What exactly is a conveyance deed?
You’ve probably heard the term Conveyance Deed when looking to buy a home. The deed has various aspects that tie it legally before the law and serve as evidence in the event of a future controversy. But do you comprehend what it means and why it matters in real estate? We respond to the questions.
Following an increase in the number of reported fraudulent confiscations and property transfers in the past, it is critical to have a conveyance document that legally protects your rights. But first, let’s define the terms ‘deed’ and ‘conveyance’.
A deed is a legal document that is prepared, sealed, and given by the parties engaged in a transaction (buyer and seller). The document includes legally binding terms that can be enforced in a court of law. As a result, a deed must be in writing and signed by both parties.
What exactly is a conveyance deed?
Conveyance is the procedure through which an asset’s owner transfers ownership rights to another person in exchange for a legitimate compensation (except for “gifts”, where the only consideration is love and affection). A conveyance deed is a legal instrument that protects the rights of a property owner in the case of immovable property. It is a contract that is sealed and signed by all parties engaged in the property transaction and contains bye-laws that are enforceable in a court of law.
A transfer deed’s components
- Written document
To be considered a ‘deed,’ the contract must be in writing. Oral agreements will not be recognised by the law.
- Property demarcation
The deed requires adequate delineation of the subject property. To avoid problems, such as invasion by others, an exact separation should be specified.
- Transfer
The transfer of property from one person to another should be stated properly in the deed. It should contain the seller’s and buyer’s names, address proofs, and identification documents. If there are many owners, their names should be included in the document.
- Signatures
The deed should be signed by all parties engaged in the property transfer.
- Legal encumbrances
The deed should state specifically that the property is free of legal encumbrances. If there is a debt or mortgage on the property, it must be paid off before the transfer.
- Registration
The deed is written on non-judicial stamp paper and must be recorded with the local registrar within four months of the transaction, along with a nominal fee. The original owner transfers the legal rights, ownership, and power over the property to the new owner by signing the deed. Two witnesses must also sign it, and their information should be included in the deed. The witnesses must sign the deed in front of a notary.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
