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Conveyance Deed: Meaning, Types & Registration Process in India

Conveyance Deed: Meaning, Types & Registration Process in India

Let’s face it: buying a home in India comes with its fair share of legal paperwork. From occupancy certificates to NOCs, you’ll have signed a ream-worth of papers before you finally get the keys.

But none of the documents are as important as the conveyance deed. It’s the legal certificate that officially puts your new home under your name.

Considering how crucial this deed is, buyers should clearly understand the process, documentation, and due diligence required to procure it.

Here’s an in-depth guide to help you out.

What is a Conveyance Deed?

Simply put, it’s a legal document that establishes the transfer of ownership from the seller to the buyer.

It’s filled with key details like the property description, the names of the old and new owners, any existing encumbrances or liens on the property, and the transaction amount.

It’s got to be signed by both the seller and you, then verified by at least two witnesses. Once that’s done, it’s off to the local registrar’s office for final registration.

With the conveyance deed meaning clear, let’s move on to its various types.

Types of Conveyance Deeds in India

A conveyance deed differs depending on the property type and nature of the transaction. Below are some of the common types:

●     Deed of Freehold Property:

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

●     Deed of Leasehold Property:

Unlike freehold properties, here, the buyer acquires rights to the property but not the land it stands on. Leasehold properties are owned for a predetermined period, after which the ownership reverts to the landlord. Hence, the deed for such properties spells out the terms of limited ownership.

●     Relinquish Deed:

Inherited properties often have multiple claimants, and a relinquish deed is issued when co-owners decide to renounce their rights and claims on the property. By doing so, they transfer the rights to another co-owner, with the deed ensuring that the ownership rights are clearly defined, and the transaction is carried out in good faith.

●     Deed Subject to Mortgage:

This conveyance deed allows the owner to have access to the mortgaged property. But it comes without permanent residency rights and limited access to the premises and facilities.

●     Gift Deed:

This is used to transfer ownership of a property or assets from one person or entity to another as a gift. This transaction doesn’t include monetary exchange or other considerations and can occur between family members, friends, or other individuals or entities.

Are sale deeds the same as conveyance deeds?

Although used interchangeably, a sale deed and a conveyance deed don’t always mean the same. Think of it this way–all sale deeds are conveyance deeds, not vice versa.

Yes, a deed of conveyance may pertain to property ownership transfer in the form of a mortgage, gift, exchange, lease, etc. On the other hand, a sale deed only applies to the transfer of ownership through a property sale. In a way, a sale deed is a type of a deed of conveyance.

Importance of a Conveyance Deed

Apart from establishing your legal ownership over a property, the conveyance deed also serves additional purposes, including:

  • Proof of Sale: It serves as tangible proof that the property has changed hands from the seller to the buyer, forming a solid basis to resolve any future legal disputes regarding the sale.
  • Protection for the Buyer: This deed provides a safety net, ensuring that you hold the legal right to sell the property and that no undisclosed liens or encumbrances are lurking.
  • Impose Property Rights: In legal disputes, the conveyance deed can be invoked to enforce your property rights, whether the right to use, enjoy, exclude others from, or sell/transfer the property.

Documents Required for Conveyance Deed Registration

Here are the essential documents you need to execute a conveyance deed: 

1. Sale agreement of property: This document records the seller’s commitment to sell the property to the buyer, including the agreed price and terms. 

2. Location plan and survey plan: This should be obtained from the revenue department to verify the property’s exact location and dimensions.

3. Structure plan and layout plan: These plans, which depict the building’s structure and layout, must be approved by the relevant authority to confirm compliance with local regulations.

4. Mutation entries/Property card: These entries are found in the revenue records and indicate the transfer of property ownership. This document, also known as a property card, is crucial for establishing ownership history.

5. Certificates such as Completion Certificate, Commencement Certificate, architect certificate, and Occupancy Certificate (exempted if not available),

6. A list of all previous owners

7. Power of attorney or development agreement: This document is required only if the seller executes the deal.

8. Stamp duty registration: If the actual stamp duty registration document is not available, a receipt of the stamp duty fees paid can be accepted as proof.

9. A draft of the conveyance deed: This draft outlines the terms of the property transfer and serves as evidence in case of any disputes regarding the sale, ensuring both parties are protected legally.

Conveyance Deed vs Sale Deed: Key Differences

FeatureConveyance DeedSale Deed
DefinitionA legal document that transfers property ownership from one party to another, encompassing various types of transfers like gift, exchange, mortgage, or lease.A legal document that specifically transfers ownership of property from the seller to the buyer through a sale.
Parties InvolvedSeller (transferor) and Buyer (transferee).Seller and Buyer.
ConsiderationIt may or may not involve monetary considerationIt always involves monetary consideration for the property.
Transfer of titleThe buyer only has the right to use the property but not sell it.The buyer can use or sell the property
Right to sellIn this case, the transfer of rights, title, and ownership to the buyer can be temporary.There’s a permanent transfer of rights, title, and ownership to the buyer.

Step-by-Step Conveyance Deed Registration Process in India

Here’s a step-by-step breakdown of the conveyance deed registration process:

1. Title Verification:

The first step is verifying the property title and ensuring the seller has the legal right to sell the property. You can opt for the services of a legal professional to scrutinise the title deeds and ascertain no encumbrances or disputes associated with the property.

2. Sale Agreement:

Once the title is clear, you can draft the sale agreement. This agreement between the buyer and the seller outlines the terms and conditions of the transaction, including the sale amount. It serves as the foundation for the conveyance deed.

3. Stamp Duty and Registration Fees:

Next, you must pay the deed’s stamp duty and registration fees. The stamp duty is a tax levied by the government, and its rate may vary from one state to another. It’s a mandatory step of the homebuying process.

