what does a deed of assignment mean

Deed of Assignment: Everything You Need to Know

A deed of assignment refers to a legal document that records the transfer of ownership of a real estate property from one party to another. 3 min read updated on January 01, 2024

Updated October 8,2020:

A deed of assignment refers to a legal document that records the transfer of ownership of a real estate property from one party to another. It states that a specific piece of property will belong to the assignee and no longer belong to the assignor starting from a specified date. In order to be valid, a deed of assignment must contain certain types of information and meet a number of requirements.

What Is an Assignment?

An assignment is similar to an outright transfer, but it is slightly different. It takes place when one of two parties who have entered into a contract decides to transfer all of his or her rights and obligations to a third party and completely remove himself or herself from the contract.

Also called the assignee, the third party effectively replaces the former contracting party and consequently assumes all of his or her rights and obligations. Unless it is stated in the original contract, both parties to the initial contract are typically required to express approval of an assignment before it can occur. When you sell a piece of property, you are making an assignment of it to the buyer through the paperwork you sign at closing.

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 the 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 deed of assignment is the main document between the seller and buyer that proves ownership in favor of the seller. The party who is transferring his or her rights to the property is known as the “assignor,” while the party who is receiving the rights is called the “assignee.”

A deed of assignment is required in many different situations, the most common of which is the transfer of ownership of a property. For example, a developer of a new house has to sign a deed of assignment with a buyer, stating that the house will belong to him or her on a certain date. Nevertheless, the buyer may want to sell the house to someone else in the future, which will also require the signing of a deed of assignment.

This document is necessary because it serves as a temporary title deed in the event that the actual title deed for the house has not been issued. For every piece of property that will be sold before the issuance of a title deed, a deed of assignment will be required.

Requirements for a Deed of Assignment

In order to be legally enforceable, an absolute sale deed must provide a clear description of the property being transferred, such as its address or other information that distinguishes it from other properties. In addition, it must clearly identify the buyer and seller and state the date when the transfer will become legally effective, the purchase price, and other relevant information.

In today's real estate transactions, contracting parties usually use an ancillary real estate sale contract in an attempt to cram all the required information into a deed. Nonetheless, the information found in the contract must be referenced by the deed.

Information to Include in a Deed of Assignment

• Names of parties to the agreement
• Addresses of the parties and how they are binding on the parties' successors, friends, and other people who represent them in any capacity
• History of the property being transferred, from the time it was first acquired to the time it is about to be sold
• Agreed price of the property
• Size and description of the property
• Promises or covenants the parties will undertake to execute the deed
• Signatures of the parties
• Section for the Governors Consent or Commissioner of Oaths to sign and verify the agreement

If you need help understanding, drafting, or signing a deed of assignment, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• Define a Deed
• Contract for Deed California
• Contract for Deed in Texas
• Assignment Law
• Deed Contract Agreement
• Assignment Of Contracts
• Legal Assignment
• Deed vs Agreement
• Assignment Legal Definition
• Contract for a Deed

Deed of Assignment (for Intellectual Property)

In the realm of intellectual property, a Deed of Assignment is a formal legal document used to transfer all rights, title, and interest in intellectual property from the assignor (original owner) to the assignee (new owner). This is crucial for the correct transfer of patents, copyrights, trademarks, and other IP rights. The deed typically requires specific legal formalities, sometimes notarization, to ensure it is legally enforceable.

To be legally effective a deed of assignment must contain:

• Title of the Document : It should clearly be labeled as a "Deed of Assignment" to identify the nature of the document.
• Date : The date on which the deed is executed should be clearly mentioned.
• Parties Involved : Full names and addresses of both the assignor (the party transferring the rights) and the assignee (the party receiving the rights). This identifies the parties to the agreement.
• Recitals : This section provides the background of the transaction. It typically includes details about the ownership of the assignor and the intention behind the assignment.
• Definition and Interpretation : Any terms used within the deed that have specific meanings should be clearly defined in this section.
• Description of the Property or Rights : A detailed description of the property or rights being assigned. For intellectual property, this would include details like patent numbers, trademark registrations , or descriptions of the copyrighted material.
• Terms of Assignment : This should include the extent of the rights being transferred, any conditions or limitations on the assignment, and any obligations the assignor or assignee must fulfill as part of the agreement.
• Warranties and Representations : The assignor typically makes certain warranties regarding their ownership of the property and the absence of encumbrances or third-party claims against it.
• Governing Law : The deed should specify which jurisdiction's laws govern the interpretation and enforcement of the agreement.
• Execution and Witnesses : The deed must be signed by both parties, and depending on jurisdictional requirements, it may also need to be witnessed and possibly notarized.
• Schedules or Annexures : If there are detailed lists or descriptions (like a list of patent numbers or property descriptions), these are often attached as schedules to the main body of the deed.

Letter of Assignment (for Trademarks and Patents)

This is a less formal document compared to the Deed of Assignment and is often used to record the assignment of rights or licensing of intellectual property on a temporary or limited basis. While it can outline the terms of the assignment, it may not be sufficient for the full transfer of legal title of IP rights. It's more commonly used in situations like assigning the rights to use a copyrighted work or a trademark license.

For example, company X allows company Y to use their trademark for specific products in a specific country for a specific period.  

At the same time, company X can use a Letter of Assignment to transfer a trademark to someone. In this case, it will be similar to the Deed of Assignment. 

Intellectual Property Sales Agreement

An IP Sales Agreement is a detailed contract that stipulates the terms and conditions of the sale of intellectual property. It covers aspects such as the specific rights being sold, payment terms, warranties regarding the ownership and validity of the IP, and any limitations or conditions on the use of the IP. This document is essential in transactions involving the sale of IP assets.

However, clients usually prefer to keep this document confidential and prepare special deeds of assignment or letter of assignment for different countries.

IP Transfer Declaration

In the context of intellectual property, a Declaration is often used to assert ownership or the originality of an IP asset. For example, inventors may use declarations in patent applications to declare their invention is original, or authors may use it to assert copyright ownership. It's a formal statement, sometimes required by IP offices or courts.

When assigning a trademark, the Declaration can be a valid document to function as a proof of the transfer. For example, a director of company X declares that the company had sold its Intellectual Property to company Y. 

Merger Document

When companies or entities with significant IP assets merge, an IP Merger Document is used. This document outlines how the intellectual property owned by the merging entities will be combined or managed. It includes details about the transfer, integration, or handling of patents, copyrights, trademarks, and any other intellectual property affected by the merger.

In all these cases, the precise drafting of documents is critical to ensure that IP rights are adequately protected and transferred. Legal advice is often necessary to navigate the complexities of intellectual property laws.

This site uses cookies to store information on your computer.

Some cookies on this site are essential, and the site won't work as expected without them. These cookies are set when you submit a form, login or interact with the site by doing something that goes beyond clicking on simple links.

We also use some non-essential cookies to anonymously track visitors or enhance your experience of the site. If you're not happy with this, we won't set these cookies but some nice features of the site may be unavailable.

By using our site you accept the terms of our Privacy Policy .

• Now Trending:
• UNDERSTANDING TENANCIES ...
• THE SENIOR PARTNER OF PR...
• Dr. Prince O. Williams-J...
• How To Pick The Right Ho...

DEED OF ASSIGNMENT: EVERYTHING YOU NEED TO KNOW.

A Deed of Assignment refers to a legal document in which an assignor states his willingness to assign the ownership of his property to the assignee. The Deed of Assignment is required to effect a transfer of property and to show the legal right to possess it. It is always a subject of debate whether Deed of Assignment is a contract; a Deed of Assignment is actually a contract where the owner (the “assignor”) transfers ownership over certain property to another person (the “assignee”) by way of assignment. As a result of the assignment, the assignee steps into the shoes of the assignor and assumes all the rights and obligations pertaining to the property.

In Nigeria, a Deed of Assignment is one of the legal documents that transfer authentic legal ownership in a property. There are several other documents like a deed of gifts, Assent, etc. However, this article focuses on the deed of assignment.

It is the written proof of ownership that stipulates the kind of rights or interests being transferred to the buyer which is a legal interest.

Read Also: DIFFERENCE BETWEEN TRANSFER OF PROPERTY THROUGH WILLS AND DEED OF GIFT

CONTENTS OF A DEED OF ASSIGNMENT

Content of a Deed of Assignment matters a lot to the transaction and special skill is needed for a hitch-free transaction. The contents of a deed of assignment can be divided into 3 namely; the introductory part, the second (usually the operative part), and the concluding part.

