Conveyance deed: Clear all your confusion in just a click!
Conveyance Deed in Property: Complete Guide in a Click
Legal documents and terms have always been a source of confusion and headaches—especially when it comes to property, where you don't want to take any chances.
One such common yet confusing term is “conveyance deed.” Most people believe it's just another type of document—which is true, but only partially. In this blog, we’ll help you understand what a conveyance deed really is and how it differs from similar legal terms.
What is a conveyance deed?
By looking at the word “deed,” you might think it refers to a type of document—and you're right, but there's more to it. Deed is actually a general term used to describe various types of property documents that prove ownership.
Still confused? Let’s take an example.
When you sell your property, you use a sale deed. When you gift it, you use a gift deed. These deeds serve different purposes, but they all fall under the broader category of conveyance deeds. In other words, all these are types of conveyance deeds.
Other Types of Conveyance Deeds
Sale deeds, gift deeds, lease deeds, mortgage deeds, exchange deeds, and relinquishment deeds.
Meaning of Conveyance
Conveyance simply means carrying or transferring something. So, any type of deed used to transfer property from one party to another is called a conveyance deed.
Types of conveyance deed and their usage in real estate
These are the different types of conveyance deeds in real estate.
1. Sale Deed
A sale deed is a legal document used when a property is sold from one person to another. It proves the buyer now owns the property. This document includes all details such as the amount paid, location, property description, and agreement terms. It is registered with the local sub-registrar's office.
Example: Rahul sells his flat to Ramesh for 40 lakhs. They sign a sale deed, which is registered, and now Ramesh legally owns the flat.
2. Gift Deed
A gift deed is used when someone gives their property to another person without asking for any money. This is often done between family members. The transfer is completely voluntary and permanent. It must be registered to be legally valid and cannot be taken back once gifted.
Example: A father gifts his house to his daughter. They sign a gift deed and register it. Now the daughter becomes the legal owner without paying any money.
3. Relinquishment Deed
A relinquishment deed is used when one co-owner gives up or releases their share in a jointly-owned property to another co-owner. This often happens after the death of a family member when legal heirs want to transfer rights to one person.
Example: Two brothers inherit their father's house. One brother signs a relinquishment deed giving up his share to the other, making him the sole owner.
4. Partition Deed
A partition deed is used when a jointly-owned property is divided among co-owners. Each person gets their legal share. This is commonly used in families to settle disputes or divide ancestral property. Once signed and registered, each person's share is recorded.
Example: A family owns a large piece of land. They divide it into four parts through a partition deed, giving each sibling a specific section of the land.
5. Exchange Deed
An exchange deed is used when two parties agree to swap one property for another. No money is involved, or a small adjustment amount may be paid. Both parties must agree and register the deed to make the exchange legal.
Example: Rohit has a plot in the city; Amit has a farm in the village. They agree to exchange their properties and create an exchange deed to legalize the transfer.
6. Mortgage Deed
A mortgage deed is used when someone borrows money using their property as security. The lender gets the right to sell the property if the borrower fails to repay the loan. Once the loan is paid off, the rights are returned to the borrower.
Example: Sunil takes a home loan from a bank. He signs a mortgage deed using his house as security. If he doesn’t repay, the bank can sell the house.
7. Lease Deed
A lease deed is used to give someone the right to use property for a specific time and rent, without giving them ownership. It defines terms like rent, period, and responsibilities. It's often used in renting shops, houses, or land.
Example: A company leases an office space from a builder for 5 years. They sign a lease deed mentioning the rent and terms.
8. Settlement Deed
A settlement deed is used to transfer property within a family, often to settle disputes or distribute assets peacefully. It ensures that the person receiving the property gets clear rights. It’s different from a gift deed as it can include conditions.
Example: A grandfather distributes his property among his children through a settlement deed. This avoids future family disputes.
Understanding confusing real estate legal terms helps you mitigate risks during any transaction. Being well-informed not only reduces the chances of mistakes but also acts as a deterrent against frauds and scams. So, always stay updated with what's happening in Commercial Noida for a safe and successful real estate journey.
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