Introduction for Conveyance Deed in India-
In India, the conveyance deed is a fundamental legal document that plays a crucial role in property transactions. It serves as a means to transfer ownership rights from the seller to the buyer, ensuring a secure and legally recognized transfer of property. The conveyance deed holds significant importance in establishing clear title assurance and protecting the rights of both parties involved.
When individuals or entities engage in buying or selling property, the conveyance deed acts as a vital legal instrument that formalizes the transfer of ownership. It provides a comprehensive record of the transaction, detailing the rights, responsibilities, and obligations of the parties involved. Through this document, the buyer gains legal ownership while the seller relinquishes their claim over the property.
However, it is important to note that the process of executing a conveyance deed involves various legal formalities, including payment of stamp duty and registration fees, compliance with state laws, and adherence to specific procedures. It is advisable for individuals involved in property transactions to seek professional legal advice to ensure compliance and mitigate potential risks.
What is the significance of conveyance deed?
What is the purpose of conveyance deed?
The purpose of a conveyance deed, also known as a property deed or transfer deed, is to legally transfer ownership of a property from one party to another. It serves several important purposes:
- Transfer of Ownership: The primary purpose of a conveyance deed is to transfer the ownership rights of a property from the seller (grantor) to the buyer (grantee). It ensures that the buyer becomes the lawful owner of the property and can exercise all the associated rights and privileges.
- Establishing Legal Title: The conveyance deed helps establish the legal title of the property. It provides evidence that the seller has the legal right to transfer ownership and confirms that the property is free from any undisclosed claims or encumbrances.
- Creating a Legal Record: The conveyance deed creates an official record of the property transfer. It documents the details of the transaction, including the names of the parties involved, a description of the property, the purchase price or consideration, and any specific terms and conditions agreed upon.
- Ensuring Clear Title: By executing a conveyance deed, the seller guarantees that they are transferring a clear and marketable title to the buyer. It ensures that the buyer receives ownership without any hidden liens, claims, or legal issues that could jeopardize their rights to the property.
- Providing Legal Protection: The conveyance deed offers legal protection to both the buyer and the seller. It establishes a legally binding agreement between the parties and serves as a basis for resolving any disputes or conflicts that may arise in the future.
- Facilitating Financing and Insurance: The conveyance deed is often required by lenders when financing a property purchase. It provides assurance to the lender that the buyer has a valid ownership claim on the property. Additionally, the deed is necessary for obtaining property insurance, as insurers require evidence of ownership.
- Compliance with Legal Formalities: In many jurisdictions, executing a conveyance deed and registering it with the appropriate land registry or government authority is a legal requirement. Compliance with these formalities ensures that the property transfer is legally valid and enforceable.
Overall, the purpose of a conveyance deed is to effectuate a legal and transparent transfer of property ownership while safeguarding the rights and interests of both the buyer and the seller.
What are the benefits of Conveyance Deed in India-
What is the difference between Deemed conveyance & conveyance deed?
Deemed conveyance and conveyance deed are two different concepts related to property ownership in India. Here’s an explanation of the difference between them:
- Conveyance Deed: A conveyance deed, as mentioned earlier, is a legal document used to transfer ownership of a property from the seller (grantor) to the buyer (grantee). It is executed through a written agreement that outlines the terms and conditions of the property transfer. A conveyance deed is typically used in voluntary property transactions, where the owner willingly transfers ownership to another party.
- Deemed Conveyance: Deemed conveyance, also known as “conveyance by operation of law,” is a legal provision under the Maharashtra Ownership of Flats Act (MOFA) and similar legislation in other Indian states. It applies to housing societies or cooperative housing societies where the developer or builder fails to execute a conveyance deed and transfer the ownership rights to the society or its members.
The key differences between deemed conveyance and conveyance deed are as follows:
a. Legal Basis: Conveyance deeds are based on voluntary agreements between parties involved in property transactions, where the ownership transfer is initiated by the seller. Deemed conveyance, on the other hand, is a statutory provision that allows the transfer of ownership to be enforced by law in specific situations where the developer has not fulfilled their obligation to execute a conveyance deed.
b. Initiation: Conveyance deeds are initiated by the property owner (seller) who intends to transfer ownership to another party (buyer). Deemed conveyance, however, is initiated by the cooperative housing society or its members when they seek to acquire ownership of the property from the developer.
c. Application: Conveyance deeds are applicable to all types of property transactions where ownership is voluntarily transferred, including residential, commercial, and agricultural properties. Deemed conveyance is specific to housing societies or cooperative housing societies where the developer has not executed a conveyance deed within the prescribed time or has refused to do so.
d. Legal Process: Conveyance deeds involve a contractual process between the seller and buyer, with the necessary documentation, registration, and stamp duty payment. Deemed conveyance, on the other hand, requires the cooperative housing society or its members to follow a legal process, including filing an application with the competent authority or approaching the appropriate forum, to obtain a deemed conveyance order from the court or the competent authority.
In summary, a conveyance deed is a voluntary agreement used to transfer ownership, while deemed conveyance is a legal provision that allows the transfer of ownership to be enforced by law in situations where the developer has failed to execute a conveyance deed for a housing society. Deemed conveyance provides a mechanism for cooperative housing society members to acquire legal ownership of their properties.