Assignment of Deed

Table of contents, assignment of deed of trust.

An assignment of deed is used to show the deed of a property changing from one party to another, such as when a sale is made. It is used as the written proof to show who has rightful ownership of the property. When someone is purchasing property and decides to sell it before they have paid it off, an assignment of deed form would be used to transfer the rights and everything associated with the property over to the new owner.

When a debtor transfers real estate to a creditor, the  Assignment of Deed  is the legal document used to record this transfer. This happens when a lawsuit is filed on a property owner for a default in payment and the court’s rule in favor of the creditor; this is one example of when the deed of assignment would be put in to use. It’s used to show that the property is being transferred from the ownership of the defendant and given to the plaintiff that won the case and awarded the property.

It’s important to understand what these documents mean as they pertain to public property records as well as  personal background checks  into an individual. This could be exactly the type of information you need to help you gain a better understanding on someone or his or her history. It could also be in your own public background information if someone knows where to look for it.

Public records will always contain the history of who owns real property and the details on that property as it exchanges hands or ownership is passed. Anyone who knows how can access basic information about a deed or its assignments.

When a property owner uses an assignment of deed of trust, they are assigning ownership of the property to someone else and this is a very important document that should be kept in a safe and secure place. There are also public records kept on these types of documents and you should be able to request a copy – sometimes at a fee – should you need one.

The  Assignment of Deed  will also specify the rights the other person will receive along with the deed. As property transfers ownership like this, a recital is usually included as well which shows how many people and the identities of who has owned the property before. This allows you to see how many times the property has transferred hands over the course of its history.

Now that you know more about this particular property document, you will understand it when you use it. Whether you need it for your property or you are searching the  property records  of someone else for some reason, this information will be very beneficial to you.

We know that these types of legal matters can be confusing to the average person and that’s why we strive to make it easier to understand by giving you the basics here. Assignment of deed of trust documents do not have to confuse you anymore.

Deed of Assignment (for Intellectual Property)

a formal legal document used to transfer all rights

In the realm of intellectual property, a Deed of Assignment is a formal legal document used to transfer all rights, title, and interest in intellectual property from the assignor (original owner) to the assignee (new owner). This is crucial for the correct transfer of patents, copyrights, trademarks, and other IP rights. The deed typically requires specific legal formalities, sometimes notarization, to ensure it is legally enforceable.

To be legally effective a deed of assignment must contain:

  • Title of the Document : It should clearly be labeled as a "Deed of Assignment" to identify the nature of the document.
  • Date : The date on which the deed is executed should be clearly mentioned.
  • Parties Involved : Full names and addresses of both the assignor (the party transferring the rights) and the assignee (the party receiving the rights). This identifies the parties to the agreement.
  • Recitals : This section provides the background of the transaction. It typically includes details about the ownership of the assignor and the intention behind the assignment.
  • Definition and Interpretation : Any terms used within the deed that have specific meanings should be clearly defined in this section.
  • Description of the Property or Rights : A detailed description of the property or rights being assigned. For intellectual property, this would include details like patent numbers, trademark registrations , or descriptions of the copyrighted material.
  • Terms of Assignment : This should include the extent of the rights being transferred, any conditions or limitations on the assignment, and any obligations the assignor or assignee must fulfill as part of the agreement.
  • Warranties and Representations : The assignor typically makes certain warranties regarding their ownership of the property and the absence of encumbrances or third-party claims against it.
  • Governing Law : The deed should specify which jurisdiction's laws govern the interpretation and enforcement of the agreement.
  • Execution and Witnesses : The deed must be signed by both parties, and depending on jurisdictional requirements, it may also need to be witnessed and possibly notarized.
  • Schedules or Annexures : If there are detailed lists or descriptions (like a list of patent numbers or property descriptions), these are often attached as schedules to the main body of the deed.

Letter of Assignment (for Trademarks and Patents)

Letter of Assignment

This is a less formal document compared to the Deed of Assignment and is often used to record the assignment of rights or licensing of intellectual property on a temporary or limited basis. While it can outline the terms of the assignment, it may not be sufficient for the full transfer of legal title of IP rights. It's more commonly used in situations like assigning the rights to use a copyrighted work or a trademark license.

