BACK TO RERA Act 2016
RERA Act 2016
Section 17
Transfer of Title
THE STATUTE
Original Text
The promoter shall execute a registered conveyance deed in favour of the allottee and the association of allottees, as the case may be, of the apartment, plot or building, as the case may be, as provided under this Act and the rules and regulations made thereunder:
Provided that the promoter shall not withhold such conveyance deed to be given to the allottees or the association of allottees by a promoter.
(2) After obtaining the occupancy certificate from the competent authority, the promoter shall hand over the physical possession of the real estate project to the allottees and the association of allottees in a time bound manner as specified in the agreement for sale.
(3) It shall be the duty of the promoter to hand over the necessary documents and plans, including common areas, to the association of allottees or the competent authority, as the case may be, as per the local laws.
Legal Commentary
Section 17 addresses the conveyance deed problem — the long-standing gap in Indian real estate law where buyers received possession but not registered title. Without a registered conveyance deed, a buyer does not have legally recognised ownership — they cannot get a full-value home loan against the property, they face inheritance complications, and the builder retains paper title indefinitely.
**Conveyance deed = registered ownership:** A conveyance deed (also called 'sale deed' or 'deed of conveyance') is the document that legally transfers ownership from the promoter to the allottee. It must be registered under the Registration Act 1908 to be effective. Before RERA, many builders issued 'possession letters' but delayed the formal conveyance deed — sometimes indefinitely — allowing them to mortgage the same property again or retain control.
**Undivided share in common areas:** Section 17 requires that along with the individual unit, the allottee receives their proportionate undivided share in the common areas — the lifts, lobbies, gardens, parking, and other facilities. This undivided share is transferred collectively to the allottees' association. This settled a long-running dispute: do homebuyers own the common areas of their building? Under RERA, yes — as undivided proportionate co-owners.
**3-month timeline:** The conveyance deed must be executed within 3 months of the occupancy certificate being issued. This creates a hard deadline — preventing indefinite delay in title transfer.
**Cannot be withheld:** Section 17(1) expressly states the promoter 'shall not withhold' the conveyance deed. This directly addresses the pre-RERA practice of builders using conveyance deed execution as leverage — demanding additional charges, maintenance agreements, or other concessions before signing the deed.
**Documents and plans handed to association (Section 17(3)):** All building plans, structural drawings, and technical documents must be handed to the allottees' association — enabling the association to independently maintain and manage the building.
Questions & Answers
Within 3 months of obtaining the occupancy certificate, or as per the timeline in the agreement for sale (whichever is earlier). The promoter cannot withhold or delay the conveyance deed — Section 17 makes execution mandatory and delays are a RERA violation.
Yes — Section 17 requires transfer of the proportionate undivided share in common areas to the allottees' association collectively. Lifts, lobbies, gardens, stairwells, and other common areas are co-owned by all allottees as an undivided share — not retained by the builder.
No. Section 17 expressly prohibits withholding the conveyance deed. Any demand for extra charges, maintenance agreements, or other conditions before executing the deed is a RERA violation — the allottee can file a complaint with the RERA Authority to compel execution.