In real estate, several legal documents are pivotal in property transactions. Among them, the sale deed and conveyance deed play essential roles, each serving the purpose of transferring ownership rights. Despite the common goal, these documents diverge in their legal implications. Individuals must comprehend the difference between a sale deed and a conveyance deed. This article delves into these differences, emphasising their significance in property transactions.
Sale deed vs conveyance deed: Meaning
- Sale deed: A sale deed is a legal document confirming the transfer of property ownership from the seller to the buyer. It includes details like parties’ names, sale considerations, property description and relevant terms. Executed during the actual sale, it must be registered with the appropriate authority.
- Conveyance deed: A conveyance deed is a broader term covering various property transfers, including sale deeds. It serves as a legal instrument for transferring property rights between parties. Beyond sale transactions, conveyance deeds apply to exchange, lease, gifting or any other form of property transfer.
Sale deed vs conveyance deed: Governing laws
- Sale deed: A sale deed falls under the Sale of Goods Act 1930 and the Transfer of Property Act 1882. Registration is mandatory. As per Section 17 of the Indian Registration Act, 1908, anything costing more than Rs 100 must be registered for execution.
- Conveyance deed: A conveyance deed is subject to the Indian Stamp Act, 1899, and the Indian Registration Act, 1908. Registration is compulsory. The process involves making the transfer permanent in public records, signed by two witnesses and notariz
See also: Types of deeds in real estate
Sale deed vs conveyance deed: Features
- Sale deed: A sale deed establishes the buyer’s ownership rights, transferring ownership from the seller in exchange for consideration. It outlines monetary transactions and consideration schedules, constituting a legally enforceable document. Once registered, the buyer obtains all rights to the property.
- Conveyance deed: A conveyance deed is the evidence of an individual’s property ownership. It facilitates the transfer of property rights and associated claims.
Sale deed vs conveyance deed: Applicability
- Sale deed: A sale deed applies to sale transactions governed by Section 54 of the Transfer of Property Act 1882. It verifies the legal transfer of ownership from one person to another in exchange for For instance, a sale deed is employed when A sells their property to C for a specified amount of money.
- Conveyance deed: A conveyance deed is versatileand applies to sale transactions, leases, mortgages, gifts, wills and various property transfers. For example, a gift deed can transfer property ownership without monetary consideration, exemplifying the broader use of conveyance deeds.
Sale deed vs conveyance deed: Contents
- Sale deed: A sale deed includes:
- Property address, location and description
- Outlines agreed-upon terms and conditions
- Information on stamp duty and payment
- Legally binding with signatures from both parties
- Conveyance deed: A conveyance deed includes:
- Clear property boundaries
- Property handover specifics
- Power of attorney details (if any)
- Titles of both parties
- Stated terms and conditions
- Signatures of buyer and seller
- Details of encumbrances (if any)
- Method of property delivery
- Witness details and signatures
- Specific transfer dates
FAQs
What is a sale deed?
A sale deed is a legal document that signifies the transfer of property ownership from the seller to the buyer.
What is a conveyance deed?
A conveyance deed is a broader term covering various property transfers, including sale deeds.
What is the difference between a sale deed and a conveyance deed?
A sale deed is specific to property sales, while a conveyance deed encompasses all types of property transfers.
Who prepares sale and conveyance deeds?
Experienced lawyers, advocates or deed writers prepare conveyance and sale deeds due to their expertise in drafting such legal documents.
Can a sale deed be executed online?
A sale deed requires physical presence at the sub-registrar’s office for registration. While some states allow online registration, it is not a national practice.
Can a deed be challenged in court?
Yes, a deed can be challenged if its validity is questioned, especially under circumstances, such as fraud, undue influence, mistake or non-compliance with legal requirements.
Can a conveyance deed or sale deed be cancelled?
A registered deed cannot be cancelled unilaterally without the court’s intervention. The Specific Relief Act, 1963, allows cancellation under certain conditions, with compensation specified in Section 33.
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