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Property law
Part of the common law series
Acquisition of property
Gift  · Adverse possession  · Deed
Lost, mislaid, or abandoned
Treasure trove
Alienation  · Bailment  · License
Estates in land
Allodial title  · Fee simple  · Fee tail
Life estate  · Defeasible estate
Future interest  · Concurrent estate
Leasehold estate  · Condominiums
Conveyancing of interests in land
Bona fide purchaser
Torrens title  · Strata title
Estoppel by deed  · Quitclaim deed
Mortgage  · Equitable conversion
Action to quiet title
Limiting control over future use
Restraint on alienation
Rule against perpetuities
Rule in Shelley's Case
Doctrine of worthier title
Nonpossessory interest in land
Easement  · Profit
Covenant running with the land
Equitable servitude
Related topics
Fixtures  · Waste  · Partition
Riparian water rights
Lateral and subjacent support
Assignment  · Nemo dat
Other areas of the common law
Contract law  · Tort law
Wills and trusts
Criminal Law  · Evidence

In law, conveyancing is the transfer of title of property from one person to another, or the granting of an encumbrance such as a mortgage or a lien. Property law is the area of Law that governs the various forms of Ownership in Real property (land as distinct from personal or movable possessions Common law refers to law and the corresponding legal system developed through decisions of courts and similar tribunals rather than through legislative statutes or executive A gift, in the Law of Property, has a very specific meaning In order for a Gift to be legally effective the grantor must have intended to give the gift In Common law, adverse possession is the process by which title to another's Real property is acquired without compensation, by as the name A deed is a Legal instrument used to grant a Right. Deeds are part of the broader category of documents under seal. In the Common law of Property, personal belongings that have left the possession of their rightful owners without having directly entered the possession of another person are A treasure trove may broadly be defined as an amount of gold silver gemstones money jewellery or any valuable collection found hidden underground or in places such as cellars Alienation, in Property law, is the capacity for a piece of property or a property right to be sold or otherwise transferred from one party to another Bailment describes a legal relationship in Common law where physical possession of personal Property ( Chattels) is transferred from one person (the The verb license or grant license means to give permission The noun license is the document demonstrating that permission An estate is the Net worth of a person at any point in time It is the sum of a person's Assets - legal rights interests and entitlements to Property of Allodial title is a concept in some systems of property law It describes a situation where Real property ( Land, Buildings and Fixtures) is owned Fee simple is an estate in land in Common law. It is the most common way Real estate is owned in common law countries and is ordinarily the most Fee tail or entail is an obsolete term of art in Common law. It describes an estate of Inheritance in Real property which cannot A life estate is a concept used in Common law and Statutory law to designate the ownership of land for the duration of a person's life A defeasible estate is created when a grantor transfers land conditionally In Property law and Real estate, a future interest is a legal right to property ownership that does not include the right to present possession or enjoyment of A concurrent estate or co-tenancy is a concept in Property law, particularly derived from the Common law of Real property, which describes A condominium, or condo, is a form of Housing tenure and other Real property where a specified part of a piece of real estate (usually of an apartment A bona fide purchaser ( BFP) referred to more completely as a bona fide purchaser for value without notice is a term used in the Law of Real property Torrens title is a system of land title where a register of land holdings maintained by the state guarantees an indefeasible title to those included in the register Strata title is a form of ownership devised for multi-level apartment blocks. Estoppel by Deed - A doctrine where rules of evidence prevent a litigant from denying the truth of what was said or done A quitclaim deed is a term used to describe a document by which a person (the "grantor" disclaims any interest the Grantor may have in a piece of Real property A mortgage is the pledging of a property to a Lender as a security for a Mortgage loan. Equitable conversion is a doctrine of the Law of Real property under which a purchaser of real property becomes the equitable owner of title to the property at the An action to quiet title is a Lawsuit brought in a Court having Jurisdiction over land disputes in order to establish a party's title to Real property In Property law and Real estate, a future interest is a legal right to property ownership that does not include the right to present possession or enjoyment of A restraint on alienation, in the Law of Real property, is a clause used in the conveyance of real property that seeks to prohibit the recipient from selling The rule against perpetuities is a rule of law in effect under the property, Trusts, Estate, and Contract law of many Common law The Rule in Shelley's Case is a rule of law that may apply to certain Future interests in Real property and Trusts created in Common law jurisdictions In the Common law of England, the doctrine of worthier title was a legal doctrine that preferred taking title to Real estate by descent A nonpossessory interest in land is a term of the Law of Property to describe any of a category of rights held by one person to use land that is in the possession For railroad track easement see Track transition curve. An easement is the right or freedom to do something or the right to prevent Profit, but an entirely different meaning of the term analogous to an Easement. A covenant running with the land, is a Real covenant, in the Law of Real property. An equitable servitude is a term used in the Law of Real property to describe a Nonpossessory interest in land that operates much like a Covenant running In the law of real property fixtures are anything that would otherwise be a Chattel that have by reason of incorporation or affixation become permanently attached to Waste is a term used in the Law of Real property to describe a Cause of action that can be brought in Court to address a change in condition A partition is a term used in the Law of Real property to describe an act by a Court order or otherwise to divide up a Concurrent estate into Riparian Water rights (or simply riparian rights) is a system of allocating water among those who possess land about its source Lateral and subjacent support, in the Law of property, describes the right a landowner has to have that land physically supported in its natural state by both adjoining An assignment (Latin cessio) is a term used with similar meanings in the Law of Contracts and in the law of Real estate. Nemo dat quod non habet, literally meaning "no one give what one does not have" is a legal rule sometimes called the nemo dat rule that states that the purchase of A contract is an exchange of promises between two or more parties to do or refrain from doing an act which is enforceable in a court of law Tort law is the name given to a body of law that creates and provides remedies for civil wrongs that do not arise out of Contractual duties In Common law, a will or testament is a document by which a person (the Testator) regulates the rights of others over his or her Property The law of trusts and estates is generally considered the body of Law which governs the management of personal affairs and the Disposition of Property of The term criminal law, sometimes called penal law, refers to any of various bodies of rules in different Jurisdictions whose common characteristic is the potential The Law of evidence governs the use of Testimony (eg oral or written statements such as an Affidavit) and exhibits (e Title is a legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or an equitable interest The rights Property is any physical or virtual entity that is owned by an individual Encumbrance is a legal Term of art for anything that affects or limits the title of a property such as Mortgages, leases, Easements A mortgage is the pledging of a property to a Lender as a security for a Mortgage loan. In Law, a lien is a form of Security interest granted over an item of Property to secure the payment of a Debt or performance of some other [1]

