RECONVEYANCE: BY ER. AVINASH KULKARNI

Saturday Brain Storming Thought (181) 22/07/2023

RECONVEYANCE

Reconveyance refers to the transfer of title to real estate from a creditor to the debtor when a loan secured by the property, ie most likely a mortgage with the property as collateral is paid of

Reconveyance Deed

A deed of conveyance refers to a document that transfers the title of property to the borrower from the bank or mortgage holder once a mortgage is paid off

It is used to clear the deed of trust from the title to the property

Meaning of Convenience

The act or process of conveying something or someone back to their original location

Conveyance deed in India

Conveyance deeds are legally required documents when selling your home in India

A conveyance deeds primary purpose is to avoid confusion regarding who owns the property being sold

Substitution of Reconveyance

The substitution of Trustee and Deed of Reconveyance is a legal document that evidences security interest is being realeased by a lender

In most cases, the document shows that a loan has been paid off

Property owners may even receive this document if they have refinanced a loan

Key Takeaways of Conveyance Deed

1) Conveyance Deed is the transfer of property rights, titles and ownership from one person to another, not necessarily always for consideration

2) may or may not involve monetary consideration

3) the transfer of rights, title or ownership to the seller can be for a limited period

4) the buyer has the right to use and may not have the right to sell it

Documents required for Conveyance Deed

1) Sale agreement – seller agrees with the buyer promising to sell the property along with price terms

2) Mutation entries – as per revenue records

3) Location plan

4) A survey plan for the property form the revenue department

5) Layout plan approved by local authority

6) Arcitecture certificate

7) Urban ceiling act certification

8) building or structure plan approved by local authority

9) Certificate of commencement

10) OC or Occupancy certificate if applicable

11) The document that proves the payment of stamp duty

12) Proof of registration

13) Drafted conveyance deed

Types of Conveyance Deed

1) On Freehold Property –

This is a deed where the property will be converted into freehold and healthy buyer gets the full authority to enjoy the property

Conveyance Deed will be the final document given to buyer

2) On Leasehold Property –

The leasehold ownership is given to the owner who has the right only to the built house, meaning the walls constructed on the property and not the land ownership

The landlord will be the owner of the common areas and structures built

3) On the subject to the mortgage –

If the property is subject to the mortgage, the buyer can enter the property from time to time and enjoy the buildings and it’s premises

4) Relinquishment Deed –

The form of deed is created at the time of transferring or releasing the rights, titles or interest of one person in favour of other legal heirs

This usually occurs when the transfer of property happens with common property

5) Gift Deed –

If the property is gifted by the grantor to the grantee

Who prepares a conveyance deed

Conveyance Deed is a legal paperwork of a buyer’s power and ownership transfer

The Government has stepped in to make sure that this is a legal transaction

The presence of lawyer and in some situations, a real estate agent is required to facilitate the procedure

They allow the two parties to draw the deed in an orderly manner

The Government receives money or revenue through the stamp duty that is required for Conveyance Deed registration

What if the Conveyance Deed is list

1) property owner should file a police report as soon as possible

2) keep a copy of the first information report (FIR) on hand in case a potential buyer requests it at the time of sale

3) you can place an advertisement in the newspaper stating that the transfer deed paperwork has been lost

4) you can write an affidavit and have it notarized, it should indicate all property information, FIR information and data about the notified newspaper advertisement

5) sub registrar office can provide you with a legally certified copy of the conveyance deed, you must pay indicated fees and submit the required documents

Deemed Conveyance Deed

Documents needed to apply for a presumed conveyance deeds are

1) Land documents that are relevant, such as land revenue, municipal records etc

2) a document of the development agreement between the landlord and the property developer

3) each flat has a registered and stamped agreement copy

4) approved building plan copy

Conditions for a deemed conveyance

1) at least 60% of the total number of flats in the building should be sold

2) before applying for a presumed conveyance, the apartment owners should have formed a cooperative organisation for at least 3 to 4 months

3) where the builder has either promised or failed to produce a complete conveyance deed, there should be clear communication between this cooperative organisation and the builder

4) before applying for a presumed conveyance deed, a resolution should be passed on the subject

Limitations of Reconveyance

The deed of Reconveyance stipulates eight years period from the date of execution of the saledeed and since the respondent had not obtained within that period, the period of limitation expired by efflux of time