In any agreement, words that are documented on paper carry more legal weight than verbal promise. The same holds true for real estate transactions too.
For a buyer, the actual handover doesn’t happen with the handing over of the keys, but with the conveyance deed. This document, often misunderstood or brushed aside during closing procedures, is the legal proof that ownership has changed hands. Without it, possession has no spine, and ownership remains vulnerable.
What is a Conveyance Deed?
A conveyance deed is not just paperwork. It is the official record that the ownership of a property has legally passed from the builder (or seller) to the buyer. It includes all essential details: the parties involved, the property location, its dimensions, survey numbers, and the terms under which it has been sold or transferred.
In most cases, this deed is executed once the builder has obtained the occupancy certificate (OC) and is ready to pass on the title. However, in India, it is not unusual for builders to delay this step or in some cases, avoid it altogether, leaving buyers with incomplete documentation and legal ambiguity.
What Can Go Wrong Without It?
Without a registered conveyance deed, the buyer does not have a legal claim to the property, even if full payment has been made. The property remains in limbo, with the builder technically retaining ownership on record. This has implications not just for resale or inheritance, but for basic rights like modifying the property or using it as loan collateral.
For group housing or apartment projects, the absence of a conveyance deed from the builder to the resident welfare association (RWA) or cooperative society means the residents do not have formal rights over the land or common areas. Even years after moving in, they may still be tenants in the eyes of the law.
How Can You Tell If the Deed Is Valid?
Start With the Title: The first check is whether the builder had legal title to the property in the first place. This means reviewing the chain of ownership whether the builder bought the land from the previous owners legally, whether it was under litigation, or if it was acquired under any development agreement.
If there’s a break in the chain or there are missing links, your purchase is at risk. Many buyers in the metropolitan areas discover after the sale that their flat stands on disputed or encumbered land.
Confirm Registration: A conveyance deed must be registered at the local sub-registrar's office. The absence of registration strips the deed of its legal validity. Always demand the registered copy, not just a photocopy or builder-issued draft. The official document will have a unique registration number, date of execution, and the seal of the registrar.
Under Section 17 of the Indian Registration Act, property transactions over Rs 100 must be registered. Without it, you cannot legally prove ownership.
Review the Property Details: A mismatch between what’s written in the deed and what exists on the ground is not uncommon.
So, as a safe practice, double-check whether the survey number, carpet area, and flat identification match the approved plan. If your unit is listed as “Flat B-404” in municipal records but “Flat B-403” in the deed, rectifying it later could become a legal hassle
Buyers should also look out for any vague descriptions. A proper deed must clearly identify the property boundaries and mention the sanctioned plan references.
Examine the Indemnity Clauses: Every conveyance deed must carry a declaration that the property is free of encumbrances. It should also indemnify the buyer against any future claims, be it from legal heirs, government dues, or pending litigations. If this section is missing or is vaguely worded, insist on redrafting it
Other Aspects About Stamp Duty
Stamp duty is not just a tax, it’s what gives the document legal life. Without paying it, the document can’t be used in court. The rate varies by state, but is generally in the range of 5–7 per cent of the property value, along with registration charges.
An unstamped or under-stamped deed is as good as invalid. Always verify whether the duty has been correctly paid and whether the stamp paper bears the buyer’s and seller’s names as per the law.
Who Should Sign the Deed
The conveyance deed must be signed by both the seller (builder or landowner) and buyer along with two independent witnesses. If the seller is a company, then its authorised signatory must execute the deed under a valid board resolution. Many buyers miss this point and accept signatures from site supervisors or marketing agents, which have no legal standing.
What If the Builder Refuses to Execute It?
If a builder fails or refuses to register the conveyance deed, affected buyers have legal options.
In group housing projects, residents can apply for a deemed conveyance under Maharashtra Ownership Flats Act (MOFA) or relevant state acts. The housing society can approach the designated competent authority, who can then direct the Sub-Registrar to register the deed unilaterally.
Buyers can also file a complaint under the Real Estate (Regulation and Development) Act, 2016 (Rera), which mandates builders to hand over title within a prescribed time frame. Several Rera authorities have already ruled in favour of buyers on this front.
When to Consult a Lawyer
Consult a lawyer before you sign anything. A real estate lawyer can trace the title, review the deed draft, and ensure the transfer is clean. They will also be able to advise whether there are any red flags, such as a pending case, a stay order on development, or ownership claimed by third parties.
Lawyers often flag mistakes buyers miss: wrong plot numbers, outdated land use classification, unsigned pages, or misleading indemnity language.
Can Errors Be Fixed Later?
Some mistakes can be corrected by way of a rectification deed, a supplemental agreement that amends errors in the original. Both parties must sign this, and it must be registered. However, serious lapses like the seller not having clear title or failing to register may require legal proceedings to resolve.
In property transactions, it’s easy to be overwhelmed by paperwork. But the conveyance deed is not just another form. It is the document that makes the property yours, legally and irrevocably. A missed signature, an unpaid duty, or an unregistered clause could turn your dream home into a legal liability.