A conveyance deed is a contract that serves as a legal proof of transfer of ownership of a property from one entity to another. The document serves as evidence of the transfer of ownership and is executed after the sale or transfer of the property.
Deed of conveyance includes details of the property being transferred, the names of the parties involved in the transfer, and the terms and conditions of the transfer, such as the purchase price, any encumbrances or liens on the property, and any warranties or guarantees made by the seller. Now let’s understand the types of conveyance deed and their importance.
Depending on the type and status of the property, there can be different types of conveyance deeds. They are discussed below:
A buyer with the conveyance deed of freehold property enjoys full authority and rights of the property. This seller provided the conveyance deed as a final legal document to the owner.
A buyer with a conveyance deed of leasehold property enjoys rights to the property, excluding rights of the land. Unlike freehold properties, leasehold properties are owned for a fixed period of time, usually for a number of years, after which the ownership of the property reverts back to the landlord.
In the case of a mortgaged property, the property owner cannot permanently reside in the property but can enter its premises and facilities from time to time.
Relinquish deed happens when co-owners of an inherited property give up their rights and claims on the property and transfer the rights to another co-owner in good faith.
A gift deed is a legal document that is used to transfer ownership of a property or other assets from one person or entity to another as a gift, without any exchange of money or other consideration. The gift may be made between family members, friends, or other individuals or entities.
A conveyance deed has the below details in it:
Conveyance deed serves as an important legal document pertaining to transfer of property rights. Here’s why it’s important:
The conveyance deed establishes the legal ownership of the property and provides a clear record of the transfer of ownership.
The conveyance deed serves as proof that the property has been sold or transferred from the seller to the buyer, and it can be used to settle any disputes that may arise in the future.
The conveyance deed provides protection for the buyer by ensuring that the seller has the legal right to sell the property and that there are no undisclosed liens or encumbrances on the property.
The conveyance deed can be used to enforce property rights in court, such as the right to use and enjoy the property, the right to exclude others from the property, and the right to sell or transfer the property.
The below image addresses conveyance deed format
Conveyance deed format
*Image Source: Allahabad High Court
The property seller usually prepares a conveyance deed with the help of a lawyer. A conveyance deed must be prepared on stamp paper of appropriate value and must be registered with the Sub-Registrar of Assurances under the provisions of the Indian Registration Act, 1908. The preparation and registration of the conveyance deed is usually handled by a lawyer.
The lawyer will then review the sale agreement, title documents, and other relevant information to ensure that the conveyance deed accurately reflects the terms of the transaction and complies with all legal requirements. They will also ensure that all necessary taxes and fees are paid, and that the deed is signed by all parties involved in the transaction.
Follow the steps below to obtain deed of conveyance:
The first step in obtaining a conveyance deed is to verify the title of the property to ensure that the seller has the legal right to sell the property.
Once the title of the property has been verified, a sale agreement is drafted between the buyer and the seller that outlines the terms and conditions of the transaction.
The next step is to pay the stamp duty and registration fees for the conveyance deed.
Once the stamp duty and registration fees have been paid, the conveyance deed is executed by the seller and the buyer in the presence of two witnesses. The deed must be signed by all parties involved in the transaction.
The final step is to register the conveyance deed with the Sub-Registrar of Assurances within four months from the date of execution. The registration process involves submitting the original deed along with the necessary documents and paying the registration fees.
The documents required for conveyance deed are as follows:
|Conveyance Deed||Sale Deed|
|A conveyance deed is used for transferring ownership of property.||A sale deed is used to sell a property in exchange for consideration.|
|Transfer of property is only considered for a limited duration.||Transfer of property is considered permanent.|
|Consideration is not necessary.||Monetary or non-monetary consideration is mandatory.|
|Buyer doesn’t hold the right to sell a property.||Buyer can use and sell the property.|
Step 1: Prepare a cancellation deed with the help of a legal professional to cancel conveyance deed registration.
Step 2: Ensure the cancellation deed has details, such as the names of the parties involved, the date of the original conveyance deed, and the reason for cancellation.
Step 3: The cancellation deed has to be signed by all parties involved and executed according to local legal requirements. This may involve the presence of witnesses or a notary public.
Step 4: Register the cancellation deed of the relevant state government agency. This will typically involve paying a fee and submitting the original document.
Once done, the conveyance deed would be cancelled.
Conveyance deed is extremely important if you are planning to buy a property. However, make sure that the details in the conveyance deed are accurate to avoid any legal hassles in the future. Planning to buy a house? Apply for a Navi Home Loan up to Rs.5 crore in a 100% paperless manner and enjoy instant approval. Download the Navi app.
A conveyance deed is one of the necessary documents you need to submit while applying for a home loan. If you do not own the deed and there is a legal dispute, you might lose the legal battle due to a lack of proof of authority.
To apply for a deemed conveyance deed, one needs the following documents:
-Copy of the agreement between owner and developer concerning the development of the property.
-Copy of building plan approved by the local authority.
-Land documents like municipality records, land revenue etc.
If your original conveyance deed is lost, you need to lodge an FIR in Jurisdictional Police. You can then apply for a duplicate conveyance deed at the sub-registrar’s office.
A conveyance deed is a legal document for which the government intervenes to check if the transaction is legal and collects revenue from the stamp duty paid. The assistance of a lawyer and real estate agent is also important as they know all legal procedures.
You can cancel a conveyance deed registration by preparing a cancellation deed. Make sure that the cancellation deed has to be signed by all parties involved. Once done, you need to register the cancellation deed with the relevant state government agency to complete the process.
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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