Real Estate Basics: What Is A Conveyance Deed?

Real estate basics: What is a Conveyance Deed?
A conveyance deed is an essential document required for the purchase of a property.
‘Conveyance’ refers to the act of transferring the title, ownership, rights and interests in a
property, from one entity to another. The term ‘deed’ refers to an instrument, like a written
document that is signed by all the parties to a contract, in this case, the seller and buyer. It
is a binding contract that is enforceable in a court of law. A conveyance deed is, therefore, a
contract in which, the seller transfers all rights to legally own and keep a property. The
purchase of a property is not complete without a valid conveyance deed.
The terms conveyance deed and sale deed are often used interchangeably and while they
refer to the same contract, there is a subtle difference between the two. All sales deeds are
conveyance deeds but conveyance deeds can also include gift, exchange, mortgage and
lease deeds.
It is important to note the difference between an agreement for sale and a sale/conveyance
deed. An agreement for sale contains a promise to transfer a property in question in future,
on satisfaction of certain terms and conditions. An agreement for sale does not, in itself,
create any interest in or charge on a property. Therefore, the sale of a property is not
complete without a conveyance deed.
A valid conveyance deed must contain the following:
 The actual demarcation of the property.

 Other rights annexed to the property and its use.
 The full chain of titles, that is, all legal rights up until the present seller.
 The method of delivery of the property to the buyer.
 A memo of the consideration, stating how it has been received.
 Any further applicable terms and conditions for the full transfer of ownership rights.
Important points to consider, to ensure smooth purchase/sale of a property
 The seller is required to certify that the property is free of any legal encumbrance.
 If a loan was taken against the property in question, then, the mortgage must be
cleared before the deed is signed. Buyers have the option of having this checked at
the local sub-registrar’s office.
 The conveyance deed should state the exact date on which the property will be
handed over to the buyer.
 Within four months of the execution of the deed, all the original documents related
to the sale of the property, need to be produced for registration before the local
registrar.
 The deed is required to be signed by at least two witnesses.
What Are the Types of Real Property Conveyances?
There are four different types of real property conveyances. These transfers can be made in
a will or deed:
1. Fee Tail: Fee tail is a type of conveyance that transfers interest in real property to
another, but restricts any further sale or transfer of the property. Fee tails are called
restraint in alienation and are abolished in almost every state.
2. Fee Simple: A fee simple is conveyance of real property that gives absolute
ownership in the property. The duration is indefinite and the interest is not subject
to any conditions.
3. Life Estate: A transfer in real property to someone for the duration of their life or
duration of someone else's life. Once the life tenant dies, the property will be
transferred to the person who holds future interest.
4. Defeasible Estate: A transfer in real property where the grantor places some
conditions on the transfer. Upon happening of the event or condition expressed by
grantor, the transfer may either be void or would be subject to termination.
Procedure
A conveyance not only has steps, conveyance services have parts. Here is a simplified
listing of the various services required in a conveyance:
 The title must be obtained and the abstract examined and reviewed.
 Municipal liens and tax information must be gotten from the city or town where the
property is.
 A survey or plot plan must be provided and reviewed.
 The mortgage and lien payoff information must be reviewed.
 The loan documents must be prepared (this includes additional documents such as
the HUD settlement statement).
 The proceeds must be received and maintained in a separate, safe account.
 Closing is completed.
 The documents must be recorded.
 The proceeds must then be delivered to pay off any outstanding mortgages and liens
on the property.
 The proceeds are disbursed.
How Does Conveyance Occur?
Conveyance of title to real estate must be in writing if it involves a sale. The actual
conveyance occurs when the title holder expresses their intent to transfer title to the other
person. Transfer of the actual, physical deed does not need to happen, so long as the person
clearly expressed their intention to make the conveyance.
Can Conveyance Be Disputed?
Certainly, disputes over real property conveyances happen quite frequently. For instance, a
conveyance can be disputed in situations involving:
 Attempts to convey property that one does not actually own

 Will or trust disputes
 Issues with defective titles
 Conveyances based on fraud or deceit
In cases where a conveyance (or a failure to convey) has resulted in losses, a lawsuit may
be filed. This can result in remedies such as a damages award or a court injunction (such as
an order requiring the defendant to transfer title to the buyer).arly expressed their intention
to make the conveyance.
Home Inspection
Home inspection is an examination of the condition of a real estate property. This usually
takes place in connection with the property's sale. A qualified home inspector can assess the
condition of a property's roof, foundation, heating and cooling systems, plumbing, electrical
work, water and sewage, along with some fire and safety issues. In addition, the home
inspector will look for evidence of insect, water or fire damage or any other issue that may
affect the value of the property.
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Real estate basics: What is a Conveyance Deed?

A conveyance deed is an essential document required for the purchase of a property.

A valid conveyance deed must contain the following:

 The actual demarcation of the property.

What Are the Types of Real Property Conveyances?

How Does Conveyance Occur?

Can Conveyance Be Disputed?

 Attempts to convey property that one does not actually own

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