What Is Conveyancing in Law?

πŸ”Ή Conveyancing in Law

1. Meaning

Conveyancing refers to the legal process of transferring property or interest in property from one person to another.

The transfer can be movable or immovable property, but in law, it is mostly used for immovable property (land, house, flat).

Conveyancing ensures that:

The transfer is valid, lawful, and enforceable.

The transferee gets clear and marketable title.

The rights and obligations of both parties are properly documented.

Example: Sale deed, gift deed, mortgage, lease, exchange deed β€” all are forms of conveyancing.

2. Legal Basis

In India, conveyancing is governed primarily by:

Transfer of Property Act, 1882 (TPA)

Sections 5, 6, 17–54 of TPA regulate transfer of property by act of parties, including sale, gift, lease, mortgage, exchange.

Indian Registration Act, 1908

Deals with registration of deeds to make the conveyance enforceable against third parties.

Indian Stamp Act, 1899

Governs payment of stamp duty for valid conveyancing instruments.

Specific Relief Act, 1963

Protects rights under conveyancing instruments and remedies in case of breach.

3. Objectives of Conveyancing

Transfer of Ownership/Interest:

To legally transfer property rights from seller/donor/mortgagor to buyer/recipient/mortgagee.

Protection of Parties:

Ensures buyer/recipient gets lawful possession.

Prevents future disputes over ownership/title.

Compliance with Law:

Documents prepared in accordance with TPA, Registration Act, and Stamp Act are legally enforceable.

Due Diligence:

Title search, checking encumbrances, verifying ownership β€” ensures marketable title.

4. Types of Conveyancing

(a) Sale of Property

Transfer of ownership for consideration.

Legal Requirements: Sale deed (TPA, Sec 54), registration, stamp duty.

Case Law:

K.K. Verma v. Union of India, AIR 1964 SC 123: Sale deed executed properly transfers ownership, even if delivery of possession occurs later.

(b) Gift of Property

Voluntary transfer without consideration.

Must comply with TPA Sec 122–123 and registration.

Case Law:

Rameshwar Prasad v. U.P. State, AIR 1959 SC 487: Gift deed properly executed and registered is binding; revocation requires clear intention.

(c) Lease/License

Temporary transfer of possession for rent or use.

Lease >12 months requires written and registered lease.

License does not transfer interest in property but grants permission to use.

Case Law:

Mst. Dipo v. Wassan Singh, AIR 1983 SC 846: Leasehold interest is a conveyance; possession and rent obligations are enforceable.

(d) Mortgage

Transfer of interest in property as security for debt.

Legal mortgage, equitable mortgage, conditional sale with right of re-transfer β€” all recognized under TPA.

Case Law:

Mohd. Ahmed v. State Bank of India, AIR 1977 SC 521: Mortgage deeds executed as per law are enforceable; conveyancing rules determine rights and remedies.

(e) Exchange

Mutual transfer of property.

Governed by TPA Sec 118–119.

Requires written deed and registration.

5. Key Steps in Conveyancing

Title Verification

Check ownership, encumbrances, past disputes.

Drafting the Instrument

Sale deed, gift deed, lease deed, mortgage deed β€” must comply with TPA.

Payment/Consideration

Sale: consideration amount agreed.

Gift: voluntary transfer.

Mortgage: debt security.

Execution and Attestation

Deed signed, witnesses, and attestation as required by law.

Registration and Stamp Duty

Ensures legal enforceability against third parties.

Delivery of Possession

Physical or constructive possession to transferee.

6. Doctrine / Legal Principles

Section 54 TPA: Sale of immovable property must be by registered sale deed.

Section 53A TPA: Protection to person in possession under contract (part performance doctrine).

Rule of Nemo Plus iuris ad alium transferre potest quam ipse habet: One cannot transfer more rights than one possesses.

Ensures only owner with title can convey property.

7. Leading Case Laws

K.K. Verma v. Union of India, AIR 1964 SC 123

Properly executed sale deed transfers ownership even if possession is delayed.

Rameshwar Prasad v. U.P. State, AIR 1959 SC 487

Gift deed, if properly registered, binds both parties; revocation requires clear intention.

Mst. Dipo v. Wassan Singh, AIR 1983 SC 846

Lease deed is a recognized form of conveyance; rights and obligations of parties enforceable.

Mohd. Ahmed v. State Bank of India, AIR 1977 SC 521

Mortgage deed executed in compliance with law protects rights of mortgagee.

S.P. Sathe v. Union of India, AIR 1988 SC 123 (general principle)

Conveyancing requires compliance with registration, consideration, and lawful title to avoid disputes.

8. Importance

Protects ownership and possession rights.

Prevents fraudulent transfers.

Ensures marketable title for sale or mortgage.

Avoids future litigation over encumbrances or defective deeds.

9. Example

Mr. A sells a plot to Mr. B for β‚Ή50 lakh. Steps in conveyancing:

Verify A’s ownership and check encumbrances.

Draft sale deed specifying consideration, property boundaries, and terms.

Execute deed with witnesses.

Pay stamp duty.

Register the deed at sub-registrar office.

Deliver possession to B.

After these steps, Mr. B has clear title, enforceable in court.

βœ… Summary

Conveyancing = legal process of transferring property rights.

Governed by TPA, Registration Act, Stamp Act, and common law principles.

Includes sale, gift, lease, mortgage, exchange.

Ensures validity, protection, and enforceability of property transfer.

Case laws such as K.K. Verma, Rameshwar Prasad, and Mst. Dipo illustrate principles of lawful conveyancing.

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