![]() In case of the death of a property owner with no direct heirs, the state takes custody of the property. It usually happens in cases of divorce decrees, condemnation due to neglect or natural disaster, failure to pay taxes, asset seizure in case of debt default, etc. The term involuntary conveyance refers to an instance where the transfer of real property occurs without the explicit consent of the owner. It happens in a case where the court rules that the fraud is real, malicious, or constructive. Under civil cases, the court may order the defendant to pay penalties in situations where the transaction is ruled to be a de factor fraudulent transaction. Several avenues, such as civil legal proceedings, are available to creditors that can enable them to defend their claim to a particular property. Such a type of conveyance is referred to as fraudulent conveyance. ![]() The sale of a property to a third party, when done with the intention of avoiding the creditor’s claim to that property, is considered illegal in most cases. Voluntary conveyances can sometimes be made with the intention of hindering, delaying, or defrauding a creditor. However, in cases where the creditors seek possession of the property to fulfill their claims, such a gift can be considered suspicious. Consideration consists of a small monetary amount or simply love and affection. Many people convey their properties to their descendants as a gift or through their last will, which is done through a gift deed. With proper protections in place, consideration is in the form of a tax deduction. In such a case, they must carefully manage the consideration issue. Charitable purposesĭonors often convey real property to charitable organizations. Before a mortgage company considers this option, the borrower must try to sell the property at its fair market value for at least three months. The lender can accept the title conveyance and sell the property to recover their money. To prevent the negative impact that it will have on their credit history, the borrower may convey their interest in real property to the lender. Avoiding defaultĬonsider a situation where a borrower is about to default on their debt. Voluntary conveyance can be used in the following situations: 1. ![]() Public dedication: Privately-held land is transferred to the government or an organization operated by the government. Private grant: Privately-held land is transferred to an individual.ģ. Public grant: Publicly-owned land is transferred to a private individual.Ģ. There are three types of voluntary conveyance:ġ. Transfer by accession Types of Voluntary Conveyance This type of conveyance of ownership can be classified under five categories:ĥ. The term conveyance refers to the legal process of the transfer of property or other fixed assets from one owner to another. Voluntary conveyance can be used to avoid default, for charitable purposes, fraudulent purposes, and conveyance to descendants.It comes in three types – public grants, private grants, and public dedication.Voluntary conveyance is said to be the intentional transfer of a title to a property from one individual to another through a deed. ![]()
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