In law, conveyancing is the transfer of legal title of real property from one person to another, or the granting of an encumbrance such as a mortgage law or a lien.Black's Law Dictionary (7th ed. 1999) A typical conveyancing transaction has two major phases: the exchange of contracts (when equitable interests are created) and completion (also called settlement, when legal title passes and equitable rights merge with the legal title). The electronic execution of conveyancing processes and documents is known as e-conveyancing.Gill, C., Electronic signatures and e-conveyancing: Where are we now?, Walker Morris, published on 15 October 2018, accessed on 18 June 2025
The Land tenure is governed by the laws and practices of the jurisdiction in which the land is located. It is a legal requirement in all jurisdictions that contracts for the sale of land be in writing. An exchange of contracts involves two copies of a contract of sale being signed, one copy of which is retained by each party. When the parties are together, both would usually sign both copies, one copy of which being retained by each party, sometimes with a formal handing over of a copy from one party to the other. However, it is usually sufficient that only the copy retained by each party be signed by the other party only — hence contracts are "exchanged". This rule enables contracts to be "exchanged" by mail. Both copies of the contract of sale become binding only after each party is in possession of a copy of the contract signed by the other party—i.e., the exchange is said to be "complete". An exchange by electronic means is generally insufficient for an exchange, unless the laws of the jurisdiction expressly validate such signatures.
It is the responsibility of the buyer of real property to ensure that he or she obtains a good and marketable title to the land—i.e., that the seller is the owner, has the right to sell the property, and there is no factor which would impede a mortgage or re-sale. Some jurisdictions have legislated some protections for the buyer, besides the ability for the buyer to do searches relating to the property.
A system of conveyancing is usually 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 any restrictions in advance of purchase. Many jurisdictions have adopted a system of land registration to facilitate conveyancing and encourage reliance on public records and assure purchasers of land that they are taking good title.Dukeminier et al., Property 559 (6th ed. 2006)
It is a common myth that conveyancing has to be carried out by a local solicitor or conveyancer. This is no longer the case, with many conveyancers and solicitors conducting transactions from a distance using email and online technology. However, the Law Society warns solicitors to be wary of clients instructing their firm with no geographic connection to them for risk of money laundering.
There were approximately 5,357 firms operating in the conveyancing market in 2015, but this number has fallen from 5,871 the year before. The number of firms in the market is almost a third lower than the 7,779 firms recording transactions in 2005,Monidipa Fouzder (February 15, 2016) 'Conveyancers – ‘no room for complacency’ Law Society Gazette. Retrieved July 11, 2016. following a severe conveyancing shortage during the recession.Hayley Kirton (June 13, 2016) 'Why conveyancing is where it's at for legal eagles' City AM. Retrieved July 11, 2016.
Under English law, agreements are not legally binding until contracts are exchanged. This affords both the advantage of freedom before contract, but also the disadvantage of wasted time and expense in the event the deal is not done. The Law Commission recognised in 2018 that electronic exchange of documents and electronic signatures are legally valid in relation to land transactions.
The normal practice is for the buyer to negotiate an agreed price with the seller then organise a survey and have the solicitor (or conveyancer) carry out their searches and pre-contract enquiries. The seller's solicitor or conveyancer will prepare the draft contract to be approved by the buyer's solicitor. The seller's solicitor will also collect and prepare property information to be provided to the buyer's solicitors, in line with the Law Society's National Protocol for domestic conveyancing. When undertaking property transactions, the conveyancer's role is to carry out due diligence by submitting queries – known as conveyancing searches – about the transacted property. These are designed to uncover factors the estate agent or surveyor may not know about, which could impact the buyer's enjoyment of the property. Conveyancing Process Explained for buyers Home Owners Alliance.
It takes on average 10–12 weeks to complete a conveyancing transaction, but while some transactions are quicker, many take longer. The timescale is determined by a host of factors – legal, personal, social and financial. During this period prior to exchange of contracts (exchange being the point at which the transaction becomes legally binding) either party can pull out of the transaction at any time and for any reason, with no legal obligation to the other. This gives rise to a risk of and its converse, gazundering. Conveyancing is a component of the cost of moving house in the United Kingdom.
