With property development and dealing, also come several legal intricacies that need to be taken care of by the property or real estate developers. All these intricacies are covered in the realm of property law under different branches that further explore the different areas of law that govern property and real estate dealing.
Property law is that area of law which relates to the different forms of property ownership or rent that is due on real property. In property law, real or personal property is referred to possessions such as land. In property law, there are two types of properties. These include movable property and immovable property. Movable property may be known as personal property as well, while immovable property refers specifically to land, real estate or real property and the legal rights and compulsions related to it.
There are two main types of property law. These are the intellectual property laws and the real property laws. The details of these two types are discussed below:
- Intellectual property law:
Intellectual property law tend to cover any type of property that that may have come into being due to an idea by an individual or group of individuals. What this means is that intellectual property is intangible and revolves around thoughts, ideas, schemes and suggestions. In intellectual property law, a tangible piece of land or possession is not under discussion. Instead, characters, artwork, designs or songs may be included. There are many intellectual property laws which refer to the formation and conception of systems that identify a particular group or individual. An example of this may be trademarks, copy rights and patients that are created by the owner of that property. Violation of intellectual property law may be deemed as a criminal or public crime and the violators may have to serve jail time as well.
- Real property law:
Real property law refers to tangible objects that one can see to believe. These include land, real estate, furniture or other possessions that a person may call his or her own property. In the case of real property law, the value of the property is taken as tangible; hence it falls in the category of real property. The purpose of real property law is to make sure that all the rules of ownership are followed and there is no infringement that takes place.
When real property is under discussion, the ownership is usually transferred through titles or ownership papers, which show proof that a certain property or real estate belongs to an individual. The purpose of titles is to prove that a particular person is legally entitled to own the property in question and he is liable to do whatever he pleases with it. However, the documents of possession are the most important piece of information that the owner can own because they prove the property rights. This is so because several instances of illegal occupation, vandalism, graffiti, squatting or other illegal activities have been reported throughout the years in every part of the world when it comes to property and real estate possession. Legal action may also be useful when convicting individuals who have tried to trespass, breakthrough or burgle a property.
- Property Law: What is conveyance?
When it comes to property law, another concept that is common is conveyancing. Conveyncing is the act of transmission of property titles from one person to another. This law applies to mortgages as well. It is made sure that all the activities that fall under the conveyance law are carried out legally and under the rightful legal circumstances. Another instance where conveyance law applies is when there is a movement of collective or bulk products such as gas, electricity, water etc.
There are two major dealings in a conveyance. These are the exchange of the contracts and the completion of the conveyance. There are several steps that need to be completed before the contracted even comes into consideration and after the completion of the conveyance process. The details of the process are discussed below.
THE CONVEYANCE PROCESS – FOR BUYERS
When buying a property, the following conveyance steps must be taken into consideration. However, in case an individual is not sure about any of the steps, it is best to consult a conveyance solicitor to settle the matter. With the technological advancements in place in the 21st century, this task is not difficult anymore due to free solicitor advice that is readily available on the World Wide Web.
- Early stages of the conveyance process:
The early stages are critical in the process of conveyance. For a successful conveyance to take place you must consider hiring a relevant solicitor. There are many good conveyance solicitors who are ready to guide individuals on the intricacies involved in buying property.
Once the conveyance solicitor has been contacts, it is necessary to inform him or her that he will have to exercise his authority to provide you with a Letter of Engagement or Confirmation of Terms of Business. This document is signed by the person who needs to buy a property at the earliest so that the process can start. A fee will be required to be paid in order to get the document submitted with the court so that the search can begin.
The next step for the solicitor is to contact the seller’s solicitor in order to request for an initial contract. Typically, the initial contract will come with a few other documents such as information regarding the title of the property and some other forms that are to be completed from the seller’s side. In case the property in question is going to be on lease payment basis, then a copy of the lease document will also be included in the initial contract.
It is common for property to be under joint ownership. In this case, there are two ways in which property can be owned; Joint tenants and tenants in common. In the case of joint tenants, both the parties who are entitled to be titled as owners have a keen interest in the property. If one of the tenants passes away, then the ownership transfers to the other without a question. In the case of tenants in common, each person who is involved in the joint ownership has a share in the property and can forgo that share in case of death.
- Legal work before purchase
Your hired solicitor will carefully go through all the clauses in the draft contract sent by the selling party. Moreover, as a buyer, you will also be required to read through the contract thoroughly and let your solicitor know if you find any areas of concern that need to be raised with the selling party.
By any chance, if the estate that you plan to buy is on a lease payment terms, your solicitor will send a Managing Agents Questionnaire to the selling party’s conveyance solicitor. This document will then be sent to the landlord or any other relevant party dealing with the auction of the property.
- Signing the contract
Once all the queries have been answered from both the seller’s and the buyer’s side, the contract should be signed. Along with the contract being signed, it must be made sure that the necessary finances are available in your bank account to purchase the property. The payments must be cleared at the time of the actual exchange.
- Exchanging contracts
In order for a successful exchange to take place, you will have to make sure that you have a Buildings Insurance policy. Once this is cleared, all the parties involved in the buying and selling process must reach a consensus on the completion date of the conveyance. Usually, as soon as the contracts are exchanged, both the seller and the buyer are expected to take their respective roles of buying and selling the property in question. If any one party backs out, heavy compensation and penalties will be paid to the other party.
The moment the contracts are exchanged between the two parties, the buyer’s solicitor will deposit the required funds in the seller’s bank so that they payments are also cleared.
- In the middle of exchange and completion
The interim period between the exchange and the completion of the contract, the buyer’s solicitor will make arrangements to get the property registered under the buyer’s name so that there is a shift in the titles and ownership goes to the buyer. Moreover, the solicitor will also keep a track record of the payments that need to be deposited to the seller from time to time.
- Completion of the conveyance process
Once the seller’s solicitor has validated that all the payments have been made by the buyer, he or she hands over the keys to the property to the buyer’s solicitor or the property developer who is dealing with the whole process.
After this, the buyer’s solicitor will make arrangements to shift the title under the buyer’s name and make the buying and selling deed official by stamping the title document.
Related resources and references for conveyance solicitor:
What Are the Different Types of Property Law? available at http://www.wisegeek.com/what-are-the-different-types-of-property-law.htm
Conveyancing Process (Buying), available at http://www.mypropertyguide.co.uk/articles/display/10033/conveyancing-process-buying.htm
Conveyancing process explained: For Buyers, available at http://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/conveyancing-made-easy-for-buyers/
Conveyancing, available at http://en.wikipedia.org/wiki/Conveyancing
How to find the right solicitor or conveyancer, available at http://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/finding-the-right-solicitor-or-conveyancer/
Find the right solicitor or conveyancer, available at https://www.moneyadviceservice.org.uk/en/articles/find-the-right-solicitor-or-conveyancer
Guide to choosing a property solicitor conveyancer, available at http://www.primelocation.com/discover/legal-and-surveying/guide-to-choosing-a-property-solicitor-conveyancer/#2itiQD3GSj4WQRos.99
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