Jan 29, 2014, 10:40AM IST | Sruthi Kailas, Magicbricks.com Bureau
Conveyance deed is a term very frequently used in property dealings. However, many of us still do not understand the concept and where and how it may be used for our benefit.
So, what exactly is a conveyance deed? “When all the liabilities of each party has been fulfilled as per the agreement of sale of any property, a final document signed by the seller in favour of the purchaser transferring its all rights and titles in favour of the purchaser, is known as deed of conveyance.”
Several users on the Magicbricks.com users have enquired about various instances where a conveyance deed is needed. For instance, a user asked, “My wife had purchased a house before marriage for which I am paying EMI at present. My wife had included her father’s name as the joint owner. Her father has now decided to withdraw his name and add my name in his place. But since the papers are with the bank, we are not able to change the names. Can we make an agreement by which my father-in-law could transfer all his legal rights on the house to me?”
Suggesting a solution, the Magicbricks’ legal expert says, “Your father in law can sign a relinquishment deed on the basis of copy of the original conveyance deed. This deed should be registered and the stamp charges should be paid. Once done copy of the deed can be submitted with the bank. Also on basis of the relinquishment deed, you should get the property mutated for getting your name in the records.”
Another user enquired, “I am Treasurer of our housing society. Society was formed in 1996, and till date there hasn’t been a conveyance deed filed. All the residents of the society now wish to file the conveyance deed. The Builder is dead and is survived by dependent who is not into construction and development. How do we proceed filing the conveyance deed?”
Asha Basu, partner, S Jalan & Company says, “Conveyance deed needs to be registered in the name of all owners of the society. Since the builder is not alive, it can be done by the legal heirs/representative of the builder. You need to draft a conveyance deed and apply before registration. Engage any local counsel who is dealing in these matters.”
Giving further insights into the nitty-gritties of a conveyance deed, the Magicbricks’ legal expert states, “Stamp duty on conveyance deed is different for males and females. For males, it would be 8 per cent of the total cost while for females it is six per cent.”
Thus, even though it might seem to be a trivial or obvious issue in property transaction, conveyance deed is important. After all, ownership of any property cannot be claimed if you do not have a properly executed conveyance or a sale deed.
Source : http://goo.gl/3gCp4P