A deed is a signed and sealed legal document which can come into effect while transferring a property from a grantor to a grantee. It is a mutual agreement that ensures that both parties have willingly opted for a task.
A deed can be regarded as a deed if the document clearly mentions that “this is a deed.” It can be regarded as contract-like but some of its aspects differ from a contract. The basic difference is that it does not require a consideration. Considerations are certain elements that both the parties offer or demand before signing a deal.
A deed can also be used when an existing tenant leaves a property prior to the termination date and handles the property to a new tenant.
A third party beneficiary can be allowed to take undertaking in the deed. Thus the doctrine of privity cannot be imposed in this case. Another disparity is that the liability limitation period of a deed can be double that of a contract.
The deed includes the following characteristics:
-Presence of a witness and a competent officer is essential for the deal to come true.
-Also a seal to define the authentication of the document is embossed.
-Existence of outgoing and remaining tenants
-Address of the property under consideration
-Date and other obligations to be followed.
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