When you buy or sell a property, you need to have certain legal documents to ensure that the transaction is legally binding and the ownership of the property is transferred successfully. One such important document is the Conveyance Deed. In this post, we will discuss everything you need to know about the Conveyance Deed.
What is a Conveyance Deed?
What is a conveyance deed? A Conveyance Deed is a legal document that is used to transfer the ownership of a property from one party to another. It is also known as the Sale Deed or the Transfer Deed. The document contains details about the property, the buyer, and the seller, and it is signed by both parties. The Conveyance Deed is an important document that acts as proof of ownership of the property.
Why is a Conveyance Deed necessary?
A Conveyance Deed is necessary because it ensures that the transaction of the property is legal and binding. It also protects both the buyer and the seller from any legal issues that may arise in the future. The Conveyance Deed also acts as proof of ownership of the property and is needed for various purposes like obtaining a loan, selling the property in the future, and for tax purposes.
What are the essential components of a Conveyance Deed?
A Conveyance Deed typically contains the following essential components:
- Description of the property – The Conveyance Deed should contain a detailed description of the property being transferred. This includes the address, boundaries, and any other relevant information about the property.
- Details of the parties – The Conveyance Deed should also contain the details of both the buyer and the seller, including their names, addresses, and contact details.
- Consideration – The Conveyance Deed should also mention the consideration or the amount of money that is being paid for the property.
- Payment details – The payment details should be mentioned in the Conveyance Deed, including the mode of payment, date of payment, and any other relevant information about the payment.
- Obligations of both parties – The Conveyance Deed should also contain the obligations of both the buyer and the seller, including any restrictions on the property, such as building restrictions.
- Signatures of the parties – The Conveyance Deed should be signed by both the buyer and the seller to make it legally binding.
What are the steps involved in the creation of a Conveyance Deed?
The following are the steps involved in the creation of a Conveyance Deed:
- Drafting the Deed – The Conveyance Deed is usually drafted by a lawyer or a legal expert. The lawyer will gather all the necessary information about the property, the buyer, and the seller, and draft the Deed accordingly.
- Verification of Title – Before the Conveyance Deed can be created, the lawyer will verify the title of the property to ensure that the seller is the rightful owner of the property.
- Payment of Stamp Duty – The Conveyance Deed attracts a stamp duty that varies from state to state. The stamp duty must be paid before the Conveyance Deed can be executed.
- Registration of the Deed – Once the Conveyance Deed is executed, it must be registered with the local Sub-registrar’s office. The registration of the Deed is necessary to ensure that the transaction is legally binding and that the ownership of the property is transferred successfully.
What are the common mistakes to avoid when creating a Conveyance Deed?
Conveyance deed is a legal document that transfers ownership of property from the seller to the buyer. It is an important legal document that needs to be prepared with utmost care and attention. Any mistake in the conveyance deed can lead to legal complications and may result in the loss of the property.
- Not verifying the title of the property
Before preparing a conveyance deed, it is important to verify the title of the property. The title of the property should be clear, marketable and free from any encumbrances. Failure to verify the title of the property can lead to legal complications in the future. It is advisable to consult a lawyer or a legal expert to verify the title of the property before preparing the conveyance deed.
- Not including all necessary details
A conveyance deed should contain all the necessary details about the property, such as the property’s location, size, boundaries, and other relevant information. Failure to include all necessary details in the conveyance deed can lead to legal complications in the future. It is important to ensure that all details are accurate and up-to-date.
- Not obtaining all necessary approvals
Before transferring the ownership of the property, it is important to obtain all necessary approvals from the authorities. This includes obtaining approvals from the local municipal corporation, the state government, and any other relevant authorities. Failure to obtain all necessary approvals can lead to legal complications in the future.
- Not disclosing all relevant information
It is important to disclose all relevant information about the property to the buyer. This includes information about any pending legal cases, disputes, or encumbrances on the property. Failure to disclose all relevant information can lead to legal complications in the future. It is important to be transparent and disclose all information about the property to the buyer.
- Not getting the conveyance deed registered
A conveyance deed should be registered with the Registrar’s office. Failure to register the conveyance deed can make it invalid and unenforceable. It is important to ensure that the conveyance deed is registered within the specified time limit.
- Not paying the stamp duty and registration fees
Stamp duty and registration fees are important components of a conveyance deed. Failure to pay the stamp duty and registration fees can make the conveyance deed invalid and unenforceable. It is important to ensure that all fees are paid on time.
- Not using the correct format
A conveyance deed should be prepared in the correct format. Failure to use the correct format can make the conveyance deed invalid and unenforceable. It is important to use the correct format when preparing the conveyance deed.
- Not seeking professional help
Preparing a conveyance deed can be a complex and time-consuming process. It is advisable to seek professional help from a lawyer or a legal expert. They can help you prepare a conveyance deed that is accurate, up-to-date, and free from any legal complications.