For example, company X allows company Y to use their trademark for specific products in a specific country for a specific period.  

At the same time, company X can use a Letter of Assignment to transfer a trademark to someone. In this case, it will be similar to the Deed of Assignment. 

Intellectual Property Sales Agreement

Intellectual Property Sales Agreement

An IP Sales Agreement is a detailed contract that stipulates the terms and conditions of the sale of intellectual property. It covers aspects such as the specific rights being sold, payment terms, warranties regarding the ownership and validity of the IP, and any limitations or conditions on the use of the IP. This document is essential in transactions involving the sale of IP assets.

However, clients usually prefer to keep this document confidential and prepare special deeds of assignment or letter of assignment for different countries.

IP Transfer Declaration

IP Transfer Declaration

In the context of intellectual property, a Declaration is often used to assert ownership or the originality of an IP asset. For example, inventors may use declarations in patent applications to declare their invention is original, or authors may use it to assert copyright ownership. It's a formal statement, sometimes required by IP offices or courts.

When assigning a trademark, the Declaration can be a valid document to function as a proof of the transfer. For example, a director of company X declares that the company had sold its Intellectual Property to company Y. 

Merger Document

Merger Document

When companies or entities with significant IP assets merge, an IP Merger Document is used. This document outlines how the intellectual property owned by the merging entities will be combined or managed. It includes details about the transfer, integration, or handling of patents, copyrights, trademarks, and any other intellectual property affected by the merger.

In all these cases, the precise drafting of documents is critical to ensure that IP rights are adequately protected and transferred. Legal advice is often necessary to navigate the complexities of intellectual property laws.

This site uses cookies to store information on your computer.

Some cookies on this site are essential, and the site won't work as expected without them. These cookies are set when you submit a form, login or interact with the site by doing something that goes beyond clicking on simple links.

We also use some non-essential cookies to anonymously track visitors or enhance your experience of the site. If you're not happy with this, we won't set these cookies but some nice features of the site may be unavailable.

By using our site you accept the terms of our Privacy Policy .

ClickCease

  • Now Trending:
  • UNDERSTANDING TENANCIES ...
  • THE SENIOR PARTNER OF PR...
  • Dr. Prince O. Williams-J...
  • How To Pick The Right Ho...

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.

Only 22% of poorest Nigerian households have electricity access –World Bank

Related Posts

Property Investment

Drafting a Deed of Assignment

Try our AI Legal Assistant - it's free while in beta 🚀

assignment deed means

Genie's AI Legal Assistant can draft, risk-review and negotiate 1000s of legal documents

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom. Also note: This is not legal advice.

Introduction

A Deed of Assignment is a vital legal document used to transfer rights, interests or assets between parties. It is regularly used in business transactions, and often regarding real estate or intellectual property. A well-crafted deed of assignment can protect both sides from potential legal disputes, ensuring that everyone involved understands their obligations and responsibilities.

The Genie AI team has seen many instances where having a valid deed of assignment can make all the difference - without it businesses could be exposed to considerable risk. That’s why we offer free templates and step-by-step guides to help those wishing to draft their own deed.

When creating a Deed of Assignment it is important to take the specific circumstances into account - any changes or additions should be accurately documented and agreed by all involved parties beforehand. Furthermore, it is essential that the terms are clearly written out in an unambiguous way so every party knows exactly what they have signed up for. Beyond protecting both sides’ interests, this type of agreement can also be used for copyright assignments, leases, debt transfers and trusts.

Before signing on the dotted line it’s also critical that executing such documentation is done properly - all parties must sign in the presence of a witness who will also affix their signature and date the document accordingly. Once this process has been completed filings must then be made with any relevant government authorities whenever necessary (especially in cases involving real estate or intellectual property transfers).

In summary, drafting a Deed of Assignment not only safeguards everyone’s best interests but also provides additional benefits depending on its use case - reading through our step-by-step guidance below should provide you with more information on how to access our template library today and start benefitting from its advantages without needing to sign up for an account with Genie AI first!

Definitions (feel free to skip)

Legal Binding: When a legally binding document is used, it means that all parties involved are legally obligated to follow the terms and conditions set forth in the document.

Assignor: The assignor is the person who is transferring rights, interests or assets to someone else.

