Conveyance Deed vs Registry

When referring to real estate transactions in India, there are two terms that come up often: "Conveyance Deed" and "Registry." They are often used interchangeably in casual conversation, but they refer to two different legal stages of transferring ownership of property that are related. Both buyers and sellers should understand the distinction between the two in order to make a legally proper and secure transaction.

This article delves into the intricacies of each, highlighting their individual significance and the legal framework governing them, with references to relevant Indian Acts and Sections.

Conveyance Deed

The Conveyance Document, also referred to as the Sale Deed, Title Deed, or Deed of Transfer, is the key legal document that transfers ownership of real property from the seller (transferor) to a buyer (transferee). It is a written agreement that explicitly sets out all the terms and conditions the parties have agreed to in respect to the sale or transfer of the specified property.

Key Aspects of Conveyance Deed

• Transfer of Ownership: The primary purpose of this deed is to legally convey the transfer from the Seller to the Buyer of all rights, title, and interest in the property referred to in the Recitals. Section 54 of the Transfer of Property Act, 1882 states that for tangible immovable property with a value of one hundred rupees and upwards, such transfer can only be made by a registered instrument (the Conveyance Deed).
• Detailed Property Description: The deed includes a detailed description of the property, including the physical address of the property, survey numbers, boundaries, the area of the property, and any attached rights or features, which is referred to as appurtenances (attached rights or features). The process ensures a clear identification of the property being conveyed.
• Parties Involved: It clearly identifies the seller and the buyer, including their names, addresses, and other relevant details.
• Consideration (Sale Price): In case of a sale, the deed explicitly states the agreed-upon sale price and the mode of payment.
• Terms and Conditions: It explains all of the terms and conditions that have been agreed to for the transfer, including possession date, on any agreed covenants or warranties, and any associated rights to be transferred (e.g., easements).
• Chain of Title: A conveyance deed mentions the lineage of ownership of the property and the landmark pointing to the current seller.
• Execution and Attestation: The deed must be signed in the presence of two witnesses, and by both the seller and the buyer, or their duly authorized representatives. These requirements are set out in Section 53 of the Transfer of Property Act, 1882, and the requirements of the Registration Act of 1908, which also govern execution and attestation.
• Stamp Duty and Registration: In order for the conveyance deed to be legally valid, it must be properly stamped in accordance with the stamp duty laws of the appropriate state and duly registered as per the Indian Registration Act, 1908.

Registry

The term "Registry" means officially recording the Conveyance Deed (and any related property transfer documents) with the appropriate government authority, usually the Sub-Registrar of Assurances under the Indian Registration Act, 1908, which serves as notice and as lawful authority for the transfer of property.

Key Aspects of Registry

• Mandatory for Immovable Property: According to Section 17 of the Indian Registration Act of 1908, some types of documents must be registered, including gift instruments for immovable property, and all non-testamentary instruments that create, declare, assign, limit, or extinguish any right, title, or interest in immovable property if the value aggregates one hundred rupees or more. The Conveyance Deed falls under this category.
• Public Record: By recording the transfer of transfer of property, a public record is created that is available to anyone who seeks to check the status of ownership on the property. It creates transparency and deters fraudulent activity on the property.
• Legal Evidence: A registered Conveyance Deed acts as incontrovertible legal proof of ownership transferred before a court of law (Section 49 of the Registration Act, 1908 states the unregistered documents requiring registration are inadmissible as evidence of such dealings and do not assign any title).
• Indexing: The details of the registered document are indexed, making it easier to search and retrieve records in the future.

Conveyance Deed vs Registry: Key Differences

Conclusion

In property transfer in India, the Conveyance Deed and the Registry are two aspects that cannot be separated. The Conveyance Deed is the actual legal instrument that sets forth the document, terms and conditions, and effectivisly transfers ownership to the buyer. The Registry also is an important procedural step that confers legal significance to the transfer of ownership so that the transaction is legally recognized and valid.

FAQs

A few FAQs on Conveyance Deed vs Registry are:

Q1. What is a Conveyance Deed?

The Conveyance Deed is the essential legal document that transfers title of the property from the vendor to the purchaser.

Q2. What is the Registry in property transactions?

Registry is the formal registration of the Conveyance Deed with the relevant government authority, which gives it legal force and public notice

Q3. Is a Conveyance Deed enough to prove property ownership?

A Conveyance Deed is essential, but in order for it to have legal force it must be duly stamped and registered under the Indian Registration Act, 1908.

Q4. What happens if a Conveyance Deed is not registered?

A Conveyance Deed subject to registration for immovable property of substantial value will be inadmissible evidence of the transaction and will not create legal title.

Q5. Who prepares the Conveyance Deed?

Typically, a lawyer representing either the buyer or both parties drafts the Conveyance Deed.