Want to know, what does convey mean in real estate?

What does convey mean in real estate? Understanding this is crucial when buying or selling a home. Conveyance refers to the transfer of items or property from the seller to the buyer. Keep in mind that while some things automatically come with the home, others need explicit agreement. 

That’s why it’s important to know what is conveyed in a home sale and what doesn’t. 

Remember that just because something is listed in the Multiple Listing Service (MLS) doesn’t guarantee it will convey. Make sure to clarify any additional items through the contract.

What does convey mean in real estate?

Simply put, the term convey involves transferring a property interest to someone else through sale or gift. Conveyance is the transfer of ownership of real property from a seller (also called the conveyor) to a buyer (the conveyee). A conveyance is typically formalized with a deed of conveyance or lease, which outlines terms such as purchase price and transfer date. The document transfers legal title to the new owner and finalizes the lien on the property. 

As a result, property ownership changes hands through conveyancing, which is overseen by a conveyancer. 

Real estate transactions often incur conveyance or real estate transfer taxes at the county, state, or municipal level. And if you are considering international real estate, conveyance plays a role there too — such as when investors pursue St. Lucia citizenship by purchasing qualifying properties, where the legal transfer of ownership becomes part of the citizenship acquisition process.

What is a good example to show what convey means in real estate?

Typically, if an item is bolted down or connected, it’s considered a fixture and conveys with the property. Certain items come with the house when it’s sold. For instance, an outdoor storage shed built on concrete remains, but a standalone shed may be taken by the seller. 

Kitchen appliances such as the stove, dishwasher, trash compactor, and built-in microwave are included. But generally not the refrigerator. Home appliances such as washers and dryers usually require negotiation. 

Fixed items such as curtain rods, blinds, lighting, and plumbing fixtures stay unless otherwise stated. Yard landscaping, shrubbery, and installed home security systems also typically remain with the property unless specified otherwise.

What is the importance of understanding “convey” in real estate? 

Conveyance legally confirms that the seller has transferred property ownership to the buyer. And, the fixtures that come with it.

If you are contemplating buying a house, you’ll want to know what automatically comes with the home when it’s sold and what doesn’t. And if you are a home seller, you’ll want to explicitly state in the contract agreement the items that don’t convey with the property. 

Additionally, you might need to pay a conveyance tax or real estate transfer tax if the transaction exceeds a certain amount. In the U.S., the party responsible for paying conveyance or real estate transfer tax varies by locality and state laws. Typically, the tax is paid by the party transferring ownership, often the seller, though sometimes the buyer pays. Therefore, both parties need to understand their obligations before making a real estate transaction. 

If either party breaches the transfer contract, legal action can be taken to enforce the conveyance. This is why it’s common advice for home buyers to invest in title insurance. 

What are the different types of conveyance? 

There are two primary types of conveyances: real estate conveyances and mineral rights conveyances.

Real estate conveyances

Real estate conveyances involve the transfer of ownership rights to land and any structures or improvements on it. This includes residential properties, commercial buildings, vacant land, and any other type of real property. Real estate conveyances typically occur through deeds, which are legal documents that transfer ownership from one party (the grantor) to another (the grantee). Deeds provide details about the property being transferred, the parties involved, and any conditions or restrictions on the transfer.

Mineral rights conveyances

Mineral rights conveyances involve the transfer of ownership or rights to the minerals located beneath the surface of a property. These minerals can include oil, gas, coal, metals, and other natural resources. Mineral rights conveyances are important in areas where mineral extraction or mining activities are prevalent, as they determine who has the legal right to extract and profit from the minerals on a particular property.

What are the different types of real estate deeds?

Real estate conveyances involve various legal documents, with deeds being the most common. The main types of deeds include:

• Warranty deed: This assures the buyer that the seller owns the title and there are no encumbrances or liens.
• Quitclaim deed: This is typically used in situations such as divorce or between family members. This deed is not for standard home sales.
• Reconveyance deed: Such a deed transfers property title from a lender to a borrower. It’s often used when a borrower pays off their mortgage.

What are the steps involved in the conveyance process?

While the process may be different from one state to another, transfer ownership does have a few general guidelines:

• The seller accepts an offer and sets a closing date.
• Local authorities conduct searches for liens and other issues.
• The buyer’s financing is confirmed.
• Conveyance documents are prepared and finalized.
• A conveyance tax may be assessed by the state if the transaction exceeds a certain amount.

What does convey mean in real estate: Last thoughts

Conveying in real estate means transferring ownership rights from one party to another. It’s usually done through legal documentation such as a deed or contract. How a home seller specifies what is conveyed varies by state. Successful completion of a conveyance process safeguards the home buyer if any ownership issues emerge. For both parties, hiring a good real estate agent or realtor will ensure a smooth transaction. 

Written by Ramona Sinha. March 25, 2024

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.