Conveyancing of Immovable Property — Principles and Practice Guide 2026

What Is Conveyancing?

Conveyancing is the branch of legal drafting that deals with the preparation of documents for the transfer of property — particularly immovable property. It encompasses the entire process from: (a) investigation of the seller's title, (b) negotiation and drafting of the agreement, (c) execution and registration of the transfer deed, (d) post-completion formalities (mutation, tax compliance). The Transfer of Property Act, 1882 (TPA) and the Registration Act, 1908 are the primary statutes governing conveyancing in India. Unlike England (which has a dedicated Conveyancing Act), India's conveyancing principles are derived from the TPA, Registration Act, Indian Stamp Act, and established practice.

Stages of Conveyancing

Stage 1 — Pre-Contract Investigation

Before entering into any agreement: the buyer must conduct thorough due diligence on the property and the seller's title. Key investigations:

(a) Title Search: Examine the chain of title for at least 30 years (some practitioners recommend 40-50 years). Trace the ownership from the current seller back through all previous transfers — sale deeds, gift deeds, wills, partition deeds, inheritance. Each transfer in the chain must be: (i) by a person competent to transfer, (ii) to a person competent to acquire, (iii) properly documented and registered.

(b) Encumbrance Certificate (EC): Obtain from the Sub-Registrar's office — shows ALL registered transactions (sales, mortgages, leases, attachments) relating to the property for a specified period. A "NIL encumbrance" certificate means no registered charges exist.

(c) Revenue Records: Verify the property in the latest revenue records — 7/12 extract (Maharashtra), Patta/Chitta (Tamil Nadu), Khata (Karnataka), Khatauni (UP). Confirm the seller's name matches the revenue records.

(d) Approved Plan and Permissions: For buildings: verify the approved building plan, commencement certificate, occupation/completion certificate, and compliance with municipal bye-laws.

(e) Physical Inspection: Visit the property — verify boundaries, area, condition, possession (who is actually in possession), any encroachments, and neighborhood.

(f) RERA Verification: For under-construction properties: verify RERA registration of the project and developer.

(g) Litigation Search: Check whether any court case or dispute relates to the property — through court records search and inquiries with neighbors.

Stage 2 — Agreement to Sell

After satisfactory title verification: the parties execute an Agreement to Sell (discussed in detail in the specimen agreement article). The agreement records: consideration, payment schedule, possession date, conditions for the sale deed, and consequences of default. In some states (Maharashtra): the agreement must be registered.

Stage 3 — Drafting the Sale Deed

The sale deed (conveyance deed) is the primary document that TRANSFERS ownership. Key drafting elements:

(a) Parties: Full identification with father's name, age, address, PAN, Aadhaar.

(b) Recitals: Chain of title — how the seller acquired the property.

(c) Consideration: The sale price — amount in figures and words, mode of payment, acknowledgment of receipt.

(d) Operative Clause: "The Seller doth hereby sell, convey, transfer, and assign unto the Buyer..." — words of transfer creating the conveyance.

(e) Habendum: "TO HAVE AND TO HOLD absolutely and forever" — extent of the estate transferred.

(f) Covenants: Seller's warranties — clear title, free from encumbrances, right to sell, indemnity against title defects.

(g) Schedule: Detailed property description — survey number, boundaries, area, measurements.

(h) Testimonium and Attestation: Signatures of parties and 2+ witnesses.

Stage 4 — Stamp Duty and Registration

Stamp Duty: Pay BEFORE execution — calculated on the market value or consideration (whichever is HIGHER) as per the state stamp duty schedule. Payment through e-stamp certificate (recommended), physical stamp paper, or franking.

Registration: Under Section 54 TPA and Section 17 Registration Act: sale of immovable property above Rs. 100 MUST be by registered instrument. Both parties appear before the Sub-Registrar with: executed deed, e-stamp, ID proofs, photographs, previous title documents, EC, and property tax receipts. The Sub-Registrar verifies identity, examines the document, and registers it.

Stage 5 — Post-Completion

After registration: (a) Mutation: Apply for mutation (change of name) in the revenue records — at the Tehsildar/Municipal office. Mutation establishes the buyer's name in the government records for property tax and other purposes. (b) TDS: If consideration exceeds Rs. 50 lakh: buyer deducts 1% TDS under Section 194-IA and deposits using Form 26QB. (c) Possession: Take physical possession — change locks, inform the housing society, transfer utility connections. (d) Insurance: Insure the property from the date of possession. (e) NOC: For apartment purchases: obtain NOC/membership transfer from the housing society.

Key Principles of Conveyancing

1. Nemo dat quod non habet: "No one can give what they do not have." A seller can transfer only the rights they possess — if the seller does not have clear title, the buyer gets no title (regardless of good faith or payment of consideration).

2. Caveat emptor: "Buyer beware." The buyer must investigate the title — the seller is not automatically liable for title defects unless they actively misrepresented. This makes pre-contract investigation essential.

3. Once a mortgage, always a mortgage: A mortgage cannot be converted into a sale by any clause in the deed — the mortgagor always retains the right to redeem.

4. Transfer must be by registered instrument: For immovable property above Rs. 100 — unregistered transfers are void (Section 54 TPA).

5. Consideration must be lawful: Benami transactions (where property is purchased in someone else's name) are prohibited under the Benami Transactions (Prohibition) Act, 1988 (as amended 2016).

Common Conveyancing Pitfalls

(a) Incomplete title search: Not going back far enough — a 10-year search may miss older defects. Go back at least 30 years. (b) Ignoring revenue records: The seller's name not matching revenue records is a red flag. (c) Missing approvals: Purchasing a property without approved building plan or OC — demolition risk. (d) Inadequate EC: Getting EC for only a few years — 30-year EC is recommended. (e) Benami risk: Purchasing property in another person's name — attracts criminal prosecution and property confiscation under the Benami Act. (f) Undervaluation: Paying consideration below the government circle/market rate — attracts tax implications under Section 56(2)(x) of the Income Tax Act and may result in the Sub-Registrar refusing registration.