{"id":177047,"date":"2022-10-13T15:45:49","date_gmt":"2022-10-13T14:45:49","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=177047"},"modified":"2026-05-28T05:58:24","modified_gmt":"2026-05-28T04:58:24","slug":"understanding-deeds","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-contracts\/understanding-deeds\/","title":{"rendered":"What Are Deeds in England?"},"content":{"rendered":"\n

Not every business owner knows the difference between a deed and a contract, but getting it wrong can leave an agreement unenforceable or a claim time-barred. Deeds carry specific legal requirements and are necessary in certain transactions, including the sale of land. This article will explain what a deed is and some of the common types of deeds your business may come across, and the situations where using one matters.<\/span><\/p>\n\n\n

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What is a Deed?<\/span><\/h2>\n\n\n\n

A deed is a written document prepared and signed under certain circumstances, like business transactions. The law refers to the preparation and signing of a deed as the execution of a deed. A properly executed deed creates legal obligations over the party that has signed the deed. <\/span><\/p>\n\n\n\n

A properly executed deed requires five conditions.<\/span><\/p>\n\n\n\n

Conditions<\/span><\/h3>\n\n\n\n

In Writing<\/b><\/p><\/td>

The deed must be contained in writing.<\/span><\/p><\/td><\/tr>

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Face-value requirement<\/b><\/p>\n<\/td>

The deed must either state:<\/span><\/p>+ that the document is a deed; or\u00a0<\/span>
+ that the person signing the document is signing it as a deed.\u00a0<\/span>

In practice, most deeds contain both requirements. At the top of the document, the title will contain the word deed. <\/span>

For example, \u201cA Deed Transferring a Sale of Land\u201d.\u00a0Likewise, underneath the signature line, the document will state that the signatory signs the document as a deed.\u00a0<\/span><\/td><\/tr>

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Execution <\/b><\/p>\n<\/td>

The person signing the deed must execute the document as a deed.\u00a0In practice, this condition is satisfied if, underneath the signature line, the document states the signatory signs the document as a deed.\u00a0<\/span>Depending on if you are signing the document in your personal capacity or as a director in a company, there may be additional formalities.\u00a0<\/span><\/p><\/td><\/tr>

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Delivery<\/b><\/p>\n<\/td>

The party making the deed must indicate they agree to be bound by its terms. In other words, for the deed to be effective, it must be delivered.For practical purposes, you can think of delivery as synonymous with the date the deed becomes effective. <\/span><\/p><\/td><\/tr>

Witnesses<\/b><\/p>
<\/td>

Nearly all deeds require a witness to attest the signatory signed the document. Importantly, a witness cannot be someone that stands to benefit from the deed\u2019s execution. For instance, if you are selling your business\u2019 land to John Smith, Mr Smith cannot act as a witness. You would need to find someone without any interest in the sale. Depending on the nature of the deed, you may need one more witness. Additionally, companies and other business entities executing deeds have their own specific witness requirements. <\/span><\/p><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

How Companies Execute Deeds<\/h3>\n\n\n\n

The rules for executing a deed are different depending on whether you are signing in a personal capacity or on behalf of a company.<\/p>\n\n\n\n

Under Section 44 of the Companies Act 2006<\/em>, a company can execute a deed in one of two ways:<\/p>\n\n\n\n

two authorised signatories sign the document, such as two directors or a director and the company secretary; or
one director signs in the presence of a witness who attests the signature.
If your company executes a deed incorrectly, the document may not be legally binding. This is a common mistake, particularly in smaller businesses where there is only one director.<\/p>\n\n\n\n

If you are the sole director of your company, you must have a witness present when you sign. That witness cannot be another party to the deed or someone who benefits from it.<\/p>\n\n\n\n

Always check the execution block at the end of the deed carefully before signing. If it does not reflect how your company is structured, ask a lawyer to amend it before you proceed.<\/p>\n\n\n\n

When Are Deeds Used?<\/span><\/h2>\n\n\n\n

Legal deeds<\/a> are similar to a simple contract. In fact, deeds can be used whenever a simple contract would do. However, they tend to be reserved for particularly important transactions, such as the sale of:<\/span><\/p>\n\n\n\n