A deep dive into conveyance deed: Meaning, types, objectives, and distinction from a sales deed

The purchase or transfer of real estate properties in India requires the execution of a legal document known as a conveyance deed. A conveyance deed formally conveys the rights, title and ownership interest in a property from one party to another. It serves as legal proof of the property transfer transaction. While sale deeds are the most common type, other conveyance deeds include gift deeds, exchange deeds, lease deeds etc. Understanding the meaning, purpose, stamp duty applicability, registration process and different types of conveyance deeds is important for all property buyers and investors in India. This article provides an overview of key aspects regarding conveyance deeds, sale deed meaning and their relevance for real estate transfers under Indian laws.

Conveyance deed meaning
 

A conveyance deed is a legal document that acts as proof and evidence of transfer of ownership of property from one party to another. It is executed at the time of sale or transfer of immovable property like land, houses, apartments etc. A conveyance deed formally conveys the title and rights of the property to the new owner.

Conveyance deed vs. Sale deed
 

The key differences are that a conveyance deed is a broad term, while a sale deed is meant for property sale specifically. A sale deed must mention the sale consideration amount, which is not required in other types of conveyance deeds like gift deeds. Other examples of conveyance deeds are gift deed, release deed etc. Sale deeds are more commonly used between parties buying and selling property, while conveyance deed is the general umbrella term. A sale deed involves exchange of consideration between seller and buyer, but conveyance can be done without consideration such as gifts. The stamp duty percentages also differ for various conveyance transactions based on the type of transfer.

Types of conveyance deeds
 

There are different types of conveyance deeds used for various real estate transactions:

Sale deed - Most common type of conveyance deed, executed at time of sale and purchase of property. Confirms payment and transfers ownership.

Gift deed - Used to legally transfer property as gift without any monetary consideration. Requires payment of stamp duty.

Exchange deed - Executed when two parties mutually agree to exchange ownership of their respective properties.

Settlement deed - Transfers property as a part of family settlement, such as partition of ancestral property.

Lease deed - Grants leasehold rights of property for a defined rental period, while ownership remains with lessor.

Will deed - Transfers ownership of property to legal heirs based on provisions made in a will. Comes into effect after death of owner.

Purpose of a conveyance deed

A conveyance deed serves multiple important purposes:

- Legally transfers ownership and title of property to buyer

- Provides detail on property like location, measurements, boundaries etc

- Specifies sale price, mode of payment and receipt by seller

- Acts as evidence in case of any future property disputes

- Can be used as proof of address by new owner

- Mandatory for property registration and alteration of land records

Importance of registration

Registration of conveyance deeds is mandatory under the Registration Act, 1908. Unregistered deeds have no legal standing and cannot be produced as evidence in courts. Benefits of registration:

- Provides legal sanctity and validity to the deed

- Serves as evidence of property title transfer.

- Guarantees rights of new owner against third party claims

- Essential for further property sale transactions

- Needed for mutation in land revenue records

Key sections in the conveyance deed
 

A conveyance deed contains several key sections:

● Details of seller and buyer - Names, addresses, occupations etc

● Property details - Location, measurements, boundaries, type of construction

● Sale price and mode of payment - Cash, cheque etc

● Indemnities - Occupancy status, pending dues clearance etc

● Transfer and vesting clauses - Actual legal transfer paragraphs

● Signatures of parties involved, witnesses

● Execution date, place and other details

A conveyance deed is a broad concept under which a sale deed is a commonly used instrument to transfer ownership of property after sale transaction. It is mandatory to legally record property transfers under the Indian Registration Act.

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