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.

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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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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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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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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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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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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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.

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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