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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.

Warranty Deed

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.

Restrictive Covenant

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.

Affidavit of the Title

Affidavit of the title is a legal document produced by the seller of a piece of property that explicitly pronounces the status of potential legal issues involving the seller or property. An affidavit is a warranted statement of fact that defines the seller of the property holds the title to it. The seller must prove that the property is not currently being sold to another party and that the seller is not in bankruptcy proceedings and there are no liens against the property. An affidavit is there to protect the buyer from any legal issues that may arise in the future facing the seller, and the buyer may then provide these documents in a legal proceeding. Affidavit of title-A statement that the seller is the rightful owner of the property.-The seller is not concurrently selling the property to someone else.-Details of the seller i.e. address and name.- A statement that they are no assessments outstanding or liens against the property.-A statement that the seller is not facing any bankruptcy.

Warranty of Title

A guarantee that the seller has the right to transfer ownership and no one has rights to the property, and a in the warranty deed warranty title is found. A warranty title is there to protect the buyer’s interest and give the buyer legal appeal if any entity later tries to make a claim to the property. A quitclaim deed does not protect the buyer from any issues that may arise in the future regarding the property unlike a warranty of title where the buyer can sue the seller if any claim arises against the property. There are risks to completing a transaction like alien and unpaid bills, but if the property is completely free, the seller can offer a warranty of title without the encumbrance.

Certificate of Title

A document that identifies the owner or owners of the property, the right of ownership, and a statement of opinion that an attorney believes that the property owned freebased on public records. Certificate of title, however, does not guarantee a free and clear title for they may be fraudulent activities, incorrect recordings that might be unknown. Certificate of title are usually provided to the lender for mortgage loan approvals, and automobiles, trailers, and motor homes, any outstanding loans or liens will reflect on the certificate of title.

In Conclusion

Why go through all the paperwork by yourself and end up going back-and-forth to clear all loans and liens. Lee and McAdam attorneys are at your disposal for to offer you a creative solution to your complicated conveyancing problem