Conveyance Deed: Definition, Purpose, and Important Considerations

March 14, 2023


A conveyance deed is a legal document that transfers property ownership from one person or entity to another. This document is an essential part of buying or selling a property.

The conveyance deed contains details about the property, such as its location, boundaries, and description. It also includes the names of the parties involved in the transaction, the purchase price, and any other terms and conditions of the sale.

Once the conveyance deed is signed, it serves as evidence of the transfer of ownership from the seller to the buyer. It is crucial to have a conveyance deed prepared and executed by a qualified professional, such as a solicitor or conveyancer, to ensure that the transfer of ownership is legally valid and enforceable.

Latest News on Conveyance Deed

In Maharashtra, property owners or societies can apply for a Deemed Conveyance Certificate without having an Occupancy Certificate. However, they must submit a self-declaration form stating their intention to pay dues and apply for a regular Occupancy Certificate.

The government of Maharashtra allows for online and offline applications for deemed conveyance after submitting this form. When buying or selling property, it’s crucial to have a conveyance deed prepared by a professional to ensure the transfer of ownership is legally valid.

Understanding the legal requirements of property transactions is crucial to avoid legal issues. Obtaining a Deemed Conveyance Certificate without an Occupancy Certificate is an example of such legal nuances.

Essential Components in a Conveyance Deed

If you’re planning to buy or sell property, understanding the vital components of a conveyance deed is crucial. Here are the key elements you should know about:

  • Clearly defined boundaries of the property
  • The inclusion of a power of attorney (if applicable)
  • A complete chain of title that outlines all legal rights to the present seller
  • Detailed information on how the property will be handed over to the buyer
  • A memo stating how property ownership has been received
  • Signatures of both the buyer and seller
  • Other terms and conditions related to the property transfer

Before executing a conveyance deed, it is essential to remember the following.

  • Ensure the property is free from any legal encumbrances
  • Confirm that any mortgage on the property has been cleared
  • Include the exact possession date of the property
  • Submit all original property documents to the local sub-registrar for registration within four months of the deed’s execution.
  • Obtain signatures from at least two witnesses during the registration process.

Types of Conveyance Deed

Conveyance deeds are an essential part of property transactions. Understanding the different types of conveyance deeds can help you choose the right one for your needs. Here are four conveyance deeds you should know about.

Freehold Property (Deed of Conveyance)

This type of conveyance deed is used when the transferred property is freehold, meaning the owner has complete ownership of the property and the land it is built on. The deed of conveyance of freehold property transfers the complete ownership rights from the seller to the buyer.

Leasehold Property (Deed of Conveyance)

When the property being transferred is leasehold, the owner has the right to use the property for a specific period but does not own the land it is built on. A deed of conveyance of leasehold property is used. This deed transfers the rights to use the property from the seller to the buyer for the remaining lease period.

Subject to Mortgage (Deed of Conveyance)

The transferred property is subject to a mortgage in this conveyance deed. The deed transfers the ownership rights from the seller to the buyer, but the buyer assumes the responsibility for the mortgage payments.

Gift Deed

A gift deed is used when the property is being gifted by the owner to another person, usually a family member or a loved one. The gift deed transfers the ownership rights of the property to the recipient without any monetary consideration.

Legal Documents Required for Conveyance Deed

A “Conveyance deed” is a legal document that transfers property ownership from one person to another. To complete the process, certain legal documents are required. Here are ten critical legal documents that you need for a conveyance deed.

  • The sale agreement outlining the property details and price terms
  • Mutation entries or property cards indicating ownership transfer in revenue records
  • Location plan and survey plan for the property from the revenue department
  • Layout plot plan approved by the local authority, accompanying the survey plan
  • Architecture and Urban Ceiling Act certifications
  • Building or structure plan approval from the appropriate authority
  • Certificate of Commencement and Occupancy Certificate, if applicable
  • Proof of payment of stamp duty
  • Registration proof
  • Drafted conveyance deed.

Format of Conveyance Deed

Conveyance Deed

Conveyance deed format

Importance of Conveyance Deed in Home Loan

A conveyance deed is an essential legal document for homebuyers who have availed of a home loan. It is legal proof of transfer of property ownership from the seller to the buyer. The conveyance deed establishes the buyer’s legal rights over the property and protects them from any future legal disputes related to ownership.

When applying for a home loan, the lender often requires the borrower to provide a conveyance deed as proof of ownership. This helps the lender to ensure that the property is free of any encumbrances and can be used as collateral for the loan. Without a conveyance deed, the lender may refuse to approve the loan or charge a higher interest rate.

Moreover, when the borrower repays the loan, the lender releases the mortgage on the property. The conveyance deed is then returned to the borrower with the endorsement of the mortgage discharge. Keeping the conveyance deed safe is important, as it is the most important legal document establishing property ownership.

Parties Involved in Conveyance Deed

Two primary parties are involved in a conveyance deed: the transferor or seller and the transferee or buyer.

