Assignments and conveyances are both transfers of ownership interests in property, including real estate, intellectual property or personal property. You will often see conveyances used in real estate contracts, especially those involving deeds. You typically see assignments used in contracts involving personal property. You must legally document any transfer by assignment or conveyance.
Conveyance refers to the transfer of ownership or interest in real estate or real property from one person or entity to another by a legally acceptable document. Acceptable documents include deeds, mortgages, leases and statements of conveyance. The latter is different from a deed or lease in that it is a much simpler document, usually only one page. You can also use a statement of conveyance to transfer intangible property -- for example, a trademark or license -- to someone else. You must have a conveyance acknowledged before a notary for it to be legal.
According to The Free Dictionary, an assignment is the transfer of a claim, right, interest or title to a property, especially personal property. In addition, an assignment refers to the actual document -- also called the instrument -- you use to record and make the transfer legal or the property you actually assign.
Assignment in Practice
You typically assign something -- real estate, shares in a corporation, rights to the book you wrote -- to a person, trust, corporation, limited liability company or charity. For example, if you invest in the stock market with options, your broker may require you to assign your shares to the brokerage firm. It does this in case it needs to sell your shares to satisfy the option agreement terms. Consult with an attorney to ensure that you properly structure the assignment and address any issues.
Conveyance vs. Assignment
Conveyance is a term used to describe what occurs in real estate and real property transactions. For example, when you buy a house, the seller conveys his ownership to you via a deed. In addition, you convey a security interest in your home to your lender via a mortgage. Assignment is a term that most use to cover non-real estate transactions or partial ownership interest. For example, if you donate stock in a company to a charity, you will sign a document assigning those shares to that charity.
About the Author
Tiffany C. Wright has been writing since 2007. She is a business owner, interim CEO and author of "Solving the Capital Equation: Financing Solutions for Small Businesses." Wright has helped companies obtain more than $31 million in financing. She holds a master's degree in finance and entrepreneurial management from the Wharton School of the University of Pennsylvania.
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A deed of assignment is a legal document that is used in the transfer of real estate and land property. The deed of assignment is a very important document that should be kept at safely stored at all times, particularly in the case of real estate. The deed of assignment can generally be defined as a document which is drafted to guarantee or promise that the transfer of ownership of a property will commence on a particularly defined date. The deed of assignment, in other words, is a document that is evidence of a transfer of ownership, with the stipulation that there is a certain time period in which actual ownership is to commence.
There are various situations in which a deed of assignment may be needed, though the most common occurs in the transfer of ownership in regards to property. An example may be when a developer of a new home signs a deed of assignment to a purchaser, stating that the property will be his/hers on such a given date. However, the purchaser may decide to sell the home to another person, which will also require a deed of assignment. This is necessary because the actual title deed of the home is most likely not to have been issued, and the deed of assignment essentially acts a temporary title deed. For every time that a property is to be sold before a title deed is issued, a deed of assignment will be needed.