If you decide to buy or sell a property, you are required to have various documents. You may be aware of some documents, but many terms might be new to you in the beginning. Today, we have explained everything you need to know about one document, the conveyance deed. Conveyance refers to the transfer of property rights to another, whereas a deed is a written document. Let us understand the concept in depth.
The conveyance deed is an official document used to transfer the title of a property from one person to another as an exchange, gift, lease, mortgage, and so on. A gift deed, mortgage deed, lease deed, or sale deed can also be a conveyance deed.
Conveyance deed refers to a wider term that encompasses any transfer of property ownership in the form of a mortgage, gift, lease, exchange, and so on. to the buyer. Legal documents that transfer ownership via property sale are known as a sale deed. All sale deeds are conveyance deeds, but all conveyance deeds do not include sale deeds. Every deed that transfers rights of property are conveyance deeds, and the sale deed is one of them.
Conveyance deeds should include the following features:
- Defined boundaries of the property
- Power of attorney (if there is any)
- Chain of Title that includes all rights legally granted to the current seller
- The details on how the property will be transferred to the buyer
- A memo describing how property ownership has been received
- Signatures of both parties that imply the buyer and seller
- Other terms and conditions pertaining to the transfer of property
- Things to consider before signing a conveyance deed
- The seller must confirm that the property is not subject to any legal encumbrances.
- In the case of mortgage property, the mortgage must be paid before the deed is signed. Buyers can verify this information at a local sub-registrar’s office.
- The conveyance deed should include the exact date on which the property will be given to the purchaser.
- Within four months of the deed’s signing, all original property documents must be delivered to the local sub-registrar office for deed registration.
- In the event of registration, the conveyance deed must be signed by atleast two witnesses.
The following are the various types of conveyance deeds:
Freehold Property Conveyance Deed: This conveyance document is designed for a property converted into a freehold property by an authority.
Leasehold Property Conveyance deed: The conveyance deed for leasehold property is for leasehold ownership of property. A leasehold property is a type of property where the owner has the right to all things within the property’s walls, but there is a restriction on external walls.
Mortgage Property Conveyance Deed: A mortgage property conveyance deed pertains to the mortgaged property.
As we have discussed, a conveyance deed is a legal document that serves the purpose of purchasing and selling a home. The presence of this document will help you to avoid fraudulent transactions. You should request a copy of your conveyance deed when you are looking to purchase a property.
A conveyance deed is drawn on a non judicial stamp paper of sufficient value. It is then recorded at the nearest sub-registrar’s office. The purchaser must pay post-registration, stamp duty, and registration fees. Every state has its own set of charges for registration and stamp duty costs.
The list of documents required for Conveyance Deed are:
- A registered agreement for the sale of property with the seller
- Mutation entries/Property card
- Survey plan and location plan from the department of revenue
- Layout plot and structure plan that has been approved by the relevant authority
- Certificates like Commencement Certificate, Completion Certificate, Occupancy Certificate (exempted if not present), or architect certificate
- A complete list of owners
- Stamp Duty payment receipt
- A power attorney or a development agreement is required if the seller signs the sale.
- Draft conveyance deed
- Importance of conveyance deed
- In the event of a disagreement, the conveyance deed acts as an evidence
- It is a guarantee that property is free from any disputes
- Acts as proof of land ownership
- Legally transfers ownership rights of the property to the prospective buyer.
If the conveyance deed gets lost due to negligence, you must follow these steps:
- An FIR (First Information Report) must be submitted to the police
- An advertisement about the loss of conveyance deed can be in the newspaper
- Make an affidavit, and have it notarized. The affidavit must contain all property information as well as FIR
- You can also obtain an authentic copy of your deed from a sub-registrar’s office. For this document, you’ll need to pay a fee.
- A sale deed may be a conveyance deed but not vice-versa
- Conveyance deeds are regulated by the Registrations Act and executed on non-judicial stamp paper.
- A conveyance deed needs to be registered with a sub-registrar after it has been signed by both parties
- A conveyance deed has to be signed by atleast two witnesses
In summary, conveyance deeds are legal documents that legally transfer the rights to the purchaser of the property. Acquisition of property will not be complete if a conveyance deed is not prepared. In accordance with the Registrations Act, one must register it with the sub-registrar. It is also mandatory that two witnesses must sign the deed.
Ques- Why conveyance deed is required?
Ans- The conveyance deed is a legal document demonstrating that the property owner has given all the power and title to the purchaser.
Ques- Which are two kinds of conveyance?
Ans- Conveyance could be made through the sale of property or land or as an inheritance or gift.
Ques- Can the conveyance deed be challenged?
Ans- Yes, the conveyance deed can be challenged in a court of law.
Ques- Do you need a conveyance deed to get the home loan?
Ans- Yes, if you’re planning to take a home loan, it is necessary to provide your conveyance deed.
Ques- What is a conveyance certificate?
Ans- It is an official document transferred between a transferor and a transferee. It is composed of ownership rights of the property being transferred.