“Conveyance Deed: Transfer of ownership and rights”

Abstract

This article explores the fundamental aspects of conveyance deeds in real estate transactions. The conveyance deed, a crucial legal document, facilitates the transfer of property ownership from one party to another. The abstract provides a comprehensive overview, covering key elements such as the identification of involved parties, a detailed property description, essential clause in conveyance deed, producer for registration, document requirement, what if conveyance deed is lost, any important case laws and any closely related conditions or covenants. Additionally, the article delves into the significance of conveyance deeds in ensuring a lawful and smooth transfer of real property. By examining the essential components of these deeds, readers gain insights into the details of property transfers and holistic view of the legal safeguards in conveyance processes. 

Introduction 

To ensure the protection of our rights, it is crucial to possess a conveyance deed that legally safeguards your property. Prior to defining a conveyance deed, it is important to comprehend the terms ‘deed’ and ‘conveyance’.A deed refers to a legally binding document that is written, sealed, and delivered by the parties engaged in a contractual agreement, namely the buyer and seller. This document includes terms that hold legal validity and can be enforced in a court of law. Consequently, a deed must be written down and signed by both parties involved. In legal context, conveyance pertains to the procedure of transferring property, assets, titles, rights, ownership, and other such elements from one individual to another . A valid contract, known as a conveyance deed, is necessary to complete the transaction, as it facilitates the transfer of all property rights to the rightful owner. Lets just discuss further about this in detail in this article.

What is a conveyance deed 

A conveyance deed involves the transfer of property rights, titles, and ownership from one individual to another, which may or may not involve consideration  like gift deed, mortgage deed, lease deed or sale deed can also be called a conveyance deed. By signing the conveyance deed and providing a valid monetary consideration, the seller transfers all legal rights of the property (whether movable or immovable) to the buyer’s name.In the absence of a valid conveyance deed, the buyer lacks any legal entitlement to the property and cannot assert ownership rights. Therefore, a conveyance deed is essential for any sale to ensure that the buyer obtains proper legal rights and can establish proof as ownership.

Types of conveyance deed 

1. Freehold property  deed

A property can be converted into freehold status by the concerned authorities like the Delhi Development Authority (DDA) or any state authority. As a result, the buyer gains complete authority to enjoy the property, and the seller provides a conveyance deed as the final document to the owner.

2.  Leasehold Property deed

leasehold ownership is a property, where the owner obtains the right to utilise the property’s interior space. but, they do not have rights over the external or structural walls, as those remain under the ownership of the landlord. 

3.  Mortgage property deed

A mortgage property conveyance deed is for the mortgaged property which has been bought using a mortgage that has not been paid to the bank or used as a security to borrow money or debt.

4. Relinquishment deed

It is used when an owner voluntarily gives up their share in a property in favour of the co-owner, this often happens in cases of family partition or division of property.

5. Gift Deed

A gift deed is created when a donor transfers property as a gift to a donee without any monetary consideration.

6. Exchange Deed

In an exchange deed, two parties agree to exchange properties instead of a monetary transaction.

Essential clauses in a conveyance deed

1. Parties: The conveyance deed should clearly identify the parties involved in the transaction, including the buyer (transferee) and the seller (transferor), with their full names and addresses.
2. Property Description: The deed must include a detailed description of the property being transferred. This includes the property’s address, boundaries, dimensions, and any other relevant identifying information such as lot numbers or survey information.
3. Consideration: The deed should state the agreed-upon amount or consideration for the transfer of the property. This can be a monetary amount or any other form of consideration, such as the assumption of debt or an exchange of property.
4. Granting Clause: This clause explicitly states that the seller (transferor) is transferring the property rights to the buyer (transferee). It typically uses language such as “conveys and warrants” or “grants, sells, and conveys.”
5. Covenants and warranties: The transferor often includes certain guarantees or warranties about the property condition , legal status and ownership rights.these covenants ensure that the transferee receives the property free from encumbrance. 
6. Habendum Clause: This clause defines the type of ownership being transferred. It specifies the rights and any accompanying restriction in relation to the property. The habendum clause is also called the “TO HAVE AND TO HOLD CLAUSE”.
7. Signature and Execution: The deed must be signed by the grantor (transferor) in the presence of witnesses and a notary public. The grantee’s (transferee) signature may also be required, depending on the jurisdiction.
8. Delivery and Acceptance: The conveyance deed should include a clause that confirms the delivery of the deed from the grantor to the grantee and the grantee’s acceptance of the transfer.
9. Legal Description: It is essential to include a legal description of the property, which provides an accurate and detailed description of the property’s boundaries and location. This description may reference surveys, landmarks,  official records and provision of law.
10. Acknowledgment: The transferor’s signature must be acknowledged by a notary public or another authorised officer, affirming that the transferor signed the deed voluntarily and that their identity was verified.

