Difference Between Conveyance Deed And Sale Deed

When it comes to real estate transactions, legal documentation plays a crucial role in ensuring a smooth transfer of ownership. Two of the most important legal instruments used in property transactions are the Conveyance Deed and the Sale Deed. While both serve the purpose of transferring property ownership, they have distinct legal implications.

A Sale Deed is a legally binding document that records the sale of a property between a buyer and a seller. It is executed once all the agreed terms and conditions in the sale agreement are fulfilled. On the other hand, a Conveyance Deed is a broader legal document that formalizes the complete transfer of ownership from the seller to the buyer, leaving no room for future claims.

Understanding the difference between Conveyance Deed and Sale Deed is essential for property buyers and sellers to avoid legal disputes and ensure rightful ownership. In this guide, we will explore the eligibility criteria, required documents, and the procedure for drafting both deeds, along with a comparative analysis to clarify their distinctions.

Conveyance Deed

A Conveyance Deed is a legal document that formally transfers the legal title of a property or its entirety from its previous owner to a buyer. It is really the closing of a sale that relinquishes any sort of ownership or appeal that can be made towards one's possession. It almost always happens at the final closure of an agreement when all the disbursements have been settled. Just think of it as the final ownership transfer sealing the deal.

Eligibility Criteria

Following is the eligibility criteria for Conveyance Deed:

• The seller must have clear and marketable title to the property.
• The buyer must be legally competent to own property (e.g., not a minor).
• All terms and conditions of the sale agreement must be fulfilled.
• All dues related to the property (e.g., taxes, maintenance) must be cleared.

Documents Required For A Conveyance Deed

The documents required for Conveyance Deed are as follows:

• Original property documents (Mother Deed, previous sale deeds, etc.)
• Building completion certificate (if applicable)
• Occupancy certificate (if applicable)
• No Objection Certificate (NOC) from relevant authorities (e.g., housing society, land development authority)
• Proof of payment of stamp duty and registration fees
• Identity proof and address proof of both buyer and seller
• PAN card of both buyer and seller
• Photographs of both buyer and seller

Procedure To Prepare A Conveyance Deed

Follow the following steps to draft a Conveyance Deed:

1. Drafting: The Conveyance Deed should clearly state the details of the property, the buyer, and the seller, the consideration amount, and the terms of the transfer.
2. Stamp Duty: The required stamp duty must be paid as per the state's regulations.
3. Registration: The Conveyance Deed must be registered at the local Sub-Registrar's office. Both the buyer and seller must be present for registration.
4. Execution: After registration, the deed is considered legally valid and enforceable.

Sale Deed

A deed of sale is a legal document to record the transfer of ownership in a real property from the seller to the buyer. It provides evidence of the sale transaction. It is executed after the buyer and seller have fulfilled the agreed that were stipulated, prior to the execution of the conveyance deed.

Eligibility Criteria

Following is the eligibility criteria for a sale deed:

• The seller must be the legal owner of the property.
• The buyer must be legally competent to purchase the property.
• There must be a mutual agreement between the buyer and seller regarding the sale.

Documents Required For A Sale Deed

Following are the documents required for preparing a sale deed:

• Original property documents (Mother Deed, previous sale deeds)
• Sale agreement
• Proof of payment of stamp duty
• Identity proof and address proof of both buyer and seller
• PAN card of both buyer and seller
• Photographs of both buyer and seller

Procedure To Prepare A Sale Deed

Follow the follwing process to draft a Sale Deed:

1. Agreement: A sale agreement is first drafted outlining the terms and conditions of the sale.
2. Drafting: The Sale Deed is then drafted by a lawyer based on the sale agreement.
3. Stamp Duty: Stamp duty is paid on the Sale Deed (fees may vary depending on relevant state laws).
4. Registration: The Sale Deed is registered at the Sub-Registrar's office.

Differences Between Sale Deed & Conveyance Deed

Conclusion

Understanding the difference between Conveyance Deed and Sale Deed is crucial for anyone involved in a property transaction. While a Sale Deed records the sale agreement and ensures the seller transfers the property to the buyer, a Conveyance Deed provides the final legal proof of ownership, covering various types of property transfers beyond just sales.

Both deeds are essential for securing a clear title and avoiding future disputes. Ensuring proper documentation, paying the necessary stamp duty, and completing the registration process at the Sub-Registrar’s office are key steps in property ownership transfer.

If you're buying or selling a property, knowing the difference between Conveyance Deed and Sale Deed can help you navigate the legal process smoothly and ensure a legally valid and hassle-free transfer of ownership.

FAQs

A few FAQs based on Difference Between Conveyance Deed And Sale Deed are:

Q1. What is the main difference between a Sale Deed and a Conveyance Deed?

A Sale Deed documents the sale transaction itself, while a Conveyance Deed finalizes the transfer of absolute ownership of the property. The Sale Deed is executed earlier in the process, while the Conveyance Deed is the final step.

Q2. When is a Conveyance Deed used?

A Conveyance Deed is typically used when the property is fully constructed, all payments have been made, and all terms of the sale agreement have been fulfilled. It signifies the complete transfer of ownership.

Q3. Is a Sale Deed enough to transfer property ownership?

A: No, a Sale Deed documents the sale but does not transfer full ownership. The Conveyance Deed is required to legally transfer the complete title and rights to the property.

Q4. What documents are required for a Sale Deed?

A: Typically, you'll need original property documents, the sale agreement, proof of stamp duty payment, and identity and address proof of both buyer and seller.

Q5. What documents are required for a Conveyance Deed?

A: In addition to the documents required for a Sale Deed, a Conveyance Deed often requires building completion and occupancy certificates (if applicable), NOCs from relevant authorities, and proof of payment of all dues.