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What Does Conveyance Mean In Real Estate?

James Anderson

March 4, 2022

The real estate world opens up a book of several different terms. One of these situations arises when you want to transfer ownership to another individual or entity.

When one person transfers ownership or interest in something to another through a written deed, this is known as conveyancing. The granter is the person who gives the property, and the grantee is the person who receives it.

A sales deed transfers property ownership in the real estate industry. The conveyance of mineral rights is one example of a different type of conveyance.

But what does conveyance mean in real estate? Continue reading through this article to find out a little bit more.

What Does Conveyance Mean in Real Estate

There are specific ways a property holder could transfer ownership of the property to another person.

Property covenant 

This is a non-binding agreement between two parties to transfer ownership of property. In the case of a family ownership transfer, the owner retains the property as they saw fit initially.

Legal documentation 

The documents listed below legally transfer ownership between two parties. They include

  • Deeds 
  • Leases 
  • Titles 
  • Contacts

Terms Used During Conveyance 

There Are Several Keys Terms To Understand When It Come To Conveyance Such As Deeds. For Article What Does Conveyance Mean

An essential step to determining and then answering what does conveyance mean is understanding all the terms associated with conveyance.

When transferring property ownership, specific terms are included in the deeds or other documents that confirm that the property has been transferred successfully.

If you have begun transferring property ownership, you may come across some of the following terms.

Conveyance tax

These are real estate transactions that have been imposed on the property to facilitate the transfer. They may take place at the local or state level.

đź“–Did you know: It takes a long time to obtain a real estate license, but it is possible through hard work and determination.


This is a legal representative overseeing the conveyance of the property.   

Will convey

The property owner uses this term in the conveyance document to indicate that the items on the list will be sold or included with the property.

Will not convey

This term indicates that the items on the list will not be sold or included with the property after being sold. These include fixtures in the property.

Fixtures during conveyance 

Fixtures are items that are not attached to the house.

If the seller of the house does not state that certain items do not convey in the document, the buyer may keep them.

💡Key Insight: Are you thinking of selling your house or looking to purchase a new home? If you are, you’ll probably be wondering what the process is. While it can be lengthy, being aware of each step is essential- so we have the article to get you set on the right track.

Refrigerators and curtains are considered fixtures and, therefore, not part of the house. These are deemed the seller’s property, and the buyer has no claim to them if they are not conveyed; however, sellers frequently leave them behind for the buyer.

Property deeds in conveyance

A Grantee And Grantor Going Through Paperwork And Signing Documents

Having a solid understanding of property deeds and their intended benefits is the next critical concept to help you figure out what does conveyance mean in real estate.

Documenting the transfer of ownership from a grantor to a grantee is accomplished through the use of deeds, which are legally binding documents. As a result, a deed serves as evidence of the property’s ownership.

Depending on the circumstances, it can be legally executed through a ruling or privately conducted through an act between two businesses.

In addition to identifying the grantor and grantee through their signatures, property transfer details are included in the document.

Properties of ideal deeds

As a result, various deeds can be obtained, all of which fall into a few distinct categories.

Before a deed can be considered legally acceptable, it must contain certain elements.

🧠Bear in mind: State-by-state variations in these requirements are possible.

The common elements of a deed include:

  • It must be in written form, which includes printed documents as long as they contain the necessary elements of a good deed.
  • It must identify the grantor and grantee.
  • The grantor must legally transfer ownership, while the grantee must receive the ownership of the property.
  • All the terms used during conveyance must be clear and used following the interests of both parties.
  • The deed should be presented to the grantee, and they must accept it or, in other circumstances, deny it till an agreement is reached.
  • It should be signed by both the grantor and the grantee.
  • It should adequately describe the property under the transfer.

Types of Deeds 

Understanding the difference between a deed and a title is a vital step for anyone keen to dig deeper into real estate terms.

So what does conveyance means, and how many types of deed are there?

Various types of deeds may be used to convey property. Some of them include:

Warranty deeds

These deeds offer different types of protection to the giver or grantor. It legally protects them from hitches such as problems with the title and maybe classified into two:

General warranty

In residential transactions, general warranty deeds are used; they guarantee that the seller has the legal right to convey the property and that the property in question is completely free of defects.

