What is a Conveyance Deed?

A Conveyance Deed is a crucial legal document in property transactions, ensuring the official transfer of ownership from one party to another. Whether you're buying or selling a property, having a properly drafted and registered Conveyance Deed is essential to establish legal ownership, prevent disputes, and comply with Indian property laws. This document not only certifies that the property is free from encumbrances but also protects both the buyer and seller from legal complications in the future. In this guide, we will explore the meaning, importance, types, key components, legal framework, and registration process of a Conveyance Deed, helping you understand its significance in property dealings.

Understanding The Meaning Of Conveyance Deed

A legal document acting as evidence and proof of the transfer of ownership of property from one party to another is known as a conveyance deed. A party can execute such a deed when a sale or transfer of immovable property like flats, lands, etc. is about to take place. Such a deed formally transfers the rights and the title of the property to the new owner. The registration fees and payment of stamp duty as per the state laws are required while registering the conveyance deed.

Importance Of A Conveyance Deed

A conveyance deed is essential in property transactions for several reasons:

Establishes Legal Ownership

It serves as conclusive proof of ownership, ensuring that the buyer is recognized as the rightful owner of the property. This protects the buyer from potential claims or disputes regarding the title.

Prevents Future Disputes

By clearly outlining all terms of the transaction—such as property details, payment, and encumbrances—it minimizes misunderstandings or disagreements between parties, reducing the risk of future legal battles.

Compliance with Law

The registration of a conveyance deed is mandated under the Indian Registration Act, 1908. This ensures that the transfer process adheres to statutory requirements, safeguarding the rights of both parties and making the transaction legally valid.

Facilitates Transactions

A registered conveyance deed is often required for subsequent dealings, such as selling the property, securing loans, or leasing. It acts as a critical document for demonstrating clear and marketable titles during financial or legal proceedings.

Uses Of A Conveyance Deed

As you know conveyance deed is required for the buying or selling of property since it is an enforceable contract and binding in nature. It also certifies a property is free from any legal encumbrance. Other uses of a conveyance deed include:

• The deed makes sure a property is directly transferred from a grantor (seller) to the grantee (buyer) without the involvement of middlemen such as banks, other mortgage companies, private lenders, or trustees.
• The deed ensures no party has to pay extra fees for such services.
• The deed helps prevent false claims or activities regarding the land preventing owners from potential threats down the road.
• The deed works as proof of land ownership proof.
• You can produce the conveyance deed in a court if a legal dispute regarding a property owned by you arises in future.

Key Components Of A Conveyance Deed

Key components and clauses of a conveyance deed are as follows -

• Details of Parties - Names and addresses of the buyer and seller.
• Property Description - Clear description of the property, including size, boundaries, and identification numbers.
• Transfer of Title Clause - Confirmation of title transfer from seller to buyer.
• Indemnity Clause - Protects the buyer against disputes or defects in the seller’s title.
• Payment Details - Records the agreed price and payment terms.
• Encumbrance Clause - Confirms the property is free from any liabilities or claims.
• Execution and Registration Details - Outlines signing, witness verification, and registration procedures.

Types Of Conveyance Deed

There are various types of conveyance deeds depending on the nature of the property transfer -

• Sale Deed

The most common type, a sale deed transfers ownership from the seller to the buyer in exchange for a price. It is mandatory to register this deed to make the sale legally valid.

• Gift Deed

Used for voluntary, non-monetary transfer of property out of love or goodwill. Requires acceptance by the recipient and registration for legal enforceability.

• Exchange Deed

Facilitates the swapping of properties between two parties, often without monetary transactions. Applicable stamp duty is based on property values.

• Settlement Deed

The deed is an important legal document used to transfer property between parties or to settle property-related documents. It outlines the terms and conditions of how a property will be settled, conditions for property transfer such as transfer, settlement, or relinquishment.

• Lease Deed

Executed when the property owner transfers usage rights to a lessee for a specified period in exchange for rent. Registration is mandatory for leases exceeding 11 months.

• Will Deed

A party drafts a will deed to bequeath personal property and inheritances to heirs once the party (testator) passes away. The deed contains guidelines regarding distribution and disposal of properties.

• Mortgage Deed

Used to secure loans by creating an interest in the property in favour of the lender. Ownership remains with the borrower, subject to repayment terms. Each type of deed serves specific legal and transactional needs, ensuring clarity and security in property transfers.

What Happens If A Conveyance Deed Is Lost?

