Conveyance is the act of transferring an ownership interest in a property from one party to another. Conveyance also refers to the written instrument, such as a deed or lease, that transfers the legal title of a property from the seller to the buyer. The term is most closely associated with real estate, where a conveyance refers to the written contract between the seller and the buyer stating the agreed-upon purchase price and date of actual transfer, as well as the obligations and responsibilities of both parties. 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.
A conveyance is a contract, which means that both the buyer and the seller are legally bound to fulfill their obligations. If either party does not do so, the other can take the defaulting party to court to enforce the contract or claim damages. Conveyancing ensures that the buyer is informed in advance of any restrictions on the property, such as mortgages and liens, and assures the buyer of a clean title to the property. Many buyers purchase title insurance to protect against the possibility of fraud in the title transfer process.
The process behind a typical conveyance will include a review for liens and other encumbrances, ensuring all conditions have been met, settling all taxes and charges with the appropriate party prior to transfer, confirming financing and preparing all the documents for final settlement. The documents provided for conveyancing typically include the deed, mortgage documents, certificate of liens, the title insurance binder, and any side agreements related to the sale.