deed of assignment by way of gift

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DEED OF ASSIGNMENT: EVERYTHING YOU NEED TO KNOW.

A Deed of Assignment refers to a legal document in which an assignor states his willingness to assign the ownership of his property to the assignee. The Deed of Assignment is required to effect a transfer of property and to show the legal right to possess it. It is always a subject of debate whether Deed of Assignment is a contract; a Deed of Assignment is actually a contract where the owner (the “assignor”) transfers ownership over certain property to another person (the “assignee”) by way of assignment. As a result of the assignment, the assignee steps into the shoes of the assignor and assumes all the rights and obligations pertaining to the property.

In Nigeria, a Deed of Assignment is one of the legal documents that transfer authentic legal ownership in a property. There are several other documents like a deed of gifts, Assent, etc. However, this article focuses on the deed of assignment.

It is the written proof of ownership that stipulates the kind of rights or interests being transferred to the buyer which is a legal interest.

Read Also: DIFFERENCE BETWEEN TRANSFER OF PROPERTY THROUGH WILLS AND DEED OF GIFT

CONTENTS OF A DEED OF ASSIGNMENT

Content of a Deed of Assignment matters a lot to the transaction and special skill is needed for a hitch-free transaction. The contents of a deed of assignment can be divided into 3 namely; the introductory part, the second (usually the operative part), and the concluding part.

• THE INTRODUCTORY PART: This part enumerates the preliminary matters such as the commencement date, parties in the transaction, and recitals. The parties mentioned in the deed must be legal persons which can consist of natural persons and entities with corporate personality, the name, address, and status of the parties must be included. The proper descriptions of the parties are the assignor (seller) and assignee (buyer). The Recitals give the material facts constituting the background to the current transaction in chronological order.
• THE SECOND PART (USUALLY THE OPERATIVE PART): This is the part where the interest or title in the property is actually transferred from the assignor to the assignee. It is more like the engine room of the deed of assignment. The operative part usually starts with testatum and it provides for other important clauses such as the consideration (price) of the property, the accepted receipt by the assignor, the description of the property, and the terms and conditions of the transaction.
• The testimonium : this shows that all the parties are involved in the execution of the deed.
• Execution : this means signing. The capacity of the parties (either individual, corporate bodies, illiterates) is of great essence in the mode of execution.  It is important to note that the type of parties involved determines how they will sign. Example 2 directors or a director/secretary will sign if a company is involved. In the same way, if an association, couple, individual, illiterate, family land (omonile), firm, unregistered association, etc. is involved the format of signature would be different.
• Attestation : this refers to the witnessing of the execution of the deed by witnesses.

For a Deed of Assignment to be effective, it must include a column for the Governor of the state or a representative of the Government where the property is, to sign/consent to the transaction. By virtue of Sec. 22 of the Land Use Act, and Sec. 10 Land Instrument Registration Law, the Governor must consent to the transaction.

Do you have any further questions? feel free to call Ibejulekkilawyer on 08034869295 or send a mail to [email protected] and we shall respond accordingly.

Disclaimer: The above is for information purposes only and should not be construed as legal advice. Ibejulekkilawyer.com (blog) shall not be liable to any person(s) for any damage or liability arising whatsoever following the reliance of the information contained herein. Consult us or your legal practitioner for legal advice.

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Related Posts

• Transferring a Property NOT pursuant to a sale – can it be done?

by Donovan & Ho (BD) | January 19, 2022 | Real Estate

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We often receive queries from individuals where a property was jointly purchased with loved ones or business associates, or even with an ‘ex’ and subsequently, one party wishes to transfer their portion of the property so there will now be just one owner. Another common scenario is where a husband / parent wishes to transfer the property to his wife or children while still alive.

In this article, we explore some frequently asked questions relating to situations that do not involve a sale of the property.

What are the documents needed to effect such a transfer?

An “MOT”, also known as “Instrument of Transfer”, is the legal instrument prescribed by the National Land Code 1965, which is used to effect the transfer of property with individual title or strata title. For a property without individual title or strata title issued, a Deed of Assignment (by way of transfer) is used to effect the transfer of the property.

Is a Sale and Purchase Agreement needed if no money is changing hands?

