Conveyance Deed Drafting For Residential Property

This page explains conveyance deed drafting for a residential property: what the law requires, which papers matter, how long it usually takes and what to do first. The firm of Advocate B.K. Singh handles this work from offices in Dwarka, New Delhi and Vaishali, Ghaziabad.

In short. A conveyance deed is the registered document by which ownership of immovable property passes from seller to buyer. Drafting it means checking title first, then writing the parties, title recitals, consideration and payment details, an exact property schedule, covenants, indemnity and possession clauses, and computing stamp duty on the higher of the price or circle rate. It must be registered under section 17 of the Registration Act.

A conveyance deed is the document that actually makes you the owner. The allotment letter, the agreement to sell and the receipts show a promise; the registered conveyance deed is the transfer. If it is drafted carelessly, the buyer can end up with a wrong area, a missing parking space, an undisclosed mortgage, or a deed the Sub-Registrar refuses to register until it is corrected and re-stamped.

This page explains what goes into a conveyance deed, how it differs from a sale deed, what to check before drafting, how stamp duty is worked out, and how the draft changes for a flat, a plot, a commercial or industrial unit, agricultural land, leasehold property, or a deed involving an NRI, a company, a bank or a society.

Law

Transfer of Property Act 1882 (sections 8, 54, 55); Registration Act 1908 (sections 17, 23, 49); Indian Stamp Act 1899, Schedule I Article 23 (Conveyance) and state stamp laws; RERA Act 2016 (sections 11(4)(f), 17, 19(11))

Forum

Drafted privately, stamped by e-stamp, and registered at the Sub-Registrar office for the area where the property lies

Time limit

Present for registration within four months of execution (section 23 Registration Act); a builder must execute it within three months of the occupancy certificate under section 17 RERA where no local law says otherwise

Documents

Title chain, previous registered deeds, allotment and possession papers, occupancy or completion certificate, NOCs, tax and dues receipts, identity and PAN of parties, photographs

Stamp duty

Charged on the higher of the consideration and the circle rate value, at the state's rate; check the current notification

Key risks

Wrong property description, unverified title, undisclosed encumbrance, payment recitals that do not match the bank record, missing common area and parking rights

What a conveyance deed is

A conveyance deed is an instrument by which property is transferred from one person to another. Article 23 of Schedule I to the Indian Stamp Act treats a conveyance as including a conveyance on sale and every instrument by which property is transferred inter vivos that is not otherwise specifically provided for. In everyday practice in Delhi NCR, 'conveyance deed' is used for three things: a sale deed between private parties, the deed a builder executes in favour of a flat buyer after full payment, and the deed DDA executes when leasehold property is converted to freehold.

Every sale deed is a conveyance, but not every conveyance is a sale. A gift deed, an exchange deed and an assignment of leasehold rights also convey property, and each has its own stamp duty and legal requirements. When people ask for a conveyance deed, they almost always mean a transfer of full ownership for a price, and the rules of section 54 of the Transfer of Property Act apply: sale is a transfer of ownership in exchange for a price paid or promised, and for immovable property worth one hundred rupees or more it must be made by a registered instrument.

Under section 8 of the Act, a transfer passes all the interest the transferor has in the property and its legal incidents, unless the deed says otherwise. That means the draft must state clearly what is being transferred: the land or only the built-up unit, an undivided share in land, common areas, parking, terrace rights, easements. Silence is read in the light of section 8, which may or may not be what the parties intended. For an ordinary private sale, see also our page on sale deed drafting.

When a conveyance deed is needed

The most common occasion in NCR is completion of a builder project. Once the occupancy certificate is issued and the buyer has paid, the promoter must execute a registered conveyance deed in favour of the allottee, along with the undivided proportionate title in the common areas to the association of allottees. Section 17 of the RERA Act says this must happen within the period in local law, or within three months of the occupancy certificate where local law is silent. Section 11(4)(f) puts the duty on the promoter, and section 19(11) requires the allottee to take part in the registration.

The second is freehold conversion. DDA, L&DO and some other lessors allow leasehold flats and plots to be converted to freehold on payment of conversion charges; the lessor then executes a conveyance deed that the owner registers. Owners of cooperative group housing society flats in Delhi go through the same route once the society land is converted. Our freehold conversion assistance page covers the application.

The third is any private sale between owners, a company transferring property to another company or to a director, a family transferring property for a price, or a purchase completed after an agreement to sell. In each case the conveyance deed is the final document, and everything earlier is only a contract to make it.

