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 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.
Conveyance deed process involves a use of non-judicial stamp paper. The document will then need to be registered at the Registrar’s office. Post registration, the transfer of property moves to the public domain. The government received the stamp duty and registration fees in the form of revenue.
However, suppose the builder is not alive, the process can be completed by the legal representatives or heirs of the builder. In such cases, you will be required to draft conveyance deeds and apply.
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. But Conveyance deed is a broader term that includes any property ownership transfer in the form of a gift or mortgage in favor 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. Also know more about Home Loans at Finserv MARKETS.
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.
In this case the seller is liable to clear the mortgage loan before the proceedings.
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 then 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.