A Sale and Purchase Agreement (SPA) is not needed if no money is changing hands. However, it can be useful to have a simple SPA drawn up on a ‘friendly-party basis’ to capture the transfer, especially for the future disposal of the property to a bona fide third party purchaser.

What if the property is still subject to bank loan / charged to the bank?

If the property is still charged to a Bank, the outstanding loan must first be fully redeemed with cash OR from a completely new loan facility. Getting a new loan could mean a new (and lower) loan interest rate, but it will also involve additional legal fees and stamp duty (0.5% on the borrowed amount) on the loan documents.

The solicitor will then simultaneously register both the bank charge documents (for the new loan) and the MOT at the land office. It is also likely that the bank will insist for an SPA to be signed.

What is the time needed for such a transfer?

The whole process might take between 3 to 4 months, or more, depending on the tenure type of property, i.e. freehold or leasehold, whether there is a loan to redeem, or whether a developer is involved the property where the strata title is not yet issued.

Will state authority consent be required for such a transfer?

For a leasehold property, state authority consent will be required for the transfer. The state authority consent will take between 2 to 3 months depending on the location of the property.

What is the stamp duty involved in such a transfer?

You are also required to pay for the stamp duty to effect the transfer. The rates of stamp duty under the Stamp Act 1949 are as follows: –

• First RM100,000                                                 –           1%       
• Next RM400,000                                                 –           2%         
• Next RM500,000                                                 –           3%       
• Amounts above RM1,000,000                           –           4%

The stamp duty will be based on the property’s current market value which will be valued by the Inland Revenue Board and not based on original purchase price .

However, there are full or partial stamp duty exemptions if the transfer is done between spouses, parents and children:

Be mindful that transfers between siblings, friends, boyfriends and girlfriends, or grandparents are subject to the full stamp duty rate.

Will the transferor need to pay RPGT on such a transfer?

Under the Real Property Gains Tax Act 1976 (RPGT Act), there is a 100% RPGT exemption in the transfer of property between family members by way of love and affection between spouses, parents and children. The transferor is deemed to have received “no gain and suffered no loss” and not subject to any RPGT.

Apart from the above, any forms of transfer between siblings, friends, boyfriends and girlfriends, or grandparents are not entitled to apply for the RPGT exemption.

What is the RPGT implication to the transferee / recipient in the subsequent disposal?

The transferee should be aware that he is deemed to have acquired the property at the acquisition price that was previously paid by the transferor . Therefore, upon subsequent disposal by the transferee , he might be exposed to significant capital gains, especially if the property was previously owned by the transferor for a long amount of time.

It is always advisable to seek professional legal advice to first determine your exact situation after conducting the updated searches and a review of your documents, in order to assess the multiple variable factors and costs that would apply to your specific situation.

This article was written by  Shawn Ho  (Partner) & Suzanne Fam   (Senior Associate) from the property & tax  practice group of Donovan & Ho.   Shawn leads the  corporate  practice group of Donovan & Ho, and has been recognised as a Notable Practitioner, whilst the firm has been recognised as a Notable Firm for Corporate and M&A by Asialaw Profiles 2020 and 2021.  We are also ranked as a Recommended Firm by IFLR1000 2020 and 2021.

Our corporate practice group advises on corporate acquisitions, restructuring exercises, joint venture arrangements, shareholder agreements, employee share options and franchise businesses, Malaysia start-up founders and can assist with venture capital funds in Seed, Series A & B funding rounds. We also advise on property transactions and real-estate related tax planning. Feel free to  contact us  if you have any queries.

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Deed of Gift

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A Deed of Gift is a legal document that formalizes the transfer of ownership of a property or asset from one party to another as a gift based on related rules. It is a crucial legal instrument that ensures the proper transfer of ownership and protects the interests of both parties involved in the transaction. Now, we will provide you with an overview of all you need to know about the Deed of Gift, its purpose, and the legal implications associated with it.

Importance of Deeds of Gift

The importance of a Deed of Gift cannot be overstated. It serves as proof of transfer of ownership and protects the interests of both parties involved in the transaction. It also helps to avoid disputes and conflicts that may arise in the future due to ownership issues. Here are more reasons why deeds of gift are important.

