Conveyance Deed In Real Estate

If you have ever been into real estate transactions, you might have heard the term conveyance deed. A conveyance deed is used to ensure no debt on the property. The deed is also used to transfer the property title from one person to another on the mutual pricing they agreed upon.

The conveyance deed transfers the property title (owner's name) from the seller to the buyers without exchanging money. It can be used to transfer the title of any immovable property, such as land, commercial, and residential property. It includes the property's information, chain of ownership and how the property will be transferred to the current buyer.

Before executing the conveyance deed, you must know various factors and the differences between them and other documents. Such as: 

       •  Conveyance deed vs sale deed
       •  Conveyance deed vs registry

Read more to know about each of them.

What Is Conveyance Deed?

A conveyance deed is a document that transfers ownership of something, like property or a vehicle, from one person to another. It ensures that the property goes straight from the seller (grantor) to the buyer (grantee) without involving extra parties like banks or trustees.

This helps both the seller and buyer avoid paying additional fees. It's commonly used when someone sells their house or land and wants to transfer it directly to the buyer.

Types Of Conveyance Deed

There are several types of conveyance deed in real estate, such as:

Mortgage Conveyance Deed: It is executed between the borrower and the lender. This deed keeps the property as a mortgage for the loan given to the lender. If the lender fails to repay the loan, the borrower can seize or auction the property to recover their losses.

Freehold Conveyance Deed: A freehold conveyance deed provides the complete ownership of the property to the buyer. It assures that the buyer is entitled to use the land freely without any legal control or control from any other outsider.

Leasehold Conveyance Deed: A Leasehold conveyance deed provides ownership rights to the buyer but not the land rights; buyers either have to renew or can use the land for a specific period.

What Documents Required for the conveyance deed?

A conveyance deed is required to transfer the property title or name from the current owner to the new owner. It requires various documents and documentation as per the type of the conveyance deed, such as Mortgage conveyance deed, freehold conveyance deed and leasehold conveyance deed.

Documents required for the conveyance deed in real estate

       •  Application Form
       •  Identity proofs for both parties.
       •  Property card and records
       •  Property title
       •  Property survey
       •  Tax clearance of property
       •  An architect attests to the layout of the plot.
       •  Details of registration and stamp duty payment.
       •  Encumbrance certificate that declares the property free from financial and legal liabilities.
       •  Payment proofs
       •  No objection certificate (NOC)
       •  Details of two independent witnesses
       •  Power of attorney (if applicable)

Download the conveyance deed format to understand how it is made.

The document requirements can be different depending on the property location. You can ask a qualified lawyer to help you with the filing process.

Conveyance Deed Vs Registry

A conveyance deed is a proof of ownership transfer, whereas a registry is a record kept with the local government and serves as the primary proof of ownership. 

Conveyance deed vs sale deed

Conveyance Deed

A conveyance deed is a legal document that transfers property ownership in various ways, such as through gifts, exchanges, mortgages, or leases. It outlines the rights and responsibilities of both the buyer and seller and is commonly used in commercial property transactions.

Sale Deed

A sale deed is a document that transfers property ownership in exchange for money. It includes details about the property, the buyer, the seller, and the buyer's rights. A sale deed is used for immediate transfer of ownership and must be registered under the Registration Act to be valid.

Who pays for conveyance deed?

Generally, the buyer is responsible for paying the costs related to the conveyance deed. It also includes the stamp duty and registration fees while registering the document in the sub-registrar's office. 

Conclusion

A conveyance deed transfers the title of the property's owner to the new owner in real estate. The deed can be of various types: mortgage, leasehold, and freehold.

We have also explained the significant differences between a conveyance deed and a sale deed and conveyance deed vs registry to eliminate the confusion. To get a more detailed idea about the deed, refer to the conveyance deed format given in the above article.

Note:

       1.  Never rely only on the information provided on Google and blogs regarding legal transactions.
       2.  Always seek professional help for dispute-free and smooth transactions.
       3.  Use Google's information to be aware and match if you are going in the right direction so you don't get cheated.