Conveyance
A conveyance is a legal term that refers to the legal transfer of property between one entity to another. This act is carried out through a conveyance instrument, a written document that defines the buyer and seller’s obligations within the real estate transaction.
The instrument may be a contract, lease, title, or deed, and it outlines the transfer date, purchase price, and the responsibilities of both parties within the sale. The individual or entity transferring the property interest is known as the “conveyor”, while whoever receives the title is known as the “conveyee”.
Read more: Types of Deeds
It’s also important to note that a conveyance document or deed is simply the written contract between the two parties, detailing how and when the transfer will occur. The property title is separate from the deed, and the conveyee has no legal claim to the property until they have actually received the title.
This definition looks in depth at what is a conveyance, its different types, and what process must be taken for it to be legally valid.
What Is Involved in a Conveyance Process?
Before a conveyance can be carried out, various steps must be undertaken. These are as follows:
- Reviewing all encumbrances and liens
- Confirming that all conditions have been satisfied
- Settling every charge and tax with the appropriate party
- Validating financing behind the transaction
- Preparing all documents for the final settlement, including the deed or residential lease, mortgage papers, lien certificates, title insurance binder, and any side agreements associated with the sale
- Both buyer and seller must sign the conveyance as well as two witnesses
- The deed must be registered at the registrar’s office of the appropriate county and all related fees must be paid
What Are the Different Types of Conveyance?
Conveyances generally include the equitable title of a property as well as its legal title. The first of these refers to the actual physical use of the real estate, while the second indicates the official legal ownership of the land.
However, not all conveyances transfer both of these titles. Deeds that convey only one of these are known as priority or partial conveyances.
A conveyance can also be conditional. These require the buyer to meet certain terms before the transfer can be realized. A common example of this is with gifts. A parent may convey a piece of property to their son or daughter on the condition that they reach a certain milestone.
Additionally, in certain circumstances conveyances can be fraudulent. Most commonly, a fraudulent conveyance involves a seller transferring a property title in order to conceal a piece of real estate as an asset. This type of transfer is common in bankruptcy cases, where a debtor wants to avoid property claims from creditors.
Features of a Conveyance Document
There are various elements that must be included in a conveyance deed or contract. These must be inserted to ensure that the document is legally binding. In the event that an issue occurs regarding the conveyance, the deed will be important supporting evidence within a court of law.
The essential details that must be included in a conveyance document are as follows:
- Personal details of the conveyor
- Personal details of conveyee
- Signature of both buyer and seller
- Signature of two witnesses
- Date of transfer
- Purchase price
- Method of delivery of the property
- Demarcation of the property
- Responsibilities of both parties
A conveyance is a legal term that refers to the legal transfer of property between one entity to another. This act is carried out through a conveyance instrument, a written document that defines the buyer and seller’s obligations within the real estate transaction.
The instrument may be a contract, lease, title, or deed, and it outlines the transfer date, purchase price, and the responsibilities of both parties within the sale. The individual or entity transferring the property interest is known as the “conveyor”, while whoever receives the title is known as the “conveyee”.
Read more: Types of Deeds
It’s also important to note that a conveyance document or deed is simply the written contract between the two parties, detailing how and when the transfer will occur. The property title is separate from the deed, and the conveyee has no legal claim to the property until they have actually received the title.
This definition looks in depth at what is a conveyance, its different types, and what process must be taken for it to be legally valid.
What Is Involved in a Conveyance Process?
Before a conveyance can be carried out, various steps must be undertaken. These are as follows:
- Reviewing all encumbrances and liens
- Confirming that all conditions have been satisfied
- Settling every charge and tax with the appropriate party
- Validating financing behind the transaction
- Preparing all documents for the final settlement, including the deed or residential lease, mortgage papers, lien certificates, title insurance binder, and any side agreements associated with the sale
- Both buyer and seller must sign the conveyance as well as two witnesses
- The deed must be registered at the registrar’s office of the appropriate county and all related fees must be paid
What Are the Different Types of Conveyance?
Conveyances generally include the equitable title of a property as well as its legal title. The first of these refers to the actual physical use of the real estate, while the second indicates the official legal ownership of the land.
However, not all conveyances transfer both of these titles. Deeds that convey only one of these are known as priority or partial conveyances.
A conveyance can also be conditional. These require the buyer to meet certain terms before the transfer can be realized. A common example of this is with gifts. A parent may convey a piece of property to their son or daughter on the condition that they reach a certain milestone.
Additionally, in certain circumstances conveyances can be fraudulent. Most commonly, a fraudulent conveyance involves a seller transferring a property title in order to conceal a piece of real estate as an asset. This type of transfer is common in bankruptcy cases, where a debtor wants to avoid property claims from creditors.
Features of a Conveyance Document
There are various elements that must be included in a conveyance deed or contract. These must be inserted to ensure that the document is legally binding. In the event that an issue occurs regarding the conveyance, the deed will be important supporting evidence within a court of law.
The essential details that must be included in a conveyance document are as follows:
- Personal details of the conveyor
- Personal details of conveyee
- Signature of both buyer and seller
- Signature of two witnesses
- Date of transfer
- Purchase price
- Method of delivery of the property
- Demarcation of the property
- Responsibilities of both parties