A deed is a legal document that grants the holder certain rights to an asset, given that the person meets specific conditions.
Most commonly, deeds are used to transfer the ownership of a property or an automobile to another person.
The objective of a deed is to transfer ownership from one person to another. This ownership could either be of an asset or a property. To make this document viable in the court, the deed has to be filed in the public record by the government official.
Moreover, the deed’s signing should be authenticated and may also require witnesses based on the law. In case the deed is not in the written format or doesn’t get authenticated and mentioned in public records, it can be called as an imperfect deed.
The fundamentals of contract law are proposing and accepting such an agreement that can be legally obligated. Consideration is the Basis for an agreement as the parties require consideration to show that they have finalized the promise by executing a certain act.
For a deed, on the contrary, no consideration is necessary. The primary reason behind this is that because the notion of a deed is an indication that all of the concerned parties have an intention to be bound.
A variety of deeds exist out there to facilitate the seller and the buyer. However, before executing any deed, it is important to read terms and conditions. Below mentioned are a few types of deeds that you must know about:
Generally, this type of deed can be used for selling the real estate or asset that has been confiscated by the court. In this scenario, it basically doesn’t guarantee that the seller has a clear and free right on the property or the asset.
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A grant deed helps to transfer the interest in an estate in exchange of a specific price, to the buyer from the seller. It reassures that the seller is the clear owner of the property and doesn’t have any debts. On the other hand, it doesn’t offer the guarantee for the title defects and more issues in the deed.
This one is a written instrument that is meant to transfer a property to a trustee in order to secure a right, like a mortgage, promissory note, etc. The trustee has the liability for selling off that property in case he goes Default on the Obligation.