Author Topic: Execution of Deeds  (Read 2330 times)

Maliha Islam

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Execution of Deeds
« on: December 31, 2018, 05:25:58 PM »
Execution of Deeds

At common law, for an instrument to be a deed, the parties must comply with certain formalities:

the deed must be in writing;
a personal seal is placed on the document; and
it must be delivered to the counterparty.
These requirements are the origin of the expression “signed, sealed and delivered”.

However, in most cases, you should check legislation for specific requirements for creating a valid deed. These requirements are dependant on relevant laws for each state and territory and for the type of deed involved.

For example in NSW, the Conveyancing Act 1919 provides that a deed passing an interest in property must be signed, sealed and attested by at least one witness not being a party to the deed (section 38).

It is important to refer to the legislation specific to your state as the failure to duly execute a deed means that the deed is unenforceable. The requirements for executing deeds are much more stringent than that for contracts. Therefore, you should seek specific advice if you are unsure about how to execute a deed or whether you need a deed for a particular situation.

Key Takeaways
A deed is a special form of document which indicates an individual’s most sincere promise to do something that she or he has contracted to do. At common law, the requirements for executing a deed are that it must be in writing, sealed and delivered to the other party. The key difference between an agreement and a deed is that a deed does not need consideration. Furthermore, each Australian state and territory has legislation that sets out specific requirements for executing a deed. You should check legislation to ensure that you properly execute your deed.