What must be checked before drafting

Drafting starts with the title, not the template. The seller's ownership has to be traced through the chain of registered documents, usually for at least thirty years or back to the original allotment, and matched against mutation records, property tax records and, for land, the revenue records. Any gap, such as an unregistered GPA sale, a missing succession step or a deed by someone who held only a power of attorney, has to be fixed before the conveyance, not after. Our title verification and chain of title check pages explain how this is done.

Next come encumbrances. Check the Sub-Registrar records for mortgages and earlier agreements, ask for the bank's loan closure letter and release of the original title deeds if the property was mortgaged, check for court cases and attachments, and for flats in a project, check whether the builder has mortgaged the project land. An encumbrance check is far cheaper than a suit to remove a charge.

Then the approvals and dues: sanctioned plan, completion or occupancy certificate, conversion or lease documents for leasehold property, society or authority NOCs where needed, property tax, water and electricity dues, and maintenance dues. The deed will recite that these are cleared, so they should be.

Clauses of a conveyance deed and what each must do

Describing the property correctly

The schedule is the part of the deed most often wrong and hardest to fix later. For a flat it should state the tower, floor and unit number, the carpet area as defined in section 2(k) of the RERA Act, any super area figure used for pricing, the undivided proportionate share in the land, the right to use common areas and facilities, and any allotted parking with its number. A site plan or floor plan annexed and signed by both parties avoids most later arguments.

For a plot or house, the schedule should give the plot number, the colony or sector, the area in square metres or square yards, the four boundaries, and the approved layout reference. For agricultural or village land, it should give the khasra or khewat and khatauni numbers, the village, tehsil and district, and the area as recorded in revenue records. For lal dora or abadi land in Delhi, where revenue records are thin, the description often rests on earlier deeds and local surveys; see our page on lal dora documentation support.

Check the description against the previous deed, the sanctioned plan and the physical site. If the boundaries in the old deed do not match what is on the ground, deal with it now: either correct the description with the seller's cooperation and an explanatory recital, or reconsider the purchase. Copying an old error into a new deed carries the dispute forward to the next owner.

Consideration, payment recitals and stamp duty

The deed should state the total consideration and list every payment with its date, mode and instrument number. Payments by cheque, RTGS or NEFT should be recited exactly as they appear in the bank statement. Cash payments above legal limits create income tax trouble for both sides and should not be recited at all if they were not made; a deed that recites a false payment is a problem waiting to happen.

Stamp duty is charged on the market value of the property, which in practice means the higher of the stated consideration and the value worked out at the circle rate fixed by the state. In Delhi the Revenue Department notifies circle rates by colony category; in UP the district collector notifies them; Haryana does the same district by district. Delhi has historically charged different rates for men, women and joint owners, and UP gives concessions for women buyers up to a value limit, so the names on the deed affect the duty. Check the current notification before fixing who will be the buyer. Our pages on stamp duty advisory and circle rate advisory go into the calculation.

Where the consideration is below the circle rate value, the duty is still paid on the circle rate value, and income tax law treats the gap as income in some situations for the seller and the buyer. Where the buyer must deduct TDS on the purchase price, as on purchases above the current threshold or from an NRI seller, the deed should record the deduction so that the seller cannot later claim a shortfall.

Covenants, indemnity, possession and mutation clauses

Section 55 of the Transfer of Property Act already implies certain duties: the seller must disclose material defects, produce title documents, pay outgoings up to the date of sale and is taken to warrant that the interest he transfers exists. A good draft makes these express and adds what the buyer actually needs: that the property is free from mortgage, lien, lease, litigation and attachment; that no agreement has been made with anyone else; and that the seller will indemnify the buyer for any loss arising from a defect in title.

Possession should be dealt with in plain words: physical possession handed over on a stated date, or on registration, with keys and original documents. Where possession was handed over earlier under an agreement to sell, say so, because section 53A of the Transfer of Property Act and later disputes may turn on it. Where a tenant is in occupation, the deed should say so and deal with the rent and the security deposit.

Add a clause requiring the seller to sign any application, affidavit or NOC needed for mutation in municipal, authority or revenue records, transfer of electricity and water connections, and transfer of society membership. Sellers who move abroad or fall ill after registration are common, and this clause, backed by a short power of attorney if needed, saves a lot of trouble. The next step after registration is explained on our mutation assistance page.

