Voluntary Conveyance
Candlefocus EditorThe major benefit of voluntary conveyance is that it provides an alternative to foreclosure. It allows the seller to voluntarily and quickly transfer their real estate property to someone else without having to go through a lengthy foreclosure process. For example, voluntary conveyance can help someone who is unable to keep up with their mortgage payments to avoid a costly and time consuming foreclosure process.
The primary disadvantage of voluntary conveyance, however, is the lack of legal protections for the seller. By voluntarily handing over the property, the seller is not able to rely on state or federal legislation for legal protection in case the transaction goes awry. Instead, the transferee will take ownership of the property without any legal obligation to do so, which can leave the seller in a vulnerable position.
In most cases, voluntary conveyance is used as a last resort by homeowners in financial distress who don’t have any other options available. If a voluntary conveyance is undertaken, it is important that both parties have clear and fully agreed upon terms. It is also important to note that due to the lack of legal protection for the seller, this type of conveyance does not absolve either party of any outstanding debts or obligations associated with the property.
Voluntary conveyance can be an effective way for homeowners to transfer their real estate property to someone else quickly and cost-effectively. However, it is important to fully understand the risks associated with this process and consult with a legal professional to ensure that the property is properly conveyed and all financial obligations are properly extinguished. Having legal protection in place can help to protect both parties in the event of a dispute.