The term conveyancing may also be used in the context of the movement of bulk commodities or other products such as water, sewerage, electricity, or gas.

A typical conveyancing transaction contains two major landmarks: the exchange of contracts (whereby equitable title passes) and completion (whereby legal title passes). A contract is an exchange of promises between two or more parties to do or refrain from doing an act which is enforceable in a court of law Conveyancing occurs in three stages: before contract, before completion and after completion.

A buyer of real property must ensure that he or she obtains a good and marketable 'title' to the land; i. e. , that the seller is the owner, has the right to sell the property, and there is no factor which would impede a mortgage or re-sale.

A system of conveyancing is usually designed to ensure that the buyer secures title to the land together with all the rights that run with the land, and is notified of any restrictions in advance of purchase. In most mature jurisdictions, conveyancing is facilitated by a system of land registration which is designed to encourage reliance on public records and assure purchasers of land that they are taking good title. In Law, land registration is a system by which the Ownership of estates in land, is recorded and registered usually by Government, in order [2]

Contents

United Kingdom

In England and Wales this is usually done by a solicitor or a licensed conveyancer. History The Roman occupation of Britain was the first period in which the area of present-day England and Wales was administered as a single unit (with the exception A "solicitor" is a term used in many Common law jurisdictions for a lawyer who offers legal services outside of the courts A Licensed Conveyancer is a specialist in the United Kingdom, New Zealand or Australia who has been trained to deal with all aspects of Property law Either may employ or supervise an unqualified conveyancer. In Commonwealth countries a conveyancer is a specialist breed of Attorney that specializes in the Legal aspects of Buying and Selling The domestic conveyancing market is price competitive, with a high number of firms of solicitors and conveyancing companies offering a similar service. It is possible for someone to carry out their own conveyancing.

