What Is A Conveyance Deed?
Conveyance simply means transferring or transporting something from one place to another. In law terms, conveyance means the process of transferring property, assets, title, rights, ownership, etc. from one person to another. If you are purchasing or selling a property, then you must have a deed or contract to do so. A sale is not complete without a valid contract, which is a Conveyance deed. This is required for transferring all property rights to the legal owner.
What Is a Sale Deed?
A contract that executes the sale and transfer of ownership of immovable property from seller to purchaser in exchange for a consideration. When a sale is carried out with an objective of laid down guidelines, which are to be followed while processing the sale, it is a document created to execute the final purchase. The seller transfers the ownership to the buyer through a sale deed. The buyer exercises the following rights; when rights are transferred: –
- Right to Sell
- Right to Use
- Right to Lease or Mortgage
Advantage Of a Sale Deed
It is an important instrument that allows you to carry out the sale of an immovable asset, that transfers rights from one person to another is a lifetime. One cannot claim rights to any property without a sale deed. The benefits of Sale Deed document are as follows: –
- It is a legal document that is enforceable by law.
- It allows Sale transactions to be carried out in a stable and comfortable manner.
- It protects the rights of both parties involved in the contract.
- It mentions clearly the rights and duties of the Purchaser and Vendor.
- It clearly defines and describes the property.
- A well-drafted deed can avoid ambiguity and minimise risks.
- The whole process of the sale is now stamped and registered.
Sale Deed vs Conveyance Deed
A Conveyance deed is often confused for a sale deed. Every sale deed is a conveyance deed, but not all conveyance deeds are not a sale deed. This is because a conveyance deed includes gifts, mortgage, exchanges, etc. Conveyance deed is the transfer of property rights, titles, and ownership from one person to another, not necessarily always for consideration. A sale is when the seller sells the property to the buyer in exchange for consideration.
|Sale Deed is needed when a seller sells the property to the buyer in exchange of consideration||Conveyance deed is the transfer of property rights, titles, and ownership from one person to another, not necessarily always for consideration|
|Involves some kind of consideration, either monetary or non-monetary||May or may not involve monetary consideration|
|Permanent transfer of rights, title, or ownership to the seller||The transfer of rights, title or ownership to the seller can be for a limited period|
|Sale includes selling of property and nothing else, which is right to sell||The transfer of rights, title or ownership to the seller can be for a limited period|
|Buyer becomes the ultimate user of the property and has the right to sell it or use it||The buyer has the right to use and may not have the right to sell it|
What are the Types of Conveyance Deed?
As discussed, the conveyance deed is a broad term that enumerates the different types of methods for owning a real estate asset. Given below are the 5 broad categories of CD that you must be aware of.
|Sale Deed||A legal document that confirms the transfer of a property from a seller to a buyer is called a sale deed.|
|Gift Deed||Through gift deeds, the ownership of a real estate asset can be transferred without monetary exchange.|
|Relinquishment Deed||Co-owners of a property can give up their property rights and transfer its ownership to another co-owner. This is possible through a relinquishment deed.|
|Deemed Conveyance||A deemed conveyance is granted by a competent authority to property owners of housing societies. This occurs when a project developer fails to furnish the document within 4 months.|
|Mortgage Deed||If you apply for a bank loan by keeping your real estate asset as collateral, then you will be issued a deed of mortgage.|