What is a conveyance in real estate and how does it work?

Written by Samantha SheltonNMLS 1647301Updated September 2026

Seller handing keys to buyer at a closing table, completing the conveyance of real estate ownership

A conveyance in real estate is the legal transfer of ownership from the conveyor (the seller) to the conveyee (the buyer), almost always through a written deed. In Michigan, recording that deed with the county register of deeds costs a flat $30, and the state taxes the transfer at $3.75 per $500 of value, plus $0.55 per $500 in every county.

Until the deed is delivered and accepted, the buyer has no legal claim. Signing a purchase agreement and owning a house are different events.

Learn how a conveyance in real estate works: which deed types protect you, what makes a transfer valid, and what recording does. If you’re earlier in the process, start with our Home Buying guide.

Key takeaways:

Conveyance is the act, the deed is the paperwork: A conveyance moves ownership from the conveyor (seller) to the conveyee (buyer), and 3 deed forms, warranty, special warranty, and quitclaim, handle nearly every residential transfer.
Ownership passes on delivery, not on signing: A valid conveyance turns on 7 elements, and the last two are delivery of the deed and acceptance by the buyer, a signed deed sitting in a drawer transfers nothing.
Recording is what protects you: Michigan charges a flat $30 to record a deed regardless of page count, and an unrecorded conveyance is void against a later good-faith buyer who records first.

What is a conveyance in real estate?

A conveyance in real estate is the act of transferring ownership of real property, land and anything permanently attached to it, from one party to another, normally through a written instrument called a deed. The party giving up ownership is the conveyor, or grantor; the party receiving it is the conveyee, or grantee.

Most people meet the word at a closing, but conveyance is broader. Moving a house into a living trust, gifting a cottage to an adult child, granting a utility easement, and selling mineral rights apart from the surface are all conveyances. Realtor.com’s overview of conveyance covers the same ground from the agent’s side.

Conveyance vs. deed vs. title

These three words get used interchangeably, and they shouldn’t be. Title is ownership itself, the bundle of rights to use, occupy, sell, and borrow against a property. The deed is the receipt proving it changed hands. Conveyance is the handoff.

You can hold a deed and still have a title problem, which is why lenders require title insurance on every mortgage. Fannie Mae won’t buy a loan without a title policy, or a qualifying attorney title opinion letter, carrying coverage at least equal to the original principal amount.

Who’s involved and what makes a conveyance valid?

A residential conveyance runs on two principal parties and 7 elements, and missing any one of the 7 can leave the transfer defective, unrecordable, or both. The parties are straightforward. The elements are where deals go sideways.

The conveyor (grantor): The seller must own what they’re selling, have capacity to sell it, clear the liens against it, and sign the deed. Michigan law makes the seller liable for the state transfer tax.
The conveyee (grantee): The buyer must be named clearly, accept delivery of the deed, and decide how title will be held, sole ownership, joint tenancy, or tenancy by the entirety. Settle that while you’re preparing to buy, not at the signing table.

The 7 elements of a valid conveyance

Michigan, like every state, sets out what a deed must contain and how it must be executed.¹ Seven elements do the work:

A written instrument: Michigan’s statute of frauds bars granting any interest in land except by act of law or a deed in writing signed by the grantor. A verbal promise moves no real estate.
A competent grantor: The seller must be of legal age and sound mind and must hold the interest being conveyed.
An identifiable grantee: The buyer must be named clearly enough to identify, and Michigan requires the grantee’s address on the deed.
A legal description: Not the mailing address, the lot-and-plat or metes-and-bounds description that fixes the exact boundaries. This is the most common source of deed errors.
Consideration: Something of value must pass, and the deed recites it.
Signature and acknowledgment: A Michigan deed must be acknowledged before a notary, judge, or clerk of a court of record, and no register of deeds may record one that isn’t.
Delivery and acceptance: Title doesn’t pass until the deed is delivered and the grantee accepts it. The grantee’s possession of the deed creates a rebuttable presumption of delivery.

Recording isn’t on that list. A deed can be valid between the two parties without ever reaching the county. Recording protects it against everyone else, which is the job that usually matters more.

Who else is at the closing table

The title company: Runs the search, issues the policies, prepares the deed, and records it. Our guide to choosing a title company covers what to compare, since you can usually shop this.
The escrow or settlement agent: The role of escrow in home buying is to hold the funds and release them only when the deed is signed, so money and ownership move together.
Your lender and the register of deeds: The lender requires clear, insurable, first-lien title before funding; the county checks the instrument against statutory requirements. Both charge fees inside your closing costs, which the CFPB puts at 2% – 5% of the purchase price overall.

What types of deeds convey property?

Three deed forms handle nearly every residential conveyance, and they differ in one way that matters: how much the seller promises about the title. That promise, not the transfer, is what you’re negotiating.

