A Comprehensive Guide to Conveyance Deed

When it comes to real estate transactions, clarity and legal documentation are paramount. One such critical document is the Conveyance Deed. Often overlooked or misunderstood, this deed plays a pivotal role in establishing ownership rights and ensuring a seamless property transfer. Whether you are a first-time homebuyer, an investor, or simply curious about property law, understanding the nuances of a conveyance deed is essential.

What is a Conveyance Deed?

A Conveyance Deed is a legal document that officially transfers the ownership of a property from one party to another. This document acts as proof of ownership and serves as a binding agreement between the buyer and the seller. Once executed and registered, the conveyance deed is final and legally enforceable.

In simple terms, it ensures that the buyer becomes the rightful owner of the property, free from any legal encumbrances or disputes.

Importance of a Conveyance Deed

1. Establishes Ownership: It is the ultimate proof that the buyer legally owns the property.
2. Ensures Legal Clarity: It confirms that the seller has clear and marketable title to transfer.
3. Prevents Future Disputes: A properly executed conveyance deed mitigates the risk of future ownership disputes.
4. Mandatory for Registration: Without a conveyance deed, property registration cannot be completed.
5. Helps in Availing Loans: Financial institutions often require a conveyance deed before approving home or property loans.

Different Types of Conveyance Deed

In India, several types of conveyance deeds are used depending on the nature of the property transaction and the requirements of the parties involved. Here are the common types of conveyance deeds used in India:

1. Sale Deed: A sale deed is the most common type of conveyance deed used to transfer ownership of property from the seller to the buyer for a price. It contains details of the property, sale consideration, and warranties regarding the title.
2. Gift Deed: A gift deed is used to transfer ownership of property as a gift from one person (donor) to another (donee) without any monetary consideration. It requires registration and should be executed voluntarily by the donor.
3. Exchange Deed: When two parties mutually exchange their properties, an exchange deed is used. It involves the transfer of ownership of one property for another, often with a balance of consideration paid if the properties are not of equal value.
4. Partition Deed: Used to divide jointly owned property among co-owners, typically in cases of inheritance or family settlements. It specifies how the property will be divided among the co-owners.
5. Release Deed: When one party relinquishes or releases their share or interest in a property in favour of another party, a release deed is used. It transfers the rights and interests of the releasor to the releasee.
6. Mortgage Deed: When property is offered as security for a loan or mortgage, a mortgage deed is executed. It transfers the property to the lender (mortgagee) with the condition that it will be transferred back to the borrower (mortgagor) once the loan is repaid.
7. Assignment Deed: When the rights and interests in a property are transferred from one person (assignor) to another (assignee), an assignment deed is executed. It typically involves transfer of leasehold rights or certain specific rights in the property.

Key Differences Between Conveyance Deed and Sale Deed

In summary, while both conveyance deed and sale deed facilitate property transfers, a conveyance deed is broader and can include gifts, exchanges, leases, etc., while a sale deed is specific to property sales involving monetary consideration. The governing laws and contents also differ between the two documents. 

What Should Be Included in a Conveyance Deed?

To be valid and enforceable, a conveyance deed must include the following elements:

1. Details of the Parties: Full names, addresses, and identities of the buyer and seller.
2. Description of the Property: Comprehensive details, including area, boundaries, and location.
3. Agreement Terms: Conditions agreed upon by both parties, such as payment details and handover timelines.
4. Transfer Clause: Explicit mention of the transfer of ownership rights.
5. Indemnity Clause: Assurance that the property is free from legal disputes, encumbrances, or claims.
6. Consideration Amount: The agreed-upon sale price.
7. Signature of Parties: Along with the presence of witnesses.
8. Registration Details: Date and place of registration.

Procedure for Obtaining a Conveyance Deed

1. Drafting: A legal expert, typically a lawyer, drafts the conveyance deed.
2. Verification: The draft is reviewed to ensure compliance with legal requirements.
3. Stamp Duty Payment: Applicable stamp duty must be paid as per state regulations.
4. Execution: Both parties sign the deed in the presence of witnesses.
5. Registration: The deed is submitted to the local Sub-Registrar’s office for registration, along with required documents.
6. Document Retention: Post-registration, the buyer retains the registered deed as proof of ownership.

Documents Required for a Conveyance Deed

1. Sale Agreement
2. Title Deed
3. Encumbrance Certificate
4. Identity Proofs of both parties
5. Address Proofs
6. Property Card
7. Stamp Duty Receipt
8. Previous Sale Deeds (if applicable)
9. No Objection Certificates (NOCs)
10. Power of Attorney (if applicable)

What is a Deemed Conveyance Deed?

A Deemed Conveyance Deed comes into play when the builder or developer fails to execute the conveyance deed in favor of a housing society or property owners within a stipulated time. In such cases, the concerned property owners can apply to the competent authority (often the district deputy registrar) to obtain a deemed conveyance deed.

This process ensures that property owners do not face delays or legal issues due to the inaction of the developer. Once approved, the deemed conveyance deed has the same legal standing as a regular conveyance deed and enables the property owners or housing society to have clear ownership rights.