The law behind a conveyance deed

How a conveyance deed is drafted

1. Collect the papers and the brief

   Get copies of all earlier title documents, the agreement to sell or allotment papers, identity and PAN of all parties, and details of payments already made. Note who will sign, in what capacity, and whether anyone will sign through an attorney.

2. Verify title and encumbrances

   Trace the chain of title, search the Sub-Registrar and court records, check mutation and tax records, and confirm loan closure and release of title deeds. Fix any gap before drafting.

3. Work out value and stamp duty

   Find the applicable circle rate, compute the market value, and calculate duty and registration fee for the chosen buyer names. Decide whether TDS applies and at what rate.

4. Prepare the first draft

   Write the parties, recitals, consideration, transfer clause, schedule, possession, covenants, indemnity and mutation clauses. Annex a site or floor plan where helpful.

5. Review with both sides

   Share the draft with the other party or the builder and their lawyer. Agree on area figures, payment recitals, the indemnity and the possession date. Builders often offer a standard format; read it against the agreement and the RERA Act.

6. Finalise, stamp and print

   Purchase e-stamp paper for the duty, print the deed in the format the Sub-Registrar accepts, and prepare the photographs and identity documents. Check every figure once more against the source papers.

7. Execute and register

   Book the Sub-Registrar appointment, sign before the Sub-Registrar with two witnesses, give photographs and thumb impressions, and collect the registered deed. Then file for mutation.

How the draft changes by property type

For a flat in a group housing project, the draft must deal with the undivided share in land, the common areas, the parking space, the maintenance arrangement and the association. Builders often use a standard format that limits their obligations; check it against the builder buyer agreement and the RERA Act, and resist clauses that waive delay claims as a condition of registration. For a villa or independent house, add the land area, boundaries and any common road or park rights.

For a plot, the key points are the approved layout, the boundaries and access, and any building or use restrictions in the original allotment. For industrial property allotted by DSIIDC, UPSIDA, Noida or Greater Noida, the transfer is usually of leasehold rights with the authority's permission, transfer charges and a fresh lease or transfer deed in the authority's format, so a freehold conveyance format is the wrong starting point. Commercial property, showrooms, hospital buildings and resort units often carry use restrictions, lease-back arrangements or existing tenancies that the deed must address in its own clauses.

For agricultural land, check the state law first: Delhi's land reform law restricts transfer and use of agricultural holdings, and UP's Revenue Code 2006 places conditions on certain transfers, including restrictions on transfer by some categories of bhumidhars without the Collector's permission. For leasehold property from DDA, L&DO, Noida or GDA, the deed is either a conveyance after freehold conversion or an assignment of leasehold rights with the lessor's permission. For a cooperative society flat, membership transfer and the society's NOC are part of the transaction, and the deed must follow the society's records.

How the draft changes by party

For an individual seller, confirm the identity, marital status where relevant, and that no co-owner is left out. For a deceased owner's property, the legal heirs convey after the estate is settled, with succession or probate documents and relinquishment deeds where needed. For a minor's share, the natural guardian of a Hindu minor needs the court's permission under section 8 of the Hindu Minority and Guardianship Act 1956 to sell, and a deed without it can be set aside. For an HUF, the karta signs, and adult coparceners often join to avoid later challenge.

For an NRI or OCI party, much depends on residence and the property type. NRIs and OCIs can buy residential and commercial property in India but not agricultural land, plantation property or farmhouses under the foreign exchange rules; payment must come through normal banking channels. An NRI usually executes through a power of attorney signed abroad, attested at an Indian mission or apostilled, and stamped in India within three months of receipt. When the seller is an NRI, the buyer must deduct tax at the rate for non-residents and needs a TAN. A special power of attorney drafted for the specific property avoids refusal at registration.

For a company or LLP, check the memorandum or LLP agreement, take a certified board or partners' resolution authorising the transfer and naming the signatory, and check charges registered with the Registrar of Companies. Where a bank is involved, as mortgagee it gives a no-dues letter and releases the title deeds; as seller after a SARFAESI auction, it issues a sale certificate rather than a usual conveyance, and the stamp duty and filing requirements on that certificate should be checked at the local office. A builder conveying to a buyer signs through an authorised signatory with a board resolution, often for many units at once.

Builder conveyance deeds and the RERA duty

For flats and plots in a registered project, the RERA Act makes execution of the conveyance deed a legal duty of the promoter, not a favour. Many projects in Noida, Greater Noida, Ghaziabad and Gurugram received occupancy certificates years ago and still have hundreds of unregistered flats, often because the builder owes dues to the authority or the land is mortgaged. In Noida and Greater Noida, where land is held on lease from the authority, the document for a flat is generally a tripartite sub-lease or transfer deed in the authority's format rather than a freehold conveyance.