Deed type	What the seller promises	Common use	Risk to the buyer
General warranty deed	That the seller is lawfully seized, has good right to convey, that the premises are free from all encumbrances, and will defend the title against all lawful claims, back through every prior owner	Standard residential resale	Lowest
Special warranty deed (also called a limited warranty deed)	The same covenants, limited to claims arising during the seller’s own ownership	Bank-owned and REO sales, estates, relocation companies, some new construction	Moderate. Anything predating the seller is your problem
Quitclaim deed	Nothing. It passes whatever interest the seller happens to have, which could be everything or nothing	Divorce transfers, adding or removing a spouse, family gifts, clearing a cloud on title	Highest

Michigan sets statutory short forms for two of these: a deed worded “A.B. conveys and warrants” carries the full covenants above, while “A.B. quit claims” is a good and sufficient conveyance carrying none.

That distinction has teeth. Buy with a quitclaim deed and you have no covenant to sue on when a lien surfaces. It’s also why foreclosure and REO purchases arrive with special warranty deeds. The bank never lived there and won’t warrant a chain of title it didn’t create. Owner’s title insurance, optional for you, because the lender’s required policy covers only the lender’s interest, is the practical substitute for the warranty you aren’t getting.

Other instruments that convey an interest

A land contract or other seller financing conveys equitable interest while the seller keeps legal title until the balance is paid. A lease conveys possession for a term, an easement conveys a limited right of use, and a mineral deed splits subsurface rights from the surface. Only some transfer full ownership.

How does the conveyance process work?

The conveyance runs on a 7-step sequence that starts when your offer is accepted and ends when your deed hits the county record weeks later. Our home buying process guide maps the purchase around it.

The purchase agreement is signed. An accepted offer is a contract to convey, not the conveyance itself. It sets price, closing date, and the contingencies in home offers that let you exit.
The title company runs a title search. A searcher examines county records for the chain of title, liens, judgments, easements, and unpaid taxes, then issues a commitment listing what must clear before closing. The American Land Title Association publishes the standard policy forms most of the industry uses.
The property is inspected and appraised. Neither is part of the conveyance, but both can stop it. Work the home inspection checklist for buyers, and remember your lender lends against the lower of price or appraised value, so the home appraisal process decides how much of the price your loan covers.
The deed is prepared. The title company, closing agent, or an attorney drafts it. Michigan requires each signer’s name printed beneath the signature, the notary’s name printed on the same page, the grantees’ addresses, and the name and business address of whoever drafted it.
You receive your Closing Disclosure. Federal rules require you receive it at least 3 business days before closing. The CFPB’s Closing Disclosure explainer walks through each section, including the line for recording fees and transfer taxes.
Everyone signs, and the deed is notarized. The seller signs the deed, you sign the mortgage and note, and a notary acknowledges the signatures.
The deed is delivered, accepted, and recorded. Delivery and acceptance are the moment ownership changes. Recording puts the transfer into the public record, where it protects you.

Steps 2 and 4 are where files stall, a lien nobody knew about, an heir who never signed off, a legal description carried forward with a typo. Each is fixable, and each costs days. Settling your financing first, which is the point of mortgage preapproval, keeps the loan off the critical path while title work catches up.

What Michigan buyers should know

Michigan taxes conveyances twice and charges one flat fee to record them.

Transfer tax: The state levies $3.75 per $500 of value (0.75%), and every county adds $0.55 per $500. On a $300,000 sale in Waterford, that’s $2,250 to the state plus $330 to the county, $2,580 total, with the seller liable for the state portion.² Michigan permits a county rate up to $0.75 per $500 only in counties of 2 million or more residents, and no Michigan county has reached that threshold, so $0.55 per $500 is the rate statewide.
Exemptions exist, and sellers miss them: Instruments with consideration under $100 are exempt from the state tax, and a seller’s principal residence can be exempt if the state equalized value at sale is equal to or less than the SEV when they acquired it and the sale was arm’s length.
Recording fee: A flat $30 per document since October 1, 2016, regardless of page count, budget $60 at a typical closing, one deed and one mortgage. Buyers customarily pay it; see how that plays against seller-paid closing costs.
Recording order decides disputes: Under Michigan’s recording act, an unrecorded conveyance is void against a later purchaser in good faith and for valuable consideration whose deed is recorded first.

One more step catches new owners: you have 45 days from the transfer to file a Property Transfer Affidavit (Form 2766 / L-4260) with the local assessor. Taxable value uncaps the year after a transfer, so budget for a higher tax bill than the seller was paying.

How Align moves your purchase to the closing table

Over the last 12 months, Samantha's loans averaged under 14 days from application to clear to close, across more than 100 loans. Your closing date is set by your purchase agreement. Her job is to have your loan ready well before it.

She handles your file herself, with a processor supporting her behind the scenes. You always know who to call, and the person who answers knows your goals.

Build your homebuyer game plan

Sources: Align Lending loan records, 12 months to October 2026.

FAQ: Conveyance in real estate

Here are answers to common questions about conveyance in real estate.

