Conveyance is the legal act of transferring the legal rights and ownership of land, building or property from one party to another. The term commonly refers to real estate transactions where two parties engage in the sale of a property and the seller has to legally sign the title over to the buyer.
The act of conveyance is usually executed using a conveyance deed.
What is a Conveyance Deed?
A Conveyance Deed is basically a legal document that outlines all the legally valid terms of both parties relating to the transfer of a property from one owner to another.
To put it simply, a Conveyance Deed implies that the seller signs a document stating that all the authority and ownership of the property in question has been transferred to the buyer.
In any situation that can potentially give rise to a dispute regarding ownership, the conveyance deed acts as evidence for the legal transfer of ownership rights from one party to another.
There are certain important details that you must not forget while making a Conveyance Deed:-
- Defined Boundaries:- The deed essentially needs to clearly demarcate the defined boundary lines of the property. Parties involved may need to undertake and facilitate a survey of the concerned property, to be able to define the exact parameters and dimensions of the said property, in the legal documents, mentioning the precise size and boundaries of the property will be instrumental in resolving or avoiding any potential disputes that can appear down the line.
- Conveyance:- The deed must compulsorily convey, without any ambiguity, the intention to allow the property rights to pass on from the seller to the buyer, and a declaration to this effect. Additionally, the deed must clearly spell out any terms and conditions that apply.
- Signature:- All parties involved in the transfer of the said property, including the current owner the new owner, must sign the deed of conveyance for it to be valid. The signature of the original owner on the conveyance deed secures the process of the transfer of all legal rights of ownership and authority over the property from the seller to the buyer. The seller signs away his or her rights to legally own or use a particular property.
- Seal:- The document essentially has to be in writing for it to qualify as a “deed”.Oral contracts are not liable to enforce in a court of law. The written deed has to mention the names of the seller or owner of the property and the buyer. The present owner must sign the deed in front of a gazetted officer, a registrar or any other notary, who will then seal the document.
- Registration:- The grantee is required to ensure that the deed of conveyance is registered with the country concerned. Presenting the signed and sealed deed of conveyance along with the registration fees to the local registrar’s office can complete this task. The transfer then becomes certified, supported by tangible evidence, and becomes a part of the public domain, somewhat like a public service announcement, easily accessible through the public records.
After the successful completion of all the above-mentioned procedures, the conveyance deed becomes legally valid. Thereupon, the buyer legally takes over the ownership of the property in question.
Importance of a Conveyance Deed
Take, for example, your father gives you property for building up your business or home. He verbally assures you that the property is yours but does not leave behind a will, a deed or any other legal document which certifies you to be the legitimate owner of that particular property.
In this case, you may face the complete loss of ownership rights to the property of your residence, because there is no legal documentation that can prove the official transfer of the ownership of that particular property to you.
And that is exactly why legal documentation of ownership rights is of extreme importance- it helps to avoid any unfavourable legal repercussions that can arise out of faulty, inadequate, or the altogether absence of such evidence. It provides you with the complete rights to the property upon which you can build, let out for rent and sell without worrying about someone disputing your ownership in the future.
Thus, a conveyance deed is an important legal document that facilitates the smooth transfer of property, and goes a long way to ensure that disputes arising out of the same can be avoided.