What is Conveyance Deed and why is it Important for the Buyer?
Jul 09, 2018 Legal Guidance
One of the most important documents for the transferring and purchasing of a property is a conveyance deed. Buyers do not understand the term and often get confused.
Let’s explain what the term as a whole means. ‘Conveyance’ refers to as an act of transferring the title, right and interest of the property from one person or entity to another. The term ‘deed’ refers to the document which is signed by two or more parties. This is a binding contract which is enforceable in the court of law. Hence, the conveyance deed is a binding contract that transfers all the authority of the property to the buyer. The purchase of the property is incomplete without a conveyance deed.
Let’s explain what the term as a whole means. ‘Conveyance’ refers to as an act of transferring the title, right and interest of the property from one person or entity to another. The term ‘deed’ refers to the document which is signed by two or more parties. This is a binding contract which is enforceable in the court of law. Hence, the conveyance deed is a binding contract that transfers all the authority of the property to the buyer. The purchase of the property is incomplete without a conveyance deed.
Is sales deed and conveyance deed the same thing?
People often get confused between the conveyance deed and sales deed. There’s some difference between the two. All sales deed can be conveyance deed but conveyance deed can also include gift, mortgage, lease deed etc.
The difference between agreement of sales and sale/ conveyance deed is subtle. The agreement of sale lists down all the terms and conditions for the sale that will take place in future. it does not create and interest or change in property. Therefore, no sale of property is complete without a conveyance deed.
The difference between agreement of sales and sale/ conveyance deed is subtle. The agreement of sale lists down all the terms and conditions for the sale that will take place in future. it does not create and interest or change in property. Therefore, no sale of property is complete without a conveyance deed.
Things that a valid conveyance deed must have:
- Actual demarcation of the property
- Other rights annexed to the property and its uses
- The full chain of legal owners
- Method of delivery of the property to the buyer
- Memo of consideration and how it is received
- Any further applicable terms and conditions required for the sale of property
Important points to consider for the sale of property
- It is mandatory for the seller to certify that the property is free from any dispute or legal litigation.
- If the loan was taken against the property, it must be cleared before it is sold off to another person. Once can check for it with the sub- registrar’s office.
- The conveyance deed should mention the exact date in which the property will be handed over to the buyer.
- Within four months of the execution of the deed, the original documents related to the property need to be produced before the registrar.There must be at least two witnesses when the deed is signed by both or more parties.
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