A conveyance deed is an important document required for the acquisition of a property. We explain its prominence and what a home buyer should look out for when signing the document.
‘Conveyance’ refers to the act of shifting the title, ownership, interests and rights in a property, from one entity to another. The term ‘deed’ refers to a tool, like a written document that is signed by all the parties to an agreement, in this case, the seller and buyer. It is a binding agreement that is enforceable in a court of regulation. A conveyance deed is, therefore, an agreement in which, the seller handovers all rights to legally own and keep a property. The purchase of a property is not complete without a legal conveyance deed.
The terms sale deed and conveyance deed are often used interchangeably and while they refer to the same agreement, there is a subtle difference between the two. All sales deeds are conveyance deeds but conveyance deeds can also include gift, mortgage, lease and exchange deeds.
It is significant to note the difference between an agreement for sale and a sale/conveyance deed. A contract for sale contains an assurance to transfer a property in question in upcoming, on the fulfilment of certain terms and conditions. A contract for sale doesn’t, in itself, create any interest in or charge on a property. Therefore, the sale of a property is not complete without a conveyance deed.
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