Conveyance Deed
A conveyance deed is a legal document that transfers the ownership and title of immovable property from one person (the seller or transferor) to another person (the buyer or transferee).
What is a Conveyance Deed?
A **conveyance deed** is a legal instrument by which the ownership and title of **immovable property** (land, building, flat, or any interest in immovable property) is transferred from one person to another. It is the formal, written, and registered document that evidences the transfer of property rights and serves as the primary proof of ownership for the new owner.
In everyday language, a conveyance deed is the official document that proves you are now the owner of a property that was previously owned by someone else.
Legal Framework
Transfer of Property Act, 1882
The **Transfer of Property Act, 1882 (TPA)** governs the transfer of property between living persons. **Section 5** defines "transfer of property" as an act by which a living person conveys property to one or more other living persons, or to himself and one or more other living persons.
**Section 54** specifically deals with "sale" as a transfer of ownership in exchange for a price paid or promised. The conveyance deed is the instrument that gives effect to this transfer.
Key provisions:
- **Section 54:** For tangible immovable property valued at **Rs. 100 or more**, the transfer can be made only by a **registered instrument** (i.e., a conveyance deed that is registered with the Sub-Registrar).
- **Section 55:** Sets out the rights and liabilities of the buyer and seller, including the seller's obligation to disclose material defects and the buyer's obligation to pay the price.
Indian Registration Act, 1908
**Section 17 of the Registration Act, 1908** makes it **compulsory** to register any document that purports to transfer immovable property valued at Rs. 100 or more. A conveyance deed that is not registered is:
- Not admissible as evidence of the transfer (Section 49).
- Does not confer any right, title, or interest upon the transferee.
Registration involves:
- Presenting the deed at the **Sub-Registrar's office** within the jurisdiction where the property is located.
- Payment of **registration fees** prescribed by the state government.
- Biometric verification and photographs of the executing parties.
- Endorsement by the Sub-Registrar.
Indian Stamp Act, 1899
A conveyance deed must be executed on **stamp paper** of the value prescribed by the state government. **Section 2(10) of the Indian Stamp Act** defines "conveyance" broadly to include:
> "Every instrument by which property, whether moveable or immoveable, is transferred inter vivos and which is not otherwise specifically provided for."
The stamp duty payable on a conveyance deed varies from state to state and is typically calculated as a percentage of the market value or the consideration amount, whichever is higher. Non-payment or underpayment of stamp duty renders the document **inadmissible in evidence** until the deficit duty and penalty are paid (Section 35).
Types of Conveyance Deeds
Sale Deed
The most common form of conveyance deed. It transfers property in exchange for a monetary consideration (price). Every sale deed is a conveyance deed, but not every conveyance deed is a sale deed.
Gift Deed
A conveyance deed transferring property without monetary consideration, out of love and affection. Must be registered under Section 17 of the Registration Act and Section 123 of the Transfer of Property Act.
Exchange Deed
When two parties exchange their properties, the instrument is a conveyance deed in the nature of exchange under Section 118 TPA.
Deed of Assignment
Transfers intangible rights (such as leasehold rights, copyright, or insurance policies) from one person to another.
Deed of Settlement
A conveyance deed by which property is settled on a person or a family, often through a trust arrangement.
Conveyance Deed by Society/Developer
In the context of **cooperative housing societies** and apartment complexes, the conveyance deed executed by the builder or developer in favour of the housing society transfers the title of the land and building from the developer to the society. This is particularly important in **Maharashtra**, where the **Maharashtra Ownership of Flats Act, 1963 (MOFA)** and the **Real Estate (Regulation and Development) Act, 2016 (RERA)** mandate that developers execute conveyance deeds in favour of societies or associations of allottees.
Essential Contents of a Conveyance Deed
A properly drafted conveyance deed typically contains:
1. **Date and place** of execution.
2. **Details of the parties** — full names, ages, addresses, and identification of the transferor and transferee.
3. **Recitals** — the history and chain of title of the property, how the transferor acquired the property.
4. **Consideration** — the price or other consideration for the transfer (or a declaration of gift, as applicable).
5. **Description of the property** — complete and precise description including survey number, plot number, area, boundaries, and address.
6. **Operative clause** — the clause that effects the actual transfer ("hereby conveys, transfers, and assigns").
7. **Covenants** — promises by the transferor (such as that they have good title, the property is free from encumbrances, and they will defend the transferee's title).
8. **Indemnity clause** — the transferor's promise to compensate the transferee for any loss arising from defects in title.