• THE INTRODUCTORY PART: This part enumerates the preliminary matters such as the commencement date, parties in the transaction, and recitals. The parties mentioned in the deed must be legal persons which can consist of natural persons and entities with corporate personality, the name, address, and status of the parties must be included. The proper descriptions of the parties are the assignor (seller) and assignee (buyer). The Recitals give the material facts constituting the background to the current transaction in chronological order.
• THE SECOND PART (USUALLY THE OPERATIVE PART): This is the part where the interest or title in the property is actually transferred from the assignor to the assignee. It is more like the engine room of the deed of assignment. The operative part usually starts with testatum and it provides for other important clauses such as the consideration (price) of the property, the accepted receipt by the assignor, the description of the property, and the terms and conditions of the transaction.
• The testimonium : this shows that all the parties are involved in the execution of the deed.
• Execution : this means signing. The capacity of the parties (either individual, corporate bodies, illiterates) is of great essence in the mode of execution.  It is important to note that the type of parties involved determines how they will sign. Example 2 directors or a director/secretary will sign if a company is involved. In the same way, if an association, couple, individual, illiterate, family land (omonile), firm, unregistered association, etc. is involved the format of signature would be different.
• Attestation : this refers to the witnessing of the execution of the deed by witnesses.

For a Deed of Assignment to be effective, it must include a column for the Governor of the state or a representative of the Government where the property is, to sign/consent to the transaction. By virtue of Sec. 22 of the Land Use Act, and Sec. 10 Land Instrument Registration Law, the Governor must consent to the transaction.

Do you have any further questions? feel free to call Ibejulekkilawyer on 08034869295 or send a mail to [email protected] and we shall respond accordingly.

Disclaimer: The above is for information purposes only and should not be construed as legal advice. Ibejulekkilawyer.com (blog) shall not be liable to any person(s) for any damage or liability arising whatsoever following the reliance of the information contained herein. Consult us or your legal practitioner for legal advice.

Only 22% of poorest Nigerian households have electricity access –World Bank

Related Posts

Understanding Deed of Assignment: Definition, Uses, and Legal Implications Explained

A deed of assignment is a legal document that transfers the ownership of a tangible or intangible asset from one party (assignor) to another (assignee). It is used to formalize the transfer of rights, interests, or benefits associated with the asset specified in the deed. This document is commonly used in various legal and financial transactions to ensure clarity and enforceability of the transfer.

Table of Contents

Key characteristics of deed of assignment.

• Legal Form : It is a formal written document recognized under legal jurisdictions.
• Transfer of Rights : Involves transferring ownership or interests in a specific asset.
• Specificity : Clearly defines the asset being transferred and the terms of transfer.
• Enforceability : Once executed, it becomes legally binding on both parties.

How Deed of Assignment Works

Examples and usage, 1. transfer of debt example.

• Definition : A debtor assigns their debt obligation to a new creditor.
• Process : A deed of assignment is used to transfer the rights to receive payment from the debtor to the new creditor.

2. Intellectual Property Transfer

• Definition : An author assigns their copyright in a book to a publishing company.
• Procedure : A deed of assignment outlines the transfer of intellectual property rights from the author to the publisher.

Advantages of Deed of Assignment

• Legal Clarity : Provides a clear record of the transfer of rights or interests.
• Enforceability : Ensures that the assignee can legally enforce their rights against the assignor.
• Asset Protection : Helps protect the rights of the assignee against claims by third parties.

Challenges of Deed of Assignment

Considerations.

• Legal Requirements : Must adhere to specific legal formalities to be enforceable.
• Risk of Breach : Potential for disputes over the validity or terms of the assignment.

Importance of Deed of Assignment

Practical applications, legal transfers.

• Debt Assignments : Transferring debt obligations from one creditor to another.
• Property Transfers : Assigning ownership rights in real estate or intellectual property.

Real-world Implications

Legal and financial security.

• Contractual Agreements : Facilitates smooth transfers of rights and responsibilities.
• Risk Management : Helps mitigate risks associated with ownership disputes or claims.

Example Scenario

Application in debt assignment, scenario: debt transfer deed of assignment.

• Context : A company assigns its accounts receivable to a factoring company.
• Procedure : Signing a deed of assignment outlining the transfer of rights to receive payment from debtors to the factoring company.

A deed of assignment is a crucial legal instrument used to transfer ownership or rights from one party to another. Whether for debts, intellectual property, or other assets, it ensures clarity and enforceability in legal transactions. By documenting the specifics of the transfer and adhering to legal requirements, parties can safeguard their interests and ensure that the transfer is legally binding. Understanding the purpose and implications of a deed of assignment is essential for navigating legal transfers of rights and assets effectively. It provides a structured approach to asset transfers, protecting the rights of both assignors and assignees under legal frameworks. Overall, deeds of assignment play a significant role in facilitating smooth and legally secure transfers of various types of assets and rights between parties.

Related Posts

Written-down value (wdv) explained for beginners.

If you’re new to finance and accounting, terms like “Written-Down Value” or WDV might sound…

Activity Sampling (Work Sampling): Unveiling Insights into Work Efficiency

Activity Sampling, also known as Work Sampling, is a method used in various industries to…

• Case studies
• Testimonials
• Litigation & Dispute Resolution
• Commercial Law
• Employment Law
• Professional Negligence
• Data Breach & Cyber
• Private Client
• Business owners
• High-net worth individuals
• Group actions & professional negligence

Deed of Assignment and the Notice of Assignment -What is the Difference?

In this article, Richard Gray barrister takes a brief look at the differences between a Deed of Assignment and a Notice of Assignment and the effect of the assignment on the contracting party

At the end of 2020, Elysium Law were instructed to act for a significant number of clients in relation to claims made by a company known as Felicitas Solutions Ltd (an Isle of Man Company) for recovery of loans which had been assigned out of various trust companies following loan planning entered into by various employees/contractors.

Following our detailed response, as to which please see the article on our website written by my colleague Ruby Keeler-Williams , the threatened litigation by way of debt claims seem to disappear. It is important to note that the original loans had been assigned by various Trustees to Felicitas, by reason of which, Felicitas stood in the shoes of the original creditor, which allowed the threatened action to be pursued.

After a period of inertia, Our Clients, as well as others, have been served with demand letters by a new assignee known as West 28 th Street Ltd . Accompanying the demand letters is a Notice of Assignment, by reason of which the Assignee has informed the alleged debtor of the Assignees right to enforce the debt.

Following two conferences we held last week and a number of phone call enquiries which we have received, we have been asked to comment upon the purport and effect of the Notice of Assignment, which the alleged debtors have received. Questions such as what does this mean (relating to the content) but more importantly is the ‘Notice’ valid?

Here I want to look briefly at the differences between the two documents.

There is no need for payment to make the assignment valid and therefore it is normally created by Deed.

 The creation of a legal assignment is governed by Section 136 of the Law of Property Act 1925:

136 Legal assignments of things in action.

(1)Any absolute assignment by writing under the hand of the assignor (not purporting to be by way of charge only) of any debt or other legal thing in action, of which express notice in writing has been given to the debtor, trustee or other person from whom the assignor would have been entitled to claim such debt or thing in action, is effectual in law (subject to equities having priority over the right of the assignee) to pass and transfer from the date of such notice—

(a) the legal right to such debt or thing in action;

(b) all legal and other remedies for the same; and

(c) the power to give a good discharge for the same without the concurrence of the assignor:

Some of the basic requirements for a legal assignment are;

• The assignment must not be subject to conditions.
• The rights to be assigned must not relate to only part of a debt, or other legal chose in action.
• The assignment must be in writing and signed by the assignor.
• The other party or parties to the agreement must be given notice of the assignment.

Notice of assignment

To create a legal assignment, section 136 requires that express notice in writing of the assignment must be given to the other contracting party (the debtor).

Notice must be in writing

Section 136 of the LPA 1925 requires “express notice in writing” to be given to the other original contracting party (or parties).

 Must the notice take any particular form?

The short answer is no. Other than the requirement that it is in writing, there is no prescribed form for the notice of assignment or its contents. However, common sense suggests that the notice must clearly identify the agreement concerned.

Can we  challenge the Notice?

