Real Estate Basics: Conveyance Deed?
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16 December 2018 - 10:00, by , in Property Trends, No comments

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.

 

A Valid Conveyance Deed must contain the Following:

  1. The actual demarcation of the property.
  2. The full chain of titles, that is all legal rights up until the present seller.
  3. Other rights seized to the property and its use.
  4. A memo of the consideration, stating how it has been received.
  5. The method of delivery of the property to the buyer.
  6. Any further applicable terms and conditions for the full transfer of ownership rights.

Important Points to consider, to Ensure Smooth Purchase/Sale of a Property

  1. The seller is obligatory to certify that the property is free of any legal encumbrance.
  2. If a loan was taken against the property in the query, then, the loan must be cleared before the deed is signed. Buyers have the option of having this checked at the local sub-registrar’s office.
  3. The conveyance deed should state the exact date on which the property will be handed over to the buyer.
  4. Within four months of the execution of the deed, all the original documents related to the sale of the property, need to be produced for registration before the local registrar.
  5. The deed is required to be signed by at least two witnesses.

 

You May Also Like: Key Legal Checklist for Buying a Property

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