WHAT IS DEED?
A deed can be defined as any written legal document or instrument that gives a specified natural person
control or specified rights over an asset.
In some instances, specific conditions must be met in order for the rights granted to be effective.
Referencing common law, a deed is any legally binding instrument that confirms, passes, or affirms interest,
property, or right.
The deed is signed, attested, and delivered. Depending on the jurisdiction, a deed can also be sealed.
UNDERSTANDING HOW DEEDS WORK
One of the primary functions of a deed is to transfer a title from one individual to another.
A title serves as a legal document providing proof of ownership of an asset.
To ensure that the deed is legally binding in a court of law, a government official who is tasked with
maintaining
documentation needs to file the deed in the public record.
Should a deed not be notarized, written in proper form, or entered into the public record, it may be deemed
imperfect.
Although the transfer of rights may remain valid, if any legal disputes arise, the deed must be verified and
cleared up with the state.
This makes it crucial that deeds follow all formal requirements.
REQUIRED FEATURES OF A DEED
In order for a deed to be legally enforceable and valid, it must meet certain essential requirements. These
include:
- THE DEED MUST STATE ON ITS FACE THAT IT IS A DEED
It can be expressed using phrases such as “executed as a deed” or “this deed.”
This provides clear information on the nature of the legally binding instrument.
- THE DEED MUST STIPULATE THAT IT IS CONVEYING OR AWARDING SOME KIND OF RIGHTS OR
PRIVILEGES
The grantor (the person granting) must have the legal authority to grant the rights, and the grantee (the
person receiving) must also
have the legal capacity to accept and enforce them.
- THE DEED MUST BE IN WRITING
Unlike some contracts, a deed cannot be oral. It must be documented in written form to have legal validity.
- THE DEED MUST BE SIGNED
It requires the signature of the grantor (and sometimes witnesses) to be valid. In many jurisdictions, the
grantee’s signature may also be required.
- THE DEED MUST BE DELIVERED
Delivery does not always mean physical transfer; it means the intention of the grantor that the deed should
take legal effect immediately.
- THE DEED MAY REQUIRE ATTESTATION OR NOTARIZATION
Depending on jurisdiction, some deeds must be attested by witnesses or notarized by a government authority.
- THE DEED SHOULD BE REGISTERED
For property and real estate deeds, registration with the relevant government authority is necessary to
provide public notice and avoid disputes.
