There are three different ways in which the ownership of the property can be transferred to another person. These ways represent the situation in which the conveyance occurs:
Sale of property: When the owner sells a property, the owner must transfer the ownership of the property upon receiving the compensation as per the agreement. The conveyance of real property through sale must consist of a written contract that should lay down the transfer details. The written contract is necessary to prevent any disputes in the future. Details such as the property area, the rights granted, and the title should be included in the contract.
Gifting property: The property owner has the right to transfer the property ownership to an individual as a gift. In such a case, the property owner is termed as the grantor, and the receiver of the property is known as the grantee. To carry out the transfer, the owner must use the words of conveyance that showcase the owner’s intent to gift the property to the individual.
Inheritance of property: When the property owner passes away, the property is transferred to the inheritors of the property as mentioned by the owner in the will. The will must consist of details of the property that is to be transferred; it must be signed and dated correctly. The physical transfer of the will is not necessary for the conveyance to occur. This type of conveyance of real property is also known as conveyance through succession.
Types of Conveyance of Real Property
The conveyance of the real property is considered valid by the court when the conveyance fits into any of the four types of conveyance. These four types of conveyance of real property are as follows:
Life estate conveyance of real property: Such conveyance includes the transfer of property so that the person receiving the rights over the property or the ownership over the party holds the rights only until death. The receiver has the right to use the property and gain profits from the property but cannot take any actions that could decline the property’s value. The receiver of these rights is not given the right to transfer the ownership. Instead, the rights are automatically transferred to the individual with future interests in the property if the receiver passes away. The interest of the individual in the property is considered equivalent to the duration of the individual’s life.
Fee simple absolute conveyance of real property: When the exclusive rights or the complete ownership of the property is transferred to an individual, the type of conveyance is known as fee simple absolute. The receiver of the property has current and future interests in the property. The receiver can sell the property, distribute the property, and rebuild the property. All the rights related to the property belong to the receiver.
Fee tail conveyance of real property: This type of conveyance is recognized only in a few states. The fee tail conveyance of real property aims to keep the property in the bloodline of the individual receiving the property ownership. Therefore, the property can be transferred only to the bloodline of the receiver and cannot be sold or transferred to any other person. If the receiver does not have any children, the rights of the property are transferred back to the person who granted the rights in the first place.
Fee simple defeasible conveyance of real property: In this type of conveyance, the transfer of property ownership is subjected to certain conditions. As long as the conditions are being met or are not violated, the ownership of the property remains with the receiver. However, the owner may end in case of any violation, transferred back to the original owner or a third party.
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