To simply put it, conveyance is a term used in law to refer to the act of transferring property or interest from one entity to another. In legal terms, the entities involved in this are known as the conveyor/ grantor and a Conveyee/Grantee. Since conveyance refers to the legal transfer of real estate from one person to another, a written document that defines the obligations of the entities involved will be used to make it legally valid. The written document can be in the form of deeds, wills, or even contracts. And aside from making a conveyance valid, a written contract will also go a long way in preventing any form of dispute or breach of contract that may arise in the future.
A conveyor is someone that owns real estate and is willing to transfer complete or partial ownership to another individual ( Conveyee). The property we are talking about here can be a home, commercial buildings, and other properties with real value.
In addition, the law that guides conveyancing gives a property owner the full power to decide on how to transfer the estate and to whom they can transfer it. For instance, as a property owner, you can decide if you want to do a full transfer of ownership or only a portion of the ownership interest.
Conveyances can occur in many different ways. It may occur through the sale of the land or property, by inheritance, or through transfer in the form of a gift.
What is Involved in a Conveyance Process?
Before a conveyance can be termed legally valid, various steps need to be undertaken. We shall list and explain them now.
- There should be a confirmation that all conditions listed in the conveyance documents have been satisfied.
- The entities involved in the conveyance process must have reviewed the liens and all the encumbrances.
- Cross-check the financing behind the transaction to detect errors.
- The next thing would be to prepare the documents for the final settlement.
- The buyer and seller must sign the conveyance along with two witnesses each.
- The deed (the documents that transfer property ownership from one entity to another) must be registered at the registrar’s office in your state or county. Note that the registration won’t come for free. You may be required to pay a certain amount of money.
Types of Conveyance
Conveyance is divided into two types. Although they don’t deal with the same property, they still have the same goal… to ensure the successful transfer of property from one party to another.
Therefore, below is a list and description of the two types of conveyance.
Real Estate Conveyance
This is probably the most common type of convergence out there because landed property sells faster than others. In real estate conveyance, the documents are prepared when the seller transfers full or partial land ownership to another entity. The documents involved in this real estate conveyance include land title, mortgage documents, liens certificates, etc.
Types of Real Property Conveyances
Real property Conveyances are divided into four main types, and we will briefly discuss them.
- Simple Absolute: This conveyance type is by far the commonest out there. In this type of real estate convergence, the property is fully owned. Fee simple absolute gives the new owner of the absolute property control; he can decide the property’s present and future. Also, the holder is not subjected to any time limit. In short, the duration he can own the property is indefinite. The holder may choose to sell the property completely, or he may choose to sell just part of it. And if the holder doesn’t fancy selling it, they can include it in their last will so that someone else will inherit it.
- Fee Tail: Although not very common because most states in the United States except Delaware, Massachusetts, and Rhode Island have abolished this type of estate conveyance. In this type of conveyance, the estate stays in the family. Or, as some people will call it, in the bloodline. This means that only the offspring of the holder of this conveyance will have access to those properties. However, if the holder dies and he doesn’t have any kids, the property will return to the original grantor. Also, it should be noted that any holder of free tail can’t sell the property. Either the property gets transferred to his bloodline or returns to the conveyer.
- Life Estate: In this type of estate conveyance, the interest in the property will be measured by the grantee’s life duration. That is, the grantee, who in this case is referred to as a life tenant, will own the property till he dies. They can not transfer the property to another person when they die or cause damage to the property while they are still alive. However, while they are still alive, they will be entitled to all the profits and royalties they get from such property.
- Fee Simple Defeasible: This estate conveyance type is divided into three. But before we go into that, you have to familiarise yourself with what free simple Defeasible means. This type of conveyance has some clauses that can reduce the duration to which a grantee can own the property. For instance, if some of the conditions set out in the convergence documents are violated or not met. The property will be given to another entity (a third party) or returned to the original owner. Therefore the three types of fees simple defeasible include:
- Fee Simple Subject to Condition Subsequent: When a condition has been violated, the owner will take the property back
- Fee Simple Determinable: This refers to the automatic cancellation of the binding contract when a clause in the conveyance contract hasn’t been met.
- Fee Simple Subject to Executory Limitation: The interest in the property is canceled, and the property is given to a third party, not the original owner.
Mineral Rights Conveyances
Unlike real estate conveyance which deals with land and landed property such as a house or commercial buildings. On the other hand, mineral rights conveyance deals specifically with companies that explore or mine minerals and other natural resources.
Assuming that you own land and a mining company found a certain mineral resource on your land, you and the company will enter into a contract granting the company permission to commence their mining activities.
Do You Require Professional Assistance In Your Conveyance Process? Then Contact An Attorney
The conveyance process can sometimes be tricky, especially if you don’t know much about it. And this is enough reason why you need to hire a skilled and knowledgeable estate attorney who will be useful in the convergence process and available to represent you in court should any dispute arise.