Assignee: The assignee is the person who is receiving the rights, interests or assets from the assignor.

Witness: A witness is an independent third-party who is present when a document is signed, in order to ensure that the process is completed in a secure and legally binding manner.

Stamp: A stamp is an official seal or mark that is used to verify and authenticate a document.

Tax: A tax is a sum of money that is paid to a government or public authority.

Duty: Duty is an obligation or responsibility assigned to someone.

Defining the Deed of Assignment

What is a deed of assignment and what is its purpose, parties involved, who needs to be involved in the making of a deed of assignment, drafting the deed, determine what kind of deed of assignment needs to be drafted, consider the subject matter to be assigned in the deed, research the legal requirements for the kind of deed to be drafted, draft the deed of assignment in accordance with the legal requirements, executing the deed, check that the parties to the deed are correctly identified, confirm that the deed is correctly signed and dated by all parties, confirm that the deed is witnessed by an independent third party, have the deed of assignment properly executed by all parties, registration, determine whether the deed of assignment needs to be registered, if registration is necessary, confirm the registration procedures, take necessary steps to register the deed of assignment, considerations, consider any applicable tax or stamp duty implications of the deed of assignment, consider any restrictions or limitations on the rights being assigned, consider whether the deed of assignment needs to be registered in any public records, common mistakes, not accurately identifying all of the parties to the deed, not having the deed properly executed by all parties, not having the deed witnessed by an independent third party, not considering any applicable tax or stamp duty implications, not considering any applicable restrictions or limitations on the rights being assigned, record keeping, ensure that the original deed of assignment is securely stored, create a digital copy of the deed and store it in a secure manner, review the deed of assignment to ensure accuracy, confirm that all steps have been completed correctly, seek advice from legal professionals if necessary, get started.

  • Establish the parties involved in the Deed of Assignment
  • Identify the property or service being assigned
  • Specify the terms of the assignment
  • Ensure the Deed of Assignment is properly witnessed
  • Check that all signatures are valid

When you have completed the steps above, you will have successfully defined the Deed of Assignment and can proceed to the next step.

  • A deed of assignment is a legal document that is used to transfer the rights and responsibilities of one party (the assignor) to another party (the assignee)
  • It is used to transfer contractual rights and obligations between parties
  • It should include information such as the names of the parties, the date of the assignment, and the description of the rights transferred
  • You will know that you have completed this step when you have an understanding of what a deed of assignment is and why it is used.
  • Identify the party transferring their rights (the assignor) and the party receiving the rights (the assignee)
  • Draft the deed in the name of both parties, including full names and contact details
  • Ensure the deed is signed by both the assignor and assignee
  • Once the deed is signed, the parties should exchange copies of the document

Once the assignor and assignee have been identified and the deed has been drafted and signed, you can check this step off your list and move on to the next step.

  • Identify the parties involved in the Deed of Assignment. This would typically include the assignor (the party transferring their rights or interest) and the assignee (the party receiving the rights or interest).
  • Ensure that all parties involved have the legal capacity to enter into a contract.
  • When all parties have been identified and their legal capacity has been verified, you can check this step off your list and move on to drafting the Deed.
  • Read the applicable laws in your jurisdiction to determine the required language and structure of the Deed of Assignment
  • Gather the necessary information on the parties, the asset being assigned, and other relevant details
  • Draft the Deed of Assignment, taking into account all the necessary details
  • Make sure the language is clear and unambiguous
  • Have the Deed of Assignment reviewed by a legal professional
  • When the Deed of Assignment has been drafted and reviewed, you can move on to the next step.
  • Identify the type of assignment that needs to be drafted and the legal requirements that need to be satisfied
  • Consider the purpose of the Deed and the rights and obligations of the parties to the Deed
  • Determine if the Deed is for an absolute or conditional assignment
  • Consider if the Deed should be an express or implied assignment
  • Determine if the Deed needs to be in writing or if it can be oral
  • Check the applicable laws in your jurisdiction to ensure that you are drafting a valid Deed
  • Check if there are any additional requirements that need to be included in the Deed

When you can check this off your list: Once you have identified the type of assignment and the relevant legal requirements, you can move on to considering the subject matter to be assigned in the Deed.

