What is a Deed?

A deed is a legal document that grants certain rights to an individual because they fulfill specified conditions.

Generally, deeds are used to transfer ownership of property or vehicles from one person to another.

Purpose of a Deed:

The purpose of a deed is to transfer ownership from one person to another. This ownership can be in the form of property or assets. To make this document legally binding in court, it must be filed in the public registry by a government official. Additionally, the deed must be signed and witnessed according to the law. If the deed is not in written form or properly registered in the public records, it is considered incomplete.

Difference Between a Contract and a Deed:

Contract law outlines legally enforceable agreements that propose and accept certain obligations. A contract requires consideration, which means that parties must review what they are promising to fulfill a specific action.

In contrast, a deed does not require consideration. The primary reason is that a deed signifies an intention by all involved parties to be bound by its terms.

Types of Deeds:

There are various types of deeds to facilitate transactions between sellers and buyers. However, before executing any deed, it is essential to read and understand the terms and conditions. Below are some types of deeds you should be aware of:

Agreement and Sale Deeds:

  These types of deeds are generally used to sell real estate or property seized by the court. In such cases, the seller does not guarantee clear and free title to the property.

Understanding these distinctions and the purpose of different types of deeds is crucial for ensuring legal and proper property transactions.