What is a Conveyance Deed?

A conveyance deed is a legal document that transfers the ownership of real estate, such as a house, apartment, building, or land, from one party (seller) to another party (buyer). The deed includes details about the parties involved, the signature of both parties, the amount paid for the property, terms and conditions agreed upon by parties and more.

The importance of a conveyance deed cannot be overstated, with it serving many purposes such as: -

• Being a primary legal document of ownership transfer, the deed can be used as irrefutable proof in court in case of dispute.
• If you ever decide to resell, refinance, or use the property as collateral in future, a registered deed is essential.
• Having a deed safeguards you from future claims on the property by the seller or a third party.
• A registered deed may also be required for tax purposes, such as calculating property taxes or capital gain taxes.

The Difference between a Conveyance Deed and a Sales Deed

A conveyance deed is often confused with a sales deed. Although, both these deeds are referred to as documents that transfer ownership from one party to another, there are some differences between them.

The key difference between a sale deed and a conveyance deed is that a conveyance deed is a broader term that encompasses property transfer in the form of a mortgage, gift, exchange, lease, etc. On the other hand, a sales deed only applies to the transfer of ownership through a property sale. For instance, when you look for land for sale in Perambur, you'll likely encounter sales deeds used to finalize ownership upon purchase.

Essentially, every sale deed qualifies as a conveyance deed, but not all conveyance deeds are sales deeds.

Suggested Read:

  Sale Deed - Meaning, Format & Registration Process

Suggested Read:

Sale Deed - Meaning, Format & Registration Process

Types of Conveyance Deed

Here are the different types of Coveyance deeds:

1. Freehold deed

   This deed provides the buyer with complete rights and authority over the property. Once the transaction is complete, the seller provides this deed as a final legal document, establishing the buyer’s total ownership.

2. Leasehold property deed

   Unlike a freehold property deed, a leasehold conveyance property deed transfers ownership of a property for a fixed period, typically for apartments or buildings on leased land. The buyer owns the structures on the property but not the land itself.

3. Mortgage deed

   For properties on a mortgage, a mortgage deed is used. In this deed, the mortgaged property is transferred to a new owner while still on mortgage. However, it comes without permanent property rights and limited access to facilities and premises.

4. Relinquish deed

   This deed is used when someone voluntarily surrenders their ownership rights in a property. This could be due to various reasons like returning ownership to the original owner or transferring rights to another party. A relinquished deed is often used when in inherited property with multiple claimants and one of them decides to renounce their claims and rights on the property.

5. Gift deed

   This deed transfers ownership of a property from one person to another as a gift. No transaction or monetary exchange is involved in this type of deed and it can occur between family members, friends, or other individuals or entities.

Procedure for Obtaining a Conveyance Deed

The process for obtaining a conveyance deed includes: -

1. Verification of Property Title

   Ensure that the seller has the legal right to transfer the property. Also, make sure to verify the property title to ensure that there are no outstanding debts or legal issues.

2. Drafting of Sale Agreement

   After verifying the property title, draft a sale agreement outlining the terms and conditions of the transaction.

3. Payment of Stamp Duty and Registration Fees

   The next step is to pay the stamp duty and registration cost for the conveyance deed. These conveyance deed costs can differ in different states of India.

4. Execution of the Deed

   After paying stamp duty and registration fees, both parties need to sign the deed in the presence of two witnesses. Before signing, ensure the deed’s format is correct to avoid any discrepancies in the future.

5. Registration of Conveyance Deed

   Lastly, you must register the conveyance deed with the Sub-Registrar of Assurances within four months from the date of execution. You would also need to attach some essential documents with the deed.

Documents Required for Conveyance Deed

To obtain a conveyance deed, the following documents are typically required: -

• Sale agreement of property
• Structure plan and layout plan of the plot (approved by relevant authority)
• Location plan and survey plan from the revenue department
• Mutation entries/ Property card
• A list of all previous owners
• Certificates such as Completion Certificate, Commencement Certificate, architect certificate, and Occupancy Certificate (exempted if not available)
• Power of attorney or development agreement (only required if the seller executes the deal)
• Stamp duty registration (if not available, a receipt of stamp duty fees is also accepted)
• A draft of the conveyance deed.

Overall, a conveyance deed is a very crucial legal document, without which a property purchase is considered incomplete. Since, a conveyance document is not something many people are familiar with, unless they have dealt with some property-related concerns, it’s advisable to get these documents drafted by an expert lawyer.

If you are someone looking for a property for sale in Chennai with an investment-friendly budget, good location and security features, then look no further than Ashok Nandavanam. With over 4 decades of experience in real estate, we are an esteemed name in India, offering both residential and commercial plots.