Conveyance Deeds Vs Sale Deed: Meaning, Types, Purpose, & Differences

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09 DECEMBER, 2022

Whether you're an attorney, realtor, or someone planning to buy or sell real estate, you may have come across the term 'conveyance.' A conveyance deed is a real estate deed that essentially proves that there is no outstanding debt against a piece of property. It is also known as a real estate conveyance instrument to act as the legal evidence of the transfer of title from one person to another at an agreed price.

A conveyance deed is usually used to transfer commercial property but can also be used to transfer personal property. Conveyance deeds are legally required documents when selling your home in India. A conveyance deed's primary purpose is to avoid confusion regarding who owns the property being sold.

A conveyance deed can also transfer rights associated with land or other property, such as easements if listed in the deed's body. Read on to learn more about its types, meaning, purpose, and more.

What Does Conveyance Deed Refer To?

A conveyance deed is a document that transfers ownership of an asset from one party to another. It facilitates transfers in real estate, vehicles, or other assets with exclusive rights or limited licenses.

This deed aims to ensure that the property goes directly from the seller (grantor) to the buyer (grantee) without any intermediaries like mortgage companies and trustees involved in this process. It helps both parties avoid paying unnecessary fees for these services.

Conveyance deeds are generally used when a person wants to sell their home/property and have it transferred directly from them into another person's name.

Types of Conveyance Deed

Given below are the types of conveyance deeds.

Mortgage Property Conveyance Deed:

This refers to a conveyance deed meant for a mortgaged property.

Leasehold Property Conveyance Deed:

This conveyance deed is meant for leasehold properties, i.e., properties where owners have ownership of everything within the walls of the properties.

Freehold Conveyance Deed:

This conveyance deed is meant for a property converted into a freehold property by any authority.

Documents Required For Conveyance Deed

A conveyance deed can be used to transfer any real estate, including land, buildings, and homes. It contains information about the buyer and seller, how much they paid for the property, a description of the property being transferred, signatures from both parties, and sometimes other details like mortgage agreements or leases on the premises.

The requirements for these documents vary by state but generally include the following.

Property card
A complete list of owners- name(s) of all owners/sellers involved in the transaction, their respective addresses, and phone numbers.
A receipt of stamp duty payment, the conveyance deed draft.
Certificates such as occupancy certificates, commencement certificates and completion certificates.
A description of all parties who have rights about the said deed (i.e., mortgage holders), survey, and location plan.

Conveyance Deed vs Registry

The registry is a legal requirement in many countries worldwide whereas conveyance deeds are not required in most cases. Conveyance deeds, however, can facilitate easier transitions of property rights and other land management tasks when appropriately used by qualified parties.

What to Do if the Conveyance Deed is Lost?

A conveyance deed, also known as a land sale contract or transfer deed, is used to transfer both real and personal property. In case the conveyance deed is lost, make sure you follow the steps mentioned below.

File an FIR (First Information Report) as soon as possible.
Consider putting out an advertisement about the loss of your conveyance deed in the newspaper.
Make sure you prepare an affidavit with all the necessary property details and FIR information. You can also consider getting a certified copy of the conveyance deed from a sub-registrar's office.

Conveyance Deed vs Sale Deed

You may have come across both the terms - conveyance deeds and sale deeds as a homeowner. Both terms refer to documents that transfer property ownership from one party to another. However, there are some key differences between them.

While a conveyance deed is a document that transfers ownership of real estate from one party or individual to another by way of sale or gift, it does not necessarily mean that any money will be exchanged as part of the transaction.

It can also be used for gifting in-kind, like giving someone a car or land for their birthday present. It is important to note that neither type requires specific people to be involved in the transaction. Although it's usually best when an attorney draws them up, anyone can create them.

Difference Between a Sale Deed and a Conveyance Deed

A conveyance deed is not a legal document. The term 'conveyance deed' implies its purpose and role, but the word 'sale' does not. A sale deed is a legal document that transfers property ownership from one person to another. This transfer can be either with or without consideration.

A conveyance deed is also known as a transfer deed. A conveyance deed is very similar to a sale deed. It transfers the title of real estate but differs in other aspects.

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Conclusion

A conveyance deed has several uses, including when there's a change in property ownership and when someone sells their house to someone else. A property purchase is considered incomplete when the conveyance deed is not prepared. Make sure you go through the details beforehand to avoid troubles in the future once you invest in a property.