Real estate basics: What is a Conveyance Deed ?



Conveyancing is the transfer of legal title of real property from one person to another, or the granting or creating of an encumbrance. Basically ‘conveyance’ means transferring the title, ownership, rights and interests in a property, from one entity to another. A conveyance occurs when the owner of property transfers the ownership of that property to another party. This could be a home, or some other property such as commercial real estate. A conveyance can occur in full, or the owner may choose to transfer only a portion of the ownership interest.

Conveyances may occur in different ways, including but not limited to:
1. Through a sale of the land or property;
2. Through transfer as a gift; or
3. By inheritance, such as through succession laws.

Various types of conveyance under Transfer of Property Act, 1882, are as follow:

The term ‘deed’ refers to any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring (conveyancing) title to property. Deed can also be understood as “written evidence” of instrument between parties.

Hence, a Conveyance Deed is a legal document between a transferor and a transferee, which proves that a title or ownership in the property along with all other rights related to the property have been transferred from one person to another..In the wake of the rising number of instances of fraud and bogus selling of properties, it is the Conveyance Deed or the Sale Deed that gives legal protection to the ownership of property. 

Conveyance records the transfer of an interest in immovable property. A conveyance deed is executed in accordance with the legal provisions prominently under the Transfer of Property Act 1882, Registration Act 1908, Indian Stamp Act, 1899 and other relevant laws.

Why Conveyance Deed is Important?

Conveyance deed or sale deed acts as the main legal document for evidencing sale and transfer of ownership of property in favour of the buyer, from the seller. Further, it also acts as the main document for further transfer by the transferee as it establishes his proof of ownership of the property.

Essential Elements in a Conveyance Deed

In order to be valid and acceptable in a court of law, a conveyance deed needs to contain some essential elements. For instance, it must:

  • Establish exact boundaries of the property to avoid any dispute relating to land ownership,
  • State that all the rights relating to the property have been transferred along with the property,
  • Provide details regarding delivery and acceptance of the property,
  • State all terms and conditions relating to the transfer,
  • Be made on a non-judicial stamp paper and signed by both parties,
  • Mention full names, addresses and other requisite details of the seller and the buyer,
  • State that the property is free from any disputes, encumbrance and restrictions,
  • Be signed by at least two witnesses
  • Be in writing and notarized, and
  • Be registered through the local registrar’s office by submitting appropriate registration fee. Registration is proof that the property is free from any disputes and has been transferred to the buyer permanently with a clean title.

Some important Documents required for Conveyance Deed (in state of Maharashtra)

  • Registered Agreement for sale 
  • Mutation entries/ Property card, Land Extract, Revenue Extract (7/12)
  • Layout Plot plan approved by the local authority
  • Architect certificate about the entitlement of undivided interest in the entire Layout Plot, common areas and the facilities by each of the entity or the structure constructed or to be constructed on such Layout Plot.
  • Certificate under Urban Land Ceiling Act, 1976
  • Building/ Structure Plan approved by the appropriate authority
  • Commencement Certificate
  • Completion Certificate,
  • Occupancy Certificate (if applicable),
  • List of owners
  • Proof of payment of Stamp Duty
  • Proof of Registration
  • Development agreement or power of attorney or agreement for sale, if executed by the seller
  • Deed of Declaration (Under Rule 3 of the Maharashtra Apartment Ownership Rules, 1972)
  • Draft conveyance deed / Declaration proposed to be executed in favour of the applicant.

Difference between Conveyance Deed and Sale Deed


The conveyance in the immovable property may take place by way of sale deed, gift deed, exchange deed etc. All deeds transferring the property-rights are conveyance deeds. Sale-deed is one of them. All sale deeds are deeds of conveyance but all conveyance deeds are not sale deeds, thereby broadening the ambit of conveyance deed.


Sale Deed
Conveyance Deed
Definition
The type of document that moves the ownership of one property or many resources in consideration of money or another kind of payments.
The type of document that moves the ownership of one real estate property to the other party and transfers absolute or limited legal title from one person to the other.
Nature
A restricted term with its lone intending to absolute transfer of property against a price consideration.
A broader term which incorporates numerous sorts of transfer, for example, gift, mortgage, surrender, exchange.

In later articles we will discuss about various types of conveyance; modes of transfer and other basic terms in Real Estate Laws, stay tuned...

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