Importance of Conveyance Deed | EIPL Infra
Owning a property or a dream house is essential but more important is to have the required knowledge of this process so that you do not get duped if you don’t know the procedure or the list of documents which you should acquire along with the property. Just paying the amount for the property does not mean that you own that property. You should have all the legal documents to prove that you are the new owner of that particular property and you should also know the importance of them. One such document is Conveyance Deed.
1. Meaning and Purpose of Conveyance Deed
The term ‘Conveyance’ refers to the act of transferring the title, ownership, rights and interests of a property, from the seller to the buyer. It is a written document that is signed by both the parties. In this document, the seller transfers all the rights to the new owner of that property. Now, the new owner of the property has all the rights over that property. He can hold or sell it on his or her wish. Without a proper Conveyance Deed, the buyer will not hold any legal rights over that property in spite of paying the agreed amount. Hence a Conveyance Deed is an important document and declares that the transaction for that property is now complete.
This deed holds some legal technicalities which can save you from fraudsters. This is a legal document that states that the seller of a property has transferred all the authority and the ownership regarding that property to you and no else can now have a claim on the said property.
2. Conveyance Deed and Sale Deed
A Sale Deed is a Conveyance Deed but it is not vice versa. Any legal document that declares the transfer of property rights is considered to be a Conveyance Deed, so Sale Deed is also a Conveyance Deed. Other documents like Gift Deed, Exchange Deed, and Relinquishment Deed are also counted as Conveyance Deed.
3. Types of Conveyance Deed
There are five types of Conveyance Deed where you need to transfer the rights of the said property to the new owner. It may be with some consideration (monetary) and at times without any monetary consideration. The Conveyance Deed of a Freehold property gives the liberty to the owner to enjoy all the rights over that property. The Conveyance Deed for a Leasehold Property will be prepared with the instructions stating that the new owner has the right to everything within the four walls of the property but it does not include the external or structural walls. The Deed for Mortgage property states that the buyer holds the right to enter the subject to mortgage property from time to time and enjoy the building and its premises. Conveyance Deed of Relinquishment and Gift Deed of Conveyance are also created with the necessary details.
4. Importance of Conveyance Deed
A Conveyance Deed is a legal document that includes legal terms and declares the transfer of rights on a particular property from the seller to the buyer. The purchase of that property is incomplete without the Conveyance Deed. This is governed under judicial Act and prepared on a non-judicial stamp paper. It is registered at the local Sub-Registrar’s Office after paying the registration fee. A Conveyance Deed includes the details of the property like - the names of the buyer and seller, their addresses, demarcation of the property, the chain of titles of the said property and the method of delivery of the property. It should also have the power of Attorney if it was created and must include the exact possession date on which the property will be handed to the buyer. This Deed also holds a memo of consideration that states how the property has been received. It has to be signed by the buyer, seller and at least two witnesses. The details of both the witnesses should also be included. Basically any legal document that transfers the rights of a property from the seller to the buyer is a Deed. So, by now you must have understood the importance of Conveyance Deed.
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