What Is a Quitclaim Assignment?
Quitclaim deeds offer minimal protection for the buyer.
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- 1. Certificate of Title Vs. Deed
- 2. What Is the Difference Between the Deed of Absolute Sale and the Deed of Assignment?
- 3. What Are Instruments of Conveyance & Transfer?
Assignment of a deed is the act of transferring that deed to another party and thereby transferring ownership. A quitclaim deed is a type of deed used to transfer real estate. In contrast to other deed types, the quitclaim doesn't offer any sort of protection for the buyer if someone else shows up with a claim on the property.
What Deeds Do
The purpose of a deed is to provide tangible proof of the transfer of real property. The deed generally contains important information about the transfer, such as the date and parties to the transaction. The deed, or an attached real estate transfer contract referenced in the deed, also contains any transfer-related promises that the seller and buyer have made to each other. To transfer the property, the deed must be signed by both seller and buyer.
Assignment of Deed
Assignment is the actual transfer of the property. For a deed to assign property, it must be delivered from the seller to the buyer. The deed doesn't need to be physically delivered; rather, delivery is a legal term for the seller's clear decision to transfer the property. Physical delivery is generally good enough, but a deed can be delivered in other ways: mailed, messengered, or placed in a safe-deposit box to be opened by the buyer. If the seller keeps the deed and there's no evidence that he intended to give it to the buyer, the law won't recognize delivery, and the transfer won't take place.
Most types of real estate deeds offer certain assurances to the buyer. General warranty deeds, for example, provide six warranties, or promises, designed to protect the buyer if a third party shows up with a better claim to the property than the seller. Among other promises, the seller warrants that he owns the property and that if such a third party shows up to stake a claim on the property, the seller will do whatever is necessary to defeat his claim, or make the buyer whole.
The quitclaim deed offers none of the warranties listed above. A quitclaim deed transfers all of the seller's rights to the property, but the quitclaim buyer has no guarantees that the seller has the right to transfer the property to her. If a third party appears and claims the property, the quitclaim buyer will be left to her own resources in defending against that claim. If the third party's claim proves to be superior to that of the seller, the buyer has no legal redress against the seller based on the deed. Note, however, that if the seller and buyer executed a contract separate from the deed, in which the seller made promises about his title to the property, this contract may be a basis for the buyer to sue the seller.
- U.S. Legal: Real Estate Deeds Law and Legal Definition
- MCLE.org: Delivery of Deeds
- 'Lectric Law Library: Quit Claim Deed Form
Erika Johansen is a lifelong writer with a Master of Fine Arts from the Iowa Writers' Workshop and editorial experience in scholastic publication. She has written articles for various websites.
Certificate of title vs. deed, what is the difference between the deed of absolute sale and the deed of assignment, what are instruments of conveyance & transfer, what does "encumbrances" mean in real estate, what is encroachment on property, what is a post-sale quitclaim deed, what happens if you lose a quitclaim deed, tax on quitclaim of principal residence, can a beneficiary challenge a revocable trust, effects of a quitclaim deed on cost basis, what is a leasehold estate, how to sell an easement.
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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 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.
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Property Legal Consultants
What is Deed of Assignment for Flat?
A Deed of Assignment for flat is a very important document in the process of transfer of flat property ownership. This document legally transfers ownership from the assignor to the assignee. But what exactly is an assignor and assignee, and what are the important points to include in a deed of assignment?
Meaning of Assignor and Assignee
An assignor is a person who currently owns the flat property and is transferring its ownership to another person. The assignee is the person who is receiving the flat property ownership. The deed of assignment for flat is the document that legally transfers property ownership from the assignor to the assignee.
Meaning of Deed of Assignment for flat
The Deed of Assignment for flat is a legal instrument that formalizes the transfer of flat property ownership from the Assignor (owner) to the Assignee (purchaser). The document acts as evidence of the transfer of flat property ownership and is used to protect the rights and interests of both parties.
Some Key Points in the Deed of Assignment
When creating a deed of assignment for flat, it is important to include several key points to ensure that the transfer of flat ownership is legally binding and properly documented. Here are some examples of important points to include:
Description of the flat/property
The deed of assignment for flat should include a detailed description of the property being transferred. This can include information such as the address, size, and any unique features of the property.
