The term conveyance refers to the act of transferring property from one party to another. The term is commonly used in real estate transactions when buyers and sellers transfer ownership of land, building, or home.
This is done using an instrument of conveyance—a legal document such as a contract, lease, title, or deed. The document stipulates the agreed-upon purchase price and date of actual transfer, as well as the obligations and responsibilities of both parties.
- Conveyance is the act of transferring property from one party to another.
- The term is commonly used in real estate transactions when buyers and sellers transfer ownership of land, building, or home.
- A conveyance is done using an instrument of conveyance—a legal document such as a contract, lease, title, or deed.
- Such transfers may be subject to a conveyance tax.
- Fraudulent conveyance is an unfair or illegal transfer of assets done in order to avoid creditors during bankruptcy or to avoid taxes.
Understanding Conveyance
In finance, the term conveyance represents the act of legally transferring property from one entity to another. So when two parties engage in the sale of a piece of property, they transfer ownership through a conveyance. For instance, when a car owner legally signs the title over to a buyer, they are engaged in a conveyance.
The term conveyance is commonly associated with real estate transactions. Conveyance of ownership of real estate is also referred to as conveyancing, and the legal representative overseeing the process can be referred to as a conveyancer. Real estate transactions often incur a tax called a conveyance tax or a real estate transfer tax. This levy is imposed on the transfer of property at the county, state, or municipal level.
A conveyance is normally executed using a conveyance instrument. This is a written instrument or contract that outlines the obligations and responsibilities of both the buyer and the seller including the purchase price, date of transfer, and any other terms and conditions associated with the sale. The instrument may be a deed or a lease—a document that transfers the legal title of a property from the seller to the buyer.
BUYING A PROPERTY: WHAT A CONVEYANCING SOLICITOR WILL DO
Your conveyancing solicitor will carry out a number of other important tasks. If you’re buying property, it’s your property solicitor’s job to:
- Carry out local authority searches in relation to the property to check for any issues with the property.
This will include checking any forthcoming planning issues, such as transport or building plans that are likely to affect the home you want to buy. It will also include an environmental report which will check that the house was built on good land, whether or not it’s liable to flooding etc.
- Request and obtain a copy of your mortgage offer
This will contain your mortgage lenders’ instructions for the conveyancer to act on their behalf.
- Liaise with your property’s seller’s solicitor to receive a contract pack
This will include the draft contract which specifies the terms of the purchase/sale
- Organise the potential completion dates with the seller’s solicitor
They’ll liaise between the buyer and seller and organise a completion date – this date will depend on the property chain involved in the sale.
- Draft a deed transferring title in the property to the buyer
The buyer’s solicitor will draft a deed transferring title in the property to the buyer and give the lending institution a certificate of title. This is a legally binding document and will determine that the property belongs to the new buyer.
- Transfer the signed transfer deeds to the seller’s conveyancer
- Forward the title deeds to your mortgage lender
- Transfer the property’s deposit to the seller’s conveyancer
- Swap the signed contracts with the seller’s conveyancer on the agreed date
- Request payment of the mortgage advance from your lender
- Transfer the balance of the purchase price (less the deposit already paid) to the seller’s conveyancer.
- Forward documentation regarding the transfer of ownership to the Land Registry
- Check whether the capital gains tax (CGT) has been paid by the seller
SELLING YOUR PROPERTY: WHAT A CONVEYANCING SOLICITOR WILL DO
If you’re selling your property, it’s your conveyancing solicitor’s job to carry out the following tasks:
- Draw up the draft contract
This will detail what you intend to include within the price of the property, along with a suggested date of completion. This will then be sent to the buyer for approval.
- Negotiate on your behalf the terms of the draft contract depending on what the buyer requests
Any issues between the two parties about the draft contract will need to be resolved at this point
- Liaise with the buyers’ solicitor to organise a potential completion date
- Receive the signed transfer deeds from the buyers’ conveyancer
- Exchange finalised contracts
- Receive the property’s deposit from the buyer on the sellers’ behalf
- Hand over documents to the buyer that proves ownership of the property
- Pay off any outstanding mortgage from the proceeds of the sale
How do I find a conveyancer?
A good place to start is by asking your friends and family if they can recommend a good conveyancer. If nothing comes from this, Feel free to contact our recommended Conveyancing Firms, they will be happy to assist you in your journey of buying dream home.
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