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What is Conveyance Deed and why it is an important document?


In property transactions, one would invariably hear the term ‘conveyance deed’. Since this is not something one would have a clear understanding of, unless one has dealt with matters of property, it becomes important to get clarity on this term, something we attempt to explore in this article.

‘Conveyance’ refers to the act of transferring the title, ownership, rights and interests in a property, from one entity to another. The term ‘deed’ refers to an instrument, like a written document that is signed by all the parties to a contract, in this case, the seller and buyer. It is a binding contract that is enforceable in a court of law. A conveyance deed is, therefore, a contract in which, the seller transfers all rights to  the legal owner. The purchase of a property is not complete without a valid conveyance deed.

 

Meaning of conveyance deed

The terms conveyance deed and sale deed are often used interchangeably and while they refer to the same contract, there is a subtle difference between the two. All sales deeds are conveyance deeds but conveyance deeds can also include gift, exchange, mortgage and lease deeds.

It is important to note the difference between an agreement for sale and a sale/conveyance deed. An agreement for sale contains a promise to transfer a property in question in future, on satisfaction of certain terms and conditions. An agreement for sale does not, in itself, create any interest in or charge on a property. Therefore, the sale of a property is not complete without a conveyance deed.

 

Contents of conveyance deed

  1. The actual demarcation of the property.
  2. Other rights annexed to the property and its use.
  3. The full chain of titles, that is, all legal rights up to the present seller.
  4. The method of delivery of the property to the buyer.
  5. A memo of the consideration, stating how it has been received.
  6. Any further applicable terms and conditions for the full transfer of ownership rights.
  7. Power of attorney, if used.
  8. Memo about the property ownership.
  9. Signatures of both parties.

See also: Real estate sale deed: Terms and conditions that home buyers should be aware of

 

Important things about conveyance deed

  1. The seller is required to certify that the property is free of any legal encumbrance.
  2. If a loan was taken against the property in question, then, the mortgage must be cleared before the deed is signed. Buyers have the option of having this checked at the local sub-registrar’s office.
  3. The conveyance deed should state the exact date on which the property will be handed over to the buyer.
  4. Within four months of the execution of the deed, all the original documents related to the sale of the property, need to be produced for registration before the local registrar.
  5. The deed is required to be signed by at least two witnesses.

 

Types of conveyance deeds

There are three types of conveyance deeds:

Deed of conveyance of freehold property: A property can be converted into freehold status by the concerned authority, such as the Delhi Development Authority (DDA) or any state authority. The conveyance deed is given to the owner as a final document.

Deed of conveyance of leasehold property: The leasehold ownership of a property means the owner has the right to everything within the four walls of the property but it does not include the external or structural walls. The landlord is the owner of the structure, the common areas of the building and the land it is built upon.

Deed of conveyance subject to mortgage: In this case, subject to the said mortgage the purchaser can, from time to time, enter into and possess or enjoy the land in question and its premises.

 

Sample format of a conveyance deed

 

Procedure for obtaining conveyance deed

The Conveyance Deed is executed on non-judicial stamp paper and registered by presenting it at the nearest Registrar’s office. Once the registration is done, the Stamp Duty and Registration Fee have to be paid. The Stamp Duty and registry charges are different state-wise.

 

Documents required for conveyance deed

  • Registered Agreement for sale entered into with the seller.
  • Mutation entries/ Property card.
  • Location plan.
  • City survey plan or survey plan from the revenue department.
  • Layout Plot plan approved by the local authority.
  • Architect certificate about the entitlement of undivided interest in the entire Layout Plot, common areas and the facilities by each of the entity or the structure constructed or to be constructed on such Layout Plot.
  • Certificate under Urban Land Ceiling Act, 1976.’
  • Building/ Structure Plan approved by the appropriate authority.
  • Commencement Certificate.
  • Completion Certificate.
  • Occupancy Certificate (exempted if not available).
  • List of owners.
  • Proof of payment of Stamp Duty.
  • Proof of Registration.
  • Development agreement or power of attorney or agreement for sale, if executed by the seller.
  • Draft conveyance deed / Declaration proposed to be executed in favour of the applicant.

 

Differences between an agreement to sell and conveyance deed

Since a registered agreement to sell initiates the process of property transaction, it could fall under the broad category of being a conveyance deed. However, it should not be confused with the sale deed, which ultimately acts as the proof of the completion of the transaction that was initiated through the execution of the agreement to sell.

 

Difference between conveyance deed and sale deed

Any legal document that acts as a legal proof of transfer of property rights, fall in the broad category of conveyance deeds. That way, a sale deed is also a conveyance deed. Other property transfer documents that fall under the category of conveyance deed include gift deed, exchange deed, relinquishment deed, etc. This also means that while all sale deeds are conveyance deeds, not all conveyance deeds are sale deeds.

 

What if the conveyance deed is lost?

If the conveyance deed is lost due to negligence of the banker, then, it is important to take the following steps:

  • The owner should file a police complaint as early as possible. Keep a copy of the first information report (FIR) securely, as home buyers may ask for it at the time of sale.
  • You can post an advertisement in a newspaper about the loss of the documents. You may have to wait till a specified time of about 15 days, to know if someone finds and returns the documents within the period.
  • One can prepare an affidavit and get the same notarised. It should include all the property details, FIR details and information about the notified newspaper ad.
  • You can get a legally certified copy of the conveyance deed from the sub-registrar’s office, where the property was registered. You will need to pay the specified charges and provide the relevant documents.

 

Key points to remember

All sale deeds are conveyance deeds but the converse is not true.
Conveyance deeds are governed under the Registration Act and executed on non-judicial stamp paper.
Once the conveyance deed is signed, it has to be registered at the local sub-registrar’s office, by paying the registration fee.
Details in a conveyance deed include names of the buyer and the seller, their addresses, demarcation of the property, title details, method of delivery of property, etc. 
The conveyance deed must  be signed by at least two witnesses with all their details included. 

Note: A conveyance deed, executed on a non-judicial stamp paper, must be registered. Once this is done, upon payment of the requisite fees, it is transferred in the public domain. The government receives its revenue in the form of stamp duty and registration charges.

 

Latest updates

Maharashtra starts a drive for conveyance deed

Over 30,000 housing societies in Mumbai and over a lakh in Maharashtra do not have conveyance deeds. In 2012, the state government brought in the concept of ‘deemed conveyance;, where a society could bypass the builder who fails to execute the conveyance deed and get it from the registrar.

In January 2021, the state government started a drive to help such housing societies. However, experts have pointed out the inefficacy of the drive. They say that while it is mandatory for the builder to transfer the land and the building to the society within four months of completion of the project, the builders’ failures have been ignored and home owners have been made responsible.

 

FAQs

What is Conveyance Deed?

A conveyance deed is a contract in which, the seller transfers all rights to the legal owner. The purchase of a property is not complete without a valid conveyance deed.

What is the difference between Conveyance Deed and Sale Deed?

The terms conveyance deed and sale deed are often used interchangeably and while they refer to the same contract, there is a subtle difference between the two. All sales deeds are conveyance deeds but conveyance deeds can also include gift, exchange, mortgage and lease deeds.

Can Conveyance Deed be cancelled?

According to Sections 31 to 33 of the Specific Relief Act, 1963, cancellation is possible when and if an individual feels that the deed is voidable or has a doubt that such a deed will cause him injury if left outstanding. If the deed was registered according to the laws prescribed in the Indian Registration Act, 1908 the cancellation may be executed by mutual consent of all parties.

(With inputs from Sneha Sharon Mammen and Sunita Mishra)

 

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