A conveyance deed is one of the most important legal documents in Indian real estate transactions because it establishes the lawful transfer of property ownership from one party to another. Many homebuyers hear terms like sale deed, conveyance deed, and property transfer during the buying process, but do not fully understand how each functions. This often leads to confusion and delays in registration.
This article explains what is conveyance deed in India is in simple terms. It covers the types of conveyance deeds, the complete documents list, the conveyance deed format, and a clear comparison of conveyance deed vs sale deed to help buyers, housing societies, and property owners make informed decisions.
Understanding What Is Conveyance Deed Is
A conveyance deed is a legal document that officially transfers the title of a property from the seller or owner to the buyer. It is executed after all terms of the property transaction are agreed upon. Once signed and registered, it becomes proof of lawful ownership.
In Indian property law, every transfer of immovable property requires a registered document that legally records the change of ownership. This is why a conveyance deed is essential in most real estate transactions, including freehold sales, leasehold transfers, gifts, mortgages, and assignments. It is also widely used in conveyancing in India, particularly when housing societies acquire land and building rights from developers after project completion.
A conveyance deed must be registered at the local Sub-Registrar’s Office. Registration involves payment of stamp duty on the conveyance deed, which varies by state.
Why a Conveyance Deed Matters
A buyer becomes the legal owner of a property only when the conveyance deed is executed and registered. Without it, ownership remains incomplete, and the buyer may face issues such as:
- Inability to sell or mortgage the property.
- Difficulty obtaining home loans.
- Problems in mutation and updating land records.
- Lack of legal protection in case of disputes.
A registered conveyance deed provides clear evidence of ownership and is legally enforceable in any court of law.
Types of Conveyance Deed
There are different types of conveyance deeds, depending on the nature of the transaction. The main categories include:
Sale Conveyance Deed
This is used when a property is sold for a financial consideration. It is similar to a sale deed, but the term “conveyance deed” is broader and covers all forms of property transfer. A sale conveyance deed is executed only after the full payment is made and both parties agree to the terms of the sale.
Gift Deed
A gift deed is a type of conveyance deed in which property is transferred voluntarily without any monetary consideration. It must be executed by the donor and accepted by the donee. Registration and stamp duty are mandatory, although some states offer concessional rates for family transfers.
Read the relevant article: Will Deed in India.
Leasehold Conveyance Deed
This deed transfers the leasehold rights of a property for a specific period. It is common in government-allotted properties, industrial plots, and properties built on leased land.
Mortgage Deed
A mortgage deed is used when a property is given as security in exchange for a loan. The ownership remains with the borrower, but certain rights stay with the lender until the loan is repaid.
Conveyance Deed for Housing Societies
Once a building is completed, the developer must transfer land and building rights to the cooperative housing society. This process requires a conveyance deed that legally transfers ownership from the builder to the society.
Each type serves the same core purpose: formal transfer of property ownership with legal validity.
List of Documents Required for Conveyance Deed
The documents required for a conveyance deed depend on the type of transfer, but the standard set includes:
- Proof of identity and address of buyer and seller.
- PAN cards of both parties.
- Latest property tax receipts.
- Title documents or previous ownership records.
- Registered development agreement, if applicable.
- Approved building plan and completion certificate.
- Occupancy certificate.
- Registered agreement to sell.
- Power of Attorney (if someone is signing on behalf of the owner).
- Encumbrance certificate.
- Payment proof, such as bank statements or receipts.
- Society registration certificate for society conveyance cases.
A clear list of documents required for a conveyance deed ensures faster verification and registration at the Sub-Registrar’s Office.
Conveyance Deed Format: Key Elements to Include
There is no single universal conveyance deed format, but all valid deeds include certain essential components. A typical conveyance deed format for property includes:
- Details of the buyer and seller.
- Description of the property, including address, area, and boundaries.
- Statement of ownership by the seller.
- Transfer clause confirming the transfer of rights, title, and interest.
- Consideration amount paid by the buyer.
- Timeline of possession.
- An indemnity clause protects the buyer against claims or disputes.
- Details of encumbrances, if any.
- Signatures of both parties and two witnesses.
Once drafted, the deed is printed on stamp paper and registered.
