in law, conveyancing is the transfer of legal title of property from
one person to another, or the granting of an encumbrance such as a mortgage or
a lien.
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). 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/property,
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. |
