By Bolaji Ogungbemi, a legal practitioner and property consultant.
DEED – A written instrument signed, sealed and delivered by one person to another to convey lands, tenements or hereditaments to another person. In land transaction, deed is a very special document in writing which furnishes evidence or information about something, made of paper and which is signed, sealed and delivered.
Further,
a deed must seeks to achieve the following objectives, to effect the physical
transference of an interest or right in property; to create a binding
obligation on transferor, vendor, seller, privies, agents and
successor-in-title or persons; and it confirm some act whereby an interest,
right or property has already passed.
The
question I will also answer in this write-up, when is a Deed Required? Deed is
required when a contract lacking consideration is to be created, when statute
so provides see S.3 Real Property Act 1845 and section 77 P and CL 1959, each
provides that conveyance (including assignment of all lease) must be by deed, a
power of attorney vesting power in an attorney to execute a deed must itself be
by deed; Powell v. London provincial Bank (1893)2 Ch. 555; Abina V farhat, a
lease for a term exceeding three years, to give effect to a vesting declaration
where new trustees are appointed and a surrender where a lesser estate is given
up to merge with the greater estate in land.
Also
deed is not required in the following transaction, assents, surrender by
operation of law, a Lease or Tenancy for a term less than three years, receipts
not required by law to be under seal, vesting orders, a conveyances taking
effect by operation of law, disclaimer and transactions covered by the rule in
Walsh v. Lonsdale.
Also
what you must watch out for in a Deed are Signing, this must be properly signed
by the person passing out title; it must be seal, sealing in First National
Securities versus Jones (1978) 2 W.L.R. 475, a mortgage deed, was signed by the
mortgagor. The signature was across a printed circle at the end of the deed and
in that circle were printed the letters "LS" (standing for the Latin
phrase Locus Sigilli meaning place of the seal). This mortgage was held to be
validly executed and it must be delivered, delivery is also an essential
element for the due execution.
A
deed takes effect not necessarily by the parting with physical possession of
the deed itself. Mere delivery of the deed without the requisite intention to
pass the interest to be conveyed by it will leave execution incomplete. It used
to be the practice for parties executing deeds to utter the following "I
deliver this as my solemn act and deed". However, it is now accepted that
no such form of words is necessary, and that any act of the party showing that
the deed is intended to be binding upon him is sufficient evidence of delivery.
See Awojugbagbe v. Chinukwe Delivery is an act done to evince an intension to
be bound.
A
deed is valid even if it has no date, or it has a false or impossible date.
Jegede V Citicon Nig. Ltd. Sometimes, delivery takes place subject to a
condition, which may be expressed or by implication, and this is known as
delivery in escrow.
Attestation
of Deed: Attestation is not essential to the due execution of a deed. However,
attestation is wise as it may facilitate proof of execution should this be
necessary at a later date. However, if it a Deed executed outside the country
for the purposes of conferring power of attorney to execute a Deed, it should
be attested by a Notary Public.
Processing endorsement of Governor's Consent: This is required where the Deed
makes a grant of state land; section 22 Land Use Act 1978. Failure to make
provision for this in the Deed will constitute a material omission unless there
is other evidence that consent was in fact obtained.
How
many copies of deed should I prepare: Engrossment is the making of fair copies
or counterparts of the original deed strictly speaking this is not essential to
the validity of a Deed but it is a way of ensuring that each of the parties has
a counterpart of the original.
Alternations and Erasures: These are presumed to have "been made before
execution but nevertheless to prevent any doubt arising as to their authority,
it is prudent to ensure that all alternations or erasure are clearly initiated
by the parties to the deed at the time of execution.
A
deed must also give sufficient history of the seller, vendor or the person
passing out title, this is known as recitals.
Recitals
in a deed are brief statements of fact which gives the origin of title,
indicate the purpose of the document, the ownership of the property and the
intention to transfer it or background of the vendor's acquired right, sought
to be conveyed or sold. It in not every agreement that has a recital. There are
some simple agreements that need no recital. In NITEL v. Rockonoh Properties
Ltd, it was held that a recital is a formal part of a deed or writing which
explains the reasons for the transaction: Recitals may be narrative or
introductory and usually starts with the word "Whereas"
In conclusion a deed does not exist in vacuum. It is only an instrument that is deployed to conveyances, such as Assignments, Leases, Mortgages, Assents.
Barr Bolaji can be reached via 09083202835