The primary importance of a Deed of Gift is that it formalizes the transfer of ownership of a property or asset as a gift from one party to another. Without a Deed of Gift, the transfer of ownership may not be legally binding and enforceable. The document serves as proof of the transfer of ownership and is an essential legal instrument in the event of any dispute that may arise in the future.

A Deed of Gift is designed to protect the interests of both parties involved in the transaction. It ensures that the donor is giving the gift voluntarily and without any coercion or undue influence. It also ensures that the recipient is accepting the gift willingly and without any obligation or condition attached to it. The Deed of Gift is a legally binding document that clearly outlines the terms and conditions of the gift and protects the interests of both parties involved.

A Deed of Gift can also be used to ensure tax benefits for the donor. In many countries, gifts made to charitable organizations are tax-deductible, and a Deed of Gift can be used to prove that the gift was made as a charitable donation. Similarly, gifts made to family members or friends may also be exempt from gift taxes, and a Deed of Gift can be used to prove that the gift was made as a genuine gift and not as a loan or payment for services.

A Deed of Gift can also be used to avoid the probate process. Probate is a legal process that is required to transfer the ownership of a property or asset after the death of the owner. However, if the ownership of the property or asset has already been transferred through a Deed of Gift, then the property or asset does not need to go through probate. This can save a lot of time and money for the parties involved.

Legal Requirements for a Deed of Gift

To be legally binding and enforceable, a Deed of Gift must contain certain essential elements that include:

• The donor and recipient’s names and addresses
• A clear description of the property or asset being gifted.
• The date of the gift.
• The intention of the donor to make a gift without any obligation or condition attached to it.
• The gift acceptance by the recipient.
• The signatures of both parties and any witnesses.

It is important to note that a Deed of Gift must be signed and witnessed by two independent witnesses who are not related to either the donor or the recipient. The witnesses must be present when the document is signed and must sign the document themselves as proof of their presence.

Essential Elements of a Deed of Gift

A Deed of Gift should contain certain essential elements to ensure that it is legally binding and enforceable. These elements include:

• Identification of the Parties Involved: The Deed of Gift should clearly identify the parties involved, including the donor (the person giving the gift) and the donee (the person receiving the gift).
• Description of the Gift: The Deed of Gift should provide a detailed description of the gift, including its nature, value, and condition.
• Consideration: While a gift is generally considered to be a transfer of ownership without consideration, it is still necessary to mention that there is no consideration involved in the transaction.
• Delivery of the Gift: The Deed of Gift should specify how the gift will be delivered to the donee, and when the transfer of ownership will take place.

Legal Implications of a Deed of Gift

A Deed of Gift has several legal implications, and it is important to understand them before entering into such an agreement. Some of the legal implications of a Deed of Gift include:

• Transfer of Ownership: A Deed of Gift results in the transfer of ownership of the gift from the donor to the donee. This means that the donor no longer has any rights or control over the gift.
• Tax Implications: Depending on the nature and value of the gift, there may be tax implications involved. It is important to consult a tax expert to understand the tax implications of a Deed of Gift.
• Acceptance of the Gift: The donee must accept the gift for the transfer of ownership to be complete. If the donee does not accept the gift, the transfer of ownership will not take place.
• Disputes: A Deed of Gift can help to avoid disputes and conflicts that may arise in the future due to ownership issues. However, if a dispute does arise, it is important to seek legal advice to resolve the matter.

How to Create a Deed of Gift

Creating a Deed of Gift is a simple process that can be done with the help of a legal expert. The steps involved in creating a Deed of Gift are as follows:

• Consult a Legal Expert. It is important to consult a legal expert to understand the legal implications of a Deed of Gift and to ensure that the document is legally binding and enforceable.
• Identify the Parties Involved. The donor and the donee should be identified in the Deed of Gift.
• Describe the Gift. The Deed of Gift should contain a detailed description of the gift, including its nature, value, and condition.
• Emphasize the Absence of Consideration. Even though a gift is generally considered to be a transfer of ownership without consideration, it is still necessary to mention that there is no consideration involved in the transaction.
• Specify Delivery of the Gift. The Deed of Gift should specify how the gift will be delivered to the donee, and when the transfer of ownership will take place.

