Real Estate Investing Information Blog

Conveyancing is the act of transferring the lawful title in a property from one person to another. The buyer must ensure that he or she obtains a good and profitable 'title' to the land; i.e., that the person selling the house really has the right to sell it and there is no factor which would obstruct a mortgage or re-sale. A system of conveyancing is typically designed to ensure that the buyer secures title to the land together with all the rights that run with the land, and is notified of some restrictions in advance of purchase.

A classic conveyancing transaction, whether a sale or purchase, contains two major 'landmarks', which are swap of contracts and completion, plus the three stages: before contract, before completion and after completion.

In most grown-up jurisdictions, conveyancing is facilitated by a system of land registration which, in the near future, is likely to guide to widespread use of electronic conveyancing.

In England and Wales this is typically done by a solicitor or a licensed conveyancer. Either may employ or oversee an unqualified conveyancer. Indeed, the majority domestic conveyancing transactions are carried out by incompetent staff in the use of solicitors. This is mainly due to economic factors. The domestic conveyancing market is price spirited, with a high number of firms of solicitors and conveyancing companies offering an identical service. Firms typically therefore employ lower-paid, unqualified staff to carry out the domestic conveyancing work, which in some case is administrative and routine in nature.

The conveyancing procedure in the United States varies from state to state depending on local lawful requirements and historical practice. In most situations, three attorneys will be concerned in the process: one each to signify the buyer, seller, and mortgage holder; often all three will sit around a table with the buyer and seller and factually "pass papers" to effect the transaction. In order to defend themselves from defects in the title, buyers will often purchase title insurance at this time, either for themselves or for their lender.