Conveyancing is the transfer of the legal title of real property from one person to another. It may also involve alteration of existing legal title to a property. Normally, this process involves two basic stages: the exchange of contracts and the completion stage.
The exchange of contracts phase is where the terms of the deal are clearly spelled out. It also shows the commitment of both parties to transact with one another. In case any party backs out of the contracts or alters the terms after this stage, they are likely to suffer heavy financial penalties and become liable for any losses incurred by the other party as a result of their actions. The date of settlement of the transaction is agreed upon during the exchange of contracts stage. The next stage is settlement which involves the actual passing of the legal title after the buyer makes the payments. The property owner vacates the property and transfers to the buyer the legal title and any rights attached to it.
Conveyancing is a legal transaction that requires a professional lawyer to handle finances and paperwork. The lawyer who oversees this process is known as a conveyancer and the document that is used in the transaction is called a conveyance. Many property owners have become more cautious when undertaking conveyancing. This is because there are many dubious traders who take advantage of this process to falsify transfer documents. Therefore, conveyancing has become a critical process that requires thorough investigations with due diligence in order to ascertain the authenticity of any documents involved. Moreover, the knowledge of law helps the buyers and sellers understand the procedures, rights, and responsibilities of the parties. For instance. It is the responsibility of the prospective buyer to establish the existence of the equitable interests and any claims attached to the property before the transfer is done.