Conveyance of title: Overview, definition, and example
What is conveyance of title?
Conveyance of title refers to the legal process by which the ownership of property (typically real estate) is transferred from one party (the seller or grantor) to another party (the buyer or grantee). This transfer is typically documented through a deed, which is a formal legal instrument that outlines the details of the transaction and is signed by the seller. The conveyance of title ensures that the buyer obtains full legal ownership and rights to the property, free from claims or encumbrances, unless specified otherwise in the agreement.
For example, when a homeowner sells their property, the conveyance of title is the act of transferring the deed to the buyer, officially transferring ownership.
Why is conveyance of title important?
Conveyance of title is important because it establishes legal ownership of the property and provides clear documentation of the transfer of rights. This process protects both parties by ensuring that the seller has the right to transfer the property and that the buyer receives valid ownership of the property. The conveyance of title also protects against future disputes over ownership, as the deed serves as proof of the transfer.
For real estate transactions, the conveyance of title is essential for ensuring that the buyer can freely use, sell, or mortgage the property without legal obstacles. It also provides a clear record of ownership for legal and financial purposes.
Understanding conveyance of title through an example
Imagine a person, Alice, decides to sell her house to Bob. They sign a purchase agreement outlining the terms of the sale. At closing, Alice signs a deed that transfers the title of the property to Bob. This act of signing and delivering the deed constitutes the conveyance of title. Once the deed is recorded with the appropriate governmental authority, Bob officially becomes the legal owner of the property.
In another example, a company may convey the title of a piece of land to a developer as part of a real estate development project. The conveyance of title would include the transfer of the deed, and the developer would then have full rights to the land as the new owner.
An example of a conveyance of title clause
Here’s how a conveyance of title clause might appear in a real estate agreement:
“The Seller agrees to convey to the Buyer a good and marketable title to the Property, free of all liens, encumbrances, and claims, except as otherwise stated in this Agreement. The conveyance of title shall be executed through a deed of bargain and sale and shall be delivered to the Buyer upon full payment of the purchase price.”
Conclusion
Conveyance of title is the legal process of transferring ownership of property from one party to another, typically through a deed. It ensures that the buyer receives full legal ownership of the property, free from disputes or claims, and is a critical part of any real estate transaction. Understanding the conveyance of title helps protect both the buyer and seller, ensuring that the transfer of ownership is clear, documented, and legally binding.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.