The Dos & Don’ts Of Deeds

A deed is one of the most powerful documents you can sign. A deed differs from a typical contract and is generally used to transfer important rights, most commonly in relation to property, wills and powers of attorney.

First things first, what is a deed? Deeds are more than just a high-quality piece of paper with a fancy seal on it. They are typically used in property practice to grant leases, transfer property from one person to another, and mortgage property to a lender.

Is a Deed a Contract?

In a word, no. Any law student will tell you that a contract requires three things: (1) offer and acceptance, (2) consideration (each party gets something out of the contract), and (3) an intention to create legal relations (meaning that you intend to be bound by the contract).

By contrast, a deed requires no consideration, and, whilst a contract may be verbal, a deed must be written. Further, whilst a contract must be signed by all parties to it, a deed may be unilateral (a deed poll or deed of covenant, for example).

What does a Deed require?

The Law of Property (Miscellaneous Provisions) Act 1989 governs the requirements of a deed, which are simply that:

1. The document makes clear that it is intended to be a deed;
2. The document is validly executed as a deed

   (meaning that the document is in writing and that the person signing the deed has a witness to that signature (different rules may apply for companies and corporate bodies));

3. The document is delivered as a deed.

   This traditionally meant that the document was physically delivered. However, the modern interpretation is that this means the signers intend to be bound – this will often be when the document is dated.

Modern Developments of Deeds

Accelerated by the Covid-19 lockdowns of 2020, deeds can now be signed electronically via platforms such as DocuSign. The Land Registry has stipulated some strict requirements for deeds to be signed this way, but essentially, they need a link emailed to you, a code texted to your phone, a witness to attest your signature, and a conveyancer to sign a certificate.

Electronically signing a deed is quicker for everyone and reduces paperwork.