Key Terms for Deed of Gift

• Transfer of Ownership: A Deed of Gift formalizes the transfer of ownership of a property or asset from one party to another as a gift.
• Protection of Interests: A Deed of Gift protects the interests of both parties involved in the transaction and ensures that the gift is given voluntarily and without any obligation or condition attached to it.
• Tax Benefits: A Deed of Gift can be used to ensure tax benefits for the donor, especially for charitable donations.
• Avoids Probate: A Deed of Gift can help avoid the probate process, saving time and money for the parties involved.
• Legal Requirements: A Deed of Gift must contain essential elements such as clear description of the property or asset, date of the gift, signatures of both parties and witnesses, and intention to make a gift without any obligation or condition attached to it.

Final Thoughts on Deed of Gift

A Deed of Gift is an important legal document that formalizes the transfer of ownership of a property or asset as a gift from one party to another. It is a crucial legal instrument that ensures the proper transfer of ownership and protects the interests of both parties involved in the transaction. The Deed of Gift should contain certain essential elements to ensure that it is legally binding and enforceable.

It is important to understand the legal implications of a Deed of Gift before entering into such an agreement. Creating a Deed of Gift is a simple process that can be done with the help of a legal expert. It can be used to transfer a wide range of assets, including real estate, personal property , money, intellectual property , and securities.

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Gifting Property – Transfer Home Ownership With Deed Of Gift

• September 27, 2023
• Investment , Legal

There are a variety of reasons why giving property to family members as a gift might be a smart idea, but the equity process isn’t always simple. In this article, we’ll look at why more and more people are considering to gift property, how to properly execute a deed of gift, and what tax implications may exist when you give property as a present.

What is Gifting Property

Gifting a house, transferring property, and pass property are phrases commonly used interchangeably to refer to transferring ownership of real estate or other personal property without requiring compensation. The individual transferring the gift is called the donor and the person receiving the gift is called a donee.

While it may seem like an easy way to give a present, gifting property can have a negative impact on the donor depending on how the transferring is done. For example, transferring property to a minor child in an effort to avoid probate when the parent passes away could be considered fraud by the courts and ultimately invalidate the transaction.

Property Gifting With a Deed Of Gift

A deed of gift, often known as a transfer by way of gift, is an exchange in which the current owner of real estate gives up all rights to it to another person for no ‘valuable consideration.’ It implies that no money, assets, debt assumption, or even service exchange is involved.

A gift isn’t genuine unless it’s given entirely of the owner’s own volition. So, if a transfer of equity was made under duress or as a result of a court order, it isn’t a true gift.

Gift Deed and Transfer of Ownership: What’s the Difference?

• A deed of gift should not be confused with a transfer of equity , where at least one of the owners remains on the legal title; or an assent, where A transfer of title to property from the estate of a deceased person into the new owner’s name occurs when it is transferred from one owner to another.

Why make a deed of gift?

A deed of gift is frequently made to provide a child with an early inheritance or to reduce IHT liability on the parent’s estate when they pass away. A home may be transferred from one spouse to another as protection for the recipient’s rights in the marital home.

Transfer Property as a Gift

A transfer of equity by way of gift, sometimes called a deed of gift, is a transaction in which the owner of a property surrenders his interest in the property to another person rather than for valuable consideration. Anything of value, such as cash, assets, or services, is considered “valuable consideration.” The transfer must be made by the owner of his own free will, not as a result of a court order for example. This article concerns solely transfers made as a gift.

The term “gift” is used to describe a transfer equity, as opposed to a leaving or bequest. A gift differs from a bequest in that it involves the transfer of property rather than an asset (such as stock), and it is not intended to benefit the donor, although he or she may receive some income from it.

As a means of avoiding transfer taxes and legal fees and legal process, significant amount of attempt to transfer large amounts of property without consideration by transferring it as a gift. Transferring property as a gift might also save the donor from capital gains tax liability. It can be an effective method for passing on wealth to younger generations while reducing estate tax liability.

Joint Tenants Or Tenants In Common

Joint tenants or tenants in common are two different forms of ownership for a property with someone else.

Joint tenants have equal rights to the property and, if you die, it is transferred to the other owner(s). This is a popular choice for married couples.

You’ll need to transfer 50% of the property to your partner in a share-equity transfer.

If you and your wife are the tenants in common, you may own different parts of the house. If you die, the property does not automatically go to your heirs. You can, however, set out how much of the property you want to pass on in your will.