4. Execution and Registration of Conveyance Deed:

After the stamp duty registration, both parties need to sign the deed in the presence of two witnesses, formalising the transfer of ownership on paper. Before signing, ensure the conveyance deed format is correct to avoid any discrepancies in the future.

Lastly, you must register the deed with the Sub-Registrar of Assurances within four months of execution. You must submit the original deed, the necessary documents, and the fee payment.

Legal Implications of Not Having a Conveyance Deed

Not having a proper conveyance deed can lead to serious legal complications. A deed of conveyance is essential for the conveyance of property, as it legally transfers ownership from the seller to the buyer. 

Without it, disputes over property rights can arise, making it difficult to assert ownership or sell the property in the future. Understanding what is a conveyance deed and its implications ensures your investment is secure. In essence, knowing the conveyance deed meaning and obtaining one is crucial to avoid lengthy legal battles and safeguard your property rights.

State-wise Stamp Duty and Registration Charges

Here is the state-wise registration charges are calculated based on either the property’s market value or the agreement value of the property, whichever is higher. Here is the stamp duty levied state-wise:

StateStamp Duty
Arunachal Pradesh6%
Himachal Pradesh6%
Manipur7%
Assam5.6%
Sikkim1%
Jharkhand3%
Chandigarh5%
Odisha3%
Chhattisgarh5%
Bihar6%
Madhya Pradesh5%
Punjab6%
Telangana0.5%
Uttarakhand5%
Rajasthan6%
West Bengal5%
Delhi6%
Maharashtra3%
Uttar Pradesh5%
Tamil Nadu7%
Kerala2%
Gujarat3/5%

Common Mistakes to Avoid During Conveyance Registration

While registering the conveyance of property, it’s important to be vigilant to avoid unnecessary delays or legal issues. 

Common mistakes include:

  • Incomplete documentation: Ensure the deed of conveyance and all supporting papers are accurate and complete.
  • Ignoring stamp duty rules: Miscalculating or neglecting applicable stamp duty can cause complications during conveyance of property.
  • Not verifying property details: Cross-check ownership, encumbrances, and legal status before registration.
  • Skipping professional advice: Avoid assuming the process is simple; consulting a legal expert can prevent errors.

Conveyance Deed Checklist for Buyers and Sellers

Ensuring a smooth property transfer requires careful attention to the conveyance deed. Buyers and sellers should keep the following in mind:

  • Property Details: Verify the correct address, survey number, and ownership details.
  • Sale Consideration: Confirm the agreed sale price and payment terms.
  • Stamp Duty Payment: Ensure stamp duty on property is correctly calculated and paid.
  • Encumbrance Certificate: Check for any legal liabilities or pending dues on the property.
  • Signatures & Witnesses: Ensure all parties and witnesses sign the deed appropriately.

This checklist helps prevent disputes and ensures a seamless transaction.

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FAQs

What is the difference between a sale deed and a conveyance deed?

A sale deed specifically transfers property ownership from the seller to the buyer for a price, making it a type of conveyance deed. Conversely, a conveyance deed is a broader term encompassing various types of property transfers, including sales, gifts, leases, and mortgage deeds. Essentially, all sale deeds are conveyance deeds, but not all conveyance deeds are sale deeds.

Is a conveyance deed necessary for a home loan?

When applying for a home loan at Tata Capital, you need to submit only a few documents for a smooth approval process. These include proof of identity (Aadhar card, passport, or driver's license), proof of residence (utility bills or rental agreement), and proof of income (salary slips, bank statements, and income tax returns). Additionally, property documents like the sales deed, property tax receipts, and NOC from relevant authorities are required.

What is the difference between registry and conveyance deed?

A conveyance deed is a legal document that transfers property ownership from one party to another. The registry, on the other hand, is the process of officially recording this conveyance deed with the local land or property registration authority. While the conveyance deed details the transfer terms, the registry ensures that the transfer is recognized and legally binding, updating the official land records.

What is conveyance in transfer of property?

Conveyance in property transfer refers to the legal process of transferring ownership rights from one person to another. This involves executing a conveyance deed, which documents the transfer and includes essential details such as the property description, parties involved, and terms of the transfer. It ensures that the new owner's rights are legally recognized and protected, providing clear proof of ownership.

How to Retrieve a Lost Conveyance Deed

Losing a conveyance of property can be stressful, but it’s manageable if you follow these steps:

  • File an FIR: Report the lost deed at your local police station to establish an official record.
  • Publish a Public Notice: Place a notice in a local newspaper declaring the loss of the conveyance deed.
  • Obtain a Certified Copy: Visit the Sub-Registrar’s office where the property was registered to request a certified copy.
  • Apply for a Duplicate: If necessary, complete the legal procedure to get a duplicate conveyance of property.

 

What are the tax implications of a conveyance deed in India?

A deed of conveyance formalises property transfer. It may attract stamp duty and registration charges, which are eligible for tax benefits under certain conditions in India.

Can a conveyance deed be challenged in court?

Yes, a conveyance of property can be legally challenged in court if there are disputes regarding ownership, fraud, or procedural irregularities during the property transfer process.

How long does conveyance deed registration take?

Conveyance deed registration can take a few weeks, depending on the local Sub-Registrar office, document verification, and completion of all required formalities.

What documents prove conveyance deed authenticity?

To prove a conveyance deed’s authenticity, essential documents include the sale agreement, approved layout and structure plans, property card/mutation entries, previous ownership records, and stamp duty registration receipt.

Is stamp duty refundable if conveyance deed is rejected?

If a conveyance deed is rejected, stamp duty may be refundable depending on the state rules. You usually need to apply for a refund with the relevant authority along with supporting documents.