What Is a Conveyance Deed? Meaning, Process, Stamp Duty and Legal Importance
Paying the full price and collecting the keys does not make you the legal owner of a property. Ownership passes only when the seller transfers title through a proper legal document, and that document is the conveyance deed.
What Is a Conveyance Deed?
A conveyance deed is a legal instrument that transfers the title of an immovable property from the transferor (seller, builder or developer) to the transferee (buyer or allottee). "Conveyance" simply means passing something from one hand to another, and what passes here is ownership.
Once the deed is signed and registered, the buyer becomes the lawful owner and the seller gives up every right, claim and interest in the property. Until then, the buyer holds only possession or a promise to sell, and neither will stand up if ownership is challenged.
Is a Conveyance Deed the Same as a Sale Deed?
Not strictly, though the terms are often used loosely. "Conveyance" is the wider category. Under the Transfer of Property Act, 1882, property can be transferred by sale, gift, exchange, mortgage or lease, and each needs its own document. A sale deed is one type of conveyance, used when property changes hands for a price.
In practice, "sale deed" is the phrase used in resale transactions between private parties, while "conveyance deed" is more common when a builder transfers a flat, plot or the land beneath a project. Legally, both move title to the buyer.
It also helps to separate these from two related documents. An agreement to sell is only a promise and creates no ownership. A title deed is the general term for any document proving ownership, and your registered conveyance deed becomes your title deed.
What Are the Types of Conveyance Deed?
- Sale deed: transfer of property for a price
- Gift deed: transfer without consideration, usually within the family
- Exchange deed: two properties swapped between parties
- Lease deed: transfer of the right to use property for a fixed term
- Mortgage deed: transfer of an interest in property as security for a loan
- Release, partition and settlement deeds: used among co-owners and family members
Why Is a Conveyance Deed Important?
Many first-time buyers treat it as a formality that follows the real transaction. It is the transaction.
- It is your primary proof of legal ownership and clear title.
- Municipal and revenue records will not be updated in your name without it (mutation).
- Banks will not sanction a home loan or a loan against property without a registered deed.
- A future buyer's lawyer will trace the chain of title, and yours must be unbroken.
- It is the document that defends you if someone disputes your ownership.
What Does a Conveyance Deed Contain?
The format varies by state and by the lawyer who drafts it, but a properly prepared deed generally covers:
- Names, addresses and identification details of both parties
- A full property description: plot or unit number, area, boundaries and, where applicable, khasra or khewat numbers
- The sale consideration and how it was paid
- A recital of how the seller acquired the property
- A declaration that the property is free from mortgages, litigation and other encumbrances
- A statement that possession is being handed over
- The seller's covenant of title, an assurance to compensate the buyer if a defect in title emerges later
- Signatures of both parties and two witnesses
Check the property description more carefully than anything else. A wrong plot number or a mismatched boundary can take years to correct.
What Documents Are Required for a Conveyance Deed?
- Identity and address proof of buyer and seller, with PAN details
- Original title documents and the earlier chain of deeds
- The agreement to sell or builder-buyer agreement
- An encumbrance certificate
- Property tax receipts and utility bills
- No-dues certificates from the builder, society or authority
- The occupancy certificate for new projects
- Passport-size photographs of the parties and witnesses
What Is the Process of Executing a Conveyance Deed?
Title verification. A lawyer checks the seller's title, searches the records for loans or litigation, and confirms the property matches its approved layout.
Drafting. An advocate prepares the deed. Have your own lawyer read it, even if the seller's side supplies the draft.
Stamp duty. The deed must be stamped under the Indian Stamp Act, 1899, as amended by the state concerned.
Registration. Under the Registration Act, 1908, both parties appear before the sub-registrar with two witnesses. Identities are verified, photographs and biometrics are recorded, and the registration fee is paid. A deed should be presented for registration within four months of execution.
Mutation. Registration does not automatically update local records. Apply separately so that property tax and revenue records carry your name.
What Is the Stamp Duty and Registration Fee on a Conveyance Deed?
Stamp duty is a state subject, so rates vary. It commonly falls between 4% and 8% of the property value, and many states offer concessions to women buyers. The registration fee is usually a smaller percentage, and some states cap it at a fixed amount.
In most states, duty is calculated on the higher of the agreed price and the government's circle rate. Check current rates with the state registration department before budgeting, as they are revised from time to time. The buyer usually bears these costs, though this can be negotiated.
There is a tax angle too. Where the sale value exceeds ₹50 lakh, the buyer must deduct TDS at 1%, and the seller may owe capital gains tax.
Is Registration of a Conveyance Deed Mandatory?
Yes. Section 54 of the Transfer of Property Act requires that the sale of immovable property worth ₹100 or more be made through a registered instrument. In Suraj Lamp & Industries v. State of Haryana (2011), the Supreme Court held that transactions through general power of attorney, agreement to sell and will do not transfer ownership. If all you hold is a notarised agreement or a GPA, you do not yet own the property.
When Should a Builder Execute the Conveyance Deed?
Under Section 17 of the Real Estate (Regulation and Development) Act, 2016, the promoter must execute a registered conveyance deed in favour of the allottee, along with the undivided share in common areas. Unless the agreement or local law says otherwise, this must be done within three months of the occupancy certificate being issued.
What If the Builder Refuses to Execute the Conveyance Deed?
Start with a written demand by registered post or email, quoting your agreement and the date of the occupancy certificate. If that fails, you have three routes:
- File a complaint with the state RERA authority, which can direct the promoter to execute the deed.
- Apply for deemed conveyance, where your state provides it. Maharashtra's MOFA law is the best-known example, allowing a housing society to obtain conveyance without the builder's cooperation.
- Approach the consumer forum or civil court for a direction and compensation.
Buyers who have taken possession but never received the deed are living in a property they do not legally own, so do not let this period run on.
Common Mistakes to Avoid
- Relying on a power of attorney or notarised agreement instead of a registered deed
- Showing a lower sale value to save on stamp duty
- Skipping title verification and the encumbrance certificate
- Forgetting mutation after registration
- Not keeping the original safe, with certified copies for everyday use
Frequently Asked Questions
Is a conveyance deed the same as a title deed?
No. A title deed is any document that proves ownership. A registered conveyance deed creates your title and then serves as your title deed.
How long is a conveyance deed valid?
It has no expiry. Once registered, it stays valid unless cancelled by mutual consent or set aside by a court.
Who pays the stamp duty and registration charges?
Usually the buyer, though the contract can provide otherwise.
Can I get a home loan without a conveyance deed?
For a property under construction, banks lend against the builder-buyer agreement. For a ready property, they generally need a clear, registered title.
Can someone else sign the deed on my behalf?
Yes, through a properly registered special power of attorney, which is common when the owner is an NRI or out of the city.
What if I lose the original deed?
File a police complaint, publish a public notice in a newspaper, and apply to the sub-registrar's office for a certified copy.
Final Word
A conveyance deed is the point where a property purchase becomes legally complete. The payment, the agreement and the possession all lead up to it, but the registered deed is what makes you the owner in the eyes of the law. Read it line by line, verify every detail, and never leave it as paperwork for later.