No. You can challenge the validity of the assignment assignment by ‘attacking the Deed, which must conform with Section 136. In this specific case, the Notice sent by West 28 th Street in itself is valid. Clearly, any claims made must be effected by a compliant Deed and it is that which will require detailed consideration before any right to claim under the alleged debt is considered.

Can I demand sight of the assignment agreement

On receiving a notice of assignment, you may seek to satisfy yourself that the assignment has in fact taken place. The Court of Appeal has confirmed that this is a valid concern, but that does not give an automatic right to require sight of the assignment agreement.

In Van Lynn Developments Limited v Pelias Construction Co [1969]1QB 607  Lord  Denning said:

“After receiving the notice, the debtor will be entitled, of course, to require a sight of the assignment so as to be satisfied that it is valid…”

The Court of Appeal subsequently confirmed this  stating the contracting party is entitled to satisfy itself that a valid absolute assignment has taken place, so that it can be confident the assignee can give it a good discharge of its obligations

The important document is the Deed of Assignment, which sets out the rights assigned by the Assignor. The Notice of Assignment is simply a communication that there has been an assignment. The deed is governed by Section 136 of the LP 1925. It should be possible to obtain a copy of the Deed prior to any action taken in respect of it.

For more information on the claims by West 28 th Street or if advice is needed on the drafting of a Deed, then please call us on 0151-328-1968 or visit www.elysium-law.com .

Related news

Get in touch

Deed of Assignment or Deed of Novation: Key Differences and Legal Implications of Novation and Assignment Contracts

Novation and assignment stand out as pivotal processes for the transfer of contractual rights and obligations. These legal concepts allow a party to the contract to adapt to changing circumstances, ensuring that business arrangements remain relevant and effective. This article explores the nuances of novation and assignment, shedding light on their distinct legal implications, procedures, and practical applications. Whether you’re a business owner navigating the transfer of service contracts, or an individual looking to understand your rights and responsibilities in a contractual relationship, or a key stakeholder in a construction contract, this guide will equip you with the essential knowledge to navigate these complex legal processes.

Table of Contents

• What is a Deed of Novation? 
• What is a Deed of Assignment? 

Key Differences Between Novation and Assignment Deeds

Need a deed of novation or assignment key factors to consider, selecting the right assignment clause for your contract – helping you make the right choice, what is a deed of novation.

Novation is a legal process that allows a new party to a contract to take the place of an original party in a contract, thereby transferring both the responsibilities and benefits under the contract to a third party. In common law, transferring contractual obligations through novation requires the agreement of all original parties involved in the contract, as well as the new party. This is because novation effectively terminates the original contract and establishes a new one.

A novation clause typically specifies that a contract cannot be novated without the written consent of the current parties. The inclusion of such a clause aims to preclude the possibility of novation based on verbal consent or inferred from the actions of a continuing party. Nevertheless, courts will assess the actual events that transpired, and a novation clause may not always be enforceable. It’s possible for a novation clause to allow for future novation by one party acting alone to a party of their choosing. Courts will enforce a novation carried out in this manner if it is sanctioned by the correct interpretation of the original contract.

Novation is frequently encountered in business and contract law, offering a means for parties to transfer their contractual rights and duties to another, which can be useful if the original party cannot meet their obligations or wishes to transfer their contract rights. For novation to occur, there must be unanimous consent for the substitution of the new party for the original one, necessitating a three-way agreement among the original party, the new party, and the remaining contract party. Moreover, the novation agreement must be documented in writing and signed by all involved parties. Understanding novation is essential in the realms of contracts and business dealings, as it provides a way for parties to delegate their contractual rights and responsibilities while freeing themselves from the original agreement.

What is a Deed of Assignment?

A deed of assignment is a legal document that facilitates the transfer of a specific right or benefit from one party (the assignor) to another (the assignee). This process allows the assignee to step into the assignor’s position, taking over both the rights and obligations under the original contract. In construction, this might occur when a main contractor assigns rights under a subcontract to the employer, allowing the employer to enforce specific subcontractor duties directly if the contractor fails.

Key aspects of an assignment include:

• Continuation of the Original Contract: The initial agreement remains valid and enforceable, despite the transfer of rights or benefits.
• Assumption of Rights and Obligations: The assignee assumes the role of the assignor, adopting all associated rights and responsibilities as outlined in the original contract.
• Requirement for Written Form: The assignment must be documented in writing, signed by the assignor, and officially communicated to the obligor (the party obligated under the contract).
• Subject to Terms and Law: The ability to assign rights or benefits is governed by the specific terms of the contract and relevant legal statutes.

At common law, parties generally have the right to assign their contractual rights without needing consent from the other party involved in the contract. However, this does not apply if the rights are inherently personal or if the contract includes an assignment clause that restricts or modifies this general right. Many contracts contain a provision requiring the consent of the other party for an assignment to occur, ensuring that rights are not transferred without the other party’s knowledge.

Once an assignment of rights is made, the assignee gains the right to benefit from the contract and can initiate legal proceedings to enforce these rights. This enforcement can be done either independently or alongside the assignor, depending on whether the assignment is legal or equitable. It’s important to note that while rights under the contract can be assigned, the contractual obligations or burdens cannot be transferred in this manner. Therefore, the assignor remains liable for any obligations under the contract that are not yet fulfilled at the time of the assignment.

Choosing Between Assignment and Novation in a Construction Contract

Choosing between a deed of novation and an assignment agreement depends on the specific circumstances and objectives of the parties involved in a contract. Both options serve to transfer rights and obligations but in fundamentally different ways, each with its own legal implications, risks, and benefits. Understanding these differences and considering various factors can help in making an informed decision that aligns with your goals.

The choice between assignment and novation in a construction project scenario, where, for instance, an employer wishes to engage a subcontractor directly due to loss of confidence in the main contractor, hinges on several factors. These are:

• Nature of the Contract:  The type of contract you’re dealing with (e.g., service, sales) can influence which option is more suitable. For instance, novation might be preferred for service contracts where obligations are personal and specific to the original parties.
• Parties Involved: Consent is a key factor. Novation requires the agreement of all original and new parties, making it a viable option only when such consent is attainable. Assignment might be more feasible if obtaining consent from all parties poses a challenge.
• Complexity of the Transaction: For transactions involving multiple parties and obligations, novation could be more appropriate as it ensures a clean transfer of all rights and obligations. Assignment might leave the original party with ongoing responsibilities.
• Time and Cost: Consider the practical aspects, such as the time and financial cost associated with each option. Novation typically involves more complex legal processes and might be more time-consuming and costly than an assignment.

If the intention is merely to transfer the rights of the subcontractor’s work to the employer without altering the subcontractor’s obligations under a contract, an assignment might suffice. However, if the goal is to completely transfer the main contractor’s contractual role and obligations to the employer or another entity, novation would be necessary, ensuring that all parties consent to this new arrangement and the original contractor is released from their obligations.

The legal interpretations and court decisions highlight the importance of the document’s substance over its label. Even if a document is titled a “Deed of Assignment,” it could function as a novation if it transfers obligations and responsibilities and involves the consent of all parties. The key is to clearly understand and define the objective behind changing the contractual relationships and to use a deed — assignment or novation — that best achieves the desired legal and practical outcomes, ensuring the continuity and successful completion of the construction project.

Understanding the distinction between assignment deeds and novation deeds is crucial for anyone involved in contractual agreements. Novation offers a clean slate by transferring both rights and obligations to a new party, requiring the consent of all involved. Assignment, conversely, allows for the transfer of contractual benefits without altering the original contract’s obligations. Each method serves different strategic purposes, from simplifying transitions to preserving original contractual duties. The choice between novation and assignment hinges on specific legal, financial, and practical considerations unique to each situation. At PBL Law Group, we specialise in providing comprehensive legal advice and support in contract law. Our team is dedicated to helping clients understand their options and make informed decisions that align with their legal and business objectives. Let’s discuss!

Authored By Raea Khan

Director Lawyer, PBL Law Group

Find what you need

Share this article, book a 15-min consultation​, rated 5-star by our clients, latest insights & practical guides.

Guide to Owners Corporation Insurance Requirements in Strata Properties

For strata managers and owners corporations, insurance is a critical

Visitor Parking Spaces, Strata Parking Rules and Parking Levies in NSW

Parking in strata properties can be a complex and contentious

Proving Systemic Building Defects in Strata – The Owners v SPS Building Contractors

Systemic defects in strata buildings can be a hidden yet

Speak to us Now or Request a Consultation.