If you are in a situation where the conveyance deed gets lost, do the following:

• File an FIR with the police.
• You can also file an advertisement about the lost conveyance deed in the newspaper.
• Draft an affidavit and get it notarized by mentioning all property information and FIR.
• Get a certified copy of the deed from a sub-registrar’s office by paying relevant amount.

Legal Framework For Conveyance Deed In India

The execution and registration of a conveyance deed are governed by the following legal provisions:

Transfer of Property Act, 1882

This act governs the process of transferring property rights in India. It provides a legal framework to ensure the orderly transfer of ownership, outlining:

• Eligibility for Transfer - Both the transferor and transferee must be legally competent.
• Modes of Transfer - Includes sale, gift, exchange, and mortgage.
• Conditions of Transfer - Stipulates that the transfer must be lawful and free from fraudulent intent.
• The act ensures that property rights are transferred transparently and fairly between parties.

Indian Registration Act, 1908

Registration of a conveyance deed is compulsory under this act to make it legally valid and enforceable. Key provisions include -

• Mandatory Registration - Property transactions involving immovable property valued above ₹100 must be registered.
• Jurisdiction - Registration must occur at the Sub-Registrar’s office where the property is located.
• Timeframe - The deed must be presented for registration within four months from the date of execution.
• Effect of Registration - Only a registered conveyance deed is admissible as evidence in court to prove ownership rights.

Indian Stamp Act, 1899

The Stamp Act mandates payment of stamp duty, a form of tax levied on property transactions, making the conveyance deed legally enforceable. Key aspects include -

• Calculation of Duty - Based on the property’s market value or the transaction value, whichever is higher.
• State-Specific Rates - Stamp duty rates vary across states in India, often influenced by property type and location.
• Penalty for Non-Payment - Failure to pay adequate stamp duty renders the deed inadmissible in legal proceedings and attracts penalties.

Legal Procedures For Obtaining Conveyance Deed

Registering a conveyance deed involves drafting the deed with legal assistance, paying stamp duty, and having both parties sign it with witnesses. The deed is then submitted with required documents like title deeds, sale agreements and tax receipts to the Sub-Registrar's office for registration, after which the registered deed is collected as proof of ownership transfer.

Step By Step Process Of Conveyance Deed Registration

Follow these steps to execute a conveyance deed legally -

• Draft the Deed - Engage a legal professional to draft the deed as per applicable laws.
• Payment of Stamp Duty - Calculate and pay stamp duty as per the property's location and market value.
• Execution - Both parties must sign the deed in the presence of witnesses.
• Registration - Submit the deed to the Sub-Registrar’s office with required documents for registration.
• Collect Registered Deed - After verification, obtain the registered deed as proof of ownership transfer.

Documents Required For A Conveyance Deed

To execute a conveyance deed, the following documents are typically needed -

• Title Deeds - Proof of the seller's ownership.
• Sale Agreement - Preceding agreement between the buyer and seller.
• Encumbrance Certificate - Confirms the property is free of legal dues.
• Tax Receipts - Municipal and property tax records.
• Government Approvals - If applicable, e.g., for agricultural land.

Can A Conveyance Deed Be Cancelled?

Yes, there are a number of situations in which a conveyance deed can be cancelled. The most common reason is errors or mistakes present in such a deed. At times parties mention crucial details inaccurately to make sure the deed is valid. If you are in a situation where you wish to get your conveyance deed cancelled, follow these steps:

• Send a legal notice to a person against whom you seek cancellation of the legal notice.
• If there is no satisfactory reply to the legal notice sent, file a suit for cancellation before the court of competent jurisdiction.
• Before delivering a final decision, the court will hear both the parties and examine the evidence.

Sample Format Of A Conveyance Deed

The sample format of a Conveyance Deed is as follows:

CONVEYANCE DEED

THIS DEED OF CONVEYANCE is made and executed at [City], [State] on this the [Date] day of [Month], [Year]

BETWEEN

[Full Name of the Seller/Transferor], [Son/Daughter/Wife of], [Father/Husband's Name], resident of [Full Address of the Seller], hereinafter referred to as "the Seller" or "Transferor" (which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include his/her heirs, executors, administrators, legal representatives, and assigns) of the ONE PART;

AND

[Full Name of the Buyer/Transferee], [Son/Daughter/Wife of], [Father/Husband's Name], resident of [Full Address of the Buyer], hereinafter referred to as "the Buyer" or "Transferee" (which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include his/her heirs, executors, administrators, legal representatives, and assigns) of the OTHER PART.

