Unraveling Conveyance Law: Simplifying Property Transfers
Posted On : May 26, 2023
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Introduction
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:
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Property
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;
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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. -
Title Investigation
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:
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Sale Deed
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. -
Gift Deed
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. -
Lease Deed
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. -
Mortgage Deed
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. -
Partition Deed
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. -
Release Deed
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.
FAQs
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What are the two types of conveyance?
In India, two common types of conveyance are sale deed and gift deed.
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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.
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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.
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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.
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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.
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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.
Written By:
Vidhikarya
Recommended Free Legal Advices
Questions is regarding conveyance deed queries 1 Response(s)
Dear Sir,
You have issues seems to be lengthy and complicated better discuss with local lawyer with all your documents who is acquainted with local laws.
I could have explained more if background is known to me. You are supposed to give more details to get detailed answer.
Please be inform that free questions deserves to be attended on priority basis so be brief but disclose summary of your case.
Regarding obtaining deemed conveyance or conveyance 3 Response(s)
Dear Client,
Section 17 of the Real Estate (Regulation and Development) Act, 2016 mentions the promoter to execute a registered conveyance deed and hand over physical possession and other title documents to the association of allottees or competent authority within the specified time as per provisions of local laws. In the absence of local laws, it gives three months to execute the conveyance deed from the date of issuance of the occupancy certificate.
The complete process of applying deemed conveyance is online. However, there are details that the parties need to pay attention to before submitting the application. The first thing to be done by the CHS or flat owners is to write a formal email or a letter to the Promoter/builder/developer requesting them to provide the SALE DEED or CONVEYANCE DEED draft. In case there is no reply to the formal communication, the legal body should do the following.
1. Send the developer a legal notice via an advocate and request the developer to provide the deed with due signatures. 2. File an application with the Registrar of Co-operative Societies by attaching the relevant documents (along with self-attestation and copies) and INR 2000 court stamp fees.
3. Once the Competent Authority is satisfied that all the required documents are presented, a notice will be sent to the landowners/promoter/developer.
4. After receiving the notice, the Authority will hear arguments from both parties and ask them to present further evidence in the next hearing.
5. In case of the absence of the Promoter or the CHS, the Authority will pass an ex-parte order.
If no legal question is raised in the third hearing, the Competent Authority will pass the order.
Irregularities in conveyance deed and 9-12 extract 2 Response(s)
Dear Client,
A conveyance or deemed conveyance is an important and legal document that ensures ownership of the property regardless of its nature or class that may be bare land with or without structure. When a society is registered under the Maharashtra Co-operative Societies Act, 1960, then the law casts a duty on a builder to execute the conveyance deed within four months of the formation of the society irrespective of the class or nature of the land. As this has not been done, the builder is guilty of violating the law and there is a deficiency in the service rendered by him. The conveyance deed has to be executed within four months of the formation of the Society and in case any additional FSI(Floor Space Index) is available, its benefit accrues to the society which is the real owner of the land/building. In this context, the decision of the Consumer Forum of Mumbai Suburban District passed in the case of Mamta - D Cooperative Housing Society Vrs. Gundecha Builders may be referred. Thus the action on the part of the Builder amounted to a deficiency in service and unfair trade practice. In a judgment passed in the year 2019, the Bombay High Court ruled that Conveyance is the ownership right to the building and the plot on which the structure is built. Deemed conveyance is the one obtained through the competent authority if the developer doesn’t give it. A housing society can apply for deemed conveyance if the developer fails to do so within a stipulated time. So, in the prevailing situation, all the affected buyers or the society needs to file a complaint on the ground of continued cause of action against the Builder under Sec.35 of the Consumer Protection Act, 2019 before the concerned Dist./State Consumer Commission, as the case may be, over alleged deficiency in service and unfair trade practices for an appropriate direction to the Builder for execution of deed of conveyance claiming a hefty amount of compensation for harassment and cost of litigation. The complaint should be filed before the Consumer Court within two years from the date of the cause of action, i.e, from the date the Builder continuously failed to execute the deed of conveyance. When the housing project is approved by RERA, for any deviation or deficiency in service on receipt of the cost of service on the part of the Builder/Developer, he shall be held accountable for the same. If the matter is not resolved from the end of the Builder/Developer, then serving a legal notice, file a complaint individually or collectively with other buyers who are equally affected by such deficiency under Sec.31 of the Real Estate (Regulatory and Development) Act, 2016 before the Adjudicating Officer claiming compensation for the deficiency. It may be noted that you cannot raise your complaint/claim simultaneously before the Consumer Court and RERA for the same cause of action at a time. Reach out to an experienced Advocate handling Consumer cases and real estate cases for guidance and steps to resolve the irregularities cited by the Builder and navigate the issues in the right way.
Flat sale conveyance deed 4 Response(s)
Dear Client
I think it is quite possible that your parents can sell the house through one conveyance deed to the next seller and this current deed will have to provide reference of all the previous deeds and that should be ok.
Cooperative Housing Society - Deemed Conveyance 2 Response(s)
Given the facts, A NOC from the daughter of the owner shall be required.
Provided what is true in the facts that the son is using the sisters flat. He can act as an agent of the daughter and act on her behalf or get powers of acting on her behalf and transfer the same.
If not done in such a manner, the daughter can at any point of time claim that she was not aware of such transaction and that such transfer was made fraudulently.
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