This option might be useful if you didn’t want your kid to be joint tenants with you but still wanted them on the title deeds.

You can also change between being tenants in common and joint tenants at any time. This is frequently done during a divorce, since you may wish to be a tenant in common rather than a joint tenant.

Why is gifting property is popular?

There are several reasons why giving property with a deed of gift might be appealing if you own your own home. However, there’s only one reason why transferring property to family members has grown in popularity in the last decade or so, and it’s because of inheritance tax (IHT).

For the vast majority of us, the property is the most important consideration when it comes to inheritance tax liabilities reduction. Because a family member most valuable asset is often its home, gifting a property is a popular subject nowadays.

Gifting Land To Family Member in the UK

Despite the large sums involved, it is possible to transfer ownership of your property without any financial transactions. This procedure may be referred to as a deed of gift or a transfer of gift, and they mean the same thing.

It might be difficult to execute a deed of gift, but it isn’t impossible. There are several factors that must be satisfied before considering a transfer or gift, and they are quite simple:

• The owner should be of good mental health and make decisions based on their own free will.
• Before signing a deed of gift, you should get legal counsel.
• There should be no outstanding liens on the property in question.
• The owner is identified in the Land Registry’s proprietorship register.

If all of these criteria are satisfied, you may consider transferring your property to a family member. However, there may be several complexities along the way that you should anticipate, so expert counsel is recommended before any formal action is taken. n.

It’s worth your time to find a conveyancing solicitor and tax specialist that has previously handled deeds of gift for professional advice. Keep in mind that, unless an exception is made within the deed, you will have no legal local authority to cancel or alter the document after it has been given. Having a competent and trustworthy solicitor handle your transfer of equity will let you make the required adjustments in the purchase process if they are appropriate for your specific case.

What should I do if I want to give my home as a gift?

Although there is no legal obligation to hire a solicitor, most people who wish to make a gift deed choose to do so. We strongly suggest consulting an attorney if the property has never been registered with the Land Registry.

Any debt secured againts the property must be paid off before the asset may be transferred.

Gifting Property To Children

Passing property to family members might be difficult, especially if you own many homes or operate a buy-to-let business. You can not only reduce your capital gains tax (CGT) but also avoid inheritance tax (IHT) for your family by following the correct procedures and planning ahead of time. We’ll look at transferring ownership of property from parent to child, including ‘children gifting property’, and how capital gains tax and inheritance relief can be used to your advantage.

It’s not uncommon for people to gift a property to children. Now, in order for your kids to avoid having to pay an even larger amount for IHT later, you’ll have to take a capital gains tax hit.

If the buyer takes the loss, avoid a greater IHT payment later, and CGT must be paid on the difference between the purchase price and full market value at time of transfer. HMRC recognizes that if you gifted your child’s home for free, you received the full market value.

If you live for seven years after making the transfer of equity, the asset will be removed from your estate and no IHT will be due. This is referred to as a “potentially exempt transfer.” In order for this to work, the gift must be given without any strings attached, meaning it cannot include conditions or provide benefits to you in any manner. Otherwise, it will be deemed a “gift with reservation of benefit,” and it will go through your estate.

You can rent out your house to someone if you still want or need to stay in it but it is still available for rent. They will almost certainly be required to pay income tax on the money they receive from you since they will be earning taxable wages themselves.

Another approach to transferring property ownership from parent to child and reducing inheritance tax is to provide half of the home to your children and split the expenses evenly. Their section of the house would not be subject to pay inheritance tax, as long as at least seven years have passed since your death.

Gifting Property To Spouse

If a married or civil partnership couple transfers assets to one another, the transaction must be a completely unconditional gift. The spouse who hands over the asset must not have control of it or get a benefit from it after the handover in order for it to avoid being considered an attempt to circumvent anti-avoidance rules.

However, the spouse or civil partner who received the present has no legal obligation to keep it for the other spouse or civil partner. They may give it back to the other spouse or civil partner at a later date, leave it to them in a will, or make another distinct gift to the transferor spouse or civil partner at a later time.

It’s also important to note that such transfers might be disputed by HMRC under the Ramsay principle. The House of Lords ruled in this well-known tax case that the courts must examine each transaction in a chain to determine the legal character of the entire sequence of transactions.

