In legal terms, conveyancing is essentially the transfer of ownership of real estate from one party to the other, or the assignment of a property lien or mortgage to another party. It is also known as a “joint tenancy in common” in that it involves both parties to the real estate deal. Typically, a conveyancing transaction involves two main stages: the exchange of written contracts and the completion of the deal. During the exchange stage, the parties involved entering into the contract, and the seller pays the buyer for the right to the property (known as the “conveyance document”).
Conveyancing – what is it and how does it work?
The sale of the property takes place after the completion of the deal and is known as “closing”. Once the deal is closed, the seller pays the buyer the amount agreed to be the purchase price, along with any applicable fees and charges. The closing document contains the terms and conditions under which the seller will allow the buyer to close on the property. The buyer then takes the title to the property, and a note is issued stating the title transfer and the date of closing. A contract or agreement must be signed to seal the deal.
When all aspects of the entire process are complete, the buyer is released from his responsibilities and releases the seller of his rights and obligations, including his right to hold the title to the property until the completion of the transaction. All of this takes place in one day, which is often referred to as the “sale”.