A buyer whose builder refuses or delays can complain to the state RERA authority for a direction to execute the deed, or to the Consumer Commission, which can order the same. Where the builder has disappeared or is in insolvency, the route is usually through the resolution professional or the authority's own schemes for registration of stuck flats; state governments in UP and Haryana have from time to time announced such schemes, so check the current position. See our RERA complaint filing page for the complaint route.

Read the builder's draft before the appointment. Common problems are an area lower than the agreement without adjustment of price, parking missing from the schedule, a clause saying the buyer has no claims for delay, maintenance terms not in the agreement, and indemnities running only from buyer to builder. When Advocate B.K. Singh reviews a builder's conveyance draft, the first thing he checks is whether the area and parking in the schedule match the allotment letter and the final demand, because that is where silent changes usually appear.

What usually goes wrong

• Drafting before checking title. A neat deed over a broken chain of title conveys the defect along with the property.
• Copying the old schedule. Old deeds often carry wrong boundaries or areas. Check against the site and the plan.
• Recitals that do not match payments. The income tax department and later buyers both read the recitals. Match them to the bank statement.
• Wrong signatory. A director without a board resolution, an attorney whose power of attorney does not cover sale, or a co-owner left out will lead to refusal at registration or a later challenge.
• Under-stamping. A deed stamped below market value can be impounded and sent for adjudication, with deficit duty and penalty.
• No mutation clause. If the seller will not sign mutation papers later, the buyer is left chasing him for months.
• Accepting the builder's format unread. Waiver of delay claims and missing parking are common in standard drafts.

Documents needed for drafting a conveyance deed

Costs in general terms

The main costs in a conveyance are government charges, not drafting. Stamp duty is a percentage of market value and is by far the largest item; the registration fee is a further percentage, often with a cap or a small fixed charge in some states. The rates differ between Delhi, UP and Haryana and change with notifications, so they should be checked for the date of execution. Our e-stamp assistance page explains how the duty is paid.

Other costs include conversion or transfer charges payable to the authority for leasehold property, society transfer fees, pending property tax and maintenance, and the professional fees for title search and drafting. For builder conveyance deeds, check which charges the agreement puts on the buyer; some builders add administrative or documentation charges that the agreement does not support.

The cost of getting a deed wrong is usually higher. A rectification deed needs fresh execution and registration, and if the mistake affects value it can attract further duty. A deed that has to be cancelled in court costs years. Spending time on the draft is the cheapest step in the whole transaction.

What to do this week

If you are buying, ask the seller or builder for the full set of title documents and the draft deed now, not on the day before registration. Start the title and encumbrance searches, and get the circle rate and stamp duty worked out for the names you intend to put on the deed. If a loan is involved, find out what your bank needs to see in the deed before it disburses.

If you are selling, collect your title papers, mutation records, tax receipts and loan closure documents, and get the bank to release the originals if the property was mortgaged. If any co-owner, heir or attorney is involved, get their documents in order early; they cause more registration-day delays than anything else.

In conveyance deeds that reach Advocate B.K. Singh's office, the problems are rarely in the legal clauses and usually in the facts: an old boundary error, a missing heir, or a payment that cannot be traced. If you want the papers checked before you act, the team of Advocate B.K. Singh at Legals365 can review them and tell you the next step: talk to a lawyer.

Residential property: what changes

Residential property covers houses, builder floors, flats in group housing societies and apartments in developer projects. It is the property people care about most, and the law gives it more protection than commercial premises: consumer remedies against builders, rent control for old tenancies, special rules for senior citizens and family members. It also carries more family disputes than any other kind of asset.

The documents depend on the type. For an independent house or builder floor in Delhi, ask for the chain of sale deeds or the conveyance deed from DDA, the sanctioned building plan, the completion certificate, mutation in MCD records, the latest property tax receipt and electricity and water bills. For a flat in a cooperative group housing society, ownership runs through membership: the share certificate, the society's NOC and the Registrar of Cooperative Societies' approval of the transfer matter as much as the deed. For a flat in a developer project in Noida, Greater Noida or Gurugram, check the RERA registration, the builder-buyer agreement, the occupancy certificate, the tripartite sub-lease or conveyance deed, and whether the builder has paid the land dues to the authority, since unpaid dues have held up registration for thousands of buyers.