The court’s decision was taken as implying that courts were entitled to disregard steps in a transaction (whether or not they achieve a legitimate commercial aim) inserted for the primary purpose of avoiding tax liability.

Ramsay is applicable if the inter-spouse/civil partner transfer is part of a sequence of transactions intended to produce a tax benefit, or is a sham, in relation to property transfers between spouses or civil partners. This can happen, for example, when the recipient spouse or civil partner agrees to return a similar amount to the donor rather than keep the asset as would be the case with an outright gift.

It is quite simple to transform the ownership status of a property held as joint tenants to tenants-in-common if both owners already own it, however there may be a stamp duty land tax penalty where the home is mortgaged.

Gifting Property With A Mortgage

So you’re the recipient of a wonderful inheritance from your parents. The issue is that your parents have a mortgage on the home and want it repaid as part of the gift. You will also want to utilize the available equity as a deposit.

Here’s what you need to know about inheritance loans when it comes to mortgages. Firstly, inheritance is not income and therefore inheritance funds are disregarded by the mortgage lender in terms of affordability. This means that your parents can gift you 100% of the equity in their home…which makes sense because they won’t be living there anymore (unless they are gifting to a younger sibling).

But inheritance loans can’t be used for all mortgage purposes. The inheritance funds must only be used as the deposit.

What are the tax implications for Gifted Property?

Gifting property or rental income stream to family members may be a wonderful idea..

It’s not only very generous but it could help lower your tax bill while you’re alive, or even reduce and ensure they will not have to pay inheritance tax when you die.

However, taking this step isn’t simple or risk-free. In this article, we’ll go through what are the tax implications of gifting a property.

In contrast to popular belief, inheritance tax is not something that goes away once the deed of gift has been completed. IHT will continue to be a problem for seven years after the transfer of equity is complete, which means that if the donor dies before seven years, the beneficiary will still be charged with IHT.

Gifts of tangible personal property are considered a “potentially exempt transfer of equity,” and the whole 40% IHT will be due if the donor dies within the first three years of receiving it. Every year after that, until the eighth year, eight percentage points will be subtracted from the beneficiaries’ IHT liability. When the seven-year period has elapsed, the beneficiary will be the sole owner and the property will not be considered part of the donor’s estate for tax purposes.

NOTE:  If you’re considering giving someone a property, it’s vital to note that the moment you give them the house, they’ll be responsible for paying market rent. The only other option is to move out, which isn’t ideal.

A deed of gift should not cause any stamp duty problems, as it is only payable if there is a mortgage connected and no debt must be secured against the property when completing a gift transfer.

Under current rules, if the property being given is determined to be a second home by HMRC, the donor would still be held responsible to pay Capital Gains Tax. If a gift is made to a minor, the IRS would take into account income tax since the property in question is most likely to be a rental house. It would also be a consideration for your beneficiary if you choose to stay in your home and pay rent because they will then be subject to income tax on what you pay.

Can the gifted property be taken back?

Remember that, unless there is a specific provision in the deed, you will have no legal right to cancel or invalidate a gift deed once it has been given to a recipient.

Risks associated with gifting property

Giving a home as a gift might appear to be the simplest method to reduce the market value of your estate and minimize inheritance tax liability, but it isn’t without difficulties and potential risks involved.

Here are some things to think about:

1. It is possible that the gift was intended to save inheritance tax and the original owner still resides in the property. For inheritance tax purposes, this would be true. There are a few exceptions to this, but they are specific to individual situations.

2. When you give property to someone, it no longer belongs to you. If you want to sell or modify the property in any way, you’ll need their permission. If a new owner does not have your consent for continuing occupancy rights, he or she could demand that you depart the home in the worst-case situation.

3. Who is in charge of keeping the property up and running, insuring it, and paying the bills? All of this would have to be determined at the start.

4. What if the current and new owners becomes personally bankrupt or financially unstable? The home, which has now become one of their assets, is a danger of being taken into bankruptcy.

5. What if the new owners divorces? The home would become a marital asset, putting you at risk of eviction if it were to go into divorce litigation.

6. It’s possible that the property is being bought as a second home for the new owner, in which case future capital gains tax growth on the second property would not be matched by principal private residence deduction.