Flat/Property construction details
It is also important to include information about the construction of the flat property, such as the name of the constructor and details about the plan approval, commencement and completion certificates, etc.
Information of the Society
The deed of assignment for flat should include information about the society, like, the society name, and its registration number.
Prior transaction history of the property
The deed of assignment for flat should include information about any prior transactions that happened on the flat property. This can include information about how the existing owner has received the ownership and all the references about previous transactions.
Consideration amount and payment details
The deed of assignment for flat should include information about the consideration amount (i.e. the amount of money being paid for the property), the mode of payment, and any details about the payment schedule.
Acknowledgment of payment
The Deed of Assignment for flat should also include a clause where the Assignor gives an acknowledgment that he/she has received the agreed consideration amount from the Assignee. This will help in avoiding any disputes in the future regarding the payment made for the property. It is essential to ensure that the consideration amount has been received in full and that the Assignor has no further claims to the property.
Assurances and indemnification by the assignor
One of the most critical aspects of a Deed of Assignment for flat is the assurances and indemnification provided by the Assignor to the Assignee. The Assignor must assure the Assignee that the property being transferred is free from any encumbrances or legal issues. The Assignor’s assurance declares that the property is not subject to any liens, leases, mortgages, or other agreements that may impact the transfer of the property. Moreover, the Assignor must confirm that the property is not the subject of any court litigation, and they hold the title of the property free and clear. This assurance guarantees that the property being transferred has a clean title, and there are no legal disputes attached to it.
Assurance of no payment dues
The Assignor must assure the Assignee that there are no outstanding dues or pending payments towards any electricity charges, piped gas connection charges, Society maintenance charges, property taxes, and other charges, all taxes and dues in the respect of the property as of the date of execution of the Deed of Assignment for flat. The Assignor should further declare that in case any dues or taxes remain unpaid till the date of execution of the Deed, he/she will pay the same without any objection or dispute.
Assignor’s promise to co-operate with assignee
The assignor should promise to co-operate with the assignee in the future if any documents need to be signed or if any other actions are required to transfer ownership of the flat property. For example – cooperation for enrolling the Assignee’s name as owners of the property in all Government records, society records, Property Tax & M.S.E.B., etc. as & when be required.
Governing law in case of any dispute
The deed of assignment for flat should specify the governing law that will be used in case of any disputes between the assignor and the assignee.
Execution in the presence of witnesses
Finally, the deed of assignment for flat should be signed (executed) by both the Assignor and the Assignee in the presence of witnesses. This ensures that the transfer of ownership is legally binding.
Registration and Stamp Duty
After the Deed of Assignment for flat has been signed by both the parties (assignor and assignee), it must be registered in the sub-registration office. In Maharashtra, the stamp duty for registration is calculated based on the consideration price or the government valuation of the property, whichever is higher. This is an important step to ensure that the transfer of ownership is legally recognized and that the rights and interests of both parties are protected. Proper registration of the Deed of Assignment will also prevent any future disputes or legal complications.
The deed of assignment for flat plays a vital role in transferring the ownership of a property. The document is a legally binding agreement that protects the interests of both the Assignor and the Assignee. It is important to include the above-mentioned important points. Additionally, registering the deed of assignment in the sub-registration office and paying the applicable stamp duty is mandatory.
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Tanny --> 12 December 2016
Sale deed versus deed of assignment
While buying a resale property in a co-operative housing society, I have differing opinion on whether a "sale deed" is appropriate of a "deed of assignment" is appropriate. I consulted several people from legal profession and opinion seems to be divided with some saying Sale Deed is mandatory, some saying Deed of Assignment is ok and some even suggesting rather absurdly - "you tell us what you want and we will do that for you".
My question is - I am looking for specific guidance of whether I register my agreement with a Sale Deed or with a Deed of Assignment. Please can you guide.
Ms.Usha Kapoor (CEO) --> 13 December 2016
First draft asale deed and thendraft adeed of Assignment and register both of them.If you appreciate this answer please give me all my profile likes.
Kishor Mehta (CEO) --> 13 December 2016
Kumar Doab (FIN) --> 13 December 2016
Agreed with Mr. Kishore Mehta.
Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) --> 13 December 2016
In real property transactions, a deed of assignment is a legal document that transfers the interest of the owner of that interest to the person to whom it is assigned, the assignee. When ownership is transferred, the deed of assignment shows the new legal owner of the property.
An "absolute sale" deed is defined by having no conditions attached to the sale except the buyer's payment of the purchase price. When the seller signs and delivers the absolute sale deed, this is generally recognized by law as the moment of sale.
Tanny --> 13 December 2016
Thank you for explaining the difference between a Sale Deed and a Deed of Assignment. However could you explain in my case which is the one I would go for?
rajeev sharma (Advocate Ex senior manager law ) --> 13 December 2016
please ask reseller what document the builder has executed in his favi\our .if it is sale deed then dont compromise get sale deed executed in your favour
even the seller has a deed of assignment from his previous purchase. In that case will a sale deed or a deed of assignment be appropriate?
Adv. K.S.A.Narasimha Rao ([email protected] ) --> 13 December 2016
Basing on the rights possessed by your prospective seller, the nominclature of the document depends on.
If your Prospective Seller is having only right of possession in respect of the property, then he can only make a deed of Assignment. But if your Seller is having absolute powers to sell the flat, then you can use nominclature as "Sale Deed".
Kindly clarufy if the deed of assignment be cancelled by assignor.
Aseem Koradia --> 15 December 2016
The name of document is immaterial. The content of the document will remain the same. interpretation will be from the content of the document.
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Value in assignment agreement in case of resale properties
First answer received in 30 minutes .
Lawyers are available now to answer your questions.
Mention what is agreed in MOU ie 40lacs
Seller wants to save capital gains tax by mentioning lesser value
But u insist for 40 lacs for 2 reasons
Firstly agreement value cannot be less than guideline value of govt. Otherwise you will face income tax issues that you did cash transaction. Even seller will fall in trouble
Second when you sell this property, you will incur capital gains for which you will have to pay tax. However there are deductions allowed from capital gains amount received. Like cost of acquisition. So if cost is less ie 25 lacs then you will have to pay tax on balance. Whereas if your purchase cost is 40 then your tax outgo will be lesser.
Even otherwise seller will be receiving purchase money by cheque. So he will have to account in his income tax. Whether entire sale price is mentioned in deed of assignment or in MOU, if purchase money is paid by cheque, then seller will have to account for it.
Also bank will not sanction loan on basis of amount mentioned in MOU. It will give loan for amount stated in registered assignment deed. Because even bank will want a security of higher value and not lower.
- Talk to Advocate Yusuf Rampurawala
1. Sir as from buyers perspective for loan and tax relief the amount of 40 lakhs should be shown as the bank will give loan on the sale amount agreed further only from perspective of stamp duty 40 lakh will be more for buyer but still. Also in case any issue the seller can deny in future that is why correct value is always required to be mentioned.
2. After Assignment sale deed is executed MOU/agreement has no value therefore proper value should be mentioned in the agreement.
3. No TDS alternatively buyer shall get relief for purchasing house in the tax for bank loan EMI.
- Talk to Advocate Shubham Jhajharia
B should mention Rs 40 lakhs as consideration amount
2) buyer can use MOU enteted into with the seller
3) you have to deduct TDS at 1 per cent if sale consideration exceedsRs 50 lakhs
4) not applicable in your case
- Talk to Advocate Ajay Sethi NOW!
a. The said procedure is differently followed though it is not your query. The seller shall have to issue a to the developer for transferring the allotment of the said flat in the name of B for which the developer will charge re-allotment fees as mentioned in the initial sale agreement. Thereafter the developer will issue a fresh allotment letter in favour of B based on which B will step in to the shoes of S. It has to be ensured that S has paid all the dues to D and a confirmation to that effect shall have to be taken by B from D. The sale deed will certainly be for Rs.25 L as was agreed by and between S & D which D can not change now. Th Bank may not act based on the value declared in the deed of agreement but on the value that will be or has been mentioned in the final sale deed original of which will be kept deposited by the lending bank or creating mortgage on the said flat.
b. Th Bank will consider the amount mentioned in the final sale deed as the value of the property mortgaged for providing loan ordinarily.