  • Identify the subject matter of the Deed of Assignment, such as a patent, trademark, copyright, or other intellectual property
  • Assess the value of the subject matter and any associated liabilities
  • Understand the relationship between the assignor and assignee
  • Have all necessary documents, such as a purchase agreement, to provide more detail about the assignment

Once you have identified the subject matter of the Deed of Assignment, assessed its value, understand the relationship between the assignor and assignee, and gathered any additional documents, you can move onto the next step of researching the legal requirements for the kind of Deed to be drafted.

  • Research the relevant legislation, case law, and other materials related to the Deed of Assignment to be drafted
  • Consult with a lawyer familiar with the relevant law to understand the requirements
  • Take detailed notes on the legal requirements that must be adhered to in the Deed of Assignment
  • Once you have all the necessary information, double-check that you understand the requirements before moving on to the next step.
  • Prepare the text of the Deed, ensuring that all relevant information regarding the parties, the subject matter, and the consideration is included
  • Check to make sure the language conforms with relevant laws and regulations
  • Have the Deed reviewed by a solicitor to ensure that it complies with all legal requirements
  • Once the Deed has been approved by a solicitor, have the parties sign the document
  • Once the Deed has been signed by both parties, make multiple copies and ensure each party has a copy
  • This step is complete once the Deed has been signed and each party has a copy of the document.
  • Ensure both parties sign the Deed of Assignment in the presence of two witnesses who are over the age of 18 and not parties to the Deed
  • Have both parties sign the deed in the presence of two witnesses and have the witnesses sign the deed to attest to witnessing the signature of the parties
  • Check that the parties have signed the Deed in the presence of the witnesses by noting the signatures and the dates of signature in the execution clause of the Deed
  • Once the Deed has been executed, have the parties date and keep a copy of the Deed in a secure place
  • You will know that you have completed this step when the Deed has been properly executed by the parties in the presence of two witnesses.
  • Identify all parties to the Deed and verify that their details are correct.
  • Ensure that all parties to the Deed are identified in the document and that the details of each party are accurate and up-to-date.
  • Check that the names, addresses and contact details of each party are correct.
  • Once you have verified that the parties and their details are correctly identified, you can move on to the next step.
  • Check that all parties have signed the Deed in the correct place, and that the date of signature is correct
  • Ensure that each party has signed the Deed in the presence of an independent witness
  • Check that all parties have signed the Deed with their full name and title, if applicable
  • Confirm that the date of signature is correct and that all parties have signed on the same date
  • Once you have verified that all parties have correctly signed and dated the Deed, you can proceed to the next step.
  • Ensure that the Deed is witnessed by an independent third party who is not a party to the Deed.
  • Ask the third party to sign the Deed and provide their name, address, occupation and date of signing.
  • Check that the third party has signed and dated the Deed.
  • Once the above is complete, you can check this step off your list and move on to the next step.
  • Obtain signatures from all parties on the deed of assignment, ensuring that each party signs in the presence of a witness
  • Have an independent third party witness each party’s signature
  • Ensure that all parties have a valid form of identification, such as a driver’s license or passport, available for inspection by the witness
  • Ensure that all parties sign the deed of assignment in the presence of the witness
  • Obtain the witness’ signature, confirming that all parties signed in the presence of the witness
  • You will know this step is completed once all parties have signed the deed of assignment and the witness has signed confirming they were present during the signing.
  • Obtain a copy of the executed Deed of Assignment from all parties
  • Contact the relevant state or territory office to determine whether the Deed of Assignment needs to be registered
  • If registration is required, complete the necessary forms, pay the registration fee, and submit the required documents
  • Once the Deed of Assignment is registered, the registrar will issue a certificate of registration
  • Check off this step when you have received and reviewed the certificate of registration.
  • Research the applicable laws and regulations in the relevant jurisdiction to decide if the Deed of Assignment needs to be registered
  • Consult a legal professional if unsure
  • When you have the answer, you can move on to the next step.
  • Confirm what type of Deed of Assignment requires registration with the relevant government agency or registry.
  • Research the registration procedures and the requirements you must meet in order to register the Deed of Assignment.
  • Obtain any fees or additional documents that are necessary to complete the registration process.
  • Ensure that all parties to the Deed of Assignment understand the registration process and the requirements for completing it.

