Voluntary conveyancing is an elective transfer from an individual to another without adequate consideration. Delinquent borrowers voluntary convey the property to the lender to avoid default and any effects it might have on the borrower’s credit history. An insurance claim can be made available to recover any remaining deficiency. In executing such a conveyance, the borrower avoids the stigma of default. It is unlawful to transfer property to the third party to avoid creditors’ claim on that property and may result in fraudulent conveyance, where creditors might pursue a claim on the property through civil law. A property owner can convey real estate to a descendent as a gift or part of the last will and testament. In the case of condemnation due to failure to pay taxes, natural disaster, neglect or death of a property owner with no direct heirs then the state will take custody of the property.
a document that presents the magnificent amount of protection to the purchaser of the property as it guarantees that the owner owns the property free and clear of any outstanding mortgages or encumbrances against it. There are different kinds of deeds and defined by what warranties and covenants are conveying from the grantor (seller) to the grantee (buyer). A common warranty deed presents the grantee with the necessary form of protection.-The grantor warrants that they are no outstanding claims on the property form any creditor using it as collateral and that it is free and clear of all liens.-The grantor warrants that they have a legal right to transfer the title and they are the rightful owners of the property.The grantor would be entirely responsible for any breach that might occur with or without their knowledgeThe special warranty deed usually related to commercial real estate contains an accurate legal description of the property that is being conveyed
Encumbrance is a claim against a property by a party that is not the owner of the property, and the claim might influence the transferability of the property and its free use until the encumbrances are lifted. The common types of encumbrance include mortgages, easements and property tax liens, and not all encumbrance is financial. An encumbrance prevents property owners from control over the property and in some cases, the property might be repossessed by a creditor or by the government. An encumbrance affects the marketability of a property but does not necessarily mean the title cannot be sold or bought. Environmental regulations prohibit specific uses for and improvements to the land but does not affect the marketability of the property. It is of importance that the buyer should be aware of any encumbrance on the property, for they may transfer them with the property.Types of Encumbrances-Easements- the right to improve or use portions of another party’s property, or preventing the owner from improving the property in certain ways. The is also easement in gross and affirmative easements-Encroachment – When a party, which is not the property owner, interferes or intrudes with the property. An encroaching typically create an encumbrance on both properties until the problem is settled. -Lease – an agreement between a tenant and property owner, agreed-upon rate and period. The lessor does not transfer any title of the property, but the use of the property is constrained by the lease agreement.-Lien – An encumbrance that affects the title to the property. It grants the creditor the right to seize the property as collateral, and the creditor can later sell the property to recover at least a portion of their loan-Mortgage – The lender (bank) retains an interest in the title to a property until the mortgage is paid off. If the borrower fails to repay the mortgage, the lender might seize the property as collateral and evict the inhabitants.
An agreement between the buyer and the seller where the seller addresses into a buyer’s deed of the property to restrict how the buyer may use the property and they might be a provision that requires the buyer to leave a building’s facade intact.