Stamp duty is charged on the higher of the price and the circle rate. Delhi charges women buyers a lower rate, and joint purchases fall in between; Uttar Pradesh and Haryana have their own concessions. Registration is at the sub-registrar office for the area, with both parties and two witnesses present. After registration, mutation in the municipal or authority record should be applied for, since it governs property tax and later dealings, even though mutation is not proof of title.

Disputes tend to fall into a few groups. Against builders: delayed possession, reduced area, poor construction and missing amenities, which go to the RERA authority or the consumer commission at the buyer's choice. Between landlord and tenant: old tenancies with rent up to ₹3,500 a month in Delhi are governed by the Delhi Rent Control Act 1958, where eviction for the landlord's bona fide need under section 14(1)(e) is the usual route; newer tenancies are contractual and go to the civil court or the rent authority under any new tenancy law the state has adopted. Within families: partition, wills and succession, and disputes over who may live in the house. Senior citizens can approach the Maintenance Tribunal under the Maintenance and Welfare of Parents and Senior Citizens Act 2007, which in appropriate cases has ordered children to vacate a parent's house. A wife's right to reside in the shared household under the Domestic Violence Act 2005 can also affect who stays in a property.

A few habits prevent most problems. Never buy on a GPA and agreement to sell alone. Insist on the occupancy or completion certificate. Keep original documents safe and certified copies handy. And put family arrangements about a house in writing, ideally a registered partition or family settlement, before a death or a marriage breakdown turns them into litigation.

Frequently asked questions

What is the difference between a conveyance deed and a sale deed?

A conveyance deed is any deed that transfers property; a sale deed is a conveyance made for a price. In NCR practice the terms are often used interchangeably, and 'conveyance deed' is also used for the deed a builder or DDA executes in the buyer's favour.

Is a conveyance deed compulsory to register?

Yes. A conveyance of immovable property worth one hundred rupees or more must be registered under section 17 of the Registration Act 1908, and an unregistered deed does not transfer title.

How is stamp duty on a conveyance deed calculated?

It is charged on the market value, usually the higher of the price and the circle rate value, at the rate fixed by the state. Rates differ for Delhi, UP and Haryana and can depend on whether the buyer is a man, a woman or joint owners.

When must a builder execute the conveyance deed?

Under section 17 of the RERA Act, within the period in local law, or within three months of the occupancy certificate where local law is silent. The buyer must also take part in the registration.

Can I draft a conveyance deed myself?

You can, but the risk lies in title, description and stamp duty, not in the wording. Mistakes found after registration need a rectification deed or court proceedings.

What if my builder refuses to execute the conveyance deed?

You can file a complaint with the state RERA authority or the Consumer Commission asking for a direction to execute it. Keep proof of full payment and of your requests to the builder.

Can an NRI sign a conveyance deed from abroad?

Yes, through a power of attorney executed abroad, attested at an Indian mission or apostilled, and stamped in India within three months of receipt. The attorney then signs and appears at the Sub-Registrar office.

Can an NRI buy agricultural land through a conveyance deed?

No. Under the foreign exchange rules NRIs and OCIs cannot buy agricultural land, plantation property or farmhouses, though they can inherit them.

What should the property schedule in a conveyance deed contain?

The address, unit or plot number, area, boundaries, and for land the khasra and revenue details. For a flat it should also cover the share in land, common areas and parking.

What happens if the conveyance deed has a mistake?

Minor errors are corrected by a registered rectification deed signed by both parties. If the other party will not cooperate, a suit for rectification may be needed.

Do I need a conveyance deed after freehold conversion by DDA?

Yes. After approving conversion, DDA executes a conveyance deed in the owner's favour, which must be registered. Without it the property remains leasehold on record.

Who pays the stamp duty on a conveyance deed?

By practice and under section 29 of the Indian Stamp Act, the buyer usually pays, unless the parties agree otherwise. The agreement should say who pays.

Should I go to RERA or the consumer commission against my builder?

You can choose either, as the Supreme Court held in Newtech Promoters v State of UP (2021), but not both for the same relief. RERA is often quicker for refund or delay interest under section 18; the consumer commission can also award compensation for deficiency in service. The choice depends on the amount, the relief you want and how far the project has progressed.

Can my son be evicted from my house if he harasses me?

In many cases, yes. The Maintenance Tribunal under the Senior Citizens Act 2007 has power to protect a parent's property and life, and courts have upheld eviction orders against children in suitable cases. The parent's ownership of the house and evidence of ill-treatment are the key facts.