You can check off this step once you have researched and confirmed the registration procedures for the Deed of Assignment.

  • Gather the necessary documents for registration, such as the Deed of Assignment, supporting documents, and the applicable fee
  • Visit the registration office to register the Deed of Assignment
  • Submit the necessary documents to the registration office
  • Pay the applicable fee
  • Obtain a copy of the registered Deed of Assignment
  • Upon completion of the above steps, you can check this off your list and move on to the next step.
  • Review and understand the nature of the rights and obligations being assigned
  • Determine if there are any restrictions or limitations in the assignment
  • Assess if any approvals are needed from third parties before the assignment is valid
  • Confirm that the assignor has the right to assign the interest being transferred
  • Check to see if the assignee has the necessary capacity to accept the assignment
  • Analyze if the assignment is subject to any applicable laws or regulations
  • Determine if any additional documentation is needed to support the assignment
  • Once you have considered all of the above, you can proceed with drafting the Deed of Assignment.
  • Check with your local taxation authority or a qualified tax professional to see if the Deed of Assignment is subject to any taxes or stamp duty.
  • Ensure that the Deed of Assignment includes any required taxes or stamp duty payments.
  • Check to see if the tax or stamp duty implications vary by jurisdiction.
  • Once you’ve considered the tax or stamp duty implications, you can move on to the next step.
  • Identify any restrictions or limitations that could affect the transfer of rights in the Deed of Assignment
  • Consider whether there are any legal restrictions that must be observed in the transfer of the rights being assigned
  • Research any relevant industry standards or regulations to ensure that the restrictions or limitations on the rights being assigned are compliant
  • Ensure that the Deed of Assignment clearly outlines the restrictions or limitations of the rights being assigned
  • When all restrictions or limitations on the rights being assigned are taken into consideration, checked for compliance and outlined in the Deed of Assignment, this step is complete.
  • Consider whether the Deed of Assignment needs to be registered with any government or public agencies.
  • Determine if any registration is required or optional.
  • Research the relevant regulations and laws to ensure that the assignments are properly recorded.
  • Check any local requirements or restrictions.
  • Once you have determined that the Deed of Assignment does or does not need to be registered, you can move on to the next step in the process.

• Read over the Deed of Assignment twice to make sure you’re accurately identifying all of the parties to the Deed. Make sure you include the full names and addresses of the assignor and assignee, as well as any other relevant parties. • Check that the legal description of the subject property is accurate. • Ensure that the consideration (the amount being exchanged for the assignment) is stated clearly and accurately. • Make sure that the names of the initial parties to the Deed are also included in the recitals. • Ensure that the recitals and the express terms of the Deed are consistent with one another. • Make sure that the Deed is signed, notarized, and delivered in accordance with state law.

Once you’ve completed the above steps, you can check off this task and move on to the next step in the guide.

  • Identify the assignor and assignee. The assignor is the party transferring their rights and the assignee is the party receiving the rights.
  • Check all of the details are correct. This includes the names, addresses and other contact information for both parties.
  • Draft the deed to ensure that the assignor and assignee are accurately identified.
  • You can check this off your list and move on to the next step once you have confirmed that the assignor and assignee have been accurately identified in the deed.
  • Ensure that all parties to the Deed have read, understood and agreed to the terms and conditions of the agreement.
  • Have all parties affix their signature to the Deed and the accompanying documents.
  • Check that all the signatures are dated and in the presence of a witness.
  • When all parties have properly executed the Deed, you can move on to the next step.
  • Ensure all parties have signed the Deed in the presence of a witness.
  • The witness must be an independent third party who is not a party to the Deed.
  • The witness must sign each page of the Deed that contains a party’s signature.
  • The witness must also include their full name, address and occupation on the Deed.
  • Once all of the above requirements are met, then you can check this off your list and move on to the next step.
  • Determine the applicable taxes or stamp duty implications for the Deed of Assignment.
  • Research any applicable taxes or stamp duty fees for the Deed of Assignment.
  • Calculate the applicable taxes or stamp duty fees for the Deed of Assignment.
  • Make sure to include the applicable taxes or stamp duty fees in the Deed of Assignment.

