All about Deed

A Deed is a solemn document. It is a formal writing of a non-testamentary character which purports or operates to create, declare, confirm, assign, limit or extinguish some right, title, or interest. It is used to describe all the instruments by which two or more persons agree to effect any right or liability. Deeds are in writing, signed, sealed and delivered.

Components of Deed:

1.      Description of title:

The Deed should contain title at the beginning of the documents preferably on capital letters.

2.      Place and Date of Execution:

Place determines the territorial and legal jurisdiction which is important for registration and stamping of the document and for  claiming legal remedies in case of breach by either parties. The date of execution is important for the purpose of application of law of limitation, registration, maturity period etc.

3.      Parties to the Deed:

Parties (with address) to the Deed should be clearly mentioned in the Deed. While describing the parties, transferor should come first and transferee should be mentioned last. If there is confirming party, the same may be placed after transferor. Reference label may be used against each party to avoid repetition of names at subsequent places. The refusee of heirs, executors, assigns, liquidators, successors etc. should mentioned against each party’s name

4.      Recitals:

Recital is a short story about the subject matter of the Deed. Recital should be written in chronological order. Generally recitals are not taken into evident but are open for interpretation for the court. Recitals begins with the word “Whereas”.

5.      Testatum:

This is witnessing clause. Generally begins with ‘Now this Deed Witnesses as follows’.

6.      Consideration:

Consideration is very important part of the Deed. It also necessary for determining stamp duty payable on the Deed.

7.      Description of Subject Matter and operative clause:

Subject matter should be properly described in the document along with operative clause such as transfer of interest etc. along with other terms and conditions.

8.      Covenents and Undertakings:

Covenant is an agreement or consideration or promise by the parties, by Deed in writing, signed sealed and delivered, by which either of the parties, pledged himself to the other than something  is either done or shall be done for stipulating the truth of certain facts. Covenant clause includes undertakings also.

9.      Testimonium Clause:

This clause is the last part of the Deed. It signifies that parties have signed the deed. Ex: “In witness whereof the parties hereto have signed this day on the date above written.

10.  Signature and Attestation:

Both parties should sign the Deed. If the parties are not competent to sign or is juristic person, person competent to sign should sign the Deed on behalf of the party. For ex: in case of Companies, Authorized person should sign on behalf of the Company. Wherever necessary, attestation should be done by two witnesses.