WHY CONVEYANCE DEED IS AN IMPORTANT DOCUMENT?
A deed is a written document or an instrument that is sealed, signed and delivered by all parties to the contract (buyer and seller). It is a contractual document that includes legally valid terms, and is enforceable in a court of law. It is mandatory that a deed should be in writing, and that both parties involved must sign the document.
There are different kinds of deeds, such as lease deeds, partnership deeds, trust deeds, gift deeds etc.
A conveyance deed
is essentially one wherein the seller transfers all rights to legally own, keep
and enjoy a particular asset, immovable or movable. In this case the assets
under consideration are immovable, namely property.
On signing a
conveyance deed, the original owner transfers all legal rights over the
property in question to the buyer, against a valid consideration (usually
monetary). This consideration, however, is irrelevant in the case of gift
deeds, as they are based on fraternal or familial bonds.
A ‘conveyance
deed’ or ‘sale deed’ implies that the seller signs a document stating that all
authority and ownership of the property in question has been transferred to the
buyer.
It is required to contain the following:
• Defined demarcation
of the boundaries of the property
• Other rights (if applicable) annexed to the property and its use
• The chain of title i.e. all legal rights to the present seller.
• The method of delivery of the given property to the buyer.
• A memo of the consideration, stating how it has been received
• Any other terms and conditions that are applicable as far as the
transfer of ownership rights are concerned.
Once the conveyance (or sale) deed has been executed on non judicial stamp paper, it needs to be registered. This can be done by presenting it at the Registrar’s office, and remittance of the registration fee. Once the registration is done, the transfer moves into the public domain. The Government obtains its revenue in the form of Stamp Duty and Registration Fees, and at this point the process of conveyance is officially over.
