. The repeal provision in the Maharashtra Housing (Regulation and Development) Act, 2012 (MHRD Act), which would have repealed MOFA, was never actually notified and thus never came into force.  

The current regulatory environment requires both RERA and MOFA to be read widely together. RERA makes the Promoter liable to execute a Registered Conveyance Deed in favor of the allottees, transferring the undivided proportionate title in the common areas to the association. The move to keep conveyance under MOFA governance strengthens and empowers the provisions of RERA.  

This legal evolution, highlighted by the Marathon Era judgment and the 2018 Resolution, firmly establishes the process for granting land ownership to flat purchaser societies even in the most complex, multi-phase layout developments.

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