Difference between conveyance and sale deed

Sale deed and conveyance deed are the two sides of the same coin. A sale deed is a specific type of conveyance deed utilised when transferring property ownership through a sale. It is the legal document of the most frequently employed deed in real estate transactions and serves as proof of the ownership transfer.

On the other hand, a conveyance deed is a more encompassing term that can refer to any kind of deed employed for transferring property ownership, including a sale deed, gift deed, exchange deed,will deed, partition deed, release deed, mortgage deed, or lease deed. This type of deed is commonly used in property transfers from a parent to a child or from a company to its employees. Therefore All sales deeds are conveyance deeds, but not all are sale deeds. All deeds used to transfer property rights are conveyance deeds, and the sale deed is among them.

What if the conveyance Deed is lost?

In case the conveyance deed is lost due to negligence, then you need to take the following steps :-

• An FIR should be filed with the police.
• An advertisement about the loss of conveyance deed can be in the newspaper.
• Prepare an affidavit and get the notarized. an affidavit should have all the property information and FIR.
• You can also get a certified copy of the deed from sub- registrar’s office. however you will have to pay some charges to get the document. 

Procedure for registration

While the Conveyance deed registration procedure can vary in different states according to their laws and procedures but in general to obtain a conveyance deed, we have to proceed through the following steps:

• The content will be inscribed on stamp paper.
• This document will be submitted at the nearby sub-registrar’s office.
• A conveyance deed is drafted on a non- judicial stamp paper of requisite value.
• The registrar examines and authorises the deed for registration.
• Upon approval, the stamp duty and registration fees need to be settled, and the conveyance deed will be prepared. 
• Buyer should pay post – registration, stamp duty, and registration fees.

Difference between registration process of Mumbai and Delhi are as follows:

1. Jurisdiction: The registration of conveyance deeds in Mumbai falls under the jurisdiction of the Maharashtra state government, while in Delhi, it falls under the jurisdiction of the Delhi state government.

2. Sub-registrar Offices: The registration of conveyance deeds in Mumbai is typically done at the Sub-registrar Offices located in different regions of the city. In Delhi, the registration is usually carried out at the Sub-registrar Offices located in various districts of the city.

3. Stamp Duty and Registration Charges: The stamp duty and registration charges for conveyance deed registration may differ between Mumbai and Delhi. These charges are determined by the respective state governments and may vary based on the property value and other factors.

4. Required Documents: The specific documents required for conveyance deed registration may vary slightly between Mumbai and Delhi. Generally, the documents include the conveyance deed, proof of identity and address of the parties involved, property documents, and payment of stamp duty and registration fees.

5. Registration Process: While the overall process of conveyance deed registration is similar, there may be differences in the specific steps and procedures followed in Mumbai and Delhi. This includes the submission of documents, verification, payment of stamp duty and registration fees, and obtaining the registered conveyance deed.