Private search companies and ordering platforms have been integrating Land Registry's data to speed up the process of search ordering, improve accuracy and reduce the chances of human error. One example is the use of Land Registry's National Spatial Dataset to display boundary maps on-screen using a live data link to help validate property locations.Ryan Bembridge (January 8, 2016) 'Search provider integrates land registry data' Mortgage Introducer. Retrieved July 11, 2016.
From 1 December 2008 properties for sale are marketed with a 'Home Information Report.Housing (Scotland) Act 2006 This consists of: a Single Survey, an Energy Report and a Property Questionnaire. The Home Report is available on request to prospective buyers of the property. The date of final settlement is in Scotland known as the "date of entry", the date on which the Buyer is able to take possession of the property. The transfer of ownership itself only completes after the completion of the registration of the disposition document in the Land Register of Scotland.
Solicitors, advocates and licensed conveyancing practitioners are the only individuals legally permitted to conduct conveyancing for a fee in Scotland, and as such enjoy a conveyancing monopoly, under the Solicitors (Scotland) Act 1980 section 32 which creates a criminal offence for any unlicensed person preparing conveyancing documents in the expectation of a fee. Having said that, there is no legal requirement in Scotland to use the services of a solicitor, advocate or licensed conveyancing practitioner to transfer property ownership/land title. A willing buyer and seller can submit all the necessary completed documents to the Land Register of Scotland themselves.
Conveyancing in Australia (also called a transfer) is usually carried out by a solicitor or a licensed conveyancer. Kits are available for the buyer to complete the process themselves, but due to the complexity of varying state and council laws and processes, this is usually not recommended.
Queensland and New South Wales have a 5 days "cooling off" period for residential contracts. Victoria has a 3 business day cooling off period on private sales and South Australia has 2 days. During this time the purchaser may reconsider the purchase and, if they so wish, cancel the contract, in which case the purchaser may be legally bound to pay 0.25% of the purchasing price to the seller (0.2% in Victoria). Not all contracts have a cooling off period such as when the property is purchased at auction or if the purchaser expedites the process.
A common conveyance by a solicitor or a licensed conveyancer usually takes 4 to 6 weeks. Most firms offer fixed price services which normally include costs for Title search, legal advice and other outlays. In most states and territories a typical conveyance includes, but is not limited to, the following:
Searches tend to take up the bulk of the conveyance. Due to the three level system of government (federal, state and local), it must be made sure that the vendor is entitled to all rights and title. Most information is retrieved from state or local (council) authorities. Conveyancing processes, legal documentation, contract requirements, and search requirements vary between each state and territory.
Requirements, searches and costs can vary between jurisdictions, depending on local property legislation and regulations. Depending on the circumstances of each case, and depending on the jurisdiction, a title search may also involve:
With the introduction of the Electronic Conveyancing National Law in 2012, all Australian states are in the process of transitioning to electronic conveyancing in accordance with state-based mandates.
Much more commonly, the transaction is closed by use of an escrow. ( See also Escrow § Real estate.) Practice varies from state to state as to who conducts the title search to make sure the seller has or can convey clear title, including what liens must be paid, and as to who acts as the escrow holder. In many states attorneys still act as the escrow agent and title inspector. In many others those functions are conducted by licensed escrow agents who often are affiliated with or even employed by a title insurance company. Some use a mix, such as having an attorney conduct the escrow while the title investigation is handled by the title insurance company or its agent.
In order to protect themselves from defects in the title, buyers will frequently purchase title insurance at this time for themselves. They will almost always be required to purchase title insurance for their lender as a condition of the loan.
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 been 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 a conveyancing include: deed(s), , 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 holdback for unacceptable repairs), seller's right of first refusal for resale, declaration of trust, or other entity formation or consolidation (incorporation, limited partnership investors, etc.). Where "time is of the essence", there have been cases where the entire deposit is forfeited (as liquidated damages) if the conveyancing is delayed beyond the time limits of the buyer's contingencies, even if the purchase is completed.
Words used to indicate conveyance, or words of conveyance include grant, devise, give, and sell.
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