In order to be able to buy or sell a home or property, legal documents are essential to safeguarding your rights and establishing ownership. Two of the pivotal but commonly misinterpreted documents are the sale deed and the conveyance deed.
So, what is the difference between a sale deed and a conveyance deed? And which do you actually need as a homebuyer? Let’s explain it simply.
A sale deed is an official document declaring the seller of the property and the buyer shall exchange a certain sum of money.
It is as if you are issued a final receipt of a home purchase, and this serves as the testament of legal ownership of the home.
A sale deed document usually includes:
The signed and registered property sale deed document functions as unambiguous ownership evidence. Buyers frequently refer to this document as the sale deed certificate.
The conveyance deed's meaning is a broad term that encompasses the different types of documents that are used to transfer ownership of property.
A conveyance deed is a legal document through which property ownership may be transferred between two individuals. It does not require any payment as compared to a sale deed.
Some examples are:
When registered, it becomes a registered conveyance deed and is legally binding.
Here’s a simple comparison of a sale deed vs a conveyance deed:
| Aspect | Sale Deed | Conveyance Deed |
|---|---|---|
| Scope | Specific to property sale | Broader – covers all types of property transfer |
| Consideration (Money) | Always involves monetary value | May or may not involve money (e.g., gift) |
| Purpose | To transfer property through sale | To transfer property through any mode (sale, gift, exchange, mortgage) |
| Example | Buying a flat or plot | Gifting land to a relative |
In short, a Sale deed is a type of conveyance deed, but not all conveyance deeds are sale deeds.
Sale Deed: This is at the time when you are buying a flat, house, or plot! For example, in a Chennai plot sale project like Omshakthy Homes, the ultimate ownership is ensured by a sale deed.
Conveyance Deed: When the ownership changes hands by any other way than sale, e.g., gift, exchange, or mortgage.
The relationship between a conveyance deed and a sale deed is simple:
So, when you are buying the property, the sale deed document is nothing but your registered conveyance deed.
Be it a sale deed or a conveyance deed, the registration therein makes it legally valid. Here’s how:
When checking your conveyance or sale deed document, remember to always check for the following:
Some common errors homebuyers make are:
Advice: Before signing your name, make sure you and your lawyer receive a copy of your sale deed certificate.
Not registering a sale deed for property or a registered conveyance deed can cause:
Without a proper deed, your claim over property remains weak—even if you’ve paid for it.
In conclusion, as a home buyer, it becomes imperative for you to understand the difference between a sale deed and a conveyance deed.
Whether you’re researching Chennai plot sale or purchasing in projects like the Omshakthy Homes , always have your property sale deed document registered and checked by legal experts.
Key takeaway: A sale deed is always a conveyance deed, though not every conveyance deed is a sale deed.
No, not at all. A Sale deed is one specific type of conveyance deed that involves payment.
Both are necessary, but a sale deed is more essential when you are purchasing property.
The transfer won't be legally valid, and you could end up losing ownership rights.
You need a sale deed for the property.
Yes, registration is required for the deed to be valid.
Preparation is typically done by the attorney or law firm of the buyer.
The stamp duty will also vary according to the kind of transfer and the value of the property.
Yeah, but the specific charges will be different according to the laws of the State in question.