How can our expert lawyers help.

Property and strata disputes, building defects claims, setting up new Owners Corporations and more…

Construction & Building Law

Construction and building disputes, building defects, delays and claims, debt recovery and more…

International Estate Planning

Cross-border estate planning, international wills and trusts, tax-efficient wealth transfer strategies and more…

Commercial & Business Law

Starting and scaling your business, banking and business financing, bankruptcy and insolvency and more…

Planning & Environment Law

Environment and planning regulation, land and environment court disputes, sub-divisions and more…

Wills & Estates

Creating, updating and contesting wills, estate planning and administration, probate applications and more…

Get In Touch

Helpful links, site information, how we can help.

Liability limited by a scheme approved under Professional Standards Legislation.

Copyright © 2024 PBL Law Group. All Rights Reserved

Built by Commersion.Legal

Thank You For Your Request.

We’ve received your consultation request and will contact you within the next 24 hours (excluding weekends).

[email protected]

0807 794 3514, 0703 668 1104

What is a Deed of Assignment and the Foolish Risk your taking for not having a Deed of Assignment for your Land

By omonilelawyer | july 15, 2017 | 43,033 | 39.

A deed of Assignment is one of the most important documents YOU MUST HAVE when you conclude a Land Transaction. In fact it baffles me that 6 out of 10 people I know who have bought lands in the past have no deed of assignment . They are always the first to complain that Omonile has defrauded them but they have no proof to show the property has been sold to them other than a receipt.

It’s funny that everyone has the title documents to their car showing who the seller was and how it was transferred from the Seller of that car to you the new owner but when it comes to landed properties which are 10 times more valuable than cars, we fail to ask for this one simple important document that can prove ownership of that land. What then is this all important deed of Assignment I am alluding to? This can be found from the following definitions below:

A deed of Assignment is an Agreement between the Seller of a Land or Property and a Buyer of that Land or property showing evidence that the Seller has transferred all his rights, his title, his interest and ownership of that land to that the Seller that has just bought land.

The Deed of Assignment acts a main document between the buyer and seller to show proof of ownership in favour of the seller . The person or Seller who transfers his rights or interests in that property is usually called the Assignor and the person who receives such right or interest from the Seller is called the Assignee.

A Deed of Assignment therefore is an Agreement where an assignor states his promise that from the date of the assignment or any date stipulated therein, the assignor assigns his ownership in that Land to the assignee. The deed contains very pertinent information for a real estate transaction. For one, it spells out the date when the ownership of the property transfers from one owner to the other. The deed also gives a specific description of the property that is included in the transfer of ownership.

Signing a Deed of Assignment and having that Deed is your number 1 evidence against another person that is trying to claim ownership of that same land too. If you have a land and no deed yet, i feel sorry for you! Better consult your Lawyer to go draft one for you now to save yourself future problems

In most situations, when the Deed of Assignment has been exchanged between both parties, it has to be recorded in the land registry to show legal proof that the land has exchanged hands and the public should be aware of the transaction. Such recorded Deed of Assignment come in the form of either a Governor’s consent or registered conveyance.

The Deed of Assignment spells out the key issues in the transaction between the Seller and the Buyer so that there won’t be any confusion or assumption after the property has been transferred to the new owner . Such Key issues include:

1. The Parties’ to the Agreement e.g between Mr A and Mrs K

2. The addresses of both parties and how it is binding on their successors, friends, colleagues and those representing them in any capacity.

3. The history of the land in question how it was first obtained down to the moment its about to be sold including and documents it previously had till this date

4. The agreed cost of the land and the willingness of the Seller to finally accept that price paid for the land

5. The description and size of the land to be transferred.

6. The covenants or promises both parties choose to undertake to perfect the transfer of the document

7. The signature of the parties to the Assignment and Witnesses to the Transaction

8. Finally the section for the Commissioner of Oaths or Governors Consent to sign and validate the agreement.

These are the important features of a Deed of Assignment and must be included in all Documents for it to be valid. Don’t listen to any Omonile who tells you he doesn’t or the family doesn’t sign a deed of assignment and that it is only a receipt you need. He is only looking for a way to resell your land to another person and to use receipt as a ploy to prevent you from establishing true ownership of your land.

Always consult a property lawyer before you buy a land to help prepare a deed of assignment. It will be your greatest mistake if you don’t have one. Below is a sample deed of assignment and how it looks so that you don’t fall victim of land swindlers

SAMPLE DEED OF ASSIGNMENT

The Cover of the Deed of Assignment must show the parties to the transaction and the description of the land sold

The first page of the Deed of Assignment must contain the parties to the transaction and the brief history of how the land became the Sellers property

The third page must contain the description of the land to be sold, the surveyor that did it, the cost of the land, the acceptance of the cost of the land and the promises both parties will make to themselves to abide with after the deal has been sealed.

The last page must show the signatures of the parties and the witnesses to that transaction and finally below , the section for the commissioner of oaths to endorse or the Governor to assent his consent to this transaction

Always consult a property lawyer before entering a legal contract.

Omonile Lawyer in your inbox

Subscribe to Omonile Lawyer's Newsletter and stay up to date with more great news and articles like this one

WRITTEN BY: OmonileLawyer

Hey, I'm the Omonile Lawyer. Do you want expert verification on that new land? Contact me now!

Related Post

Beware-A Contract of sale is not a good title. Don’t be fooled

THE DANGERS OF BUYING AN “EXCISION IN PROCESS” LAND IN LAGOS

9 Extremely Dangerous Land Survey Plan Scams by Fraudulent Land Surveyors You Must be Aware of

Omonile Lawyer’s 25 Critical Questions To Ask To Avoid Falling For A Real Estate Scam In Lagos

How Deceitful Sellers Lure Innocent Buyers To Buy Lands With Fake Governor’s Consent

39 comments.

owolabi animashaun

how much is it to obtain governor consent of 3plots of land at okegbegun phase 2.,winner church along laspotech road ikorodu? or if there is C OF O Availiable? thanks

Barr. Matthew Ottah

I need the square meters of the survey plan so that I can fathom out N estimate of what it would cost. Cheers

I have a parcel of Land i had alredy built a 3-Bedroom Bungalow on at Magada behind MFM Prayer City. I only have a Signed Agreement from the One I bought it from. I have paid to the Omonile but yet to get a receipt from them. I have not done a survey yet. Kindly advice.

babatunde Ogunnowo

good morning. what is the difference bewteen a deed of sublease and a deed of assignment? which is preferable 2. what are the cost implications for processing any tyeo of deed. thanks. keep up the good work

Sir, I have plot at ogun state and for the deed of assignment, the land owners said I will pay 100K for them to get it done that there are four signatories to it. The issue now is that the said amount is too much. Pls I need your input on this. Thank You

Matthew Ottah

You need to negotiate with them to reduce the price

Please Mr Ottah can you send your number so I can call to ask for help?

My numbers are everywhere on the site. Cheers

sir,this deed…who is resposible to issusing it,i.e is it part of the document the omonile will give you when you have paid for the land or the buyer contracts a lawyer to draw it up after payment and takes to family(olori ebi) to sign their portions.

Your very correct sir. Both options are the right way to go about it.

how do you know a false land

I wanted to buy a land from one of this estate, I was told the estate has a Global C of O from Ogun state government and that upon payment I will be issued a Deed of Assignment. There after I can do the survey. My questions are: 1. I was told since the Estate has Global C of O, I might not necessarily need individual C of O. 2. What other documents do I need to process apart from the survey. You sincere advice will be appreciated. Thanks

sir, thank you very much sir for your advise, all what u said above is true even i presently find myself in dat situation, i bought just half plot of land from a family representative at abeokuta in which i only collected receipt from them without the deed of assigmnet and i started work on the land, im even through with the foundation about to start the main building. Sir, i will be very glad and happy if you can put me through on what are d next steps to take, though i have printed out all the deed of assignment you pasted up for me to rewrite and give them to sign.

Thanks you very much sir

Hi, I bought a land from a relative of which the land have a c of o under my Anty family name, my question is; 1. Do I have to do personal c of o on my name. 2. is’t secure under my Anty family name. I need an advice, and I will be looking forward to hear back from you because I don’t know what to do before is too late…thanks!

Good evening barrister, Pls must I first so a survey before I do a deed. We Purchased a land and we have just a receipt. Thank you

please is it legal for a non lawyer to prepare a deed of assignment? Thanks.

