What Is a Deed?

Kinds of deeds

A deed is an instrument written, signed and handed over by one person, known as the grantor
(seller), that transfers ownership of the real property to another person, known as the grantee
(buyer). In other words, a deed is a signed legal document that grants the guarantee of certain
rights over an object, allowing them to own it.

A deed is any written legal instrument that confirms and transfers an interest, right or property
from one person to another. Simply speaking, a deed is a form of legal instrument that consists of
a legally binding commitment to accomplish something. The most common application of deeds
is to transfer property ownership: movable or immovable, between two parties.

The only significant difference between a deed and an agreement is that consideration is not
required for a deed to be legally binding, and a deed must be executed in writing.

The five essentials of a legally valid deed are:

1. It must be in writing.
2. It must be signed.
3. It must be expressed to be a deed.
4. It must be witnessed by at least one such person who is not a party to the concerned deed.
5. It must be delivered to the other party.

In India, some of the important types of deeds are:

1. Sale Deed

A seller transfers ownership, title, and other property rights to a buyer in a sale deed. It is the
most crucial document because it officially documents the proof for both the buyer and the seller.
The buyer and seller must sign a sale deed before the property purchase or sale is legally
completed. Both parties must be satisfied with the terms and conditions before a sale deed can be
signed.

2. Mortgage Deed

A mortgage deed is a legal instrument that provides all relevant information about the loan, such
as the parties involved, the property held as collateral, the amount of loan taken, the interest rate,
and so on. The deed explains everything there is to know about the property’s interest and title. It
aids in the identification of the true owner of the mortgaged property.

3. Lease Deed

A lease deed is a legal document or instrument required for the performance of a lease.
Essentially, it certifies the lessee’s ownership rights and interests in the leased property.

4. Gift Deed

A gift deed is a legal document that reflects the transfer of a gift. Under section 122 of the
Transfer of Property Act, 1822, the donor can freely transfer an existing movable or
immovable property to the donee through the use of a gift deed. It is legal only if given out of
natural love and affection, without expecting anything in return, by a family member or friend to
another family member/friend.

5. General Warranty Deed

For residential real estate sales, a general warranty deed is commonly utilised. The warranties
conveyed and pledged, bind the seller or grantor legally. The grantor provides several covenants,
sometimes known as warranties, for the title in a general warranty deed, promising that the title
to the property is good and clear and that the property is free of any obligations and liabilities.
6. Special Warranty Deed

A special warranty deed does not provide the buyer with the same level of protection as a general
warranty deed. The grantor or seller’s guarantee, which is offered to the buyer or grantee, does
not cover the property throughout its history but just for the time when the grantor owned it. The
grantor of this sort of deed only makes two warranties- first, that the grantor has title to the
property. And second, that the property was free of encumbrances during the grantor’s
ownership term.

7. Adoption Deed

Adoption is the process of establishing a parent-child bond between people who are not
biologically related. The adoptive family bestows the adopted kid the rights, privileges, and
responsibilities of a child and heir. It is a legal document in which all biological parents or
parents’ rights & duties and filiation are transferred to adoptive parents.
8. Quitclaim Deed

A quitclaim deed is typically executed when both parties have some form of relationship with
one another, such as family members, divorced couples, and friends. It is generally performed by
people who are familiar with one another. This type of deed is designed to transfer any title,
claim, or interest in the property that the grantor may have, but it makes no assurances that such
title is legally legitimate. So, in essence, this sort of deed provides for the straightforward
transfer of property rights and claims to another party, with the majority of the time no money
exchanged and no promise or guarantee.

9. Trust Deed

A trust deed is a type of transaction in which property is transferred to a trustee to secure a debt
such as a promissory note or a mortgage. In the event of a default on duty, the trustee has the
power to sell the property.

10. Court Order Deeds

These types of deeds are carried out without the owner’s agreement due to a court order. These
deeds are created when the seller is unable to pay the price and are thus executed without their
agreement. The exact price of the real estate is mentioned in advance as a consideration in these
court order documents, which is a unique feature.

11. Fiduciary Deed

Fiduciary means involving trust, especially with regard to the relationship between a trustee and
a beneficiary.

When the grantor is a fiduciary, such as a trustee, this fiduciary deed is used to transfer property.
This document simply guarantees that the fiduciary is functioning in the capacity and power that
he has been given. When the owner cannot sign a deed for legal or other reasons, this type of
deed is used to transfer property such as real estate. When the property’s original owner has
passed away, fiduciary documents are frequently used to settle estates. When a fiduciary deed is
utilised, it is given by a fiduciary, such as an executor, who has the authority to sign in the
owner’s place.

12. Grant Deed

A grant deed is a legal document that transfers ownership of a property from the seller to the
buyer in exchange for a set sum. It ensures that the seller has complete ownership of the
property, the property being free and clear of all debts, but it does not include a warranty for title
flaws, as the warranty deed does.
13. Conveyance Deed

A conveyance deed is a legal instrument that transfers ownership of property from one person to
another as a gift, an exchange, a lease, or a mortgage, among other things. A conveyance deed
can also be referred to as a gift deed, mortgage deed, lease deed, or sale deed. In its broadest
sense, this refers to any property ownership transfer for the buyer’s benefit, such as a gift,
mortgage, lease, or exchange. A sale deed is a legal document used to transfer ownership of a
property through a sale. All conveyance deeds are all sale deeds, but not all sale deeds are
conveyance deeds.
14. Deed of Power of Attorney

A deed of power of attorney is a legal document by which the principal grants his agent certain
powers to conduct and execute certain actions or deeds on his behalf.

15. Relinquishment Deed

A relinquishment deed is a legal document unveiling a legal heir’s rights, titles, and interests in
favour of others.