Conveyance Deed vs Sale Deed: Understanding the Difference
Many property buyers confuse a sale deed with a conveyance deed, but the two are not identical. A sale deed is one type of conveyance deed.
Below is a clear comparison explaining the difference between a sale deed and a conveyance deed.
Comparison Table: Conveyance Deed vs Sale Deed
| Aspect | Conveyance Deed | Sale Deed |
| Definition | A specific type of conveyance deed is used only when property is sold. | Used in sales, gifts, mortgages, lease, and society conveyance. |
| Scope | Broader term covering all property transfers. | Narrower term limited to sale transactions. |
| Consideration | May or may not involve monetary payment. | Always involves financial payment. |
| Usage | Used only in the sale of property. | Used in sales, gifts, mortgages, leases, and society conveyance. |
| Legal Requirement | Used in sales, gifts, mortgages, leases, and society conveyance. | Registration is mandatory under the Registration Act, 1908. |
| Outcome | Transfer of rights, title, and interest. | A general document used to transfer ownership of property through sale, gift, lease, or assignment. |
In simple terms, a sale deed is always a conveyance deed. However, a conveyance deed is not always a sale deed.
Understanding the sale deed helps clarify this difference. A sale deed is a contractual document that confirms the sale of a property for a price. A conveyance deed is the broader document that executes the legal transfer of ownership.
Example Scenario: When You Need a Conveyance Deed
Consider a housing society in Mumbai that wants legal ownership of the land and building from the developer. Even though all flats are sold, the society cannot claim ownership until the builder executes a conveyance deed in their favour. Without this document, the society cannot redevelop the building, update property records, or apply for municipal permissions.
This example shows why conveyance deeds are significant in property ownership transfer and are not limited to individual sale transactions.
Stamp Duty on Conveyance Deed in India
Stamp duty must be paid before registration of a conveyance deed. The stamp duty on a conveyance deed varies from state to state and is usually calculated on the market value or the agreement value of the property.
Some states charge different stamp duty rates depending on whether the transfer is through sale, gift, or lease. For example, several states offer lower stamp duty for gift deeds between family members. However, buyers should always check the latest notifications issued by the respective state governments.
How to Register a Conveyance Deed
Registration strengthens the legality of the deed and is mandatory under the Registration Act, 1908. The typical process includes:
- Preparation of draft conveyance deed.
- Payment of applicable stamp duty and registration charges.
- Physical visit to the Sub-Registrar Office with the required documents.
- Verification, biometric authentication, and signatures.
- Collection of the registered deed after successful processing.
Once registered, the deed becomes part of the public records.
Conclusion
A conveyance deed is a vital document that ensures the lawful and undisputed transfer of property ownership in India. Understanding what is conveyance deed is, its types, and the documents required helps buyers and housing societies navigate the legal process smoothly. It also clarifies the commonly misunderstood difference between a conveyance deed and vs sale deed, improving decision-making in property transactions.
Whether you are buying a flat, receiving property as a gift, or forming a society that needs ownership rights, the conveyance deed protects your legal interests and provides long-term security.
FAQs
- Is a conveyance deed necessary to claim full ownership of a property?
Yes. Without it, ownership is not legally transferred or recorded. - Who is responsible for preparing the conveyance deed?
Usually, the seller prepares it, but buyers or societies may draft it when needed. - Can a conveyance deed be executed online?
Drafting can be done online, but final signing and registration require an in-person visit to the Sub-Registrar Office. - What is the validity of a conveyance deed once registered?
It remains valid permanently unless cancelled by a court or through mutual agreement. - Can I apply for mutation without a conveyance deed?
No. Mutation requires proof of ownership, which the conveyance deed provides. - Does every state have the same stamp duty for conveyance deeds?
No. Stamp duty rates differ across states and vary by type of transfer. - Can a conveyance deed be challenged later?
Yes, it can be challenged in court on grounds such as fraud or misrepresentation. - Do housing societies need a conveyance deed from the builder?
Yes. Without it, society cannot legally own the land and buildings. - Is the encumbrance certificate mandatory before registering a conveyance deed?
It is highly recommended because it confirms whether the property has loans or disputes. - Can a property be sold without a conveyance deed?
Practically no. Banks and legal authorities require a registered conveyance deed for resale.