Documents required

To obtain a conveyance deed, we will be required to provide the subsequent         documentation:

• A registered agreement documenting the property sale
• Property card or mutation entries
• Location plan and survey plan issued by the relevant revenue department
• Approved plot plan and structure plans from the appropriate authority
• Certificates such as the Commencement Certificate, Completion Certificate, Occupancy Certificate (if accessible), and Architect Certificate
• List of owners involved
• Receipt of payment for the stamp duty
• Power of attorney or development agreements (if applicable to the seller)
• In case of any dispute, conveyance deed serves as an evidence
• Act as a proof of ownership
• Draft of the conveyance deed                  

Important case laws on conveyance deed

Suraj Lamp & Industries pvt. Ltd. vs State of Haryana (2012): In this case, the Supreme Court of India held that a sale deed must be compulsorily registered under the Registration Act, 1908, for it to be legally valid and to transfer the title of the property.

S. Shanmugam Pillai vs K. Shanmugam Pillai (1973): This case dealt with the principle that in a conveyance deed, the description of the property should be sufficiently clear and unambiguous to ascertain the identity of the property.

Jijabai Vithalrao Gajre vs Pathankhan (2004): In this case, the Bombay High Court emphasised that if a conveyance deed is executed by a person who is not the actual owner of the property, it would be void and ineffective.

Jainarayan Sukul vs M. Raghunath (1970): This case highlighted the importance of the principle “caveat emptor” (let the buyer beware), stating that the buyer of a property must exercise due diligence to ensure the title of the property before purchasing it.

Rohitash Kumar vs Om Prakash Sharma (2006): In this case, the Delhi High Court held that a conveyance deed executed by an individual who lacks the mental capacity to understand the nature and consequences of the transaction could be declared void.

M. Raghunathan vs Open Text Corporation (2019): The Supreme Court of India reiterated the importance of proper drafting and execution of conveyance deeds to prevent ambiguities and future disputes.

Deemed conveyance deed

In simple terminology, the deemed conveyance meaning can be explained as the transfer of rights, title and interest of land or building in the name of society. The standard conveyance deed has to be happened between promoters (developer, land owner or construction builder)

And the housing society. One must ensure both parties are available when the deemed conveyance deed is made because the authority will pass the law only after hearing the parties. This process is usually initiated to ensure that society can effectively manage its affairs and carry out necessary activities without being dependent on original landowners;these specifics can be based on local laws. Basically deemed conveyance deed is remedies obtained by society against landowners or builders, who do not wish to convey the property.

You will have to submit the following documents to apply for a conveyance deed:-

• Land documents like land records and municipal records 
• Agreement copy between land owner and developer
• An agreement copy of each flat should be registered and stamped
• Approved building plan. 

Conclusion

Conveyancing is an essential procedure that must be completed for any property purchase to be considered valid. It relies on public records and provides assurance to land buyers that they are acquiring a valid title. Once the enrollment process is completed, the buyer obtains full ownership of the property. Conveyancing aids the government in maintaining accurate property records and collecting profit.

During any real estate transaction, it is pivotal for buyers to obtain a conveyance deed from the seller. This document serves as a final statement in property-related disputes, emphasising the importance of securing the conveyance deed. Therefore, Conveyancing is the exchange of the title in the property starting with one also onto the coming, legitimately. It can likewise include allowing encumbrances for another, for illustration, that of a home loan or lien. The essential factors of conveyancing are contracts and prosecution.

Author: Sonali Dubey, a 2nd year Law Student of Army law college pune, affiliated to savitribai phule pune University.

Reference

¹ https://www.magicbricks.com/blog/what-is-a-conveyance-deed–why-is-it-important/115034.html

² https://www.herofincorp.com/blog/what-is-a-conveyance-deed#:~:text=A%20sale%20deed%20does%20not,and%20seller%20regarding%20the%20property

³ https://www.legalkart.com/legal-blog/conveyance-deed-and-sale-deed-two-sides-of-the-same-coin-

⁴ https://www.nobroker.in/blog/conveyance-deed/

⁵ https://www.bajajfinservmarkets.in/loans/home-loan/conveyance-deed.html

⁶

https://www.nobroker.in/blog/deemed-conveyance/#:~:text=In%20simple%20legal%20terminology%2C%20the,or%20voluntarily%20gives%20the%20conveyance.