What is Conveyance?
In law, conveyance means the act of giving up one’s rights to a property to someone else. This act has to be recorded in a document and endorsed by the person who is transferring the property.
Various instruments, like deeds, contracts, and wills, facilitate conveyance. Its primary purpose is to ensure a legally sound and documented transfer of the property. However, issues like breach of contract can arise, potentially leading to lawsuits for damages by the receiving party.
Essential documents involved in conveyance include title deeds, contracts or leases outlining the agreement, and transfer documentation detailing the agreed-upon purchase price, date of transfer, and obligations of both parties.
Types of Conveyance
Real Estate Conveyance:
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Occurs when land ownership legally shifts from seller to buyer.
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Documents involved: title certificate, liens, mortgage documents, land title, and relevant side agreements.
Mineral Rights Conveyance:
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Applicable when an exploration company acquires mineral rights on a specific land parcel.
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A contract grants the company mining rights, allowing resource extraction without affecting land ownership.
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Compensation is provided to the landowner for transferring mineral rights.
Example of Conveyance
Sale of a house: This is the usual way of conveyance, and it is usually done by a deed. A deed is a lawful paper that gives up rights to real estate from one individual (the grantor) to another (the grantee).
Sale of a car: When you dispose of a vehicle, you have to give up the title to the new possessor. This is usually done by a bill of exchange, which is a paper that shows the cost of the vehicle and the names of the purchaser and vendor.