Please explain to me the difference between Deed of Assignment and Deed of Agreement. I am getting different interpretation and it is confusing. When I buy a family land, which one should I prepare for the family to sign?

They are the same thing sir and perform the same function.

Could you please tell me the importance of that red seal in a deed? What is its significance? How important is it? Thanks

Its of no serious importance in modern day execution of documents. As long as the parties have signed or attested to the documents with their signatures or personal thumbprint, the document is as good as been executed properly. People who use it are mostly Customary Land Families to show how important their signatures are

Giulia Devey

I have a deed of assignment which is signed but the property has an outstanding mortgage on the property. I have been paying this, however it fell into arrears and now the assignor is claiming against me for receiving adverse credit. This person did not take their name off the mortgage therefore would I be liable for her claim in court?

Yes you would because you have chosen to continue paying the outstanding mortgage. Your lawyer should have advised you on the perils of continuing the mortgage payment in your name

Pls. must a land have C of O before Governor conscent can be acquired if purchased from the owner? What happen when the land doesnot have C of O? can the buyer seek to get C of O in place of Governors conscent

Please can a commissioner for oath of Lagos State endorse the dead while the land is situated in ogun state

Can a deed of assignment be prepared for land that does not have C of O yet but which Allocation paper or R of O is ready?

name withheld

my friend bought a property an does not know how much to pay his attorney, the attorney are asking for 500k 180, and claimed they have to bribe some people to get them to follow the deed of assignment , is it a fraud of are the lawyers just trying to be a fraudulent?? thanks and have a good day

Good day Sir, I found this site and info therein helpful. Is it possible for a the seller to issue a 2 Deed of assignment to different person on the sme land.

What is the functional different between C of O and deed of assignment

Two people bought a plot of land. The seller bought it from another person. What documents must the new buyers get? Must each survey his own portion before the agreement?

omonile lawyer, pls i have power of attorney and deed of partition for a piece of land in abuja (4 of us bought and shared the land), do i still need deed of assignment?

Sir, I want you to send a soft copy of deed of assignment to my email. How much would it cost? [email protected]

Good day sir. I bought a plot of land, have a signed deed of assignment. But resently, d surveyor called me that there is need to create a road at my (land) back i.e a plot will b inbetween two roads and that i should shift my pillar and the corner piece. Now, i need ur advice on what to do sir. Thanks. N.B He is d one who sold d land, measured, pegged and put d pillar.

l can get in touch with the company l signed deed of assignment with 4 times no reply to me

Gabriel Joseph

To be honest with you this is really helpful. Thanks

how do I submit my deed of assignment for record purpose

pls sir,I bought a land with power of attorney from estate management.Am I entitle to omonile receipt and deed of assignment?

i have a land which was purchased from the estate developers but i lost all documents to it by an act of God. what can i do

please sir, can u help us with a sample of the shedule page so that i ccan coinfirm that the schedule page of the deed of assignment for my land is made in the right form

Ola Abiodun

I bought a land in my name and wife’s name. I have now built a property on this land and all the paper works including CofO and the plan have our names both. The land and the property was solely bought and built with my money. I understand we both have claim because her name is on the documents.

What do I need to do to take her name off the the property, both the land and the building? Can you also please advise the likely cost?

I look forward to hearing from you

Leave a Comment Cancel Reply

Deed of assignment | Practical Law

Deed of assignment

Practical law anz standard document w-002-8276  (approx. 19 pages).

Understanding a deed of assignment for intellectual property

A deed of transfer is used to change the ownership of intellectual property, a common occurrence in business. Explore how and when to use one.

Find out more about intellectual property basics

by   Brette Sember, J.D.

Brette is a former attorney and has been a writer and editor for more than 25 years. She is the author of more than 4...

Read more...

Updated on: November 24, 2023 · 3 min read

Understanding intellectual property in business

How to transfer intellectual property rights in business, what to include in a deed of assignment, registering new ownership, restrictions on intellectual property transfers.

Most companies have intellectual property as part of their assets, including software, product design, or copyright to white papers. Buying or selling such property is done using a document called a deed of assignment.

A large part of what a business consists of may be tied to intellectual property . It's easy to see physical property a company owns, such as a building, office furniture, or inventory, but intellectual property can be more challenging to identify.

Most businesses have intellectual property, or works created by human minds or, in some cases, by computers. Some examples of intellectual property include architectural drawings, ad campaigns, company or product names, inventions, and source code.

Examples of when transfers of intellectual property might happen include when a company is buying another company, when you are setting up an LLC and want to transfer your intellectual property into the company, or when a business buys product rights from another company or individual.

A deed of assignment can be done in one transaction, instead of one transaction for each item of intellectual property, by transferring all ownership rights of all intellectual property detailed in the deed. The document is signed by both the buyer and seller. No payment is required for it to be valid.

A deed of assignment must be in writing and should include:

• The names and addresses of the assignor and assignee
• A description of the program or product for which the rights are being transferred
• A statement that all intellectual property rights to the property are being transferred
• Signatures of the parties and the date of the agreement execution

The deed could also include the following sections, where applicable:

• Consideration, or payment, to be made to the original owner.
• Warranties, or promises that the intellectual property rights being assigned don't infringe on anyone else's intellectual property rights . For example, in a deed regarding the transfer of a copyright, this section could state that the copyrighted work is original and not owned by someone else.
• Indemnification, or promise by the seller to reimburse the assignee if there is some problem with title to the property.
• Future assignments. For example, the agreement could be ongoing, so that anything the assignor creates in the future for this product or program is also transferred to the buyer.

Although a deed of assignment transfers ownership in intellectual property , it does not change the registration of the ownership. The assignee is responsible for handling all registration requirements.

For example, if a patent is transferred via a deed of assignment, the new owner must record the change in ownership with the U.S. Patent and Trademark Office. Similarly, the transfer of a copyright is recorded with the U.S. Copyright Office.

Transfers of intellectual property must comply with U.S. laws. One obvious caveat is that you can't transfer property you don't own. Transfers must also comply with antitrust laws, which are set up to prevent one company from completely dominating an industry.

If intellectual property rights are being transferred overseas, the transfer must comply with Export Administration Regulations and the International Traffic in Arms Regulations , which are designed to protect national security and trade.

The deed of assignment can be a crucial part of a business deal or transaction. You can create a deed of assignment yourself, or you can work with an attorney .

You may also like

How to Write a Will: A Comprehensive Guide to Will Writing

Writing a will is one of the most important things you can do for yourself and for your loved ones, and it can be done in just minutes. Are you ready to get started?

July 21, 2024 · 11min read

What Is a Power of Attorney (POA)? A Comprehensive Guide

Setting up a power of attorney to make your decisions when you can't is a smart thing to do because you never know when you'll need help from someone you trust.

July 28, 2024 · 16min read

Deed of Absolute Sale vs. Deed of Assignment

A deed of absolute sale and a deed of assignment both transfer property ownership from one party to another. People use a deed of absolute sale most often in a typical real property sale in which a buyer purchases a property from a seller. Bankruptcy courts most often use a deed of assignment to transfer property from the property owner to the bankruptcy court. Take a look to learn more about the deed of assignment versus absolute deed of sale meaning and better understand how these affect the parties involved.

Advertisement

What's a Deed of Assignment?

Video of the Day

A deed of assignment occurs when a debtor transfers property to a creditor, usually a bankruptcy court trustee. The bankruptcy court trustee is then responsible for facilitating the sale of the property. Once the property sells, the trustee splits the proceeds equally among the creditors. The creditors then apply these proceeds to the debtor's outstanding balances.

Property Exclusion in Bankruptcy

Insolvent debtors are not required to complete a deed of assignment to the bankruptcy court. Bankruptcy courts often allow an exclusion for the insolvent debtor's primary home . Depending on the debtor's location, there may be a limit to the home equity allowed for the exclusion. However, the bankruptcy court may require insolvent debtors to complete a deed of assignment for additional real properties, such as second homes and vacation homes.

This means the insolvent debtor may keep his primary home – with consideration for any home equity limits – from inclusion in the bankruptcy proceedings. However, the bankruptcy court may require him to complete a deed of assignment on his secondary or vacation homes to sell and use the proceeds toward paying his creditors.

Absolute and Conditional Sales

Property sale transactions are typically either conditional or absolute.

