All You Need To Know About Conveyance Deed

August, 2018

While buying or selling any property, you must have come across various legal documents that are required to prove the ownership of that property. Conveyance deed is one such document that is required when there is a transfer of ownership of any property from one person to another.

Here's everything that you need to know about a conveyance deed –

What is Conveyance Deed?

The term "Deed" means a written legal contract that binds the parties to its terms and can be proved in the court as evidence.

The term 'Conveyance' is used when there is transfer of ownership or legal title in a property from one person to another. Hence, a conveyance deed is a legal document between a transferor and a transferee, which proves that a title or ownership in the property along with all other rights related to the property have been transferred from one person to another.v It informs that the property is free from any restrictions and disputes. Both parties sign it and it can be produced in a court if any dispute relating to the agreement arises in future.

However, a conveyance deed is a wide term which not only includes a sale of the property but also other kinds of transfers such as gift, exchange, lease, mortgage, relinquishment and other transfers.

A conveyance deed is valid only when the property is sold for a valid consideration (usually money) except in the case of a gift deed which results out of love and affection.

It can be signed for either movable or immovable property.

A conveyance deed is executed in accordance with the legal provisions under the Transfer of Property Act 1882, Registration Act 1908 and Indian Stamp Act, 1899.

Essential Elements in a Conveyance Deed

In order to be valid and acceptable in a court, a conveyance deed needs to contain some essential elements. For instance, it must:

• Establish exact boundaries of the property to avoid any dispute relating to land ownership,


• - State that all the rights relating to the property have been transferred along with the property,


• - Provide details regarding delivery and acceptance of the property,


• - State all terms and conditions relating to the transfer,


• - Be made on a non-judicial stamp paper and signed by both parties,


• - Mention full names, addresses and other requisite details of the seller and the buyer,


• - State that the property is free from any disputes and restrictions,


• - Be signed by at least two witnesses


• - Be in writing and notarized, and


• - Be registered through the local registrar’s office by submitting appropriate registration fee. Registration is proof that the property is free from any disputes and has been transferred to the buyer permanently with a clean title.

Once the registration is complete, the buyer becomes the absolute owner of the property and the conveyance process gets over officially. A lawyer and a real estate agent can help two parties compose, sign, and register a deed of conveyance during a transaction. The government obtains its revenue from the stamp duty and registration fees.

Why is it important?

For instance, your uncle gives you a piece of land without any written legal document and verbally states that the property belongs to you. Now, you build a house on that land but unfortunately, your uncle suddenly passes away. His son files a case against you stating that the land belongs to him after the death of his father. Since there is no Will or any legal document by your uncle which proves that you are the owner of that property, the only option left is to move the Court for getting the ownership of the land. But there is a possibility of losing the property as you have no document to prove that it was given to you by your uncle.

Now consider the other situation where you have a proper written legal document signed by you and your uncle which states that you are the absolute owner of the property. This document can be easily produced in any court to prove your ownership and other rights over the property.

Having a conveyance deed saves you from legal battles that can be filed against you and gives you full rights over the property including the right to sell, rent, mortgage and construct upon. It is advisable to sign a conveyance deed not only when you are entering into an agreement with a third party but also with your friends or relatives. A conveyance deed is also helpful in protecting you from fraudulent transfers of property.

What happens if you don't have a Conveyance Deed?

Not signing a conveyance deed can lead you to great trouble. You won't be able to save yourself from legal disputes in the absence of any written legal document which can prove your legal title in the property.

In the absence of the conveyance deed, you may face the following:

• - You cannot become the absolute owner of the property;


• -You cannot claim a valid title and interest in the property;


• - Your property won't be registered in the government records due to which all bills including electricity, tax and other bills will be issued in the name of the original property owner;


• - You may have to apply for costly and lengthy deemed conveyance process in case of non-cooperation by the builder;


• - You may lose your rights of renovating / reconstructing the property even in circumstances such as natural calamities, without permission of the original owner of the property.

Therefore, it is advisable to sign a conveyance deed if you are planning to transfer your property to another person.

Necessary Documents required for conveyance deed –

There are various documents that you require in order to execute a valid conveyance deed :-

1 Final copy of the conveyance deed

2 Society's registration certificate, if any

3 Power of attorney, if any

4 Identity card & address proof

5 Clearance certificates

6 Signing authority’s identity card

7 PAN card of both parties

8 Copies of electricity bill and property taxes paid

9 Authorization certificate and Occupancy Certificate

10 Proof of stamp duty paid

11 Registration charges

12 Area specification and building plan

13 List of facilities provided

14 Commencement Certificate

15 Mutation extracts

16 Development or purchase agreement b/w land owner and builder

17 Agreement between builder and buyer

At what stage does the conveyance deed come into play?

