Different Types of Deeds to Consider When Transferring Ownership of Property
Conveyancing is the legal act for the preparation of deeds or leases when the ownership of a property is transferred from one owner to another. This is a legal term that is fairly broad and there are different types of deeds that can be prepared when you desire to have property ownership transferred. A sales deed is not always the best type for property owners that want to transfer ownership to a relative.
There are specific types of deeds that are alternatives to sales deeds when transferring a property to a close relative. Here's a look at your options.
Understand Specific Deed Types
It is never a good idea to just blindly choose a deed type when you want to transfer ownership of a property. You have to consider who is obtaining ownership and the deed types that allows for a seamless transition. A lawyer not only specialises in deed preparation, but also can help you choose the best type of deed for your specific needs. Conveyance law can be confusing, but professionals have expert-level knowledge.
What is a Gift Deed?
A gift deed is a common type of deed that is used when ownership of a property is transferred to a relative. This document is designed to make it possible for assets including properties to be gifted. There is no exchange of money when using this type of deed, which is what makes it unique. This is also the reason why it is the best option when transferring a property to a relative that will not be paying for the property.
This legal document must be prepared and stamped with two witnesses, but also registered before it is valid. Gift deeds are common, but it is important to realize that the property can't be transferred back to the previous owner. It belongs to the beneficiary.
What is a Relinquishment Deed?
This is very different from a gift deed, but still allows for the transfer of property ownership. This is also a deed that can be used to transfer ownership without any exchange of money. This involves allowing co-ownership of a property. The biggest advantage to this type of deed is the seamless process that is involved. Not as many details need to be analysed and the document is not comprised of as many details.
In order to authorise the transfer of property ownership a deed must be prepared and registered through the process of conveyance. Even though there are a number of different deed types to choose from, these are the two primary options when no funds are being exchanged.
For more information or assistance, contact resources like Ray Swift Moutrage & Associates.