Under English and Welsh law agreements are not legally binding until contracts are exchanged. English law is the legal system of England and Wales, and is the basis of Common law legal systems used in most Commonwealth countriesand the This affords both the advantage of freedom before contract, but also the disadvantage of wasted time and expense in the event the deal is not done. To try to address this, Home Information Packs are being introduced from August 2007. Under the provisions of the Housing Act 2004 a Home Information Pack (HIP sometimes called a Seller's Pack, will have to be provided before a property in Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century.

The normal practice is for the buyer to negotiate an agreed price with the seller then organise a survey and have the solicitor (or conveyancer) carry out their searches and pre-contract enquiries. The seller's solicitor or conveyancer will prepare the draft contract to be approved by the buyer's solicitor. The seller's solicitor will also collect and prepare property information to be provided to the buyer's solicitors, in line with the Law Society's National Protocol for domestic conveyancing. A Law Society in current and former Commonwealth jurisdictions is an association of solicitors (effectively the trade organisation for solicitors which has a regulatory role

It takes on average 10–12 weeks to complete a conveyancing transaction, but some transactions are quicker, many take longer. The timescale is determined by a host of factors - legal, personal, social and financial. During this period prior to exchange of contracts (exchange being the point at which the transaction becomes legally-binding) either party can pull out of the transaction at any time and for any reason, with no legal or moral obligation to the other. This gives rise to a risk of gazumping and its converse, gazundering. The verb " gazump " means to refuse to formalise a property sale agreement at the last minute in order to accept a higher offer Gazundering is the practice of demanding a reduction in price to secure the sale of a property

The position in Scotland under Scots law is that the contract is generally concluded at a much earlier stage, and the initial offer, once accepted by the seller, is legally binding. Scotland ( Gaelic: Alba) is a Country in northwest Europethat occupies the northern third of the island of Great Britain. Scots law is a unique legal system with an ancient basis in Roman law. This results in a system of conveyancing where buyers get their survey done before making a bid through their solicitor to the seller's solicitor. If there is competing interest for a property, sellers will normally set a closing date for the initial offers. The contract is normally formed by letters between the solicitors on behalf of each of the seller and purchaser, called missives. Once all the terms of the contract are agreed, the missives are said to be concluded, and there is then a binding contract for the sale of the property. Normally the contract is conditional upon matters such as the sellers being able, before completion of the transaction, to prove that they have good title to the property and to exhibit clear searches from the property registers and the local authority. The fact that there is a binding contract at a relatively early stage, compared with the normal practice in England and Wales, makes the problem of gazumping a rarity. History The Roman occupation of Britain was the first period in which the area of present-day England and Wales was administered as a single unit (with the exception The disadvantage for the buyer is that they usually have to bear the cost of the survey for unsuccessful bids, though trials have been made of a system where the seller arranges for one survey available to all bidders. From 1 December 2008 properties for sale will have to be marketed with information, now branded as the ‘Home Report’. This is a pack of three documents: a Single Survey, an Energy Report and a Property Questionnaire. The Home Report will be made available on request to prospective buyers of the home. The date of final settlement (the "completion date" in England) is in Scotland known as the "entry date".

