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The word "deed" might be confusing to many of us, especially the most famous "Conveyance Deed" in real estate! Well we are here to help, here's all about the different types of deeds and especially the former.
So let's start with the basics and then move onto Conveyance Deed meaning.
So what is a deed?
A deed is a document or legal instrument which confirms or passes the rights of an entity, usually a property, that is signed and authorised by law. The details in a deed vary based on the type of transaction or rights being conveyed. It provides a clear record of ownership, transfers, and other legal aspects related to properties.
More specifically,
A deed is a legal document between two parties, i.e., the seller and the buyer, for a contract. It is regulated and governed in India by the Registrations Act, 1908.
So then,
What is a Conveyance Deed?
A conveyance deed is a legal agreement from the seller to the buyer to grant access to movable or immovable properties or assets.
Purchase of properties is invalid without conveyance deed. It ensures that the seller officially transfers the rights and access to the buyer.
Conveyance deed must be executed in the presence of two witnesses. Their due signature in the act is mandatory.
A Sale deed can be a conveyance deed, but not all conveyance deeds are sale deeds. This highlights the broader scope of conveyance deeds beyond mere property sales.
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Types of Conveyance deeds
Sale deed: This deed is all bout selling Properties that the court approves. However, the buyer has no guarantee that the property belongs to the seller. This deed is standard while purchasing apartments.
The document records the transition from the current owner to the new owner, with each name etched on its pages contributing to the evolving narrative.
Property details like the current owner, new owner, loan details, property tax details are mentioned in the sale deed.
So,
What's the Difference between a sale deed and a conveyance deed?
A Sale deed can be a conveyance deed, but not all conveyance deeds are sale deeds.
1. Gift deed
An asset transferred legally to the buyer in the form of a gift. It can be a commercial or residential property. This legal masterpiece, similar to a time-honored tradition, coordinates the transfer of ownership with the stroke of a pen.
2. Warranty deed
These deeds are used for residential real estate projects. This deed indicates that the seller has all rights to sell his property. It contains a proper legal description of the property being conveyed, follows state laws, includes specific legal language indicating the seller transfers the property to the buyer and provides evidence of the payment made for the property.
3. Special Warranty deed
It is the same as the warranty. A special Warranty deed will not cover the whole property given to the buyer.
4. Quit claim deed
Family members use quitclaim deeds. Spouse is the legal person who often uses this deed.
5. Fiduciary deed
These deeds are usually taking place when the seller is a trustee for the property. This deed commences when the trustee has all the power to transfer the ownership.
6. Trust deed
It is a written agreement wherein the seller will transfer the property to a trustee on an obligation like promissory note or mortgage. The trustee has all the rights to sell the property if there is any default in the obligation.
7. Court order deed
There are various types of Court order deeds which the court performs after the court order. The court carries these deeds without the owner's consent. These deeds take place when the seller is no longer able to pay for his house. So, the court executes the act without the seller's permission.
8. Partition Deed
A partition deed is a legal instrument that divides jointly owned property among its co-owners. When numerous people possess a property, a partition deed serves as a formal way to define each person's share. This document specifies which piece of the property each co-owner receives, ensuring clarity and preventing future disputes. Co-owners can shift from shared ownership to individual ownership by signing a partition deed, which grants each participant sole rights to their allotted portion. It's an important step toward formally separating interests and establishing clear property boundaries.
9. Relinquishment Deed
A relinquishment deed is a legal document that formalizes a co-owner's voluntary surrender of their portion of a property to another co-owner. This often happens when one or more co-owners want to give up their ownership rights without getting any monetary compensation. It is commonly used to settle property disputes between family members or to streamline property ownership. The relinquishing party effectively surrenders their rights, title, and interest in the property, transferring ownership to the remaining co-owners. To be legally effective and enforceable, this deed must be stamped and registered.
10. Exchange Deed
An Exchange Deed is a legal document that allows two parties to mutually transfer ownership. An exchange deed, as opposed to a sale deed, concentrates on the exchange of properties rather than money. This could include real estate (land or buildings), as well as other assets such as vehicles or jewelry. To be termed an exchange, the transaction must include the mutual transfer of ownership rights with no primary cash compensation. This sort of deed is governed by special legal regulations, and legal guidance is required to ensure that the process is carried out correctly and that both parties' interests are protected.
11. Adoption Deed
An adoption deed is a formal legal document that creates a parent-child relationship between adoptive parents and their kids. It formally ends the biological parent-child relationship and establishes a new, permanent legal family structure. This document is critical because it gives the adoptive parents complete legal rights and duties for the kid, including custody, care, education, and inheritance. In contrast, it grants the kid all of the benefits and protections that biological children enjoy, such as the right to bear the adoptive parents' surname, inherit property, and receive assistance. A court normally issues an adoption deed following a thorough legal process that includes home studies, background checks, and legal assistance.
12. Power of Attorney Deed
A Power of Attorney (POA) is a legal document that authorizes one person, known as the agent or attorney-in-fact, to act on behalf of another, known as the principal, in specific or broad property-related issues. This authority can cover a wide range of acts, such as purchasing, selling, renting, or managing property. The agent's authority is defined in the POA document. To avoid potential misuse, the scope of the agent's powers must be precisely defined. While a POA can offer convenience and flexibility, it's essential to choose a trusted individual to act as your agent and to regularly review and update the document as needed.
Also Read: Rectification Deeds
So folks, how did you like our article on Conveyance Deeds? Or do you have info on more types of deeds? Do share your thoughts!
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Most Frequently Asked Questions?
What is the fundamental purpose of a deed in real estate transactions?
A deed is a legal instrument confirming or passing the rights of an entity, usually a property, and provides a clear record of ownership, transfers, and other legal aspects related to properties.
Why is a Conveyance Deed essential in property transactions?
A Conveyance Deed is crucial as it officially transfers the rights and access from the seller to the buyer, making the purchase of properties valid.
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