A Contract for Deed is a tool through which the buyers who either do not qualify for traditional lending options or who want a faster financing option to purchase property can go ahead to purchase a property. The legal title of the property remains with the seller until the balance is totally paid off. The buyer gets legal title to the property only after the final payment is made.
The conveyance deed or the sell of land contract deed gives legal protection to the ownership of your property. It is very important to have a proper contract deed because of the rise in the number of fraud and bogus selling of properties. By understanding the basics of a conveyance deed, one can guard oneself against getting duped.
There is a tiny string of difference between the sale deed and the conveyance deed. All sale deeds are conveyance deeds but notthe vice versa. Gift, mortgages, exchange and lease deeds are also types of conveyance deeds.
A conveyance deed is an important document for a buyer as well as the seller that is governed under the Registration Act. This is because a purchase is not legally considered to be complete until it is signed by both the parties.
A conveyance deed is made on a non-judicial stamp paper keeping the agreement to sell as the blueprint.
In the contract of the deed the buyer has to submit all the details that are needed to carry out for the transfer of the property title. This includes the full names of the buyer and the seller, their addresses, etc. The actual demarcation of the property in question, chain of the title of the owners, and the method of the delivery of the property are also stated.
In the sell contract for deed, the seller is also required to certify that the property is free from any legal encumbrance.
If some loan is taken against the property, the mortgage should be cleared before proceeding, if it’s a sale deed. It’s always better to personally check with the local sub-registrar’s
In case of sale deed, it would also mention the money received towards the sale transaction.
The document would also state the exact date on which the property would be physically handed over to the new owner.
Within a period of four months of the execution of the deed, all the original documents related to the sale of the property should be produced before the registrar for registration.
The conveyance deed is also required to be signed by at least two witnesses with all their details included.
After the conveyance deed is signed, it has to be registered at the local sub-registrar’s office by paying the registration fee.
Capital Mortgage Notes is considered to be the best dealing with the mortgages notes for the sell and purchase of the land property. They also provide real estate note to the buyers with the best assistance and guidance to their clients.
