Conveyance Deed Cancellation: Reasons, Process, and Implications

Learn about the reasons, process, and implications of cancelling a conveyance deed. Understand the legal complexities involved in rectifying errors, addressing fraud, and ensuring valid property transfers.
Home Loan
2 min
05 June 2024

A conveyance deed, also known as a sale deed, is a crucial legal document involved in the process of buying a property. It is a proof of ownership transferring the legal title of the property from the seller to the buyer. This legally binding document is the final instrument in property sales, stating that the seller transfers all rights to the buyer. Conveyance deed comes into play once the buyer has made the payment of consideration and the home loan, if any, has been approved.

For instance, if you opt for a home loan, the lender releases the loan amount to the seller, and the conveyance deed is transferred to the buyer. The document must be registered and stamped to make the transfer valid.

While the conveyance deed is the last step in a property transaction, there could be circumstances where the cancellation of this document becomes necessary. Several reasons might lead to the cancellation of a conveyance deed, which can be a complex and sensitive process.

What are conveyance deeds?

Conveyance deeds are legal documents that transfer the ownership of property from one party to another. They are an essential part of real estate transactions, ensuring that the transfer of property rights is properly documented and legally binding. However, there are instances where conveyance deeds need to be cancelled due to various reasons, leading to a complex legal process and significant implications for all parties involved.

Reasons for cancelling a conveyance deed

There are several reasons why a conveyance deed might need to be cancelled. One common reason is a mistake or error in the deed itself. This could include inaccuracies in the property description, the names of the parties involved, or other essential details. In such cases, cancelling the deed is necessary to rectify the error and ensure that the transfer of ownership is valid.

Another reason for cancelling a conveyance deed is fraud or misrepresentation. If one party engages in fraudulent activities or misrepresents the property or its ownership status, the other party may seek to cancel the deed to protect their rights and interests. Fraudulent activities could include forging signatures, providing false information, or concealing important facts about the property.

Additionally, a conveyance deed may be cancelled if the transfer of property is deemed illegal or against public policy. For example, if the property was acquired through illegal means or if the transfer violates zoning regulations or other government laws, the deed may be subject to cancellation to uphold legal standards and protect public interests.

Legal process of conveyance deed cancellation

The process to cancel a conveyance deed is typically a legal battle. Here's a brief on the steps involved:

  • Legal notice: Initially, a legal notice must be sent to the person against whom the cancellation is sought.
  • Filing a suit: If there is no response or unsatisfactory reply to the legal notice, a suit for cancellation must be filed in a court of competent jurisdiction.
  • Court proceedings: The court will hear both parties and examine the evidence before making a decision.

Implications of conveyance deed cancellation

The cancellation of a conveyance deed can have significant implications for all parties involved. For the party seeking cancellation, it means rectifying any mistakes or fraud and ensuring that their rights to the property are properly recognised and protected. On the other hand, for the party whose deed is being cancelled, it could mean losing ownership rights to the property and facing legal consequences for any fraudulent activities or misrepresentations.

Additionally, conveyance deed cancellation can also affect other parties with an interest in the property, such as lenders, tenants, or other third parties. For example, if the property was mortgaged or leased based on the cancelled deed, those agreements may also be affected, leading to further legal complications and financial implications.

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Frequently asked questions

Can a transfer deed be cancelled?

Yes, a transfer deed can be cancelled if there are grounds such as fraud, misrepresentation, coercion, or mutual agreement between parties. Legal procedures must be followed, and a court order is typically required to officially cancel the deed.

What is the time limit for cancellation of sale deed?

The time limit for cancelling a sale deed is generally governed by the Limitation Act, 1963, which stipulates a three-year period from the date the issue arises or the fraud is discovered. Legal advice should be sought for specific cases and contexts.

What is the procedure for cancellation of registered deed?

To cancel a registered deed, file a suit in a civil court with jurisdiction. Submit the original deed and provide reasons for cancellation. If the court finds valid grounds, it will issue an order to cancel the deed, which must then be registered with the Sub-Registrar.

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