The Conveyance process begins when a buyer expresses interest in purchasing a property and makes an offer to the seller for it. If a seller accepts the offer, both are required to make and enter into an agreement for the sale of property which is called a conveyance deed. The deed is made with mutually agreed terms between the buyer and seller and once both parties sign, it turns into a valid contract enforceable in a court of law. After signing and exchanging the conveyance deed, the buyer is required to pay stamp duty, arrange necessary documents, & inspect for any claims or disputes that might affect the title of the property.

After the above formalities are over, the buyer and seller are required to conduct a meeting to exchange the transfer documents, stamp duty form and other legal documents. The buyer will also have to pay the remaining purchase price and other legal fees.

After the settlement between the buyer and seller, the buyer is required to submit the conveyance deed and other documents for registration in the local sub-registrar's office and sign it in the presence of two witnesses. The sub-registrar then inspects the documents submitted and after his satisfaction gives a registration number and registers the deed.

Remember that all original documents need to be submitted in the sub-registrar's office within four months of the execution of the deed. At this stage, there will also usually be a discharge of existing mortgages, withdrawal of any existing caveats, transfer of title, and transfer of the mortgage to the new mortgagee, if need be. The buyer is also required to inform other authorities that he is the new owner of the property.

Why do you need the help of a Lawyer?

You can now understand why the process of transfer of the property is so complex and lengthy. Starting from obtaining of title, examining the property, collecting the tax information and details of any liens on the property, reviewing the building or plot plan to preparing the loan documents, recording the documents, inspecting the property for any mortgage information and registering the final conveyance deed in the local sub-registrar's office requires a lot of patience, time, money, energy and obviously the help of a legal expert. Therefore, it is advisable to take the help of a lawyer to prepare a conveyance deed and also during the conveyance process, instead of doing things on your own, especially when you don't have any knowledge about the real estate laws.

Also read: Home Warranty Under RERA: All You Need To Know

To Know More Information About Affordable Flats in Thane Ghodbunder Road Visit Squarefeet Group in Thane Website

Source - magicbricks.com

You may also contact us at - +91-22-25452903, 66543333 or Email us at - sales@squarefeetgroup.in

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5 Financial Aspects To Consider Before You Decide To Buy A Home

Buying your First Home? It is evident that you will have several questions in mind as a first time home buyer. We have compiled 5 most important financial aspects to consider before you buy your new home.

Credit : Freepik.com

Financial Planning

The first step towards a proper financial planning for your dream home would be to review your current financial obligations such as other loans, insurance amount etc. This will provide you the right picture of your true income. Your budget will be a factor of the EMI that you can pay off and what your monthly expenses are. Apart from this, you should also account for the hidden charges such as registration, stamp duty, maintenance etc, when finalizing your budget & loan amount.

Once you have decided the loan amount, move on to check how much would you be able to put as down payment. Typically, these range from 15 to 20% of the property value, and offer a confidence to the bank about your credibility. You can also choose to take a loan with zero down payment, but this will result in an increase in your monthly EMIs.

Improving Your Credit Score

This plays a critical role in your loan application. Once you have applied for the loan, the lender checks for your credit score, as this is a clear indication of the credit worthiness of the applicant. So it would be advised to check your score with any of the credit bureaus like CIBIL, TransUnion etc. before applying for a loan, and ensure that it is in the better range.

Choosing The Right Loan?

It is important that you do your market research thoroughly, as it will help you select the most suited financing option. With a variety of options now available for loans, one always has the privilege of negotiating rightly with the bank, thus reducing your interest rate and save yourself a lot of money.

But before selecting the right loan, just keep few important parameters in mind: how much loan are you eligible for, what will be the interest rates, how can I get the loan processed with minimal fee, what should be by EMI, what other expenses do I have.

Additionally, you always have the option to choose between the floating interest rate and the fixed interest rate.

Selecting The Right Location & Builder

While choosing the location, keep softer aspects such as connectivity, safety, proximity to markets, schools, public transport in mind. You should also be aware of the future developments planning in that area.

Also, before finalizing a property, do a thorough background check of the builder, as to how many projects he has done, what has been the delivery record, quality of construction, rate of appreciation of previously developed projects etc.

Home Inspection & Legal Due Diligence

Do a thorough inspection of the property you are planning to buy to spot defects, if any. There are many professionals who would do this on your behalf and provide you a detailed report on the current defects as well as the potential damages, if any.

