Discover what a conveyance deed is and why it is crucial. This legal document serves as proof of property ownership transfer and encompasses various types, including gifts, lease deeds, and outright sales. Learn more about conveyance deeds and their role in property transfers.
Conveyance Deed Meaning
A conveyance deed is a crucial legal document used to transfer property ownership from one person to another. This can occur through various means, such as a gift, exchange, lease, or mortgage. Deeds like gift deeds, mortgage deeds, lease deeds, and sale deeds all fall under the category of conveyance deeds.
Importance of Conveyance Deed
A conveyance deed is essential for property ownership for several reasons:
- Evidence in Disputes: In case of a legal dispute, the conveyance deed acts as vital evidence to resolve the issue efficiently.
- Proof of Ownership: The deed serves as proof of ownership, clearly stating the ownership rights of the property.
- Legal Transfer of Property Rights: It allows for the legal transfer of property rights to another individual.
Note: Conveyance deeds must be registered at the sub-registrar's office after being stamped on non-judicial paper. This registration makes the transfer official and completes the process.
Difference Between Sale Deed and Conveyance Deed
A conveyance deed is a broad term encompassing various methods of property ownership transfer, including gifts, mortgages, leases, and exchanges. It is used for transferring property rights in any of these forms.
A sale deed, on the other hand, is a specific type of conveyance deed used exclusively for transferring property ownership through a sale.
In essence, while all sale deeds are a form of conveyance deed, not all conveyance deeds are sale deeds. Sale deeds are just one category within the broader category of conveyance deeds.
What Should Be Included in a Conveyance Deed
A conveyance deed must include the following details:
- Defined Boundaries: Clear boundaries of the property.
- Power of Attorney: Details of any power of attorney if applicable.
- Chain of Title: Information on all legal rights related to the property, including the current seller’s title.
- Transfer Details: How the property will be handed over to the buyer.
- Ownership Memo: A statement confirming the transfer of property ownership.
- Signatures: Signatures of both parties involved, indicating their agreement.
- Terms and Conditions: Any additional terms related to the property transfer.
Key Points to Check Before Executing a Conveyance Deed
- Legal Clearances: Ensure the property is free from any legal encumbrances.
- Mortgage Status: If the property is mortgaged, the mortgage must be cleared before signing the deed. Buyers can verify these details at the local sub-registrar’s office.
- Possession Date: The conveyance deed must specify the exact date on which the property will be handed over to the buyer.
- Registration: Submit all original property documents at the local sub-registrar’s office for registration within four months of executing the deed.
- Witnesses: The conveyance deed must be signed by at least two witnesses at the time of registration.
Types of Conveyance Deeds
1. Sale Deed: This is the most commonly used conveyance deed, executed during the purchase and sale of property. A sale deed serves as evidence of the transfer of ownership and confirms the payment made for the property.
2. Gift Deed: Used to transfer property as a gift, a gift deed does not involve any monetary exchange but requires the payment of stamp duty. It legally formalizes the transfer of ownership as a gift.
3. Exchange Deed: An exchange deed is executed when two parties agree to swap ownership of their respective properties. This type of conveyance deed is mutually agreed upon by both parties.
4. Lease Deed: This deed grants leasehold rights to a lessee while the ownership remains with the lessor. It is valid only for a specified rental period.
5. Settlement Deed: A settlement deed is used for transferring property as part of a family settlement, such as the partition of ancestral property.
6. Will Deed: A will deed transfers property ownership to legal heirs based on the instructions in a will. This type of deed takes effect only after the death of the will holder.
Uses of a Conveyance Deed
A conveyance deed is crucial for the legal transfer of property. It helps prevent fraudulent activities and serves as a proof of ownership transfer. Always request a copy of the conveyance deed when purchasing property to ensure legitimacy.
Registration of a Conveyance Deed
Under the Registration Act of 1908, registering a conveyance deed is mandatory. An unregistered conveyance deed lacks legal standing and cannot be used as evidence in court. Benefits of registering a conveyance deed include:
- Legal Validity: Provides legal sanctity and validity to the deed.
- Evidence of Transfer: Acts as proof of the transfer of property title.
- Protection of Rights: Safeguards the new owner's rights against third-party claims.
- Future Transactions: Necessary for future property sales.
- Land Records: Essential for updating land revenue records.
Here is the format of the conveyance deed:-
Procedure for Obtaining a Conveyance Deed
To obtain a conveyance deed, follow these steps:
1. Title Verification: Ensure the seller has the legal right to transfer the property by conducting a title verification. You can use online title verification services to confirm the property's legitimacy.
2. Draft a Sale Agreement: The sale agreement is a foundational document for the conveyance deed. After verifying the title, create a sale agreement that outlines all terms and conditions of the property transaction.
3. Pay Stamp Duty and Registration Charges: Next, pay the stamp duty and registration charges, which vary by state. These fees are government levies on property transactions.
4. Execute the Conveyance Deed: Once both parties have signed the sale agreement in the presence of two witnesses and paid the necessary fees, proceed with drafting the conveyance deed. Verify all details in the deed before signing.
