Difference between Sale Deed and Conveyance Deed

Key difference: In law, conveyance is the transfer of legal title of property from one person to another. However, that is also exactly what a Sale Deed does. The main difference is that the Sale Deed transfers the legal title of property from one person to another in case of a sale. Whereas, a Conveyance Deed can transfer the legal title of property from one person to another in case of a gift, an exchange, a lease (i.e. on a temporary basis), mortgage or other circumstances.

In law, conveyance is the transfer of legal title of property from one person to another. It may also refer to the granting of an encumbrance such as a mortgage or a lien. Essentially, a Conveyance Deed transfers the title of property from one person to another.

However, that is also exactly what a Sale Deed does. The Sale Deed is an executed contract. It establishes a valid and lawful title over the property in favor of the purchaser. It is signed after the sale has taken place. It transfers the property to the buyer. The Sale Deed is the document that states that the sale is successful and that the property now legally and rightfully belongs to the purchaser, and that the seller forfeits any right of title to the property in return for the remuneration as agreed upon in the Sale Agreement.

So, what is the difference between a Conveyance Deed and a Sale Deed? The main difference is that the Sale Deed transfers the legal title of property from one person to another in case of a sale, i.e. the first party actually sells the title of the property to the second party in return of a specific amount of money. However, in a Conveyance Deed, there is no such restriction. A Conveyance Deed can transfer the legal title of property from one person to another in case of a gift, an exchange, a lease (i.e. on a temporary basis), mortgage or other circumstances.

However, if a Conveyance Deed in entered into for transferring the legal title of property from one person to another via a sale, then that Conveyance Deed would be termed as a Sale Deed. Hence, it can be said that a Sale Deed is actually a form or a type of Conveyance Deed. Other types of Conveyance Deeds may include gift deed, exchange deed, mortgage deed, etc.

Image Courtesy: onlinepropertyregistration.com, boundary-problems.co.uk

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