{"id":177047,"date":"2022-10-13T15:45:49","date_gmt":"2022-10-13T14:45:49","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=177047"},"modified":"2024-05-22T07:33:05","modified_gmt":"2024-05-22T06:33:05","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":"

As a business owner in the UK, you will likely come across a legal document called a ‘deed’. Deeds form an important part of UK law. In a business context, they can both protect your rights as well as create new obligations. This article will explain what a deed is and some of the common types of deeds your business may come across. Finally, this article will note some of the situations where you will want to make sure that you have used a deed.<\/span><\/p>\n

What is a Deed?<\/span><\/h2>\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.\u00a0<\/span><\/p>\n

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

Conditions<\/span><\/h3>\n\n\n\n\n\n\n\n
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In Writing<\/b><\/p>\n<\/td>\n

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The deed must be contained in writing.\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

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

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The deed must either state:<\/span><\/p>\n

    \n
  • that the document is a deed; or\u00a0<\/span><\/li>\n
  • that the person signing the document is signing it as a deed.\u00a0<\/span><\/li>\n<\/ul>\n

    In practice, most deeds contain both requirements. At the top of the document, the title will contain the word deed. For example, \u201cA Deed Transferring a Sale of Land\u201d.\u00a0<\/span><\/p>\n

    Likewise, underneath the signature line, the document will state that the signatory signs the document as a deed.\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Execution\u00a0<\/b><\/p>\n<\/td>\n

\n

The person signing the deed must execute the document as a deed.\u00a0<\/span><\/p>\n

In practice, this condition is satisfied if, underneath the signature line, the document states the signatory signs the document as a deed.\u00a0<\/span><\/p>\n

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>\n<\/td>\n<\/tr>\n

\n

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

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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.<\/span><\/p>\n

For practical purposes, you can think of delivery as synonymous with the date the deed becomes effective.\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

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

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Nearly all deeds require a witness to attest the signatory signed the document.\u00a0<\/span><\/p>\n

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.\u00a0<\/span><\/p>\n

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.\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

Legal deeds<\/span><\/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