Sale Deed vs. Conveyance Deed: Know the Differences

Introduction

• A conveyance deed and a sale deed are two different legal documents used to transfer ownership of a property in India.
• A conveyance deed is a legal document that transfers the title of the property from one person to another without any exchange of money. 
• On the other hand, a sale deed is a legal document that transfers the ownership of a property from one person to another in exchange for a monetary payment. 
• However, they serve different purposes and have different implications for the transfer of ownership of a property. Uncover the nuances of conveyance deeds and sale deeds through further reading.

What is the difference between a Conveyance Deed and a Sale Deed?

The difference between a conveyance deed and a sale deed is:

• A sale deed is a conveyance deed of a specific type that is used for the transfer of ownership of a property as a result of a sale. It is the most common type of deed used in real estate transactions and serves as evidence of the transfer of ownership.
• A conveyance deed, however, is a broader term that can be referred to any type of deed used for the transfer of ownership of a property, including a sale deed, gift deed, exchange deed, partition deed, release deed, mortgage deed, or lease deed. This type of deed is most common and is used in the transfer of property ownership from a parent to a child or from a company to its employees.
  

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Important key points to know about Conveyance Deeds in India

1. Purpose: A conveyance deed is used to transfer the ownership of a property from the seller to the buyer.
2. Legal requirements: In India, conveyance deeds must be according to the Transfer of Property Act of 1882 and must be executed and registered as per the Indian Registration Act of 1908.
3. Parties involved: A conveyance deed involves two parties – the seller (transferor) and the buyer (transferee).
4. Description of property: The conveyance deed must contain a complete and accurate description of the property being transferred, including its boundaries, measurements, and location.
5. Consideration: The conveyance deed must also mention the consideration (price) paid by the buyer for the property.
6. Signatures: The conveyance deed must be signed by both the seller and the buyer and witnessed by two witnesses.
7. Registration: The conveyance deed must be registered with the local sub-registrar’s office within four months of execution.
8. Effect: Upon successful registration of the conveyance deed, the ownership of the property is transferred from the seller to the buyer.

What are the contents of a Conveyance Deed in India?

The following are some of the critical elements that should be included in a conveyance deed in India:

1. Date of execution: The date on which the conveyance deed was executed by the parties involved.
2. Names and addresses of parties: The full names and addresses of the transferor (seller) and the transferee (buyer) should be clearly stated in the deed.
3. Description of property: A complete and accurate description of the property being transferred, including its boundaries, measurements, and location.
4. Consideration: The consideration (price) paid by the buyer for the property should be mentioned in the conveyance deed.
5. Details of previous ownership: The conveyance deed should include details of any previous transfers of ownership, including any previous conveyance deeds or sale deeds.
6. Payment of taxes: The conveyance deed should mention the payment of any taxes or other charges associated with the transfer of ownership, such as stamp duty.
7. Covenants and Warranties: The conveyance deed should include any covenants or warranties made by the transferor, such as the warranty that the property is free from any encumbrances.
8. Signatures: The conveyance deed should be signed by both the transferor and the transferee, as well as witnessed by two witnesses.
9. Registration: The conveyance deed should be registered with the local sub-registrar’s office in accordance with the Indian Registration Act 1908.
   

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What is the purpose of the Conveyance Deed and Sale Deed?

 Conveyance Deed:

• A conveyance deed is a legal document that transfers ownership of real property from one person (the grantor) to another person (the grantee).
• The purpose of a conveyance deed is to provide evidence of the transfer of ownership and to ensure the legality of the transfer.
• A conveyance deed typically includes details about the property, such as its location and description, as well as the terms of the transfer, such as the consideration paid for the property.

Sale Deed:

• A sale deed is a legal document that transfers ownership of a piece of property from one person (the seller) to another person (the buyer).
• The purpose of a sale deed is to provide evidence of the transfer of ownership and to establish the rights and obligations of the buyer and the seller.
• A sale deed typically includes details about the property being sold, such as its location and description, as well as the terms of the sale, such as the purchase price and any conditions of the sale.

What to do if a Conveyance Deed is lost?

If a conveyance deed is lost, it can have significant implications for the ownership of the property. Here are the steps you can take if your conveyance deed is lost:

1. Obtain a duplicate copy 
2. Execute a fresh conveyance deed: If a duplicate copy of the original conveyance deed cannot be obtained, you may need to execute a fresh conveyance deed to transfer ownership of the property. 
3. Consider obtaining legal advice: It may be advisable to consult a qualified attorney for legal advice and assistance with obtaining a duplicate copy of the original conveyance deed or executing a fresh conveyance deed.

What are the types of Conveyance Deeds?

There are three types of conveyance deeds:

Freehold Property Conveyance Deed: The conversion of the property into freehold by government authority.

Leasehold Property Conveyance Deed: In this, the owner can make the changes within the property, excluding the external structure.

Mortgage: Under this, the buyer has time-to-time access to his building premises.

Conclusion

• In India, the conveyance is a crucial step in the process of transferring ownership of a property.
• It is important to note that conveyance deeds must be executed and registered in accordance with the rules and laws of the state where the property is located. 
• In India, it is important to use the appropriate type of deed for the specific type of transfer being made. A qualified attorney can assist with the drafting and execution of the appropriate deed, as well as ensure that it complies with all applicable laws and regulations.

Frequently asked questions about Sale Deeds and Conveyance Deeds in India

Q 1. What is the difference between a sale deed and a conveyance deed?

Ans. A sale deed is a specific type of conveyance deed that is used for the transfer of ownership of a property as a result of a sale. A conveyance deed, on the other hand, is a broader term that can refer to any type of deed used for the transfer of ownership of a property, including a sale deed, gift deed, exchange deed, partition deed, release deed, mortgage deed, or lease deed.

Q 2. What is the importance of registering a sale deed?

Ans. Registering a sale deed is important because it provides legal recognition of the transfer of ownership of the property. It also helps to protect the rights of the buyer and prevents disputes over the ownership of the property in the future.

Q 3. What is the procedure for registering a sale deed in India?

Ans. The procedure for registering a sale deed in India involves the following steps: (1) preparation of the sale deed, (2) payment of stamp duty and other taxes, (3) presentation of the sale deed to the local sub registrar’s office, (4) verification of the documents, (5) execution of the sale deed by the parties involved, and (6) registration of the sale deed.

Q 4. Can a sale deed be executed online?

Ans. Yes, in certain states in India, it is possible to execute a sale deed online through the e-Registration system. However, it is essential to check with the local sub- registrar’s office to confirm whether this is available in your jurisdiction.