In general, a deed is a special type of binding promise to do something. There are many different types of deeds that can be executed in India. Keep reading to learn about them.
| The Tamil Nadu Government has introduced the upgraded version of STAR 3.0 (Simplified and Transparent Administration of Registration) project to eliminate ambiguity in property ownership. The government has decided to include photographs of landowners and a copy of the registered sale deed along with online copies of encumbrance certificates in the registration process. |
A deed is any written legal instrument that transfers, affirms, or verifies an interest, right, or property, among other things. A legitimate deed requires the grantor, the original owner of the land, to surrender his interest to the guarantee, the title recipient. It is also important that the grantor must have legal capacity, which means that the grantor must be of sound mind and lawful contracting age. In most of the places the legal minimum age to fulfill the criteria for contracting capacity is eighteen.
Difference Between Deed and Agreement
The basis of a contract in law is offer and acceptance. It is an agreement to be legally obligated on consideration. Consideration forms the base for an agreement. The parties need consideration to show that they have ‘bought’ the promise by doing some act or providing something in return for the promise. In contrast to an agreement or contract, there is no requirement for consideration to execute a deed, this is because consideration is not mandatory.
| A deed does not need consideration because of the legal notion that a deed is the most solemn indication that two parties are intended to be bound. |
Types of Deeds
-
Warranty Deed
This type of deed is commonly used for the sale of residential real estate. A warranty deed acts as a guarantee to the buyer that the seller has all the right to sell the property and that the property is free of debts and other liabilities. If any issues emerge, the buyer has the right to seek compensation from the seller.
In other words, this type of deed assures that the seller owns the property and has the legal right to sell it. It also guarantees that there are no liabilities, debts, or charges against it. Despite being a warranty act, this type of deed serves as a promise to the buyer, and if any problems arise, the buyer has the right to seek reimbursement from the seller.
A general warranty deed provides the maximum level of security for the buyer because it involves crucial agreements or guarantees being transferred to the grantor. Typically, warranties include specific details such a warranty, the right to convey, burden exemption, and title protection against all other claims. You Can Also Know about the Land Registration.
-
Special Warranty Deeds
A Special Warranty Deed is not the same as a warranty deed. Here the seller’s guarantee to the buyer does not cover the entire property. The seller only guarantees the concerns that arise during the period of the seller’s property ownership. One usually uses a special warranty for purchases involving commercial property. It conveys all rights to the buyer but only guarantees what is clearly stated.
The grantor of this form of deed conveys only two warranties to the property:
- the grantor currently owns the property title, and that
- The land had not been tampered with during the grantor’s ownership period.
Such a deed provides no assurance that the property was free and clear until the grantor took possession. This means that the seller or grantor may have had no idea what occurred to the property until the grantor gained possession, and it does not guarantee that the title was secure prior to then.
This deed is usually preferred while transferring a trust or when selling a commercial property.
-
Quitclaim Deeds
A quitclaim is primarily utilised by family members, spouses, and people who are well-informed and capable of transferring ownership rights and claims from one party to a different party.
-
Bargain and Sale Deeds
Typically, sale deed is used to sell court-seized assets or real estate. It normally does not guarantee to the buyer that the seller owns the property free and clear.
-
Grant Deeds
In exchange for an agreed price, a grant certificate transfers the interest in an estate from the seller to the buyer. It guarantees that the seller owns the property free from all debts. Whereas, it does not provide a guarantee for the defects of the title like the warranty deed.
-
Fiduciary Deeds
One can use a fiduciary deed when the grantor is a fiduciary such as a trustee to transfer the land.
Get your legal documentation here-
Trust Deeds
A trust deed is a written instrument in which property is transferred to a trustee to secure a debt in the form of a promissory note or a mortgage. In the event of default, the trustee has the authority to sell the property.
-
Court Order Deeds
There are various forms of court order deeds which are executed after a court order. It covers things such as deeds of the sheriff, master deeds, etc. The court executes these deeds without the owner’s consent. One of its unique aspects of this deed is that it lists the real price of the property as a consideration in advance.
The Bottom line
Various types of deeds are available to help both the buyer and seller. However, before performing a deed, the terms and conditions must be read in order to avoid future troubles.
Why Vakilsearch
If you are looking for a legal deed, there is no better place to go than Vakilsearch. Here are four reasons why:
1. We have a team of experienced legal professionals who can help you draft the perfect legal deed for your needs.
2. We offer a hassle-free online process that makes it easy to get your legal deed done quickly and without any stress.
3. We provide affordable pricing that fits within your budget.
4. We have a 100% satisfaction guarantee, so you can be sure you will be happy with the final product.
Read more
