Deed facts for kids

For other uses, see Deed (disambiguation).

A deed is a special legal paper that is signed and delivered. It usually deals with who owns property, like land or a house, or who has certain legal rights. In simple terms, a deed is a written document that officially transfers, confirms, or proves ownership of something important. It must be signed, witnessed, and given to the new owner.

Deeds are very strong legal documents. They are harder to challenge than other signed papers. Deeds can be one-sided or involve two sides. Examples of deeds include papers that transfer property, licenses, patents, and diplomas. Long ago, deeds replaced an old ceremony where people would physically hand over a piece of land to show ownership.

The old saying "signed, sealed, and delivered" comes from a time when people used wax seals instead of just signatures. Today, witnesses are often used instead of seals. Some agreements made with a seal are called "contracts by deed." In some places, these contracts can be enforced even without a direct exchange of value. They might also have longer time limits for legal action.

What Makes a Deed Valid?

For a deed to be legally valid, it needs to follow some rules:

It must clearly say it is a deed, for example, "This Deed..."
It must show that it is giving something or a right to someone.
The person giving the property (the grantor) must have the legal right to give it. The person receiving it (the grantee) must be able to receive it legally.
The grantor must sign the deed in front of the required number of witnesses. This is called signing "in solemn form."
In some places, a special seal might still be needed. But usually, the signatures of the grantor and witnesses are most important now.
The deed must be given to the grantee (this is called delivery). In some places, the grantee must also accept it.

In England and Wales, a deed can be handled in three ways:

It can be delivered with no conditions attached.
It can be delivered as a deed held in escrow. This means a third party holds it until certain conditions are met.
It can be given to an agent with specific instructions on how to use it.

Once a deed is delivered without conditions, it usually cannot be changed or taken back.

Sometimes, conditions are added to a deed. These are called covenants. A deed indented was an old type of deed made in two or more copies. They were cut with a wavy line to show they were parts of the same document. A deed poll is a deed made by only one person, with a straight edge. Simple grants often use this type of deed.

Deeds for Transferring Property

When real estate, like land or a house, is sold, a deed transfers ownership from the old owner (the grantor) to the new owner (the grantee). Deeds can also include promises about the property's ownership. These promises are called warranties.

General and Special Warranties

This is the original 1636 Indian deed that helped create the Colony of Rhode Island. It was signed by Native American Chief Canonicus and given to Roger Williams.

The type of warranty shows how much the old owner guarantees the property's title. A general warranty deed means the old owner promises the title is good against any claims, even from before they owned the property. A special warranty deed means the old owner only promises the title is good for the time they owned the property. General warranty deeds used to be common for homes, but special warranty deeds are now more often used, especially for business properties.

Bargain and Sale Deed

A bargain and sale deed means the old owner has the right to transfer the property. However, they don't promise that there are no hidden problems or claims on the property. This type of deed is often used by court officials or people managing property by law. For example, it might be used for properties seized for unpaid taxes or by an executor of a will.

Quitclaim Deed

A quitclaim deed is a bit different. In most places, it doesn't actually transfer ownership. Instead, it's a document where someone gives up any claim they might have to a property. It's like saying, "I'm not claiming any rights to this property."

Deed of Trust

In some areas, a deed of trust is used instead of a mortgage. It doesn't transfer property directly to the buyer. Instead, it transfers the property's title to a "trustee," like a bank or title company. The trustee holds the title as security for a loan. Once the loan is paid off, the title is transferred to the borrower. If the loan isn't paid, the trustee can sell the property to cover the lender's loss.

Deeds as Alternatives to Bankruptcy

Sometimes, people or businesses who owe money might use deeds to deal with their debts instead of going bankrupt.

A deed of arrangement is a document that sets out a plan for a debtor to pay back some or all of their debts.
A deed of assignment is a document where a debtor gives their property to a trustee. The trustee then uses the property to pay off debts.

Sanad

A sanad issued by the governor of the United Provinces of Agra and Oudh during the British Raj.

A Sanad (also spelled sunnud) was a special deed given to rulers of native states in British India. It confirmed their right to rule if they promised loyalty to the British.

Sanad of Adoption

If a royal family didn't have a direct heir, the British might take over their state. To prevent this, some rulers were given "sanads of adoption." These deeds allowed them to adopt heirs from local noble families if they had no children of their own. This was a reward for being loyal to British rule, especially after the Indian rebellion of 1857.

How Deeds Are Put Together

A deed of conveyance, which transfers property, has several main parts:

Introduction: This part names the people involved (like the seller and buyer) and describes them. It also tells the story of how the property was owned before, leading up to the current sale.
Main Part: This is where the seller officially transfers their ownership to the buyer. It includes a detailed description of the property's location. It also explains what kind of ownership the buyer is getting (like full ownership).
Promises and Conditions: This section includes any promises the seller makes about the property's title. It also lists any binding rules or promises related to the property.
Conclusion: This part includes the signatures and the date. It confirms that the deed has been properly signed.

