Policies, Codes & Other Documents
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.
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 meaningclear, let’s move on to its various types.
A conveyance deed differs depending on the property type and nature of the transaction. Below are some of the common types:
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.
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.
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.
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.
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.
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.
Apart from establishing your legal ownership over a property, the conveyance deed also serves additional purposes, including:
Here’s a step-by-step breakdown of the conveyance deed registration process:
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.
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.
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.
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.
Your property purchase is incomplete without a conveyance deed in place. Ignoring the procedure associated with the deed can seriously affect your home buying journey. If you’re unsure how to proceed at any step of the process, it’s advised that you consult a legal expert.
For any financial assistance with your property purchase, you can turn to Tata Capital. With our affordable home loans, fast processing, and hassle-free documentation, you can live in your dream home without any worries.
Head over to our website today to check out our loan options.
Policies, Codes & Other Documents