5. Register the Conveyance Deed: Register the conveyance deed at the nearest Sub-Registrar's office within four months of execution. Ensure all required documents are attached to the deed.
Who Prepares Conveyance Deeds?
A lawyer typically prepares the conveyance deed. They handle the legal documentation and ensure the transfer of ownership is conducted legally. In some cases, a real estate agent may assist in documenting the deed. The buyer is responsible for paying the stamp duty on the conveyance deed.
List of Required Documents for a Conveyance Deed
- Registered Agreement for Sale: The official agreement for the property sale between the buyer and seller.
- Mutation Entries/Property Card: Documentation showing property ownership changes.
- Location and Survey Plan: Obtained from the revenue department, detailing the property’s location and boundaries.
- Layout Plot Plan and Structure Plan: Approved plans from the relevant authority outlining the property’s layout and construction.
- Certificates: Includes Commencement Certificate, Completion Certificate, Occupancy Certificate (if available), and an architect’s certificate.
- List of All Owners: A complete list of individuals who hold ownership rights.
- Stamp Duty Payment Receipt: Proof of payment for stamp duty.
- Power of Attorney or Development Agreement: Required if the seller is acting on behalf of someone else.
- Draft Conveyance Deed: A preliminary version of the deed to review before finalizing.
Importance of a Conveyance Deed
- Evidence in Disputes: Serves as crucial evidence in case of legal disputes.
- Property Status: Certifies that the property is free from any legal disputes.
- Proof of Ownership: Acts as proof of land ownership.
- Legal Transfer: Legally transfers property rights from the seller to the buyer.
What If the Conveyance Deed Is Lost?
If the conveyance deed is lost, follow these steps:
- File an FIR: Report the loss to the police and file a First Information Report (FIR).
- Publish an Advertisement: Place a notice in a newspaper about the lost deed.
- Prepare an Affidavit: Draft an affidavit detailing the property information and FIR, and get it notarized.
- Obtain a Certified Copy: Request a certified copy of the deed from the Sub-Registrar’s office, noting that there may be a fee for this service.
Cancellation of a Conveyance Deed
Under Sections 31, 32, and 22 of the Specific Relief Act, a conveyance deed can be canceled if it is found to be revocable or potentially harmful if not addressed. If the deed was registered in accordance with the Indian Registration Act of 1908, it can be canceled through mutual agreement of the parties involved.
What is a Deemed Conveyance Deed?
A deemed conveyance deed is issued when the rights, title, and interest of a property are officially transferred to a housing society. This process occurs once the state government issues the deed. To obtain a deemed conveyance deed, you must apply to the relevant authority with the required documents. Both parties must be present during the issuance, as the authority will only process the deed after hearing from all involved.
Documents Required for a Deemed Conveyance Deed
To apply for a deemed conveyance deed, you need to submit the following documents:
- Land Documents: Includes land records and municipal records.
- Agreement Copy: Between the landowner and developer.
- Registered Agreements: For each flat, with proper registration and stamping.
- Approved Building Plan: Documenting the construction plans.
Conditions for a Deemed Conveyance Deed
- Formation of Cooperative Society: The society must be established 3-4 months before applying.
- Minimum Sales: At least 60% of the flats must be sold.
- Resolution: The society must pass a resolution in favor of obtaining the deemed conveyance deed.
Key Points About Conveyance Deeds
- Sale Deed vs. Conveyance Deed: While a sale deed can be a type of conveyance deed, not all conveyance deeds are sale deeds.
- Regulation and Execution: Conveyance deeds are governed by the Registration Act and must be executed on non-judicial stamp paper.
- Registration: After signing by both parties, a conveyance deed must be registered with the sub-registrar.
- Witness Requirement: A conveyance deed must be signed by at least two witnesses.
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Ans 1. The purchase or transfer of real estate properties in India requires the execution of a legal document known as a conveyance deed. A conveyance deed formally conveys the rights, title and ownership interest in a property from one party to another. It serves as legal proof of the property transfer transaction.
Ans 2. A sale deed does not establish the legal rights and obligations of the buyer and seller beyond the terms of the sale agreement. On the other hand, a conveyance deed creates legal proof of ownership rights and establishes the legal obligations of the buyer and seller regarding the property.
Ans 3. Conveyancing is the legal process of transferring the ownership of a property from one person to another. It is important because it provides legal protection, helps avoid costly mistakes, saves time, and provides peace of mind for both the buyer and seller.
Ans 4. SO IF NOT REGISTERED, IT IS NOT VALID, AS PER YOUR VERSION. THE SAME IS ONLY A WRITTEN DOCUMENT. NO RIGHT WILL BE TRANSFERRED TO THE PURCHASER BY THIS INSTRUMENT. BE REMEMBER, IN PREVIOUS TIME, EXTRA STAMP DUTY ASSESSED BY THE REGISTRAR AFTER PRESENTATION OF SALE DEED AND IT CAN BE DEPOSITED LATER ON.
Ans 5. A conveyance deed, however, is a broader term that can be referred to any type of deed used for the transfer of ownership of a property, including a sale deed, gift deed, exchange deed, partition deed, release deed, mortgage deed, or lease deed.