deeds

Question 1

When is a deed required?

Answer 1

Statutes mandate the use of deeds in several property transactions, including:

Conveyance of interest in land (sale, gift, etc.)
Leases exceeding three years
Transfers of interest without consideration (gifts)
Donation of power to execute a deed (Power of Attorney)
Voluntary surrender of a leasehold interest

Question 2

when is a deed not required

Answer 2

While deeds are essential for many property dealings, some transactions do not necessitate a deed. These include:

Assents by Personal Representatives (PR) to beneficiaries
Vesting orders issued by courts
Short-term leases (three years or less)
Receipts for mortgage satisfaction
Conveyances arising from legal operations (e.g., administration of estates)
Certain disclaimers of inheritance or rights
Transactions falling under the Rule in Walsh v Lonsdale (where an agreement for a lease can be treated as a lease in equity)
Surrender of lease by operation of law (e.g., forfeiture due to breach)

Question 3

What are the essential features of a deed?

Answer 3

Signature: All parties involved must sign the deed.
Sealing: While historically crucial, sealing is less mandatory today. However, it is still advisable for corporate entities.
Delivery: This indicates the intention to be legally bound by the deed and can be absolute or conditional (escrow).
Attestation: Independent witnesses must be present during the signing and execution.
Alterations and Erasures: Any modifications should be initialled by all parties.
Engrossment: Each party receives a complete and identical copy.
Consent: When applicable, the relevant authority’s consent (e.g., Governor’s consent for land transactions) must be obtained.

Question 4

parts of a deed

Answer 4

Introductory Part: Includes the commencement, date, parties involved, and recitals (background information).
Operative Part: Contains the core elements defining the transaction, such as the consideration, receipt clause, capacity of the grantor, words of grant, parcel clause (property description), and habendum (estate granted).
Miscellaneous Part: Covers clauses addressing specific terms, like indemnities, undertakings, acknowledgements, surrender covenants, and exceptions.
Concluding Part: Includes the testimonium, schedules (attachments), execution clause, attestation, consent, and franking (lawyer’s details)

Question 5

information needed to draft a deed

Answer 5

Names and full addresses of all parties
Occupations and descriptions of the parties
Witness details
Grantor’s capacity to convey the interest
Nature of the transaction (sale, lease, gift, etc.)
Quantum of interest being transferred
Consideration amount (if applicable)
Detailed description of the property
Agreed terms and covenants

Question 6

What is franking? and which section of RPC makes it mandatory

Answer 6

Franking involves the endorsement of a deed with the name, address, and contact details of the legal practitioner who prepared it. This is mandated by law to ensure accountability and transparency in property transactions. Rule 10RPC

Question 7

What is the importance of the consent clause in a deed?

Answer 7

The consent clause confirms that the relevant authority, such as the Governor in land transactions, has approved the transfer of interest. This ensures compliance with statutory requirements and makes the alienation of the property legal.