WHEREAS:

• The Seller is the absolute and lawful owner of the immovable property described in the Schedule hereunder written and is in possession of the same.
• The Seller is competent to sell and convey the said property.
• The Buyer has agreed to purchase the said property from the Seller for the consideration hereinafter appearing.

NOW, THIS DEED WITNESSETH AS FOLLOWS:

1. In consideration of the sum of Rupees [Amount in words and figures] (Rs. [Amount]) paid by the Buyer to the Seller (the receipt whereof the Seller hereby acknowledges and hereby releases and discharges the Buyer from all further claims thereof), the Seller hereby sells, conveys, transfers, and assigns all his/her right, title, interest, and ownership in the property described in the Schedule hereunder written, unto and to the use of the Buyer, free from all encumbrances.
2. The Seller hereby assures the Buyer that the said property is free from all encumbrances, charges, mortgages, liens, or claims whatsoever.
3. The Seller hereby covenants with the Buyer that he/she has good right, full power, and absolute authority to sell and convey the said property.
4. The Seller shall execute and do all such further acts, deeds, things, and assurances as may be reasonably required to further effectuate the sale and transfer of the said property to the Buyer.
5. The Buyer shall bear all expenses relating to the execution and registration of this deed, including stamp duty and registration fees.

IN WITNESS WHEREOF, the parties hereto have hereunto set their respective hands the day and year first above written.

SCHEDULE OF THE PROPERTY

(Description of the property being sold, including its municipal number, survey number, boundaries, area, and any other relevant details to clearly identify the property. It's crucial to be as detailed and accurate as possible. Attach maps or site plans if necessary.)

WITNESSES:

1. [Full Name, Address, and Signature of Witness 1]
2. [Full Name, Address, and Signature of Witness 2]

SELLERS:

[Signature of Seller]
[Full Name of Seller]

BUYER:

[Signature of Buyer]
[Full Name of Buyer]

Common Mistakes To Avoid While Drafting A Conveyance Deed

• Incomplete Property Description - Ensure all details, including survey numbers and boundaries, are accurately mentioned.
• Lack of Indemnity Clauses - This exposes the buyer to potential disputes.
• Non-Payment of Stamp Duty - Delays registration and may attract penalties.
• Ignoring Encumbrance Verification - Risks purchasing a property with existing legal claims.
• Skipping Professional Review - Errors in drafting can lead to future litigation.

Difference Between a Deed Of Conveyance And a Deed Of Sale

​The difference between a deed of conveyance and a deed of sale are as follows:

FAQs

A few FAQs based on Conveyance Deed are as follows:

Q1. How is a Conveyance Deed different from an agreement to sell?

A Conveyance Deed is the final, legally binding document that transfers ownership of property from the seller to the buyer. It is executed after all conditions in the agreement to sell have been fulfilled.

An Agreement to Sell, on the other hand, is a preliminary document that outlines the terms and conditions of the property transaction. It does not transfer ownership but sets the groundwork for executing a conveyance deed.

Q2. What are the types of properties for which a conveyance deed is required?

A conveyance deed is required for various types of properties, including -

• Residential Properties - Flats, apartments, houses, or villas.
• Commercial Properties - Shops, offices, or industrial units.
• Agricultural Land - Farms or plots used for cultivation.
• Leasehold Properties - For transferring leasehold rights.

Q3. What if a conveyance deed is not done?

If a conveyance deed is not done, one may be unable to enforce their rights as a property owner. It may become difficult to sell such a property in the market in the future. One may even need to go to court if their property is encroached by someone.

Q4. Who pays for conveyance deed?

Each state has different registration fees for getting a conveyance deed done. One needs to pay a stamp duty online or at authorised bank to get this deed.

Q5. What is the validity of conveyance deed?

A conveyance deed is valid if it is properly executed and registered. Once relevant steps are followed, the document is ready to serve as primary ownership of any property.

Q6. What is the alternative to a conveyance deed?

There is no direct alternative of a conveyance deed for a sale transaction. However, depending on the situation documents such as sale agreement, gift deed or will can be used.

Q7. Can a conveyance deed be challenged in court?

Yes, such a deed can be challenged in courts in certain situations. These instances can be fraud or misrepresentation, coercion or undue influence, title defect, etc.

Q8. Is conveyance deed proof of ownership?

Yes. Once a conveyance deed gets registered, it becomes a strong proof of property ownership.