Conveyance Essay Example | Topics and Well Written Essays - 2000 words

Conveyance - Essay Example Normally the contract is conditional upon matters such as the sellers being able, before completion of the transaction, to prove that they have good title to the property and to exhibit clear searches from the property registers and the local authority. The system of conveyancing is designed to ensure that the buyer gets the land together with all the rights that go with it, i.e. title deed to the land and also by knowing about any restrictions in advance. A typical conveyancing transaction, whether a sale or purchase, contains two major 'landmarks', which are exchange of contracts and completion, plus the three stages: before contract, before completion and after completion. Under English law agreements are not legally binding until contracts are exchanged. This mainly involves a normal practice where the buyer negotiate an agreed price with the seller then organize a survey and have the solicitor (or conveyancer) carry out their searches and prepare the contract, which are signed by the parties. Similarly, deeds are done in writing and the signature of the party or parties making the deed must be witnessed. All conveyances, transfers, leases, mortgages and legal charges must be deeds. Thus, notwithstanding the growing use of electronic communication at all the other stages of a conveyancing transaction; the two key stages of making the contract and completion must be achieved by using paper documents. The process takes an average 10-12 weeks to get the deeds to the property, and during this period either party can pull out at any time. This gives rise to a risk of gazumping. The position in Scotland under Scots law is that the contract is generally con cluded at a much earlier stage, and the initial offer, once accepted by the seller, is legally binding. Bebchuk, Lucian A., and Mark J. Roe, (1999) In United States The conveyancing process in the U.S. varies from state to state depending on local legal requirements and historical practice. Edwin.T, Freedley (1858). In most situations, three attorneys will be involved in the process each representing the buyer, seller, and mortgage holder; frequently all three will sit around a table with the buyer and seller and literally "pass papers" to effect the transaction. (Some states do not require all parties to be present simultaneously.) In order to protect themselves from defects in the title, buyers will frequently purchase title insurance at this time, either for themselves or for their lender. In most states, a prospective buyer's offer to purchase is made in the form of a written contract and bound with a deposit on the purchase price. The offer will set out conditions (such as appraisal, title clearance, inspection, occupancy, and financing) under which the buyer may withdraw the offer without forfeiting the deposit. Once the conditions have be en met (or waived), the buyer has "equitable title" and conveyancing proceeds or may be compelled by court order. There may be other last-minute conditions to closing, such as "broom clean" premises, evictions, and repairs. Typical papers at conveyancing include: deed(s), certified checks, promissory note, mortgage, certificate of liens, pro rata property taxes, title insurance binder, and fire insurance binder. There may also be side agreements (e.g., holdover tenants, delivery contracts, payment