Conditional sales occur when the transfer of the property from one party to another party will not be completed, and the title to the property will not be transferred until certain conditions of the sale contract are met either by the buyer or by the seller. For example, if a property has outdated plumbing, the buyer can require the seller to update the plumbing as a condition of the sale.

An absolute sale occurs when the sales contract has no conditions. This means that the property transfer will happen as long as the buyer pays the seller the amount of money agreed on.

Absolute Deed of Sale Meaning

To understand a deed of sale vs deed of absolute sale, know that a deed of absolute sale is a when a seller transfers or conveys the title of a property to the other party without condition except for the payment for the property. For example, a seller lists her property for $100,000, and a buyer comes along and gives her $100,000 for the property without requiring her to do anything to the property. A deed of absolute sale is completed, and the title of the property transfers from the seller to the buyer.

• Upcounsel: Deed of Assignment: Everything You Need to Know
• USLegal: Absolute Sale
• Amourgis & Associates Attorneys at Law: What Property is Considered Exempt in an Ohio Bankruptcy?

• Business Set Up
• Data & Privacy
• Getting Funding
• Intellectual Property
• Employment Law
• Technology and Software
• Professional Services
• Construction & Trades
• Fitness, Health and Wellness
• Online Business
• Food & Hospitality
• Meet the Team
• Quick Q&As
• Get Started
• Member Login

What Is A Deed of Assignment, Anyway?

In any business, contracts will be everywhere you go — from your customers to suppliers, contractors, employees, graphic designers and even your monthly subscriptions!

However, contracts generally are signed between two parties.

So, what happens if one party wants to transfer or assign their rights and obligations under a contract to another party ?

This is where a Deed of Assignment comes in.

What Is A Deed?

In the legal world, there are two main types of legal documents: agreements and deeds.

Agreements are generally the most common contracts you’ll see. However, deeds work a little differently.

Put simply, a deed needs to be physically signed and witnessed in person. This means that it’s difficult to sign deeds with international parties.

So, it’s important to understand that a deed has specific requirements for execution.

What Is A Deed of Assignment (Contract Assignment)?

A Deed of Assignment is a legal document that transfers or assigns the legal rights and obligations to another party.

And it varies depending on your situation.

For example, an assignment could work for simple things like intellectual property. When a graphic designer creates a logo for you, you might want to make sure that logo is owned by you. In this case, the graphic designer would “assign” that copyright to you.

Or, if you’re selling your business, you might want to transfer your contractual relationships to whoever is purchasing your business. 

For example, if you have existing contracts with suppliers to your cafe business, you might look at transferring these to the buyer. Here, you’d sign a Deed of Assignment to transfer the rights and obligations of that contract to the new owner of your business.

A Deed of Assignment makes sure that you no longer have continuing obligations and rights as a signatory to that contract . The last thing you want is to be liable or accountable for a contract you forgot to assign to someone.

When Can A Contract Be Signed As A Deed?

We mentioned above that a deed is essentially a legal document – so how is this different to a standard contract?

A contract can be signed as a deed if the parties agree that no consideration will be required.

Since it is a slightly more formal document, it follows a specific process of execution. To execute a deed, a witness is required (and, in some cases, a seal).

If you need help putting together a Deed of Assignment, let’s chat!

You can reach out to our friendly team at [email protected] for a free, no-obligations consultation about your specific situation and the legal documents that are right for you.

Sprintlaw's expert lawyers make legal services affordable and accessible for business owners. We're an award-winning, online law firm for small businesses in the UK.

We'll get back to you within 1 business day.

• Full Name *
• Email Address *
• What are you looking for help with? *
• Email This field is for validation purposes and should be left unchanged.

Related Services

Ip assignment deed, deed of novation, deed of variation, deed of settlement, deed of termination.

• Name This field is for validation purposes and should be left unchanged.

Download our Top 3 Legal Mistakes guide.

Keep your business in the loop with the latest legal updates.

Book in a free consultation with us to discuss your legal needs.

You're visiting Sprintlaw . Would you like to switch to Sprintlaw ?

• Business Sales
• Commercial Leases
• Construction
• Consumer Law
• Creative & Entertainment
• Digital Marketing & Advertising
• Franchising
• Not-for-profits & Charities
• Regulatory Compliance
• Software & IT
• Accountants
• Agribusiness
• Beauty Industry
• Clothing Business
• Consulting and Professional Services
• Creative Industries
• Education and Training
• Event Planning & Management
• Fitness and Wellness Industry
• Furniture & Homeware
• Hairdressing Business
• Healthcare and Medical Practices
• Hospitality and Tourism
• Instagram Business
• Legal Services
• Logistics and Transportation
• Marketing Business
• Party Business
• Restaurant and Cafés
• SaaS Business
• Sports & Recreation
• Technology and Software Development
• Travel Agencies and Tour Operators
• Creative & Entertainment
• Data & Privacy
• Digital Marketing & Advertising
• Getting Finance
• Health & Beauty
• Not-for-profits & Charities
• Software & IT
• Getting Started With Your Legals
• Business Ideas and Plans
• Business Structure
• Business Partners
• Industry Regulations
• Building a Team: Employees and Contractors
• Online Business and Privacy

• Need Help? Get Support
• Login/Register

Deeds of Assignment of a Debt – Your Top Questions Answered

Posted by david cammack on february 7, 2020.

Home / Blog / Deeds of Assignment of a Debt – Your Top Questions Answered

( Revised for 2023. )

Do you want to know more about what a deed of assignment of a debt is, if you need one, or what to include in it? If so, our blog article has all the answers. So today, we are answering the top questions from the Internet about deeds of assignment of a debt.

1. Can a debt be assigned? How do I assign a debt in the UK?

Yes. Banks regularly buy and sell debts. If you are a creditor, then you can do so too. But you need to do so in writing. A deed of assignment of a debt is the document to use for this. You would need to assign the whole of a debt, as you cannot assign only part of it. The debtor cannot assign the debt to someone else unless the creditor agrees and you would then do this via a deed of novation.

2. What is an assignment of a loan?

This means the same thing as an assignment of a debt. It is always the right to receive repayment of the debt or loan that you are assigning.

3. What is a deed of assignment of a debt?

This is a legal document that transfers the ownership of the debt to another person. By ‘ownership’ we mean the right to receive repayment of that debt from the same original debtor or borrower.

4. What does assignment of debt mean?

The assignment of a debt will mean that the original debtor or borrower now owes the debt to a different creditor. So the debtor will now need to repay that debt to a new person, because you have transferred the debt.

5. Is a deed of assignment of a debt a legal document?

If prepared correctly, yes, a deed of assignment is a legally-binding document. In order to make the assignment legally binding on the debtor, the creditor should give notice of the assignment to the debtor. Our template includes a notice of the assignment of the debt, so you can complete it and send it to the debtor.

6. What is a notice of assignment of a debt? What do I need to do to give notice of an assignment of a debt?

Once you have assigned a debt, then you need to give the debtor notice of the transfer of the debt. Otherwise, how will they know to repay the new owner of the debt? Ideally, the deed of assignment of debt will mention this and include a form for the notice. (Legalo’s template does.) Wikipedia explains why such notice is necessary here: https://en.wikipedia.org/wiki/Rule_in_Dearle_v_Hall#Criticisms .

7. How do you draft a deed of assignment of a debt?

If you require this deed, then the quickest way to get one is with a template from Legalo. Find our great template here: just click on this link .

8. What are the contents of a deed of assignment of a debt?

If you click on this link and scroll down to the section about the Guide to the template, then you will see the contents of our template for a deed of assignment of a debt.

9. Who can prepare a deed of assignment of a debt? Can a non-lawyer prepare a deed of assignment of a debt?

A non-lawyer can use any of the documents we sell as templates. So this includes a deed of assignment of a debt.

10. Does a deed of assignment of a debt need to be signed by both parties?

The parties who do need to sign it are (a) the original creditor and (b) the one buying (or otherwise taking) the debt from the original creditor. The debtor does not sign it.

11. Does a deed of assignment of a debt need to be witnessed?

All deeds need to be signed correctly with an adult witness, preferably one who none of the persons signing are related to.

12. Does an assignment of debt need to be a deed?

If there is no price being paid for the purchase of the debt, then the document does need to be a deed, in order to ensure it is legally binding. Otherwise, technically it does not need to be prepared and signed as a deed, but generally it is better to do it as a deed in case there is any doubt. Legalo’s template is set up to be signed as a deed.

