What Is a Deed of Assignment?
A deed of assignment refers to a legal document that facilitates the legal transfer of ownership of real estate property. It is an important document that must be securely stored at all times, especially in the case of real estate. In general, this document can be described as a document that is drafted and signed to promise or guarantee the transfer of ownership of a real estate property on a specified date. In other words, it serves as evidence of the transfer of ownership of the property, with the stipulation that there is a certain timeframe in which actual ownership will begin.
The main purpose of a deed of assignment is to transfer an interest or assign the title of property from the seller (an assignor) to a new buyer called (the Assignee). For a deed of assignment to fit the above purpose, it must contain certain details or particulars that will be briefly discussed below:
– Particulars of the parties to the transaction (names, address, status).
– Date of transfer of ownership of the property from the vendor to the purchaser.
– Nature of assignor’s (vendors) title.
– The full description/particulars of the property with fittings & fixtures where applicable.
– History of the property being transferred from the first time it was acquired to the current time of sale, including documents – it previously had to date.
– Details of a verifiable document that the property possesses.
– The consideration paid in respect of the property transaction (purchase price) and the willingness of the vendor to accept the price paid for the property.
– The nature of the transaction and the capacity of the assignor (vendor).
– Covenants both parties to the transaction undertake to fulfil.
– Signature of the parties and that of the witnesses to the transaction.
– Survey plan.
– Details of the Legal practitioner who prepared the deed.
– Section for the Governor’s consent to be signed and verified.
What are the Importance of A Deed of Assignment?
You cannot overemphasize the importance of a deed of assignment as a legal contract entered and executed between two parties to a real estate transaction.
It is Essential For Transferring Land To The Other Party Before It Expires
It covers not only the basic requirements but also the precise terms agreed upon by the transaction’s participants. A real estate lawyer should draft a deed of assignment to ensure that it accurately represents the interests of all parties involved in the transaction. The assignee’s legal counsel creates the deed of assignment, which is subsequently vetted and executed by the assignor (vendor). The assignor’s lawyer may prepare the deed for scrutiny by the assignee’s lawyer if the property is part of an estate.
It Acts As A Legal Root of Title To The Property
A deed of assignment is also important since it serves as a valid root of title to the land. It serves as valid evidence of transfer, particularly when the legitimacy of the land is disputed or a third party attempts to claim ownership of the same land.
Note: It’s also crucial that they register the deed of assignment with the relevant land registry. Especially where the land is located for perfection once they have exchanged it between the parties to the transaction. Perfection comes at the post-completion stage, which includes receiving the governor’s approval, stamping the deed of assignment, and ultimately, registration of the document to establish legal proof that the property has changed hands and to inform the public that the property has a new owner.
Conclusion
A deed of assignment is important in any land transaction because it acts as the main document between the vendor and the purchaser to show that all negotiations, investigations, and other necessary due diligence have been done; the purchase price has been paid; other necessary conditions have been fulfilled by the parties to the transaction and the vendor has transferred all his rights in the property to the purchaser.
