What is the Meaning of Deed of Conveyance & Types

When dealing with property transactions, you must have heard of the term ‘conveyance deed.’ However, many confuse it with a sale deed. While they are similar, there are still some differences. Therefore, to get clarity on what a deed of conveyance is, its importance and its difference from the sale deed, keep reading this piece.

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What Is a Deed of Conveyance?

A conveyance deed is a legal document between a transferee and a transferor. It proves the legal transfer of rights, ownership and title of a property from one person to another. It can be or cannot be for any consideration. So, this transfer can take place in a gift form, mortgage, lease or others.

Also, both parties need to sign it, thus becoming enforceable after signing. One cannot avoid it also, as, without signing, individuals cannot complete a property purchase transaction.

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What Are the Types of Conveyance Deed?

Following are the types of conveyance deeds that you can draw:

1. Deed of Conveyance of Freehold Property

Any state or concerned authority like the Delhi Development Authority (DDA) can convert a property into freehold status. As a result, the buyer of that property gets full authority to enjoy it. The seller gives a conveyance deed as a final document to the owner.

2. Deed of Conveyance of Leasehold Property

By getting leasehold ownership of a property, the owner gets the right to do anything within the four walls of this property. However, he or she shall have no rights on the external or structural walls. It means its landlord will remain the owner of the structure built and common areas.

3. Deed of Conveyance of the Subject to Mortgage

Under the subject to mortgage category, the buyer can enter his or her property from time to time and access its premises and buildings.

4. Relinquish Deed

This type of deed is drawn when releasing or transferring titles, rights or interest in the property from one individual to another. This deed of conveyance is common in cases involving a common property.

5. Gift Deed

A gift deed is created when a guarantor gifts property to a guarantee.

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What Should Be There in a Conveyance Deed?

Contents of a conveyance deed are as follows:

Signature of the parties involved
The actual boundary of the property
Detailed information of the parties, including their age, address and name
Terms and conditions fixed at the time of transfer
A sale deed
A chain of titles, including complete legal rights up to the present seller
Other applicable transfer of rights of ownership
Method of delivering the property to the buyer
Memo of the consideration containing details of how parties received it
Memo about the ownership of property
Power of attorney (if used)

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What Is the Importance of Conveyance Deed?

To better understand the importance of conveyance deed, go through the following pointers-

It informs the concerned parties whether their property is free of any dispute or not.
The deed serves as proof that one can present in the event of a legal dispute.
It serves as land ownership proof.
It legally validates the transfer of property rights from one party to another.

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What Is the Procedure to Obtain a Conveyance Deed?

Here is a step-by-step procedure explaining how to obtain a conveyance deed. You must follow it to avoid any legal discrepancies:

Step 1: Write down the content of the conveyance deed on stamp paper and sign it duly.

Step 2: Present all the required documents at the local sub-registrar office. Also, ensure a minimum witness of two people attests to the documents.

Step 3: The allottee is required to intimate the Dy. Director concerned alongside a copy of the possession slip and clear the dues before the date of execution of the conveyance deed is given.

Step 4: Your request will now enter the verification process when the registrar verifies your deed and sends registration approval.

Step 5: You must pay registration charges and stamp duty fees to get hold of this conveyance deed.

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What Are the Documents Required for Conveyance Deed?

Below are the documents required for the conveyance deed:

Property card or mutation entry
Sale agreement
Urban Land Ceiling Act certificate, 1976
City survey plan, location plan and approved layout of a plot plan
Architect plan containing details of who is entitled to the undivided interest of the common area, amenities and layout plot by the structure built, entity, or built on the layout plot
Commencement certificate of the property
Approved structure or building plan
Occupancy certificate of the property
Proof of payment of stamp duty fee and registration
List of a property owner
Declaration or draft conveyance deed proposed to be presented in favour of the applicant
The sale agreement, development agreement or power of attorney

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What Are the Important Things to Keep in Mind About Conveyance Deed?

