During your life, you have probably at some point, sold real estate to a buyer or perhaps signed over the title of a vehicle to a new owner. If you have, you have participated in what is known in the business as a conveyance. The legal transfer of property from one owner to a new owner is a very common practice that relies heavily on contracts to outline the responsibilities and obligations of all parties involved in the transaction. If you’re curious to learn more, here are some key aspects of this legal procedure and which businesses rely on it the most.
What’s Included in a Conveyance?
When contract conveyance is used by businesses during the process of transferring ownership of land, buildings, or other property, various details are included in the contract. The most common include the date of transfer, purchase price, and any other obligations associated with the sale, such as the previous owner agreeing to make certain repairs prior to the sale being final.
No Unexpected Surprises
One of the most important aspects of conveyancing is that it is designed to ensure no unexpected surprises arise during the course of transferring ownership. For example, one of its primary purposes is to inform the buyer in advance of restrictions that may be in place on a property, such as liens or mortgages. Also, it is done to ensure the title to the property is clean. Should problems arise, having a contract in place gives the buyer leverage should they accuse the seller of fraud and decide to take their case to court.
Which Businesses Need Contract Conveyancing?
In the business world, contract conveyancing is most often used by companies within the energy industry, specifically oil and gas companies. Since these companies purchase land for exploration purposes, they must be certain that the land they purchase is free and clear of any potential restrictions that could halt the sale or hinder their future plans.
Mineral Rights
In addition, contract conveyancing is also used when granting mineral rights to companies. In these situations, the title to the land remains with the owner. By relying on conveyancing, you as the landowner would be compensated by a company in exchange for giving the company the right of way to conduct operations on your property.
An important legal tool when property rights and ownership are transferred, contract conveyancing can not only speed up business operations for a company but also give you the ability to claim and recover damages should fraud take place.
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