What is conveyance deed?

 When buying a house, you must have come across the term Conveyance Deed. The deed comprises several elements which bind it legally before the law and serves as proof in case of any future conflict. But do you know what it means and why it is important in real estate? Key of Dream answers the questions.

In the wake of an increasing number of fraudulent confiscations and property transfers reported in the past, it is essential to have a conveyance deed that lawfully safeguards your rights. But before we define a conveyance deed, let us understand the terms: 'deed' and 'conveyance'.

A deed is a legal document written, sealed and delivered by the parties (buyer and seller) involved in a contract. The document contains legally valid terms enforceable in a court of law. Hence, a deed must be in writing and signed by both the parties involved.
There are different types of deeds, such as conveyance deed, gift deed, trust deed, mortgage deed, hypothecation deed, release deed, partnership deed, lease deed and partition deed.

What is a conveyance deed?
Conveyance is the process where the owner of an asset transfers the ownership rights to another person against a valid consideration (except for "gifts", where the only consideration is love and affection). With respect to immovable property, a conveyance deed is a legal document that protects the rights of a property owner. It can be referred to as a contractual document that is sealed and signed by all the parties involved in the property transaction and comprises bye-laws that are enforceable in the court of law.

A deed is a legal document written, sealed and delivered by the parties (buyer and seller) involved in a contract. The document contains legally valid terms enforceable in a court of law. Hence, a deed must be in writing and signed by both the parties involved.

There are different types of deeds, such as conveyance deed, gift deed, trust deed, mortgage deed, hypothecation deed, release deed, partnership deed, lease deed and partition deed.

What is a conveyance deed?
Conveyance is the process where the owner of an asset transfers the ownership rights to another person against a valid consideration (except for "gifts", where the only consideration is love and affection). With respect to immovable property, a conveyance deed is a legal document that protects the rights of a property owner. It can be referred to as a contractual document that is sealed and signed by all the parties involved in the property transaction and comprises bye-laws that are enforceable in the court of law.

Elements of a conveyance deed
Written document
To qualify as a 'deed', the contract should be in writing. Oral agreements will not be considered valid before the law.

Property demarcation
The deed entails proper demarcation of the property under question. An accurate distinction should be mentioned to avoid disputes, such as encroachment by others.

Transfer
The deed should explicitly state the transfer of property from one person to another. It should include the names of the seller and buyer, their address proofs and identity proofs. In case there is more than one owner, their names should also be mentioned in the document.

Signatures
All the parties involved in the property transfer should duly sign the deed. Upon signing the deed, the original owner transfers the legal rights, ownership and authority of the property to the new owner. Two witnesses should also sign it, and the deed should comprise their details as well. The witnesses should sign the deed in the presence of a notary.

Legal encumbrances
The deed should explicitly incorporate that the property is free from legal encumbrances. If there is a loan or mortgage against the property, it should be cleared before the transfer.

Registration
The deed is drafted on a non-judicial stamp paper and should be registered with the local registrar within four months of the transaction, followed by a small fee amount.

What are the documents required for executing a conveyance deed?
Registered sale agreement with the seller
Changes in the property card/mutation entries
Revenue department location plan and survey plan
Approved layout plot plan and structure plan
List of owners
Payment receipt for stamp duty
If a seller executes the deal, power of attorney or development agreement is imperative
A draft copy of the conveyance deed
Other documents include Commencement Certificate, Completion Certificate, and Occupancy Certificate (exempted if not available)
Importance of conveyance deed
In case of any dispute, the conveyance deed serves as evidence
Acts as proof of land ownership
Legally transfers the property rights to the buyer
Once the conveyance deed is executed on a non-judicial stamp paper of the applicable value, it must be registered at the sub registrar's office after paying a registration fee. After the registration, the transfer comes into the public domain, and the conveyance process is completed.

Frequently Asked Questions:

How are sale deeds and conveyance deeds different?
In conveyance deeds, the transferor and transferee sign the legal documents. After a conveyance deed is executed and registered, the transferee becomes the owner. But sale deeds are used to record the purchase and sale of a property. A sale deed is always a conveyance deed, but the reverse is invalid.

Is it possible to challenge a conveyance deed?
A conveyance deed can be challenged and cancelled if it was formed with fraud or misrepresentation of information.

Comments

Post a Comment

Popular posts from this blog

What if your builder is declared insolvent?

With the recent spate of builders filing for bankruptcy in most metro cities, buyers have been left in a turmoil about the status of their under-construction homes. It becomes crucial to know the recourses homebuyers have access to if their builder goes insolvent. Check them out in the article below! A buyer’s worst nightmare is having his builder go bankrupt. Such an event can bring the construction of his property to a standstill, putting his investment at significant risk. What is scarier is that as per the provisions of the Insolvency and Bankruptcy Code, 2016, buyers may be at the losing end in such a scenario, especially if the builder owes massive debts to creditors such as banks and other financial institutions. What is insolvency? Insolvency refers to a situation when a company or an individual cannot meet its financial obligations to its creditors or lenders. A builder may file for insolvency when he is unable to clear his debts once they become due. In order to be declared i...
Read more

Buyer Guide: When to Buy? Role of CIBIL

In order to understand a CIBIL or CIBIL TransUnion score, it is essential to know what CIBIL is. Credit Information Bureau India Limited (CIBIL) is the first credit information company founded in India. It records and maintains credit details of individuals. These include details such as payment records of loans and credit card bills received from member banks and financial institutions. This information is then used to create Credit Information Records (CIR) and credit scores. This is shared with all the banks and financial institutions for evaluation and sanctioning of different types of loans.   CIBIL score and its calculation In the last five years or so, the Indian financial market has become quite stringent. Therefore, it is essential to maintain a healthy CIBIL credit score. Your CIBIL credit score is generated basis the CIR created and is used for evaluating your eligibility for any kind of borrowing. A CIR is an individual's credit payment history across loan types and cre...
Read more

Key factors encouraging investment in Indirapuram, Ghaziabad

  Witnessing tremendous growth in the last decade, Indirapuram has come a long way in terms of infrastructure, civic amenities, and housing demand. The area boasts of an ample supply of ready homes and has emerged as one of the sought-after localities in Ghaziabad. Check out the key growth stimulators that continue to encourage investment in Indirapuram! About seven to eight years ago, the residential societies in Indirapuram  had a few takers since the infrastructure was still in the developing phase. Moreover, the distance from the central parts of Delhi was also a concern for prospective homebuyers. Yet, over a period of time, the fortunes of this area have changed. With the rapid development of infrastructure and improved connectivity, Indirapuram has become one of the fastest-growing areas in Delhi NCR. The area is especially popular with end-users working in different parts of Noida. A residential and rental hotspot Indirapuram has emerged as a self-sufficient area with ...
Read more