The word conveyancing, like many other English words, has extraordinary origins. Most first-time home buyers wonder what does conveyancing mean. Conveyancing originated from the business practice of transferring ownership titles from one person to the other. Exchange of property ownership has been the norm from time immemorial. People have been trading foods, clothes, and other items from ancient times till now. Advancement in technology has resulted in the production of more complicated goods in the market. Now, ownership of complicated commodities such as cars, aeroplanes and houses is being transferred from one person to the other. All these methods of ownership are in some way a type of conveyance.
Conveyance in its strictest terms involves the exchange of ownership with strict adherence to a given set of rules and conditions. This definition distinguishes conveyancing from the ordinary purchase of goods. Simples purchases of minor items such as bread and milk are not considered conveyance. The conveyance must be guided by rules and regulations with far-reaching consequences to the parties involved. Penalties such as heavy financial loss and incarcerations are consequences of poor conveyance. These penalties do not occur in an ordinary business transaction.
There are many businesses that are guided by strict rules. The particular nature of these rules depends on the type of business in question. Real estate properties have governing laws that are different from those of automobile purchase. Conveyance in the UK mostly refers to exchange or registration of real estate properties. Facilitators of property conveyance are referred to either as conveyancers or solicitors. These are lawyers who are highly trained on the rules of conveyance. They help ordinary people go through conveyance without getting into trouble with the law or losing money.
Rules of proper conveyancing
There are many sets of rules of conveyance. Each set of rules governs transaction of a given type of property ownership. Rules for buying commonhold properties are different from those of leasehold properties. The same goes for other kinds of property ownerships. Occasionally, the rules of conveyance may overlap. This occurs because of the complexity or real estate transaction. A person who is buying a freehold property and selling a help to buy property may be confronted with more than one set of laws of conveyance. Fortunately, solicitors are capable of negotiating through any situation that comes up during conveyance.
Steps of conveyancing
Real estate conveyance involves procedural steps each of which has in impact on the outcome a transaction. There are some steps in conveyance that are common to all types of property conveyance and those that are more specific. The typical steps of conveyance include the exchange of contracts, the setting of completion dates, property research, completion of conveyance, and registration of properties. Property research and exchange of contracts may occur concurrently. The rest usually occur following the order mentioned above.
Exchange of contracts marks a step when both a seller and a buyer is committed to carrying out conveyance till completion. A buyer or seller who exits conveyance after an exchange of contracts will lose money or face litigation. Property research guarantees buyers that the property meets their desired requirements and that no ownership disputes will arise in the future.