Here are some important things about conveyance deed that concerned parties must always keep in mind:

A conveyance deed should always contain the date a seller is transferring its property to a buyer.
The seller must certify in his or her agreement that the property involved is free of any legal encumbrance.
One must present all the original documents supporting the sale of a property to the local registrar for registration within four months of executing the deed of conveyance.
If a seller has taken any loan against the property, he or she should clear this mortgage first and then sign the conveyance deed. Buyers can check for the same at their local sub-registrar’s office.

What Is the Difference Between Conveyance Deed and Sale Deed?

Many individuals confuse between a conveyance deed and a sale deed. As a result, they make the mistake of using it interchangeably. However, when comparing conveyance deed vs sale deed, there is a subtle difference between these two. You can call all sales deeds conveyance deeds, but not all conveyance deeds are sale deeds.

This is because conveyance deeds cover exchange, gifts, lease deeds and mortgage. There are more differences between conveyance deed and sale deed, which are covered here below:

Conveyance Deed	Sale Deed
A conveyance deed is created at the time of transfer of property titles, rights, or ownership from one party to another, not always for consideration.	A sale deed is required when a party sells a property to another against a consideration.
Here transactions may or may not involve monetary consideration.	It requires some kind of consideration which may or may not be in monetary terms.
Here transfer of title, right, or ownership can be on a temporary basis.	It involves a permanent transfer of title, right or ownership of the property from seller to buyer.
In a conveyance deed, the buyer only gets the right to use his or her property and not sell it.	Upon getting a sale deed, the holder gets the right to sell or use his or her property.

What to Do If the Conveyance Deed Is Lost?

There is a chance the bankers may lose your deed of conveyance due to pure negligence. If such a condition takes place, then take these below measures:

File an FIR with the police complaining about this loss, and safely keep a copy of that report if your buyer asks for it at the time of sale.
It can be a great idea to post an advertisement in the local newspaper mentioning this loss of conveyance deed. Now give yourself 15 days to get any lead on someone who may have found your document and request to return it.
You can also draw an affidavit and get it notarised. However, ensure it has details of your property, FIR and information mentioned in the newspaper ad.
You can also get a legally certified copy of your conveyance deed from the local sub-registrar’s office. However, it should be the one where you had registered it. Also, you will have to pay a specified charge and provide certain important documents.

If you are planning on transferring or receiving the title, right or ownership of a property, it is very important to back it up with a deed of conveyance. This legal document holds great importance in the event of a legal dispute and to prove that the transaction occurred. Find more details on this deed and how it differs from a sales deed in the above sections.

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Frequently Asked Questions

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Can parties cancel a deed of conveyance?

Sections 31 to 33 of the Specialised Relief Act, 1963, cover that it is possible to cancel a conveyance deed if an individual feels it is void and its terms are causing him/her injury if it is outstanding. However, if it is registered under the Indian Registration Act 1908, it may need the mutual consent of both parties.

Who prepares the deed of conveyance?

Since lawyers and real estate agents know a lot about the property legalities and rights involved, they can draw the deed of conveyance. Also, their presence in some cases is necessary to facilitate this procedure.

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What is the Meaning of Deed of Conveyance & Types

What Is a Deed of Conveyance?

What Are the Types of Conveyance Deed?

1. Deed of Conveyance of Freehold Property

2. Deed of Conveyance of Leasehold Property

3. Deed of Conveyance of the Subject to Mortgage

4. Relinquish Deed

5. Gift Deed

What Should Be There in a Conveyance Deed?

What Is the Importance of Conveyance Deed?

What Is the Procedure to Obtain a Conveyance Deed?

What Are the Documents Required for Conveyance Deed?

What Are the Important Things to Keep in Mind About Conveyance Deed?

What Is the Difference Between Conveyance Deed and Sale Deed?

What to Do If the Conveyance Deed Is Lost?

Frequently Asked Questions

Can parties cancel a deed of conveyance?

Who prepares the deed of conveyance?

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