Finally, we would recommend that you carefully consider these types of arrangements and consider what the motivators are for making such a present. If there is a solid cause to cede control of your primary asset (and there are times when this may be necessary), do it in such a way that maintains employment while possibly using a trust structure based on the market value.

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Transferring Property in Trinidad and Tobago

Transferring Property

In Trinidad, property is held either under the Common Law – through a Deed with a Deed Number – or under the Real Property Ordinance – through a Certificate of Title. The difference between the two methods is mainly procedural and an attorney-at-law will be able to explain the necessary intricacies depending on your requirements. However, the most transactions involving property involve transfers of one kind or the other, sometimes with monetary consideration and sometimes without.

Type of Property Transfer

1)    By Gift 2)    By Sale 3)    Following a Grant of Probate. 4)    Under the terms of an Order of the Court. The format of the appropriate transfer is a matter for your attorney-at-law and does not differ substantially save and except that sales involve stipulating a sum to be paid, grants of probate need to be properly recited as must any Court Order. The most common transfers are either gifts or sales.

The Agreement

Usually, the parties enter into a written agreement for the sale of land which stipulates conditions to be satisfied prior to the transfer of title, the quantum of the sale and the down payment which is to be paid. Furthermore, the agreement will also detail the time period for the completion of the sale. For Deeds of Gift, an agreement is rarely done.

The Title Search

It is always advisable to do a search on any property to ensure that there are no outstanding issues with respect to title and any judgments against the owners. These are quite often major stumbling blocks and should be clarified at the earliest. There is a tendency for those transferring property by Gift, to dispense with this step. This may be a false economy as title problems may pose a risk to the recipient. The time period between the signing of the Agreement for Sale and the signing of the Deed itself is usually used for the completion of a title search.

The Need for a Valuation

Deeds of Gift always require a valuation to be done in writing and submitted to the Board of Inland Revenue. The value of your land or the price at which it is being sold determines your legal fees as well as any Stamp Duty that may be payable. A valuation must be done by a proper valuator and usually involves a site visit and photographs are taken of the site. It should be noted, while a valuation is required, the State – through its appropriate agency – can opt to value the property themselves if dissatisfied with the valuation you submit.

Stamp duty is a tax paid to the State and depends on the value of your land. There are exemptions for residential land up to a value $450,000 in value and for buildings and land, up to a value of $850,000. The quantum of Stamp Duty is scalable and your attorney-at-law will be able to advise you of your costs.

Steps to Take

If you wish to do a transfer of property, seek legal advice and ensure that you have title to the subject property. Your lawyer will play a key role in ensuring the smooth transfer of property and will be able to advise you on teach step. If you desire to make a property transfer, seek legal assistance and the process will proceed smoothly.

L.P. 202,Main Road Montrose, Chaguanas, Trinidad (West Indies)

(Office) +1 868-665-5276 or 868 665-9071 or 868-736-7556

[email protected]

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Deed of Assignment | Assignor | Assignee

Assign your property to another with a "deed of assignment".

Transfer your property to another person

Last updated on 16 November 2023

1. What is a Deed of Assignment? 

A Deed of Assignment is a contract where the owner (the “assignor”) transfers ownership over property to another person (the “assignee”) by way of assignment. The assignee steps into the shoes of the assignor and assumes all the rights and obligations to the property.

2. When do you need a Deed of Assignment?

A Deed of Assignment is used when the owner wants to transfer ownership (and the rights and obligations) over property to another person.

3. What information do you need to create the Deed of Assignment?

To create your Deed of Assignment you’ll need the following minimum information:

• The type of assignor (e.g. individual or business) as well as name and details (e.g. nationality and address).
• The type of assignee (e.g. individual or business) as well as name and details (e.g. nationality and address).
• Brief description of the property to be assigned.

4.  How much is the document?

The document costs PHP 400 for a one-time purchase. Once purchased you have unlimited use and revisions of this type of document.

You can also avail of Premium subscription at PHP 1,000 and get (a) unlimited use of our growing  library  of documents (from affidavits to contracts); and (b) unlimited use of our “ Ask an Attorney ” service, which lets you consult an expert lawyer anytime for any legal concern you have.

Click  here  to get this document

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