Types, Importance, and Process of Conveyance Deed

• A conveyance deed is a legal contract that establishes the transfer of property ownership from the seller to you, the buyer.
• It is an important document valid in a court of law and can serve as evidence in legal disputes.
• Registration of a conveyance deed requires you to pay a stamp duty that varies according to the state of registration and registration fees.
• It is essential to get your deed registered with the Sub-registrar of Assurances within 4 months of transfer execution.

Buying a property may give you a good feeling, but it comes with loads of paperwork. One of the most important papers, a conveyance deed , is a mandatory legal document required during the sale and purchase of a property. Its usefulness goes beyond just buying and selling to property gifting, leasing, mortgaging, and more.In this blog, let's examine the details of conveyance deed , its types, processes, and the documents required for obtaining it.

If you are searching for ‘ conveyance deed meaning ’, you have landed at the right place. In most simple terms, it is a legal contract establishing property ownership transfer from the seller to the buyer.Since it is valid in a court of law, it can be submitted as evidence in case a legal dispute arises.

While this deed may seem to be only a legal document asserting your right over a bought property, it is much more important for the following reasons:

• It affirms the transfer of property rights to you upon purchase.
• It certifies the dispute-free nature of the property you bought.
• It provides legal evidence in case of a dispute requiring the court’s intervention.
• It can be used as land ownership proof for various purposes.

Also Read: What Is a Sale Deed and Why Is It Important in Home Loans?

Based on the type of property and nature of the transaction, various kinds of conveyance deeds are:

Freehold property deed

It gives you (the buyer) full ownership and rights to the property forever by the seller. It is the final legal document handed over after a complete transaction.

Leasehold property deed

This deed will give you the rights to the building on the property in question, but not the land on which it is built. Unlike freehold property, leasehold property is held by you for a predetermined time and hence offers limited ownership. After the lease is over, the property’s ownership reverts to the seller or landlord.

Relinquish deed

It is related to the transfer of ownership in the case of inherited property. It is needed when other co-owners of an inherited property surrender their rights on the property and agree to transfer their ownership to you (co-owner) in good faith.

Gift deed

It is related to the transfer of ownership in the case of property gifting from any person to you without any other transaction. It occurs between friends, family members, or other entities or individuals.

Mortgaged property deed

If you purchase a mortgaged property, you will receive this deed. It gives you the right to enter and live on the mortgaged property from time to time, but not permanently.Want to calculate your loan amount for your current property or rental income from the property? Click here to use our mortgage calculator .

The key components of this deed are:

• Names, addresses, and other details of old and new owners.
• Property details including exact boundaries.
• Registered sale agreement of the property.
• Existing encumbrances on the property, if any.
• Any guarantees made by the seller on the property.
• Total transaction value.
• Terms and conditions of property transfer, including delivery and receiving details.
• Previous ownership details, if any.

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You need to follow the below steps to register your conveyance deed :

Title Verification

The first step in getting a deed is to verify the title to ensure that the seller has the legal right to sell the property to you. This is a cumbersome process and you can opt for a legal professional to ascertain the trueness of title deeds with no disputes and no encumbrances on the property.

Sale Agreement

After the title is cleared, you can draft the sale agreement with the seller to finalise the terms and conditions of the sale process. Be precise while drafting it, as it forms the foundation of your conveyance deed .

Stamp Duty and Registration Fees

The next step is paying the stamp duty and registration fees due to the government. Paying the stamp duty leads to your documents being stamped and made legally valid, whereas paying the registration charge gets the property registered in your name.In most states in India, 5% to 7% of the property's total market value is charged as stamp duty based on several factors, like the property value, type, location, and purpose of the transaction, while 1% (fixed) is charged as a registration fee.Want to know the stamp duty and registration charges in various states of India? Click here!

Execution

In this step, both parties need to sign the deed along with two witnesses to formalise the transfer of ownership to your name.

Registration

In the last step, you register the deed with the sub-registrar of assurances. This must be done no later than 4 months of execution with the required documents.

You will be required to submit the following documents for registration of your deed:

• Sale agreement of property.
• Duly filled in Form 7.
• Location plan and survey plan from the revenue department.
• Approved structure plan and layout plan of the plot.
• Mutation entries/ Property card.
• Completion certificate, commencement certificate, architect certificate, and occupancy certificate (exempted if not available).
• Power of attorney, if required.
• Stamp duty receipt.

Also read: Non-Encumbrance Certificate: What It Is and Why Is It Important for Every Homeowner?

A sale deed, a closely related term to a conveyance deed , often causes confusion for the buyers. Both are legal documents confirming the transfer of property ownership, but differ in the following aspects:

Please note that a sale agreement is different from a sale deed.

You can cancel a conveyance deed only if the seller agrees in case of inaccurate property description, names of the parties, or other key details. You need to follow these steps to cancel a deed:

• Draft a cancellation deed with the help of a legal professional to cancel deed registration.
• Ensure the deed draft has details, such as the names of the parties involved, the date of the original deed, and the valid cancellation reason.
• Ensure it is signed by all parties involved and executed according to the state’s legal requirements like the presence of witnesses or a notary public.
• Register the cancellation deed with the government authority by paying a fee and submitting the original document.

Without a doubt, a conveyance deed plays an important role in the transfer or ownership of property. It is the ultimate evidence of your property rights and can be used during legal disputes as well as for guarantee purposes. You should be aware of the various documents required for its registration and the government fees, such as stamp duty and registration fees, levied for its registration. It should be registered as soon as possible after the transfer transaction. Make sure that the sales agreement, an important component of this deed, is factually correct in all respects and complies with your decided terms and conditions.