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A legal deed is a legal document that verifies the transfer of ownership of a property or asset from one party to another. This legal instrument is considered valid if it is signed by both parties, whether it follows certain conditions set prior to or upon the commencement of the sale or transfer, and if it is notarized and recorded publicly.
Remember, a legal deed is different from a title. A legal deed is an instrument or vehicle used for transferring the rights to a property or asset. While a title is a document that proves ownership once transfer or sale has been completed.
Shared below are a few general guidelines on making simple, loophole-free legal deeds. Study them carefully so that you will have all the basic content of any legal paper prior to requesting the approval of your lawyer.
Any legal form or deed of trust is useless if the grantor and grantee have not agreed on the terms of the sale of property or asset. If you are a real estate agent, it is your job to be the middleman and personal representative in this transaction and to do it well. Know the seller’s (the grantor’s) asking price. Tell the buyer (the grantee) and determine if he/she/they accept it or if they have a counter offer. Facilitate this exchange until both parties have agreed on a price and other conditions. Only then can you create an agreement between two parties.
As its name implies, a legal deed is an official business document. Therefore, it should contain accurate and verifiable information. When drafting one, make sure that you use the correct names and designations of all the parties involved. Also, make sure that the terms and clauses included in the deed are correct and follow what the different parties have decided on. Checking the accuracy of the legal form ensures that the deed cannot be contested in the future. Or, it can also be used as a legal litigation document.
To make your life as a real estate agent easier, it is best to use a standard affidavit or legal paper format when crafting a legal deed. You may use pre-made deed templates found online since already come preformatted. Or, you can create a blank document template for your company and just fill in the blanks for every real estate sale you manage.
Different states and countries have different rules when purchasing real property. It is your duty as a real estate agent to stay updated with these laws and policies. Doing so will allow you to include stipulations on the legal deed or other kinds of homeownership contracts that protect you and your clients. A good example is a confidentiality agreement or a legal assignment clause.
Legal deeds, as official business documents, need to be notarized and placed in the public record for them to be valid and binding. This is done through a lawyer. But before you get a lawyer to notarize the legal transaction, it is important to ask for legal advice from your own lawyer.
He or she can review the legal document and check if it meets local and state laws. A good real estate lawyer can also look into the legal agreement and have your best interests in mind.