Conveyance is a term derived from ‘convey’ which means the process of transferring something to some other person in general terms. In legal terms conveyance is defined as the legal process of transferring property rights from owner to another. A deed is an instrument, a written legal document signed by all the parties to a contract. Thus, a conveyance deed is a legal instrument through which property rights are conveyed from the owner to the buyer.
In a conveyance deed the property, title, property rights; ownership rights, right to use, right to mortgage etc. are transferred to another person for a consideration. An exception has been carved out for a gift deed under which there is no consideration paid by the transferee to the transferor. A conveyance deed is a necessary document to ensure that the buyer or the grantee gets the absolute right over the property whether movable or immovable, in absence of a conveyance deed the buyer will be unable to claim his/her ownership.
Contents of a Conveyance Deed
A conveyance deed contains the following elements:
Markings of the property/land
The exact demarcation of the property shall be included in the conveyance deed along with the description of the property to avoid any confusion.
Appended rights
In case there are various rights which are attached to the property, then those rights shall also be mentioned in the deed for conveyancing the property rights.
Chain of Title
The chain of titles; all the titles/all legal rights that the present seller possesses to make it clear what all titles will be transferred to the buyer and to ensure the title is undisputed. Further, representation and warranties by the seller must be included to ensure that aspects of a property which cannot be ascertained even after undertaking due diligence.
Mode of delivery
The mode of delivery is to be included in the deed. There may be several modes of delivery depending on the type of property.
Details of the Property
The details of the listed property shall be clearly mentioned in the deed including if the property is movable or immovable, the full address of the property in case immovable and the description of the property whether it is movable or immovable.
Consideration
Details about consideration paid or payable is required to be stated in the conveyance deed as an agreement without consideration is void under law.
Terms and Conditions
The various terms and conditions that will govern the transferring of rights to buyer shall be clearly mentioned in the conveyance deed.
Execution
Both parties and the witnesses shall sign the conveyance deed to ensure that it is legally valid.
Apart from these contents, power of attorney shall also be attached in case a power of attorney holder is executing the deed on behalf of one of the parties.
Important considerations of a conveyance deed before signing
One must ensure that the following are included in the conveyance deed before executing the same:
Encumbrances
The seller must represent that the property is free from any encumbrances, including mortgages etc, as the same may impact the rights that can be enjoyed by the buyer over the property. Whether the property has any mortgage or not can be checked at the office of the Sub – Registrar.
Date of transfer
The dates on which the title or the property rights will be transferred from the seller to the buyer shall be present in the deed. Further, any consideration paid in furtherance of the deed should be recorded to ensure that the same is admitted by the seller in the document at the time of execution.
Witnesses
Signatures of two witnesses is important for any deed.
Procedure of drafting a conveyance deed
The conveyance deed is drafted and executed on a non- judicial stamp paper, post which the deed needs to be registered at the Sub – Registrar’s office. Stamp duty and the registration fees is paid and after this the procedure of a conveyance deed is completed. The stamp duty levied is different in different states and is governed by its respective Stamp Act.
Required documents
There are various types of conveyance deeds that can be executed, and the required documents may also vary from one conveyance deed to another conveyance deed. Some documents are such that those are required for any and every type of conveyance deed, draft of conveyance deed, location plan, proof of registration, proof of payment of stamp duty, property card etc.
Types of conveyance deed
There can be different categories into which conveyance deeds can be categorised. Sale deed, gift deed, relinquishment deed, and exchange deed fall under a category wherein ownership of the property is transferred. Another example of the same is a gift deed which is made to transfer property or money to someone the owner wishes to gift the same without consideration. All these deeds transfer the rights of ownership from the granter to the grantee.
Lease deed is the type of conveyance deed which transfers the rights on the property including right to use the property for a limited and agreed period with a transfer of possession. In such situations, ownership rights are retained by the landlord. In accordance with the agreement between the parties, right to mortgage the property can be transferred to the tenant. A conveyance deed to record such an agreement is called rent agreement.
Sale deed vs. Conveyance deed
A sale deed and a conveyance deed are often mistaken as the synonyms while the two instruments are not the same rather a sale deed as discussed above is one of the types of a conveyance deed. A sale deed is a written legal document which transfers the absolute title of the immovable property once it is registered and executed to the buyer on the other hand a conveyance deed is not restricted to the transfer of ownership title to the buyer or immovable property rather it simply means transfer of property rights which may include right to ownership, use, or mortgage and that transfer may not be absolute at times and may be for a limited for a period of time.
Draft your conveyance deed with WeVaad
WeVaad is a legal tech company which provides services, including, online dispute resolution, online consultation, online agreement drafting etc. Drafting of the conveyance deed is very important as any minor discrepancy in the deed can cost a lot to both the parties. As a result, it becomes important to consider taking assistance and guidance from a lawyer to get your conveyance deed prepared. The presence of a lawyer facilitates the process and ensures that there are no mistakes in the deed. Reach out to us and we will be happy to help you.