Conveyance deed is one of the most crucial legal documents through which the seller asserts the wilful transfer of ownership of a property to the buyer. The sale and purchase of a property concludes only with a conveyance deed.
If necessary, the conveyance deed can be produced before a court in the form of evidence during a property-related dispute. Other than the buying or sale of property, conveyance deeds also include property gift, lease, mortgage, relinquishment, and such other transfers.
Therefore you need a conveyance deed primarily because it works as an evidence during a legal dispute and as it acts as a land ownership proof. Besides, the deed certifies that the concerned property is not part of a dispute.
Below are the elements that should present in the legal document:
The property’s demarcation should be clearly mentioned so as to avoid any ownership dispute.
Information of both, the buyer as well as the seller should be present along with their address
The signature of both the parties should also be present in the document.
All the terms and conditions regarding the property transfer should be mentioned.
The sale agreement, chain of title and any other applicable transfer of ownership rights.
To get a conveyance deed, you will need to follow the below-mentioned steps:
Note that each state charges a different amount as stamp duty and registration fees.
You will need to submit the following documents to get a Conveyance Deed made:
Registered agreement for the sale of property
Property card/mutation entries
Location plan and a survey plan from the concerned revenue department
The relevant plot plan and structure plans that have been approved by the appropriate authority
Certificates like the Commencement Certificate, Completion Certificate, Occupancy Certificate (if available) and the Architect Certificate.
List of owners
Payment receipt of the stamp duty
Power of attorney or development agreements (if the seller executes the deal), and;
Draft of the conveyance deed
Three types of conveyance deeds exist, namely:
Conveyance Deed for Leasehold Properties: The leasehold ownership of a property means that the owner has the rights to everything within the confines of the four walls of the property. The rights to everything outside of it, such as the land it stands on and the common building areas, or the outside structure, on the other hand, stay with the previous owners.
Conveyance Deed for Freehold Properties: Freehold ownership, unlike in the case of leasehold properties, means that the owner has the right to every part of the property, including the land it is on. The owner is free to do whatever he or she pleases with it, as long as it is done in accordance with the guidelines laid out by the local regulatory authorities.
Conveyance Deed Subject to Mortgage: If the property has been mortgaged, the buyer can enter it and take possession from time to time and enjoy the rights to its premises.
A closely related term to Conveyance deed is Sales deed. Both the legal documents affirm sale and transfer of ownership of the property from the seller.
Conveyance deed is a broader term that includes any property ownership transfer in the form of a gift or mortgage in favour of the buyer. Sales deed on the contrary, is a legal document to transfer ownership through property sale.
All sale deeds are conveyance deeds but not all conveyance deeds are sale deeds. In essence, all deeds that are used to transfer property rights are conveyance deeds but sale deeds is just one among them.
While transfer of interest forms the integral part in a sales deed, conveyance deed includes sale deed and every other deed involved in transfer of property rights.
In a scenario where the Conveyance Deed is lost or misplaced, you must take the following steps:
File a police complaint as soon as possible and keep the First Information Report (FIR) safely with you. The buyer may ask for it at the time of the sale.
Post an advertisement in a newspaper regarding the lost document. Note that you may have to wait for about 15 days to know its whereabouts.
Prepare an affidavit and get it notarised. It must include the property details, the information related to the FIR and even the newspaper ad.
Alternatively, you can get a certified copy of the deed from the relevant local sub-registrar’s office. Note that you will have to pay the charges specified and submit the required documents to get them.
Conveyance deed is an important document that every buyer must acquire from the seller during any real estate transaction. The buyers must understand that conveyance deed acts as a concluding statement in any property-related disputes, therefore one must take charge of conveyance deed during the transaction. In case, you are purchasing a residential property, you can apply for a home loan before the acquisition of conveyance deed. Bajaj Markets is an online platform that has partners who offer housing loans online at minimal interest rates.
Conveyance Deeds state that the ownership of the property, in its entirety, has been transferred to the new buyer. It also essentially protects the buyers from any other third-party that may try to make any kind of fraudulent claims over the property.
Typically, lawyers draw up a Conveyance Deed. In some cases, a lawyer may need the help of the real estate agent that facilitated the transaction too. After that, the drafted deed is registered at the relevant local sub-registrar’s office along with the registration amount.
The absence of Conveyance deeds would mean that you don't have any proof that the property is disputed or not. Conveyance deed is a legal document, which can act as proof during a property dispute in court. Besides, without the deed you won’t be recognised as the rightful owner of the property.
Another downside of not having a Conveyance deed is that your property won’t be registered in the government records. So there is a good chance that you may have to seek approval from the earlier owner of the property if you decide you want to renovate your property because according to law, he will remain as the original owner of the property.
Deemed conveyance comes into picture when the builder or land owner refuses to hand over the conveyance certificate. In such a situation, the housing society members have to present their case to the designated authority. The concerned authority would pass the order of conveyance as a remedial measure.
The deed is used when a buyer expresses the desire to buy a property. If the seller is in agreement with both the parties then an agreement has to be signed which is called conveyance deed. The deed is prepared based on the mutual terms and conditions of the buyer and the seller.
Yes, you need a couple of witnesses to sign the deed. The most important document that a buyer and seller should be in possession of is a Conveyance deed, since this document works as a land ownership proof. It is used to transfer property from one person to another as a gift, an exchange, a lease, a mortgage, etc.
Yes, Conveyance deed is necessary for availing for Housing Loan.