What is 'Conveyance'
Conveyance is the act of transferring an ownership interest in real property from one party to another. Conveyance also refers to the written instrument, such as a deed or lease that transfers legal title of a property from the seller to the buyer. The term arises most frequently in real estate, where a conveyance refers to the written contract between the seller and the buyer stating the agreed-upon purchase price and the date of actual transfer, as well as the obligations and responsibilities of both parties.
BREAKING DOWN 'Conveyance'
A conveyance is a contract, which means that both the buyer and the seller are legally bound to fulfill their obligations. If either party does not do so, the other can take the defaulting party to court in order to enforce the contract or claim damages.
Conveyancing ensures that the buyer is informed in advance of any restrictions on the property such as mortgages and liens, and assures the buyer of clean title to the property. Many buyers purchase title insurance to protect against the possibility of fraud in the title transfer process.