Conveyance, in the context of property law, refers to the legal process of transferring ownership or rights to a property from one party to another. It encompasses the sale, purchase, lease, or mortgage of real estate. The primary purpose of conveyance law is to ensure that property transactions are conducted fairly, transparently, and in compliance with legal requirements. By providing a structured framework, the law aims to protect the interests of all parties involved and safeguard the rights of property owners.
According to Section 205 of the "Property Act, 1925," "conveyance" covers any guarantee of property or of any interest therein made by an instrument other than a will, including a mortgage, charge, lease, assent, vesting declaration, and vesting instrument.
Key Concepts of Conveyance Law
Here are some key concepts to understand conveyance in India:
In India, property can be classified into immovable property, including land and buildings, and movable property, such as vehicles and personal belongings. Conveyance law primarily focuses on immovable property.
Transfer of Property Act, 1882
The Transfer of Property Act is a key legislation governing property transactions in India. It defines various terms related to the transfer of property and lays down the legal framework for conveyance.
What are the Legal Requirements under Conveyance Law?
Several legal requirements need to be fulfilled for a valid conveyance of property in India. Some of them are discussed below;
Agreement for Sale
The first step in a property transaction is the execution of an agreement for sale, which outlines the terms and conditions of the transfer. This agreement should be duly stamped and registered, as required by the law.
The buyer must conduct a thorough investigation of the property's title to ensure that the seller has a clear and marketable title. This process involves examining documents, records, and relevant government authorities to verify ownership.
Execution of Conveyance Deed
The conveyance deed is a crucial legal document that transfers ownership from the seller to the buyer. It must be executed on appropriate stamp paper and registered with the concerned Sub-Registrar of Assurances.
Payment of Stamp Duty and Registration Fees
Stamp duty and registration fees are levied on property transactions and vary across states. These charges must be paid as per the applicable rates and within the specified time frame.
Types of Conveyance in India
In India, there are various types of conveyance that pertain to the transfer and ownership of properties. Mentioned below are some of the common types of conveyance:
A sale deed is the most common form of property conveyance in India. It is a legal document that transfers the ownership rights of a property from the seller (vendor) to the buyer (vendee) in exchange for a consideration amount. The sale deed is registered and executed as per the provisions of the Registration Act, 1908.
A gift deed is used when a property is transferred as a gift, without any monetary consideration. It involves the voluntary transfer of ownership rights from the donor (person making the gift) to the donee (recipient). Like a sale deed, a gift deed must be registered to be legally valid.
A lease deed is executed when a property owner (lessor) grants another party (lessee) the right to possess and use the property for a specified period, in exchange for rent or lease payments. The lease deed outlines the terms and conditions of the lease, including the duration, rent amount, and responsibilities of both parties.
A mortgage deed is used when a property owner (mortgagor) pledges their property as collateral to obtain a loan from a lender (mortgagee). The mortgage deed creates a legal charge on the property in favor of the lender, allowing them to recover the loan amount in case of default. It is registered and provides security to the mortgagee.
A partition deed is executed when co-owners of a property mutually agree to divide the property among themselves, thereby separating their individual shares. It outlines the specific shares allotted to each co-owner and requires registration.
A release deed is used when a person or party with a legal claim or interest in a property relinquishes their rights or interest in favor of another person or party. It is typically executed when there is a dispute or conflict regarding the property and helps in settling ownership rights.
The Bottom Line
Conveyance law in India serves as a crucial framework for property transfers and protects the rights of buyers and sellers. Understanding the legal requirements and process involved in conveyance is essential for ensuring a smooth and lawful transaction. As property transactions can be complex, it is advisable to consult legal professionals specializing in real estate law to navigate through the intricacies of conveyance law in India and safeguard one's interests.
However, it is essential to understand the specific requirements and legal procedures associated with each type of conveyance to ensure a smooth and legally valid property transfer or ownership transaction. Thus, it is advisable to consult a qualified property lawyer in the relevant jurisdiction to navigate the intricacies of property conveyance. In simple words, if you are a resident of Kolkata, it is better to consult a property lawyer in Kolkata.
What are the two types of conveyance?
In India, two common types of conveyance are sale deed and gift deed.
What is conveyancing in Indian law?
Conveyance, in the context of property law, refers to the legal process of transferring ownership or rights to a property from one party to another. It encompasses the sale, purchase, lease, or mortgage of real estate.
What is an example of conveyance law?
A decided to sell his house to B and engaged in a conveyance process to transfer ownership. They executed a deed, a legal document that conveyed the property from A to B. The conveyance included a thorough title search to ensure there were no liens on the property. After the conveyance was complete, B became the legal owner of the house, and A no longer had any rights or interests in it.
What are the different types of conveyance in law?
Some of the types of conveyance in India are Lease Deed, Sale Deed, Gift Deed, Mortgage Deed, Partition Deed, etc.
What is the principle of conveyance?
The principle of conveyance refers to the fundamental concept that governs the transfer of ownership rights or interests in a property from one party to another.
What is the importance of conveyance in law?
Conveyancing is important as it ensures that property transactions are legally valid and enforceable. By following the prescribed legal procedures and documentation requirements, such as executing and registering the necessary deeds, conveyancing provides a solid legal foundation for property transfers. This helps protect the rights and interests of all parties involved in the transaction.