Additionally, there are a lot of legal documents that are required to be verified without which the sale of property is incomplete. Make sure that these are verified and signed. These include Sale agreement, registration, encumbrance certificate etc.

Also read: PMAY Home Loan – Pradhan Mantri Awas Yojana

To Know More Information About Home Loan for 2 BHK Flats in Thane Visit Squarefeet Group in Thane Website

Source - magicbricks.com

You may also contact us at - +91-22-25452903, 66543333 or Email us at - sales@squarefeetgroup.in

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A History of Credit

August, 2018

The two parameters that define the credit worthiness of a borrower are one's ability to pay and the intention to do so. Hence, by building a good credit score, you can negate the chances of your home loan application ever getting rejected

It's been six months since Harsh Shetty, a working professional, has been scouting for his dream abode. And finally when he zeroed in on his house, there was another speedbreaker awaiting him, which he did not foresee. “My loan application was rejected as my credit score was weak, thus costing me my home,” mentioned a dejected Shetty.

Have you been in a similar situation before? Or do you fear that you could also land in a soup like Shetty and lose on the opportunity of securing your ‘home sweet home’? If yes, let the experts guide you along – as building a good credit score is definitely in your hands.

Credit : pixabay.com

What is a credit score?

The credit score of a borrower indicates the credit worthiness of the applicant. In short, it is a numeric rating, which signifies the certainty of you repaying the loan. So, a high score means that a person has the capacity to repay the loan and shall do so well within the specified timeframe. Likewise, a low credit score raises concerns about the financial credibility and management skills of the borrower.

WHAT INFLUENCES AN INDIVIDUAL’S CREDIT SCORE?

An individual’s credit score is determined by the credit behaviour and performance of the borrower. Hence, the factors contributing to the credit score are:

• • The loan or card dues repayment history;


• • For how long have you had the credit;


• • The credit limit of the borrower and how he is faring along the repayment line;


• • Enquiries on the credit report;


• • The banks and financial institutions would also look at other parameters like demographics, employment profile and in a few instances, the saving habits and assets owned by the individual.


• - Sachin Chaudhary, COO, Indiabulls Housing Finance

FACT FILE

The banks and financial institutions generally source the credit score from the credit bureaus calculated by Credit Information Companies (CICs) like CIBIL, Experian, Equifax, High Mark, etc who have the repository of all borrowings along with the repayment history of an individual.

MY CREDIT SCORE IS LOWER THAN EXPECTED…WHY?

Lack of any repayment trends. For instance, you have never borrowed in the past;

Too many attempts to avail a credit line in the last few months;

Missed payment in your utility bills like electricity, telephone, mobile, etc.

HOW CAN AN INDIVIDUAL BUILD A GOOD CREDIT SCORE?

Honour your debt obligations on time i.e. within the due date assigned by the lender; Build a credit pattern by availing a few credits (some of which are not interest bearing). For example, if you fulfill your payments before the due date, there is no interest outflow, but still builds a strong repayment behaviour for the borrower. However, be wary that you do not revolve the credit;

Maximise your payment for your expenses through banking channels;

Improve your savings and exhibit consistency in the form of SIP, recurring deposits, fixed deposits, etc;

One should also avoid making needless enquiries for credit, as multiple credit queries will have an adverse impact on one’s credit score.

- Rajaram Manian, risk head, Aspire Home Finance Corporation Ltd

Impact of a good credit score:

There is a higher probability of getting the home loan sanctioned

The scope for negotiating a competitive rate of interest increases for borrowers

The bank would not seek a security/ guarantor when you apply for the home loan

Consequences of a bad credit score:

The chances of your home loan being rejected increases

A higher rate of interest may be charged over and above the normal

The financial institution could seek credit enhancement like personal guarantee and/or additional collaterals

In conclusion:

An individual should always borrow within his repayment capacity; considering his expenses and income flow. And if he maintains financial discipline by meeting all his credit obligations on time, not only would his credit worthiness improve; but also his credit score shall remain strong.

Any score above 600 is considered good enough if you wish to qualify for a home loan application.

Also read: PMAY Home Loan – Pradhan Mantri Awas Yojana

To Know More Information About Home loan on Affordable properties in Thane Visit Squarefeet Group in Thane Website

Source - propertytimes.in

You may also contact us at - +91-22-25452903, 66543333 or Email us at - sales@squarefeetgroup.in

Back to All Thane Real Estate Resources, Thane Property News and Articles