13. Does a deed of assignment of a debt need to be registered?

Not unless you have secured the debt, for example on a property in the UK at the Land Registry. In such a case, then you would need to register the transfer of the security separately at the Land Registry. You do not register the assignment of the debt itself.

14. How long does a deed of assignment of a debt take to draft?

Legalo’s template makes it easy, so you should only need a few minutes to draft your deed of assignment.

15. How much does a deed of assignment of a debt cost? How much does a notice of assignment of a debt cost? How much do lawyers charge for deed of assignment of a debt?

Our template for a deed of assignment includes a notice of assignment and costs only £24.95. Solicitors would charge an estimated £500 plus VAT for one, so ours represents a significant cost saving.

In just a few minutes yours can be ready. What’s more, Legalo’s templates each come with a guide to make it clear how to complete it. We also provide a free helpline just in case you need any extra assistance to use it. So it could not be easier.

So if you need one, you know where to find it.

Get Legal & Compliance tips straight to your inbox, free!

Partnership

Sole proprietorship, limited partnership, compare businesses, employee rights, osha regulations, labor hours, personal & family, child custody & support, guardianship, incarceration, civil and misdemeanors, legal separation, real estate law, tax, licenses & permits, business licenses, wills & trusts, power of attorney, last will & testament, living trust, living will.

• Share Tweet Email Print

LIVING TRUST

What is an assignment of trust deed.

By Tom Streissguth

• What Is a Corporate Assignment of Deed of Trust?

If you own a home, you may have signed a trust deed that gives the mortgage lender a claim on the property. A default on the loan gives the lender the legal authority to foreclose on the loan and take possession of the house. An assignment of a trust deed conveys that claim to another party.

Considerations

Lenders have the right to sell their home loans. This can happen once or several times over the long life of a mortgage. The usual customers for mortgages are banks and other companies that are seeking safe and stable investment returns. This "secondary" market for mortgages is quite active, and a lender has plenty of opportunity to sell a mortgage and turn a profit. Read More: What Is a Corporate Assignment of Deed of Trust?

When a lender sells the loan, it assigns the trust deed to the buyer. “Assignment” means to convey a claim or a right to another party, known as the “assignee.” This is done by creating another legal document — the assignment of trust deed — and having it signed by both buyer and seller. The trust deed, and other documents associated with the loan, become the property of the buyer.

The assignment of trust deed is a short, usually single-page document. The body text gives the names of the deed buyer and the property owner, the date of the original trust deed, and the legal description of the property for which the original deed was executed. It may also give the terms of the deed sale. The seller signs and dates the document, and has it notarized. The buyer then has the assignment of trust deed recorded with the registrar of the county where the property is located.

A borrower has no legal right to block or negotiate the terms of an assignment of trust deed. The assignment does not affect the terms of the loan. The monthly payments remain the same, although the borrower will have to send them to a new address. The new owner of the trust deed becomes the lender and collects all mortgage payments, sometimes on its own and sometimes through a servicing company. If a default occurs, the latest assignee has the right to foreclose and repossess the home.

• US Legal: Assignment of Trust Deed
• Guide to the Stock Market: Assignment of Trust Deed

Founder/president of the innovative reference publisher The Archive LLC, Tom Streissguth has been a self-employed business owner, independent bookseller and freelance author in the school/library market. Holding a bachelor's degree from Yale, Streissguth has published more than 100 works of history, biography, current affairs and geography for young readers.

Related Articles

• How to Fill Out the Deed of a Trust to Secure Assumption
• How to Write a Wrap-Around Mortgage
• The Definition of a Leasehold Deed of Trust

• Cambridge Dictionary +Plus

Meaning of deed of assignment in English

Your browser doesn't support HTML5 audio

Examples of deed of assignment

Word of the Day

left luggage

a special room or other place at a station, airport, etc. where bags can be left safely for a short time until they are needed

Simply the best! (Ways to describe the best)

Learn more with +Plus

• Recent and Recommended {{#preferredDictionaries}} {{name}} {{/preferredDictionaries}}
• Definitions Clear explanations of natural written and spoken English English Learner’s Dictionary Essential British English Essential American English
• Grammar and thesaurus Usage explanations of natural written and spoken English Grammar Thesaurus
• Pronunciation British and American pronunciations with audio English Pronunciation
• English–Chinese (Simplified) Chinese (Simplified)–English
• English–Chinese (Traditional) Chinese (Traditional)–English
• English–Dutch Dutch–English
• English–French French–English
• English–German German–English
• English–Indonesian Indonesian–English
• English–Italian Italian–English
• English–Japanese Japanese–English
• English–Norwegian Norwegian–English
• English–Polish Polish–English
• English–Portuguese Portuguese–English
• English–Spanish Spanish–English
• English–Swedish Swedish–English
• Dictionary +Plus Word Lists
• Business    Noun
• All translations

To add deed of assignment to a word list please sign up or log in.

Add deed of assignment to one of your lists below, or create a new one.

{{message}}

Something went wrong.

There was a problem sending your report.

• Business Set Up
• Consumer Law
• Data & Privacy
• Employment Law
• Getting Finance
• Intellectual Property
• Technology & Software
• Professional Services
• Construction & Trades
• Fitness, Health and Wellness
• Online Business
• Food & Hospitality
• Meet the Team
• Quick Q&As
• Get Started
• Member Login

What Is A Deed of Assignment, Anyway?

In any business, contracts will be everywhere you go — from your customers to suppliers, contractors, employees, graphic designers and even your monthly subscriptions!

However, contracts generally are signed between two parties.

So, what happens if one party wants to transfer or assign their rights and obligations under a contract to another party ?

This is where a Deed of Assignment comes in.

What Is A Deed?

In the legal world, there are two main types of legal documents: agreements and deeds.

Agreements are generally the most common contracts you’ll see. However, deeds work a little differently.

Put simply, a deed needs to be physically signed and witnessed in person. This means that it’s difficult to sign deeds with international parties.

So, it’s important to understand that a deed has specific requirements for execution.

What Is A Deed of Assignment?

A Deed of Assignment is a legal document that transfers or assigns the legal rights and obligations to another party.

And it varies depending on your situation.

For example, an assignment could work for simple things like intellectual property . When a graphic designer creates a logo for you, you might want to make sure that logo is owned by you. In this case, the graphic designer would “assign” that copyright to you.

Or, if you’re selling your business , you might want to transfer your contractual relationships to whoever is purchasing your business. 

For example, if you have existing contracts with suppliers to your cafe business, you might look at transferring these to the buyer. Here, you’d sign a Deed of Assignment to transfer the rights and obligations of that contract to the new owner of your business.

A Deed of Assignment makes sure that you no longer have continuing obligations and rights as a signatory to that contract . The last thing you want is to be liable or accountable for a contract you forgot to assign to someone.

If you need help putting together a Deed of Assignment, let’s chat!

You can reach out to our friendly team on 1800 730 617 or [email protected] for a free, no-obligations consultation about your specific situation and the legal documents that are right for you.

Sprintlaw's expert lawyers make legal services affordable and accessible for business owners. We're Australia's fastest growing law firm and operate entirely online.

We'll get back to you within 1 business day.

• Full Name *
• Email Address *
• What are you looking for help with? *
• Comments This field is for validation purposes and should be left unchanged.

Related Services

Ip assignment deed, deed of assignment of contract, deed of assignment/transfer of lease review, deed of assignment/transfer of lease, deed of accession.

• Name This field is for validation purposes and should be left unchanged.

Download our Top 3 Legal Mistakes guide.

Book in a free consultation with us to discuss your legal needs.

You're visiting Sprintlaw . Would you like to switch to Sprintlaw ?

• Business Sales
• Commercial Leases
• Construction
• Creative & Entertainment
• Digital Marketing & Advertising
• Franchising
• Not-for-profits & Charities
• Regulatory Compliance
• Software & IT
• Accountants
• Agribusiness
• Beauty Industry
• Clothing Business
• Consulting and Professional Services
• Creative Industries
• Education and Training
• Event Planning & Management
• Fitness and Wellness Industry
• Furniture & Homeware
• Hairdressing Business
• Healthcare and Medical Practices
• Hospitality and Tourism
• Instagram Business
• Legal Services
• Logistics and Transportation
• Marketing Business
• Party Business
• Restaurant and Cafés
• SaaS Business
• Sports & Recreation
• Technology and Software Development
• Travel Agencies and Tour Operators
• Creative & Entertainment
• Data & Privacy
• Digital Marketing & Advertising
• Not-for-profits & Charities
• Software & IT
• Uncategorized
• Getting Started With Your Legals
• Business Ideas and Plans
• Business Structure
• Business Partners
• Industry Regulations
• Building a Team: Employees and Contractors
• Online Business and Privacy

Milton and Cross

Commercial Solicitors

What does a Deed of Assignment mean in Real Estate Transactions?

