Deeds, also known as legal deeds, are commonly used legal documents which are prepared and signed when something such as a transaction takes place. For the most part, a deed becomes necessary during the sale of something fairly large. This might include, but not be limited to, transactions pertaining to property, land, valuable assets such as machinery, or shares in a business.
When is a deed necessary?
A deed is by and large very similar to a contract, but it does not need to be particularly complicated. A deed will suffice in place of a simple contract. Like a contract, a deed is legally binding and therefore should be signed by both of the parties involved in the transaction.
What should a deed involve?
A deed, also sometimes known as a deed of assignment, should legally meet five conditions. In order to make sure that your deed is properly drafted according to UK law, visit Parachute Law or other experienced solicitors, who will ensure that your deed meets the five conditions.
The first condition is that the deed must be in writing. It won’t count if it’s only agreed verbally.
Secondly, the deed must specify that it is indeed, a deed! Or, at least that the person signing it is doing so as a deed. Likewise, the execution of the document must adhere to this – the signatory should ideally have confirmation below their signature that they are signing it as a deed.
Signatories on a deed must sign to confirm that they are legally bound by the terms and conditions written within.
According to experts at Practical Law, witnesses are also a necessary part of the process of signing the deed. This is because the deed needs more than just a simple signature to become binding. A witness can’t be someone who stands to benefit from the transaction.
Whether you’re a business owner or someone who stands to benefit from buying or selling a valuable asset, seek legal advice before signing a deed to ensure you are fully protected.