- Talk to Advocate Krishna Kishore Ganguly
Total value will mention in deed.
No TDS AS SALE consideration is less than 50 lacs.
- Talk to Advocate Yogendra Singh Rajawat
a. Since the buyer is buying the property for Rs. 40 lakhs, he has to mention that price only because the bank loan is also involved in it.
b. Don't complicate the issue, the buyer has to get a sale deed executed for the sle consideration amount he has paid in total or else it may be considered as under value and the bank may not grant loan beyond the requested value of the property.
c. If TDS is applicable then the buyer has to deduct the same at the time of making the final payment
- Talk to Advocate T Kalaiselvan
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Deed Of Assignment Of Ownership Flat Deed Format
Deed Of Assignment Of Ownership Flat
This deed of assignment made this ………… day of ………… 20……… between Shri …………… son of …………… by faith …………… by occupation ……………… hereinafter referred to as the assignor (which expression shall mean and include his heirs, executors and administrators) of the one part and Shri ………… son of …………… by faith ………… by occupation ……… hereinafter referred to as the assignee (which expression shall mean and include his heirs, executors, administrators and assigns) of the other part.
Whereas the assignor has acquired by purchase Flat No. ………… on the building known as ………… Plot No. …………, …………… Road, …………… under an Agreement dated the day of ………… 20………… between himself as Party of the Second Part and ………… of the First Part after paying Rs. ……… as purchase price and having deposited certain sums of money as mentioned therein.
And whereas the assignee has deposited a sum of Rs. ………………… (Rupees ………… thousand only) with the assignor for the purchase of the said Flat No. ………… and the assignor had delivered vacant possession of the said Flat No. ………… to the assignee in pursuance of an Agreement of Sale dated ………… day of ……………20……… made between the parties thereto.
And whereas the assignor has agreed to assign all his right, interest, title and benefits under the said agreement dated the ………… day of …………20……… to the assignee free from all encumbrances.
Now this indenture witnesseth that in pursuance of the said Agreement and in consideration of the sum of Rs. ……… (Rupees ………… thousand only) paid by the assignee to the assignor (the receipt whereof the assignor doeth hereby admit, acknowledge and confirm and for ever discharge, acquit and release the assignee of the same and every part thereof) the assignor doeth hereby grant, convey, sell, assign and transfer all his estate, right, interest, title in and all benefits of the flat in terms of the said Agreement dated the ………… day of …………… 20 ……… mentioned hereinabove including the deposits standing to the credit of the assignor with the said Shri ………… and others being the party of the First Part referred to in the Agreement dated the ……… day of …………20………… to have and to hold the same unto and to the use of the assignee absolutely and enjoy all benefits thereof but subject to the conditions on which the assignor held the same under the Agreement dated ………… day of ………… 20………… and the assignee doth hereby agree to take the said flat subject to such conditions contained therein and the assignor doeth hereby covenant, with and agree to indemnify and keep indemnified the assignee his estate, heirs, executors, administrators and representative against all loss and damage occasioned as a result of any defect in title or want of title to the said flat or for any reason the said flat is not transferred in the name of the assignee or in the event the assignee is not made a member of the proposed Co-operative Housing Society of the said building known as “………” or refused membership of the said proposed Co-operative Housing Society for any reason whatsoever or the assignee is dispossessed of the said flat by said Shri ………… and others being the party of the First Part referred to in the said Agreement dated the ……… day of ………… 20…… as a result thereof and the assignor further agrees and covenants with the assignee to do, execute any further or other document or documents and/or deeds and to do all acts, things and deeds as may be necessary to complete and make perfect the title of the assignee in respect of the said flat.
Schedule above referred to description of the flat
In witness whereof the parties hereto have set and subscribed their respective hands and seals the day, month and year first hereinabove written.
Received of and from Shri …………… the sum of Rs. …………… (Rs. ………… thousand only) being the balance of the purchase money of Flat No. ………… floor, Plot No. ……………, Road …………… making the total purchase price of Rs. …………… (Rupees …………… thousand only) by cheques No. 4 and 5 on Y Bank Ltd.
Witness: Assignor \
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