9. **Witnesses** — signatures of at least two witnesses.
10. **Execution** — signatures or thumb impressions of both parties.
When Does This Term Matter?
When Buying or Selling Property
The conveyance deed is the **most important document** in any property transaction. Without a registered conveyance deed, the buyer does not acquire legal title to the property. Banks require the original conveyance deed as collateral for home loans, and it is the primary document verified during title searches.
In Housing Society Formation
Flat purchasers in apartment buildings must ensure that the developer executes a conveyance deed in favour of the housing society. Under RERA and state laws like MOFA, the developer is legally obligated to do so. Failure to execute the conveyance deed leaves the society without clear title to the common areas and land, creating legal vulnerability.
For Home Loans
Banks and financial institutions require the **original registered conveyance deed** as part of the property documents when sanctioning a home loan. The deed serves as security for the loan and is returned to the borrower upon full repayment.
In Property Disputes
In disputes over ownership, the registered conveyance deed is the strongest piece of evidence. Courts give precedence to registered documents over unregistered ones, and the conveyance deed establishes the chain of title.
Practical Examples
Standard Property Sale
A sells a plot of land to B for Rs. 50 lakh. The conveyance deed is drafted by a lawyer, executed on stamp paper of the prescribed value, signed by both parties and two witnesses, and registered at the Sub-Registrar's office. Upon registration, B becomes the legal owner with clear title.
Deemed Conveyance
A housing society in Mumbai has been occupying a building for 15 years, but the developer has failed to execute the conveyance deed. The society applies to the **Competent Authority** under MOFA for a **deemed conveyance** — an order that has the effect of a conveyance deed, transferring the property to the society without the developer's cooperation.
Conveyance Through Power of Attorney
A property owner living abroad authorises their relative through a registered power of attorney to execute a conveyance deed on their behalf. The relative executes the deed in favour of the buyer. The conveyance is valid provided the power of attorney specifically authorises the sale and is properly stamped and registered.
Frequently Asked Questions
What is the difference between a conveyance deed and a sale deed?
A **sale deed** is a specific type of conveyance deed that transfers property in exchange for a monetary price. A **conveyance deed** is a broader term that includes sale deeds, gift deeds, exchange deeds, and any other instrument that transfers property. In common usage, particularly in property transactions, the terms are often used interchangeably, though technically every sale deed is a conveyance deed, but not every conveyance deed is a sale deed.
Is registration of a conveyance deed mandatory?
Yes. Under **Section 17 of the Registration Act, 1908**, registration is compulsory for any document that transfers immovable property valued at Rs. 100 or more. An unregistered conveyance deed does not confer title and is inadmissible as evidence of the transfer. Registration must be completed within **four months** from the date of execution (extendable by four more months with a condonation fee).
What happens if the stamp duty is not paid on a conveyance deed?
A conveyance deed with insufficient stamp duty is **inadmissible in evidence** under Section 35 of the Indian Stamp Act. The document can be impounded by any court or the registering authority, and the deficient duty plus a penalty (up to ten times the deficient amount, depending on the state) must be paid before the document can be admitted in evidence or used for any legal purpose.
Can a conveyance deed be cancelled or revoked?
A registered conveyance deed can be cancelled only through a court decree or by mutual agreement of the parties (followed by a registered cancellation deed). Under **Section 31 of the Specific Relief Act, 1963**, any person against whom a written instrument is void or voidable may sue to have it declared so and cancelled. A sale deed (conveyance for consideration) cannot be unilaterally revoked by the seller once executed and registered.
Disclaimer: This glossary entry is for informational purposes only and does not constitute legal advice.
Related Legal Terms
Sale Deed
A sale deed is a registered legal document that transfers the ownership of immovable property from the seller to the buyer, serving as the primary evidence of the buyer's title to the property.
Title Deed
A title deed is a legal document that serves as proof of ownership of a property, recording the transfer of title from one person to another.
Transfer of Property
Transfer of property is the act by which a living person conveys property to one or more other living persons, governed by the Transfer of Property Act, 1882, which prescribes the modes — sale, mortgage, lease, gift, and exchange — and the legal requirements for each.
Stamp Duty
Stamp duty is a tax levied by the government on legal documents — especially those related to property transactions — to make them legally valid and admissible as evidence in court.
Encumbrance Certificate
An Encumbrance Certificate (EC) is an official document issued by the Sub-Registrar's office that confirms whether a particular property is free from any legal or monetary liabilities such as mortgages, liens, or pending litigation.