Essential Elements in a Conveyance Deed
The term “Deed” means a
written legal contract that binds the parties to its terms and can be proved in
the court as evidence.
The term ‘Conveyance’ is used when
there is transfer of ownership or legal title in a property from one person to
another. Hence, a conveyance deed is a legal document between a transferor and
a transferee, which proves that a title or ownership in the property along with
all other rights related to the property have been transferred from one person
to another.
It informs that the property is
free from any restrictions and disputes. Both parties sign it and it can be
produced in a court if any dispute relating to the agreement arises in future.
However, a conveyance deed is a
wide term which not only includes a sale of the property but also other kinds
of transfers such as gift, exchange, lease, mortgage, relinquishment and other
transfers.
A conveyance deed is valid only
when the property is sold for a valid consideration (usually money) except in
the case of a gift deed which results out of love and affection.
It can be signed for either movable
or immovable property.
A conveyance deed is executed in
accordance with the legal provisions under the Transfer of Property Act 1882,
Registration Act 1908 and Indian Stamp Act, 1899.
In order to be valid and acceptable
in a court, a conveyance deed needs to contain some essential elements. For
instance, it must:
* Establish exact boundaries of the
property to avoid any dispute relating to land ownership,
* State that all the rights
relating to the property have been transferred along with the property,
* Provide details regarding
delivery and acceptance of the property,
* State all terms and conditions
relating to the transfer,
* Be made on a non-judicial stamp
paper and signed by both parties,
* Mention full names, addresses and
other requisite details of the seller and the buyer,
* State that the property is free
from any disputes and restrictions,
* Be signed by at least two witnesses
* Be in writing and notarized, and
* Be registered through the local
registrar’s office by submitting appropriate registration fee. Registration is
proof that the property is free from any disputes and has been transferred to
the buyer permanently with a clean title.
Once
the registration is complete, the buyer becomes the absolute owner of the
property and the conveyance process gets over officially. A lawyer and a real
estate agent can help two parties compose, sign, and register a deed of conveyance
during a transaction. The government obtains its revenue from the stamp duty
and registration fees.
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