CONVEYANCE AND ASSIGNMENT THE DISTINCTION
ONCE THERE IS A DEED OF ASSIGNMENT EXECUTED BY THE LESSOR IN FAVOUR OF THE LESSEES CAN THERE BE DEEMED CONVEYANCE? Why am I writing this blog? You must be wondering! No noting without cause. Nowadays, in the name of redevelopment societies are collecting huge funds like 20-30 lakhs for Deemed Conveyance. But I am saying it’s wrong? The answer is this society already had a Deed of Assignment executed and registered in its name way back in 1970s. Now this is connivance or illiteracy of the committee that depends on documentary evidence. But this is no less serious offense. Why? It amounts to embezzlement of society funds by way of misrepresentation and fraud. ANALYSIS Let us analyse the question herein is to ascertain as to whether the deed in question is a deed of assignment of lease hold rights. Article 63 of Schedule 1-B of the Indian Stamp Act or would be an outright sale so as to be termed as ‘Conveyance” and would be covered by Article 23 of Schedule 1-B of the Indian Stamp Act. The word ‘sale’ has not been defined under the Indian Stamp Act, 1899. Section 2 (10) of the Act defines “Conveyance” as including a conveyance on sale and every instrument by which property, whether movable or immovable property is transferred inter vivos and which is not otherwise specifically provided for by Schedule 1-A or Schedule 1-B, as the case may be. Now let us see the difference in common parlance: Deed of Assignment: This document transfers interest in property from one person or entity to another. Purpose: It’s used when someone wants to transfer their interest in a property to someone else, such as in property sales or lease assignments. Nature of Transfer: It involves transferring existing property rights, not creating new ones. The Transfer is conditional subject to the terms of Lease Agreement and in case of breach the Lessor/Owner steps in. Execution: It requires the consent and signature of the person or entity giving up their rights. Stamp Duty and Registration: Depending on local laws, it may or may need to be stamped and registered with the land authority. Deed of Conveyance: This document transfers property ownership from a seller to a buyer. Purpose: Confirming Agreement for Sale to establish the buyer’s legal ownership. Nature of Transfer: It creates new property ownership and rights, transferring everything about the property to the new owner. Execution: Both the seller and the buyer must sign it. Requires to be stamped and registered mandatorily. Registration: It typically needs to be registered to show the change in property ownership. In short, Deeds of Assignment transfer existing property rights, while Deeds of Conveyance create new property rights and prove ownership. The word ‘Sale” has been defined under Section 54 of the Transfer of Property Act, 1882 which reads as under:- “Sale is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.” “Lease” has been defined under Section 105 of the Transfer of Property Act, 1882 and also in sub-section (16) of Section 2 of the Stamp Act, 1899 which […]
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