Australia

In Australia much of the land which was first colonised by England is still Common Law (also known as Old System). However since the introduction of Torrens title in 1858 most land is now under the new (and greatly improved) system of conveyance. Torrens title is a system of land title where a register of land holdings maintained by the state guarantees an indefeasible title to those included in the register

Conveyancing in Australia is usually completed by a solicitor or a licensed conveyancer. A "solicitor" is a term used in many Common law jurisdictions for a lawyer who offers legal services outside of the courts A Licensed Conveyancer is a specialist in the United Kingdom, New Zealand or Australia who has been trained to deal with all aspects of Property law There are also kits available if the buyer wishes to complete the process themselves, but due to the complexity of varying state and council laws and processes, its usually not recommended.

A common conveyance by a solicitor or licensed conveyancer usually takes 4–6 weeks. A "solicitor" is a term used in many Common law jurisdictions for a lawyer who offers legal services outside of the courts A Licensed Conveyancer is a specialist in the United Kingdom, New Zealand or Australia who has been trained to deal with all aspects of Property law Most firms offer fixed price services (around $1000) which usually includes costs of searches, legal advice and other outlays.

In most states and territories a typical conveyance includes, but is not bound or limited to, the following:

Searches tend to take up the bulk of the conveyance. Due to the three level system of government in the country (federal, state and local), it must be made sure that all rights and title are properly awarded to the seller. Most information is retrieved from state or local (council) authorities.

A standard search package could include:

Requirements, searches and costs can vary from state to state, depending on local property legislation and safeguards. Generally a company is a form of Business organization. The precise definition varies Land value taxation (LVT (or site value taxation) is an Ad valorem tax where only the value of land itself is taxed A title search is a process that is performed to determine the answers to two questions

United States

The conveyancing process in the United States varies from state to state depending on local legal requirements and historical practice. In most situations, three attorneys will be involved in the process: one each to represent the buyer, seller, and mortgage holder; frequently all three will sit around a table with the buyer and seller and literally "pass papers" to effect the transaction. (Some states do not require all parties to be present simultaneously. ) In order to protect themselves from defects in the title, buyers will frequently purchase title insurance at this time, either for themselves or for their lender. Title insurance in the United States is Indemnity Insurance against financial loss from defects in title to Real property and from the invalidity

In most states, a prospective buyer's offer to purchase is made in the form of a written contract and bound with a deposit on the purchase price. The offer will set out conditions (such as appraisal, title clearance, inspection, occupancy, and financing) under which the buyer may withdraw the offer without forfeiting the deposit. A building inspector is a person who is employed by either a city township or county and is usually certified in one or more disciplines either as a residential or commercial building Once the conditions have been met (or waived), the buyer has "equitable title" and conveyancing proceeds or may be compelled by court order. A court order (or court ruling) is an official proclamation by a Judge (or panel of judges that defines the legal relationships between the parties to a hearing There may be other last-minute conditions to closing, such as "broom clean" premises, evictions, and repairs.

Typical papers at a conveyancing include: deed(s), certified checks, promissory note, mortgage, certificate of liens, pro rata property taxes, title insurance binder, and fire insurance binder. A certified check or certified cheque is a form of check for which the bank verifies that sufficient funds exist in the account to cover the check and so certifies There may also be side agreements (e. g. , holdover tenants, delivery contracts, payment holdback for unacceptable repairs), seller's right of first refusal for resale, declaration of trust, or other entity formation or consolidation (incorporation, limited partnership investors, etc). Statutory holdback or Contract holdback is the legal requirement found in most common law jurisdictions' contract law that requires an owner engaging a contractor Where "time is of the essence," there have been cases where the entire deposit is forfeited (as liquidated damages) if the conveyancing is delayed beyond the time limits of the buyer's contingencies, even if the purchase is completed. Liquidated damages (also referred to as liquidated and ascertained damages are damages whose amount the parties designate during the formation of a contract for the injured

External links

Notes

  1. ^ Black’s Law Dictionary (7th ed. 1999)
  2. ^ Dukeminier et al. , Property 559 (6th ed. 2006)

Dictionary

conveyancing

-noun

  1. (law) The drawing of deeds etc. concerning transfer of property, and the legal execution of such transfers.
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