Things like encumbrances, which include liens and easements, among other things, are examples of defects that may have an impact on the new owner.

Some covenants for the title included in this deed are:

  • The covenant against encumbrances: the grantor assures no additional inconveniences with the property other than those specified in the deed.
  • The covenant of quiet enjoyment: ensures the grantee will have peaceful ownership of the property and that the grantee will not have any issues if the previous owner’s title is defective.
  • The covenant of seisin: This document states that the grantor legally owns the property and has the lawful right to give ownership of the property.
  • The covenant of further assurance: this clause states that the grantor will provide any additional documents that may be required for a valid title to be granted.
Special warranty

In contrast, special warranties safeguard the receiver or grantee against any present or future issues regarding their property ownership after it has been purchased and are most commonly used in residential or commercial real estate.

It only applies to a short period, not the property’s entire history, because the previous owner may not have owned it for a long time.

It offers less legal protection than a general warranty deed. However, it assures that the seller is the lawful owner of the property and that there were no encumbrances during the grantor’s ownership of the property.

📝For example: A person may have owned property, but further investigation into the property’s history during its sale revealed that it was subject to some form of encumbrance that the owner was unaware of at the time of purchase.

Quitclaim deed

Frequently referred to as a non-warranty deed, it provides the grantee with the least amount of immunity. It conveys whatever interest the grantor has in the property on which it is recorded.

They will most likely use this clause when the grantor is unsure of the property’s liabilities, such as obstructions, and does not want the penalties to follow or affect them.

If the grantor has a good title, this deed serves as a general warranty deed. However, if not, this deed states that the grantor will be unable to take legal action contingent upon the deed being signed by both the grantor and the grantee.

Special purpose deeds

These deeds are classified as quitclaim deeds because they primarily protect the grantor. They are most commonly used in court proceedings or when the deed is signed by someone who holds a position of trust or authority.

They may include:

  • Tax deed

It is issued when a property is sold due to delinquent taxes.

  • Executor’s deed

It is used when someone passes away while still possessing a will. It can be used to transfer real estate ownership or title to the grantee of the property or title.

  • Sheriff’s deed

Someone who has successfully satisfied the legal requirement of owning property against the actual owner of that property is granted a sheriff’s deed.

The Administrator’s Deed

An administrator’s deed may be used when someone dies without a deed. An administrator appointed by the court will use it to convey the property or title to the grantee.

Deed in lieu of foreclosure

A borrower of a mortgage opts for this to prevent the foreclosure of the property. The foreclosure proceeding fails if the lender accepts a deed in lieu and the loan is terminated.

🔑Key Fact: While a lender would prefer not to enter the foreclosure process in most circumstances, most lenders prefer to foreclose on a home because it doesn’t change the title.

What Does Conveyance Mean: The Setbacks

When conveying property, a few issues may arise that hinder the transfer.

1.     Contingency

These are the requirements for purchasing or selling a home. They may include:

A house marked as contingent in the multiple listing system (MLS), which allows you to check the status of listed houses, indicates that the seller has agreed to an offer but is keeping the sale active in case the buyer does not meet the contingencies.

Some of these contingencies include a house inspection or an appraisal contingency.

2.     Backing out on an offer

A Woman Stressing About Backing Out Of An Offer

Before the transaction is completed, a seller or a buyer may withdraw their affirmation of an accepted offer.

🔥Hot Tip: The key reason home sellers prefer a cash offer is that it prevents issues at the final hurdles, such as backing out or mortgage failure.

The buyer or seller may back out for some of the following reasons:

  • They may get a better offer elsewhere.
  • The seller may rethink their decision due to emotional attachment to the property or financial strains.
  • A life event such as marriage, divorce, death, or something of the sort may lead to no sale.
  • The seller may not find another home to move into, especially in the situation of people looking to downsize and sell their current house.

In Summary: What Does Conveyance Mean in Real Estate?

So, to answer the initial question, what does conveyance mean? It’s simply the act of transferring a property from one person to another.

Typically, the world springs up during real estate transactions where buyers and sellers transfer the ownership of buildings, lands, or, more commonly, homes.

To complete the conveyance, a legal document, such as a deed, must be signed by both the grantee and the grantor.

Next Step: Do you know what a sub-agent is? While they are rare today due to some liability concerns, it is important to understand their role.

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