Conveyancing is an important legal concept which should be understood when making any type of significant transfer of ownership interest of a property from one specified party to another one. Conveyance is a term also used to describe the actual written document, such as a lease or deed, which legally transfers title of the property from the party selling the property to the buyer. The term is usually associated with the transfer of ownership of real estate. The legal representative hired to oversee the conveyance process is known as a conveyancer. Consulting a competent legal professional, such as Geelong Conveyancing Services, is a critical part of the process.
Basics of Conveyance
Conveyance is essentially a legal contract which obligates both parties, the seller and the buyer, to fulfill the promises detailed in the legal document. If either party fails to fulfill their legal obligations of the contract the other party has the legal right to sue the defaulting party in order to have the court force the defaulting party to fulfill the contract obligations. The suing party can also claim monetary damages in court.
The conveyance process makes sure the purchaser knows in advance of all restrictions being applied to the property. This may include liens or mortgages. In this way the buyer should be fully confident of a clean property title. Many times buyers will purchase title insurance which protects against potential fraud during the process of transferring a property title.
Real Estate Conveyance
Real estate is the most common form of conveyance. In most real estate conveyance processes the main legal document is known as the sale of deed. However, the real estate conveyance process will include dealing with various other legal documents, such as a mortgage contract. The process should also include checking for any liens or other encumbrances related to the real estate property. A conveyancer will make sure that all conditions agreed to have been met, which could include settling of all charges and taxes prior to transferring the property.
It is also important to confirm the financing necessary for the purchase as well as preparing legal documents for the final settlement. The legal documents in a real estate conveyance usually include a deed, certificate of liens, mortgage documents and the title insurance binder. Also, any side agreements connected to the transfer should be fully disclosed.
Conveyance of Mineral Rights
Although real estate is the most common form of conveyance, the process can also be related to the oil and gas industry. Oil and gas exploration firms will use a conveyance process to transfer the rights or ownership of specified parcels of land. The most common type of conveyance within the oil and gas industry is a legal contract which grants mineral rights without transferring title of the land. In exchange for transferring these rights the owner of the land is compensated as specified in the legal contract.
It is important when planning any type of conveyance process that one has a competent and experienced legal professional to oversee the entire process. This will ensure all details have been squared away and that everything is done in an efficient and legal manner. Failure to do so can have serious consequences in the future.