The transferor is the property’s current owner and is selling it to the buyer. The transferor must provide a clear title to the property and ensure that there are no legal disputes or encumbrances related to the property. They must also provide all the necessary legal documents, including proof of ownership, tax receipts, and any other relevant documents required for the conveyance deed.

The transferee is the person who buys the property and acquires ownership of it through the conveyance deed. The transferee must pay the agreed-upon price for the property and ensure they have the necessary funds to complete the transaction. They must also verify that the property is free of legal disputes or encumbrances that could impact their ownership rights.

Additionally, other parties may be involved in a conveyance deed, such as a mortgage lender or a lawyer who helps prepare the legal documents. These parties play important roles in facilitating the transfer of ownership and ensuring that the conveyance deed is executed correctly.

The Procedure of Making Conveyance Deed

  • To create a conveyance deed, the first step is to draft the document, which must be written on stamp paper.
  • Once the deed has been drafted, it must be taken to the local sub-registrar’s office for registration.
  • The registrar will verify the deed to ensure it meets all legal requirements before approving it for registration.
  • After approval, the next step is to pay the stamp duty and registration charges. Once the charges have been paid, the conveyance deed will be ready to be used as legal proof of transfer of ownership.
  • The process of doing a conveyance deed, therefore, involves drafting the document, submitting it for registration, verifying and approving it by the registrar, paying the necessary fees, and obtaining the final conveyance deed.

Risks Associated with Conveyance Deeds

There are several risks associated with conveyance deeds that individuals should be aware of before proceeding with a property transaction. These risks include

  1. Fraudulent Transactions: Conveyance deeds can be forged, and fake documents can be created. It is essential to verify the documents’ authenticity is essential to ensure the transaction is genuine.
  1. Non-Compliance: If the conveyance deed is not drafted correctly or does not comply with legal requirements, it may not be valid. This could lead to legal issues and disputes in the future.
  1. Title Issues: There may be title issues with the property that could affect the transfer of ownership. Conducting a thorough search and ensuring the property has a clear title before proceeding with the transaction is essential.
  1. Disputes: Disputes may arise between the transferor and transferee regarding the terms and conditions of the transaction. This could result in legal action and financial loss.
  1. Encumbrances: The property may have encumbrances such as mortgages, liens, or easements that could impact the transfer of ownership. Verifying that the property is free of encumbrances before proceeding with the transaction is essential.

Difference Between Sale Deed and Conveyance Deed

Point of Differentiation Sale Deed Conveyance Deed
Definition A legal document that transfers the ownership of a property from the seller to the buyer for a specific price A legal document that transfers the ownership of a property from the transferor to the transferee without specifying a price
Applicability Used in cases of the sale of a property Used in cases of gift, exchange, or transfer of a property without consideration
Purpose To record the transfer of ownership and to establish the buyer’s right to the property To record the transfer of ownership of a property and establish the transferee’s right to the property
Consideration The sale deed specifies a specific price that the buyer must pay to the seller The conveyance deed does not specify any price or consideration
Execution A sale deed can only be executed between a buyer and a seller A conveyance deed can be executed between a transferor and transferee in cases of gift, exchange, or transfer of property
Stamp Duty and Registration Stamp duty and registration charges must be paid for a sale deed Stamp duty and registration charges are only required for a conveyance deed if there is a consideration involved
Timeframe A sale deed must be executed within four months of the agreement to sell A conveyance deed can be executed at any time, as long as the transferor is willing to transfer ownership of the property
Enforcement A sale deed is enforceable in court in case of any dispute between the buyer and seller A conveyance deed is enforceable in court in case of any dispute between the transferor and transferee

Cancellation of a Conveyance Deed

If one wants to cancel a conveyance deed, they can do so by following the legal provisions mentioned under the Specific Relief Act. The cancellation process can be initiated if the deed is revocable or poses no harm to any of the parties involved. It is also possible to cancel the conveyance deed through mutual agreement, provided the deed was registered according to the Indian Registration Act of 1908.

In case the transfer deed paperwork gets lost due to banker negligence, one must take immediate action by filing a police report, publishing an ad in the newspaper, and getting an affidavit notarised. After completing these steps, a legally certified copy of the conveyance deed can be obtained from the sub-office registrar’s office where the property was registered after paying the necessary fees and submitting the required documents.

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Who prepares the Conveyance Deed?

The Conveyance Deed is usually prepared by a lawyer, a solicitor, or a licensed conveyancer familiar with the specific jurisdiction's property laws and regulations.

What happens if the Conveyance Deed is lost?

If the Conveyance Deed is lost, the property owner should immediately file a police report and take the necessary steps to obtain a legally certified copy of the deed from the sub-office registrar's office where the property was registered. It is also advisable to publish an ad stating the deed has been lost.

Is a Conveyance Deed necessary for a home loan?

A Conveyance Deed is necessary for a home loan as it provides legal proof of ownership of the purchased property. The lender typically requires a copy of the Conveyance Deed as part of the loan application process.


Srivalli is a literature aficionado and a connoisseur of aesthetics. As a finance professional, she is an avid reader by passion and a writer by profession. Her poetry reflects her admiration for art. She believes that art is integral to the evolution of life.

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