Recording Deeds

Usually, when property ownership is transferred, it needs to be officially recorded. In the United Kingdom, this is done at a land registry. In most parts of the United States, deeds are submitted to a "recorder of deeds" office.

An unrecorded deed might still prove ownership between the people involved. However, it might not protect against claims from other people until it's recorded. Some local laws say that unrecorded deeds become invalid after a certain time for third parties.

Joint Ownership

Deeds can also set up how property is owned by more than one person.

Joint Tenants with Right of Survivorship (JTWROS): If one owner dies, their share automatically goes to the other owner(s). All owners usually have equal shares.
Tenants in Common (TIC): If one owner dies, their share goes to their heirs, not automatically to the other owner(s). Owners can have unequal shares.

In many places, if a deed doesn't specify, joint ownership is assumed to be "tenants in common."

A life estate means someone has the right to use and enjoy a property for their lifetime. After they die, full ownership goes to another person, called the "remainder-man."

JTWROS vs. TIC: What Happens if Owners Disagree?

If people own property together as JTWROS or TIC, any co-owner can ask a court to divide the property.

For JTWROS, all owners have equal shares. So, if the property is sold, the money is split equally, no matter how much each person paid originally.
For TIC, owners can get credit for unequal contributions to the purchase price. Also, in both types of ownership, owners might get credit for paying more than their share of property expenses, like utilities or maintenance.

Pardon as a Deed

In the United States, a presidential pardon was once thought of as a deed. This meant the person being pardoned had to accept it. This made it impossible to pardon someone after they had died. However, this idea changed in 1999 when President Bill Clinton pardoned Henry Ossian Flipper, who had already passed away.

Title Deed in Germany

Germany uses a "property register." Title deeds are documents that show who owns a property, as well as any rights, duties, or mortgages on it. Since about 2000, it's been required to register all properties that are mortgaged or transferred. The details from the deeds are moved to the register, which acts as a contract of ownership.

Deed vs. Agreement

The main difference between a deed and an agreement is that a deed is usually signed by only one person or party. For example, a deed might create a charge on movable property for a bank.

An agreement, as its name suggests, needs at least two parties to sign or approve it. Examples include an agreement to sell property or a loan agreement.

In the past, to prove ownership, you needed an unbroken chain of title deeds. The Torrens title system is a different way to prove ownership. It started in Australia in 1858. With Torrens title, ownership is proven by having a certificate of title and an entry in the property register. This system makes it easier and cheaper to manage property transfers and reduces risks from lost or fake deeds. Some older properties in Australia still use the chain of title deeds system.

Wild Deeds

A wild deed is a deed that has been recorded but isn't properly connected to the history of ownership for a property. Imagine a chain of ownership links. A wild deed is like a link floating by itself, not attached to the main chain.

Because property searches rely on finding who sold property to whom, a wild deed might not be found. For example, if someone sells land, but the buyer doesn't record their deed, and then that buyer sells it to someone else who *does* record their deed, the second deed is "outside the chain of title." This means later buyers might not find it when they search. A wild deed doesn't give official notice to future buyers. If the original owner then tries to sell the property again to someone else, that new buyer might get the legal ownership, not the person with the wild deed.

A wild deed has been described as "hanging out in the air like Mahomet's coffin." This refers to an old story that the Prophet Muhammad's coffin was suspended without visible support. Just like that, a wild deed "hangs" without being connected to the proper ownership history.

Non-Fungible Tokens (NFTs) as Deeds

How They Might Work

Blockchain technology is a new way to keep records. It creates a permanent list of transactions, like a digital ledger. Within this system, special digital items called Non-fungible tokens (NFTs) can be created. NFTs are unique and cannot be easily changed or copied. They are protected by the blockchain's secure design.

NFTs can hold extra information, called metadata. This metadata can link the NFT to many different things, both digital and physical. For example, an NFT could represent a piece of art or even a house. The blockchain's permanent and public record acts a bit like a notary, helping to ensure records are correct and lasting. However, it's important to remember that blockchain doesn't replace all the legal duties of a notary. Still, some people are looking into how blockchain could be used more for official record-keeping.

Real-World Examples

The New York State Bar Association has said that blockchain could be used to "hold and secure records to land deeds." An attorney named John Morton also mentioned that NFTs "operate in many respects exactly like a deed would in real estate transactions." Some houses have even been sold using NFTs in places like South Carolina and Florida.

The Legal Side of NFTs as Deeds

While NFTs have been used in practice to act like land deeds, the legal rules for this are still developing. Using blockchain and NFTs for property transfer is currently in a "gray area" legally. There aren't direct laws that fully support or regulate this method of transferring property. This is a new and changing field. Legal experts, businesses, and lawmakers are studying what this means and if new rules are needed. The future of NFTs as deeds is an interesting mix of technology, law, and property rights that people are watching closely.