Legal Definitions - involuntary conveyance

Involuntary Conveyance refers to the transfer of ownership of property, such as real estate, from one party to another without the current owner's willing consent or active participation. Instead, the transfer occurs through a legal process, a court order, or by operation of law.

Here are some examples to illustrate this concept:

• Example 1: Property Foreclosure

  Imagine a homeowner who falls behind on their mortgage payments for an extended period. Despite efforts to resolve the debt, the bank initiates a foreclosure lawsuit. If the homeowner cannot pay the outstanding amount, a court may order the property to be sold at auction. The ownership of the home is then transferred to the highest bidder or back to the bank, even though the original homeowner did not wish to sell it. This transfer is an involuntary conveyance because it is compelled by the legal process of foreclosure due to a breach of the mortgage agreement.

• Example 2: Eminent Domain (Condemnation)

  Consider a situation where a state government decides to build a new highway that requires a portion of privately owned land. Even if the landowner does not want to sell their property, the government has the legal power of eminent domain to acquire it for public use, provided they offer just compensation. The transfer of the land's title from the private owner to the state, against the owner's will, constitutes an involuntary conveyance. The owner is legally compelled to relinquish ownership, even if compensated fairly.

• Example 3: Tax Sale

  Suppose a commercial property owner consistently fails to pay their annual property taxes to the local municipality. After a specified period of delinquency, the municipality may place a lien on the property and eventually sell it at a public tax sale to recover the unpaid taxes. The original owner loses title to the property, and ownership is transferred to the buyer at the tax sale. This transfer is an involuntary conveyance because the property is taken and sold by the government due to the owner's failure to meet their legal tax obligations, without their consent.