Conveyance in a Real Estate Investment Business
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Conveyance in a Real Estate Investment Business




What is conveyance? Conveyance is the legal technical term used to effect a transfer of interest in property (land or housing) from one person termed the vendor to another person termed the vendee by means of executed instrument called deed.

Deed on the other hand is a written document which is signed, sealed and theoretically delivered by a party disposing the land.

Sometimes we do not bother to proceed with the documentation of the land we acquired due to thrust or some other factors. This is wrong because the government still recognize the seller of the property as the owner of the property until the documentation is perfected. This will enable us to enjoy some statutory right over the property.

There are two Systems of conveyancing:

  1. Unregistered Conveyancing in the transfer of unregistered land.
  2. Registered Conveyancing in the transfer of registered land

In order to determine which system of conveyancing is appropriate, it is necessary to determine whether the land in question is registered or unregistered, this requires a search of the land register, which is made by sending a form to the district land registry in charge of the area the land is located.

Conveyance may have three mode of creation;

  1. Conveyance by Record: This is involuntary conveyance that originated through the superior court by its issuance of certificate of purchase in respect of title obtained in the process of judicial administration. Such certificate is a registrable document of land registry if it is given on land as required by government for public use after due notice.
  2. Transfer of property under customary Law: this is oral conveyance which is established at native law and custom by evidence of payment of purchase price in the presence of witness and the delivery of possession of such property. This is at opposite with common law that is very strict with written conveyance.
  3. Conveyance by matter in Pairs: this is the transfer of interests in property from one individual (Vendor) to another (vendee) with proper evidence of formal writing and execution by deed. It is voluntary transfer inter-vivo upon concluded agreement.

Unregistered Conveyancing

The stages of the process of conveyancing unregistered land are as follows:

  1. The contract is drafted by the vendor and two copies are sent to purchaser.
  2. The purchaser searches the local land charge register, which is kept by the local authority, in order to determine whether any local land charges are registered in relation to land
  3. The purchaser makes a variety of enquiries of the vendor, usually by sending a standard form, which may be customized by adding or deleting enquiries as appropriate.
  4. If the purchaser is satisfied by his preliminary enquiries and searches, he may wish to have a survey of the property carried out. His is not essential but may be prudent step.
  5. If the survey is satisfactory, it is then safe for purchaser to make a legally binding contract to the vendor.
  6. After exchange of contracts, the vendor is required to show that he has the necessary title to the land which he has undertaken by the contract to transfer. The vendor must produce an abstract of title and send it to the purchaser within a reasonable time, unless the contract lays down a specific time. ( that is the contract between the vendor and previous owner)
  7. The purchaser examines the abstract of title.
  8. Immediately before the completion (the transfer of legal title in the property from purchaser to vendor) it is necessary for the purchaser to search the registers kept by the land charges department of land registries.
  9. If the purchaser is satisfied that the vendor has the necessary title, the transfer of legal title takes place by deed, the deed being called a conveyance.

Read more on conveyance from Wikipedia.org




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