What is a Conveyance Deed? Meaning, types and objectives

When buying a new home, the documentation aspect can be a bit tricky, especially if you are a first-time home buyer. Having an understanding of home loan terms, different types of documentation and how they operate are crucial to safeguard one’s interest and avoid any future legal hassle. One such document is a conveyance deed. Let’s explore the conveyance deed in detail.

What is a Conveyance Deed?

Let’s start the discussion by understanding the meaning of a conveyance deed meaning. A conveyance deed is a legal document that transfers the ownership of the asset from one party to another. The conveyance deed ensures that the property directly goes from buyer to seller without having any intermediaries involved in the process like trustees or mortgage companies.

Different types of Conveyance Deeds

Following are the different types of conveyance deeds:

• Mortgage Property Conveyance Deed: The mortgage property conveyance deed is meant for dealing with the mortgaged properties. Through this deed, the buyer has the right to access their property from time to time and access the premises and the building.
• Leasehold Property Conveyance Deed: A leasehold property conveyance deed deals with the properties that are on lease. Through a leasehold conveyance deed, the owner gets the right to enjoy doing anything within the four walls of the property. However, they shall not have any right to the external structures and the landlord shall continue to remain the owner of such structures and common areas.
• Gift Deed: Gift deeds are a type of conveyance deed whereby the property can be legally transferred as a gift without entering any monetary transaction.
• Freehold Conveyance Deed: A Freehold conveyance deed deals with the properties that are declared as freehold by any authority. Using this deed, the state or the development authority can convert the status of any property into freehold. Through this, the buyers get the full authority to enjoy the property.
• Exchange Deeds: Exchange deeds can be entered into by both parties whereby they can agree to exchange the ownership of their respective properties.
• Will Deed: Wills are created by the owner of the property to transfer the same to the legal heirs in the way mentioned in the deed. This will deed comes into effect after the demise of the will holder. This acts as a deemed conveyance for the recipient.

Contents of the Conveyance Deed

A registered conveyance deed is a detailed document that encompasses all the crucial information relating to both parties, the property, and the terms of the transaction. Once the deed is prepared, you can proceed with the conveyance deed registration through an advocate. Here are some of the crucial elements of the conveyance deed:

• Details of the buyer and seller: This includes their names, addresses and occupations
• Property Details: This includes the location of the property, measurements, boundaries and the type of property.
• Terms and Conditions: This involves all the terms and conditions surrounding the transaction.
• Price and Mode of Payment: This includes the price at which the transaction is executed as well as the mode of payment.
• Indemnities: This includes the status of the property like occupancy status, pending dues clearance etc.
• Signatures: This includes the signatures of both the parties and the witnesses
• Execution Date: This includes the date and place at which the agreement was entered into.

In a Nutshell

A registered conveyance deed is an important document for any type of property transaction. It is crucial to carefully read the terms and conditions of the conveyance deed before proceeding with the transaction. If you are buying a home for the first time, then you should buy from trusted sources to ensure transparency in the purchase and home loan process.

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