To appreciate the importance of a deed of assignment, we first have to distinguish Legal ownership of a property from equitable ownership.

What is Legal Ownership?

Legal Ownership or Title refers to ownership that is properly registered with the government. True ownership requires legal title.The documented property owner, as visible through the  public records ,is deemed to have the right to use, maintain and control the property . The bundle of rights that comes with land ownership include:

• Mineral rights
• Easement rights
• Development rights
• Possession and control
• Exclusive use
• Conveyance rights
• Right of disposition

You may assume that your ownership of a property is complete with legal title, but this is not always the case. Another party may have equitable title, restricting some of the ways you can use and enjoy the property.

What is equitable ownership?

An  equitable interest indicates a beneficial interest in the property, which the holder claims on equitable grounds. For example, the interest held by a trust beneficiary. Equitable ownership gives the holder the right to acquire formal legal title; however, it is not “true ownership”. In other words, someone with equitable title could not argue that he or she was the legal owner or possessor of the property in a court of law.

Equitable title does, however, grant the person more consistent control over the property. While equitable title does not actually transfer ownership of the property. It gives the individual or entity the right to the use and enjoyment of the property. When purchasing a piece of property, it is important to gain equitable title. This will come with the right to obtain full ownership and property interest in the future. 

The main difference between an equitable title and a legal title is that the latter is the only one that gives actual ownership of the property. You do not acquire legal ownership until you register your deed of assignment with the relevant lands registry.

In order to ensure that your property transaction is complete, you should make sure you sign a Contract of Sale with the Equitable owner of the property, and a Deed of Assignment with the Legal owner of the property. Sometimes, legal and equitable ownership resides in the same person. However, in other situations, legal ownership might reside in one person, while equitable ownership resides in another person. This usually occurs where the seller purchased the property from the Legal owner or someone who purchased from the legal owner.

The Importance of A Deed of Assignment

Now that we understand the distinction between legal and equitable ownership of property, we can examine the importance of a deed of assignment in property transactions.

As we stated above, a deed of Assignment transfers legal ownership of property from one person to another. Upon registration, it serves as a valid root of title to the property. Thus, the purchaser can exercise all the legal rights of an owner.

However, where a deed of assignment is not executed, or the deed is not registered, the buyer only acquires an equitable title. Consequently, this is the maximum title they can transfer to another person. This means the legal owner may still be able to transfer valid legal title to a third party. The courts may uphold the transaction if it is established that the 3rd party purchaser had no notice of the prior transaction.

One thought on “ What does a Deed of Assignment mean in Real Estate Transactions? ”

• Pingback: What does Assignment mean in Law? - Milton and Cross

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Please turn on JavaScript in your browser It appears your web browser is not using JavaScript. Without it, some pages won't work properly. Please adjust the settings in your browser to make sure JavaScript is turned on.

Deed vs. title: what’s the difference.

When buyers get closer to the end of the homeownership journey, they will most probably come across the terms "deed" and "title." While they are related, these two concepts have significant differences between them. Let's take a closer look at what those are and talk about the intricacies of deeds and titles for buyers and sellers.

House title vs. deed, explained

A title and a deed are both concepts that refer to property ownership. A deed is an official document that transfers property ownership from a seller to a buyer. By contrast, a title is an intangible legal concept that describes ownership of the property and responsibilities that come with it. When a buyer receives a deed, they simultaneously take on the title to the property.

What is a deed?

As mentioned earlier, a deed is a physical document signed by a seller (grantor) and a buyer (grantee) that may serve as a confirmation of ownership. It may include a general description of the property, details of both parties and their signatures. Typically, a new homeowner receives the deed at the time of closing or right after it, and to be legally recognized, it should be filed with the local government. Some common types of deeds include:

• General warranty deed: A general warranty deed is what people usually imply when referring to the concept of the deed. With this deed, a seller provides a guarantee to the buyer that there are no outstanding claims or liens against the property. A general warranty deed is typically the deed homebuyers may receive when closing on a purchase.
• Special warranty deed: While it's somewhat similar to a general warranty deed, it only accounts for the period during which the seller owned the property and not the entire ownership history. Also, it doesn’t protect against any claims or liens filed before the seller purchased the property. 
• Quitclaim deed: This type of deed is generally used to transfer property ownership between trusted family members; for example, to your spouse or adult children. The quitclaim deed transfers the ownership of a home "as is" without the need to go through a traditional sales process and does not come with any warranties.
• Deed in lieu of foreclosure: A deed in lieu of foreclosure is an agreement between the homeowner and their lender in case they can no longer afford their mortgage payments. In this situation, the ownership of the property is transferred to the lender (usually, the bank). For the homeowner, it might allow them to avoid foreclosure and free them from the loan. Please consult with a real estate attorney for more information.

What is a title?

Let's look closely at titles and how they work in real estate. A house title is a concept that sums up someone's ownership and the rights that come with it. These rights can include the right of possession, control and disposition, among others. There are multiple ways to hold the title, such as:

• Sole ownership: As the name suggests, sole ownership is when one person owns the property. If one individual holds a property title, they can manage the property (sell, gift or bequeath) at their discretion without consulting anyone else.
• Joint tenancy: This type of legal arrangement allows two or more people to own a property together, each of them having equal rights and obligations. One owner cannot sell the property without the consent of other parties, and if one person dies, their right of ownership is automatically transferred to the surviving owner. Joint tenancy may be established between married and unmarried couples, family members or business partners.
• Tenancy in common: Under this form of ownership, two or more people can hold the title to the property, but each of them owns only a specified share, which they can manage at their discretion. For example, if two people hold tenancy in common, one of them can gift or sell their share without consulting a second owner. Please consult with a real estate attorney for more information.

Deed vs. title: main differences

While closely related, these concepts stand for two different things and cannot be used interchangeably in many situations. Aside from the physical aspect, there are some other differences. Here’s a closer look at them.

A person who holds the title is considered the owner of the property and the holder of all the rights that come with this title. A deed may serve as physical proof of title transfer and indicate the new owner's name.

Role in the process

Before it's possible to close on the home, a real estate attorney or a title company performs a title search. This process determines the property's legal owner and verifies whether there are any outstanding claims to the property. If there are no major issues with the title, a closing agent prepares all necessary documents for closing, including the deed.

While the two terms may be related, there is a distinct difference between a deed and a title. A deed is a legal document that identifies the owner of a property, while a title is a term used to describe a bundle of rights that come with this ownership. Generally, a homebuyer receives a title and a deed during the closing or right after it.

Some real estate concepts may seem confusing and intimidating, especially for first-time homebuyers . But, if you ever feel like you need help, you could reach out to an expert, such as a title agency, to help clear your doubts.

• home ownership

What to read next

Should i accept a cash offer for my house.

A cash offer can be enticing to a home seller, but is it right for you? Learn about the benefits of accepting a cash offer on a house and what to be aware of.

Escrow waiver: What is it, and do you need one?

An escrow waiver allows borrowers to opt out of an escrow account but assume more responsibilities. Learn about the pros and cons of an escrow waiver.

55+ communities: Features, requirements, pros and cons

55 plus communities offer amenities that cater to older homebuyers. Learn what 55+ communities are, who can live in them, and why they might be right for you.

Your guide to gated communities

Gated communities are known for their exclusivity and sense of community, among other things. Keep reading if you're interested to learn more.

• Practical Law

Deed of assignment

Get full access to this document with a free trial.

Try free and see for yourself how Practical Law resources can improve productivity, efficiency and response times.

About Practical Law

This document is from Thomson Reuters Practical Law, the legal know-how that goes beyond primary law and traditional legal research to give lawyers a better starting point. We provide standard documents, checklists, legal updates, how-to guides, and more.

650+ full-time experienced lawyer editors globally create and maintain timely, reliable and accurate resources across all major practice areas.

83% of customers are highly satisfied with Practical Law and would recommend to a colleague.

81% of customers agree that Practical Law saves them time.