A Practical Guide to Property Documents in India

What Is Movable Property?

Movable property means all property other than immovable property. In simple terms, it includes things that can be moved from one place to another without altering their nature. Examples include standing timber, growing crops, grass, fruits on trees, and their produce or juice.

Movable property also includes all other types of property in respect of which legal rights and liabilities can be created, transferred, limited, extended, or extinguished, as long as such property does not fall within the definition of immovable property.

What Is Immovable Property?

Immovable property generally refers to land and anything permanently attached to the land. This includes buildings, structures, and other fixtures that cannot be moved without causing damage. It also covers benefits and profits arising out of land, such as rent, rights of way, or other interests connected to the land.

Conveyance Deed

A Conveyance Deed is a legal document through which one party transfers his right, title, interest, or ownership in movable or immovable property (or any estate in such property) in favour of another party.

It covers all forms of property transfers except those for which separate provisions are specifically mentioned in Schedule I of the Maharashtra Stamp Act.

Documents that fall under Conveyance:

• Conveyance on sale

• Every instrument transferring property

• Any decree or final order of a Civil Court resulting in transfer of property

• Orders issued by the High Court under Section 394 of the Companies Act, 1956 relating to amalgamation or reconstruction of companies

• Orders issued by the Reserve Bank of India under Section 44A of the RBI Act, 1934 relating to amalgamation or reconstruction of banks

Lease Deed

A Lease Deed is a document relating to the lease of immovable property, movable property, or both, by which the owner transfers the right to enjoy such property for a specified period in consideration of rent.

Documents included under Lease Deed:

• Patta

• A document commonly known as “Kabulayat”, or a written agreement for payment of rent for immovable property (excluding lease in duplicate for cultivation)

• Any document granting the right to levy tolls or taxes

• Any written material showing that an application for lease has been sanctioned or granted

• Any decree or final order of a Civil Court relating to a lease

Mortgage Deed

A Mortgage Deed is a document by which a borrower (debtor), for the purpose of securing a loan or financial obligation, creates or transfers a right or interest in his property in favour of the lender (creditor).

The property serves as security for repayment of the debt, either existing or to be given in the future.

Power of Attorney

A Power of Attorney is a legal document through which a person (the principal) authorises another person (the attorney or agent) to act on his behalf and in his name.

This may include powers to:

• Sign documents

• Take decisions

• Represent the principal before courts, tribunals, or authorities

However, this category does not include a Vakalatnama, which is specifically executed in favour of an advocate to conduct legal proceedings.

Bond

A Bond is a document by which a person legally binds himself to pay money or deliver goods to another person, subject to certain conditions.

It generally includes:

• A document where payment becomes void if a specified act is performed or not performed, as agreed

• A document executed in the presence of witnesses, binding the person to pay money, food grains, or agricultural produce

Partition Deed

A Partition Deed is a document through which co-owners or coparceners divide jointly held property by fixing their individual shares, either by agreement or by physical division (metes and bounds).

Documents included under Partition:

• A final order of a Revenue Authority or Civil Court effecting partition

• An award passed by an Arbitration Tribunal directing division of property

• Any written document, signed by co-owners or coparceners, recording the division of property

Settlement Deed

A Settlement Deed is a document (other than a Will) by which a person, during his lifetime, makes arrangements for the management or distribution of his movable or immovable property.

Such settlements are generally made:

• In consideration of marriage

• For distribution of property among family members or dependents

• To provide for any person the settler wishes to benefit

• For religious or charitable purposes