What is an example of conveyance in real estate?

The most common example is a home sale closing: the seller signs a warranty deed transferring title to the buyer, the deed is delivered at closing, and it’s then recorded with the county register of deeds. Other examples include transferring property into a trust, gifting property to a family member by quitclaim deed, or conveying mineral rights separately from the land. Our guide to preparing for a home closing walks through the day the deed changes hands.

What is the difference between a deed and a conveyance?

Conveyance is the act of transferring ownership; the deed is the written instrument that accomplishes it. Think of conveyance as the process and the deed as the paperwork. A valid conveyance generally requires a written deed with a legal description of the property, signatures, delivery to the buyer, and acceptance. Where an attorney handles the closing, the role of a closing attorney includes drafting or reviewing that deed.

Who prepares the conveyance documents in a home sale?

Deed preparation is typically handled by the title company, a real estate attorney, or the closing agent, depending on local custom. The seller usually pays to have the deed drafted, while the buyer pays recording fees. Your title company also runs a title search to confirm the seller can legally convey clear ownership. Both charges land on your settlement statement, so factor them in when you budget for closing costs.

What makes a conveyance legally valid?

A valid conveyance generally requires a written document, a competent grantor, an identifiable grantee, an accurate legal description of the property, consideration, proper signatures and notarization, and delivery and acceptance of the deed. Recording isn’t always required for validity, but it protects the buyer against competing claims. If you’re taking title with someone else, the legal considerations of buying a home with a partner decide how the grantee is named.

The bottom line on conveyance in real estate

A conveyance in real estate is the legal transfer of ownership from the conveyor to the conveyee, and it takes a written deed carrying 7 elements to hold up: a writing, a competent grantor, an identifiable grantee, a legal description, consideration, signature and acknowledgment, and delivery and acceptance. The deed type decides how much the seller actually promises about the title, and recording is what protects your claim against everyone who comes later in Michigan, a flat $30 per document, on top of transfer tax of $3.75 per $500 to the state and $0.55 per $500 to the county.

If you’re ready to buy a Michigan home and want the financing moving as fast as the title work, talk to Align Lending, we’ll shop your scenario across our lender network and show you the numbers side by side. Call 248-506-5727 or start online today. New to this? Start with our first-time home buyers hub.

Footnotes:

1. This article is for informational purposes only and is not legal or tax advice. Deed requirements, recording rules, and transfer tax treatment vary by state and by transaction, and the elements described here reflect general principles along with Michigan law as of the date shown. Have a licensed Michigan real estate attorney or your title company review any deed before you sign it. Return to text.

2. Example figures are hypothetical and for educational purposes only; they do not constitute an advertisement of credit terms or a rate quote under federal or state lending laws. Transfer tax, recording fees, and total closing costs on your transaction depend on the sale price, the county, any exemption you qualify for, and your loan. Consult a tax professional about how a transfer affects your situation. Return to text.

Sources: Michigan state real estate transfer tax of $3.75 per $500 of value, MCL 207.525; seller liable for the tax, MCL 207.523; exemptions for consideration under $100 and for a qualifying principal residence, MCL 207.526. County transfer tax of $0.55 per $500 in counties under 2,000,000 population and up to $0.75 per $500 in counties of 2,000,000 or more, MCL 207.504. Flat $30 recording fee per document effective October 1, 2016, MCL 600.2567. Unrecorded conveyance void against a subsequent good-faith purchaser who records first, MCL 565.29. Written, signed deed required, MCL 566.106. Acknowledgment before a notary, judge, or clerk of a court of record, MCL 565.8; unacknowledged instruments may not be recorded, MCL 565.47. Printed signer and notary names, grantee addresses, and drafter name and business address, MCL 565.201. Statutory warranty and quitclaim deed forms and covenants, MCL 565.151 and MCL 565.152. Delivery and acceptance required to pass title, with a rebuttable presumption of delivery from the grantee’s possession, Michigan State Tax Commission Transfer of Ownership Guidelines. Property Transfer Affidavit due within 45 days and uncapping of taxable value the year following transfer, MCL 211.27a and Michigan Department of Treasury Form 2766 (L-4260). Closing Disclosure required at least three business days before consummation, and closing costs of 2% – 5% of the home purchase price, Consumer Financial Protection Bureau. Title insurance policy required with coverage at least equal to the original principal amount, Fannie Mae Selling Guide B7-2-01 and B7-2-03; attorney title opinion letter accepted in lieu of a policy, Fannie Mae Selling Guide B7-2-06.

This article is for informational purposes only and is not intended to provide legal, financial, or tax advice. Deeds, title vesting, transfer tax exemptions, and recording requirements should be reviewed by a licensed real estate professional or attorney in your state. Consult a qualified professional about your situation. Program terms and figures shown are illustrative, are not a rate quote or an offer of credit, and are subject to change. Align Lending is an independent Michigan mortgage broker, NMLS #2041154.