Once you have determined the applicable taxes or stamp duty implications for the Deed of Assignment, and included them in the Deed of Assignment, you can move on to the next step.

  • Determine the rights that you are assigning and review any applicable laws or regulations to ensure that the assignment of such rights is permitted.
  • Consider any applicable contractual restrictions or limitations on the rights being assigned, such as any applicable confidentiality obligations or restrictions on the transfer of rights.
  • Once you have determined that the assignment of the rights is permitted and there are no applicable restrictions or limitations, you can proceed to the next step of recording keeping.
  • Create a record of the Deed of Assignment, including the date it was executed, by each party
  • Maintain a copy of the Deed of Assignment in a secure place
  • Record any additional related documents, such as any security documents, release documents, or other agreements
  • When all of the above have been done, you can check this off your list and move on to the next step.
  • Obtain a physical copy of the original Deed of Assignment
  • Ensure the original Deed is signed by both parties
  • Keep the original Deed in a safe and secure place, such as a locked filing cabinet or safe
  • Make sure the document is stored in a location that is accessible to both parties
  • Ensure that the original Deed is not destroyed or tampered with in any way

You can check this off your list and move on to the next step once the original Deed of Assignment is safely stored in a secure location.

  • Scan or take a digital photo of the original Deed of Assignment and save it to a secure location.
  • Ensure that the digital copy is readable and clearly displays all of the information contained in the original document.
  • Ensure that the digital copy is stored in a secure location, preferably on a cloud-based storage system or other secure server.
  • Make sure that only authorized personnel have access to the digital copy of the Deed.
  • When finished, you will have created a digital copy of the Deed and stored it in a secure manner.
  • Read over the Deed of Assignment to ensure accuracy
  • Make sure all details are correct, and all parties are named
  • Verify that all signatures are complete and accurate
  • Make sure the date of the assignment is correct
  • Check that the document is formatted and laid out correctly
  • Once you are satisfied with the accuracy of the Deed of Assignment, you can move on to the next step.
  • Read through the entire document to make sure all the information is correct
  • Double check that the names and details of the parties involved are spelled correctly
  • Ensure that all the dates are accurate, and that any and all parties have signed the deed in the right places
  • Check that the terms and conditions in the deed are consistent with the agreement between the parties
  • When you have verified all the details, you can check this off your list and move on to the next step.
  • Check the Deed of Assignment to ensure that all required elements are present, including accurate information and signatures of all parties.
  • Verify that any and all attachments to the Deed of Assignment are included and accurate.
  • Ensure that all dates, signatures, and other pieces of information are accurate and up-to-date.
  • Once you’ve confirmed that all of the steps have been completed correctly, you can move on to the next step.
  • Seek professional advice from a lawyer or other legal professional to ensure that the deed of assignment is legally binding and enforceable.
  • Request that the legal professional checks that all steps have been completed correctly, and that the deed of assignment meets all requirements under local law.
  • Ask the legal professional to provide you with written advice on any changes or revisions that may be necessary to make the deed of assignment valid and enforceable.
  • Once the legal professional has confirmed that the deed is legally sound, you can check off this step and proceed with the next one.
  • Research legal professionals who are able to provide advice and assistance with the drafting of a deed of assignment
  • Contact the legal professionals to discuss the specific requirements and details of the deed of assignment
  • Ask the legal professionals if they are able to provide advice and assistance with the deed of assignment
  • Receive advice from the legal professionals and make changes to the deed of assignment accordingly
  • Once you are satisfied with the changes to the deed of assignment, you can move on to the next step.

Q: Does a Deed of Assignment need to be signed?

Asked by John on April 23rd 2022. A: Yes, a Deed of Assignment needs to be signed by both the assignor and the assignee in order for it to be legally binding. The signatures should be witnessed and dated, and should be in front of an independent witness who is not related to either party. It is also important to include the relevant clauses and provisions in the deed, as these will set out the rights and obligations of each party.

Q: What is the difference between an assignment and a novation?

Asked by Sarah on July 29th 2022. A: An assignment is a transfer of rights or obligations from one party to another, while a novation is a transfer of rights or obligations from one party to another with the consent of all parties involved. An assignment does not necessarily require the consent of all parties, while a novation always requires the consent of all parties. Additionally, an assignment can transfer rights or obligations without necessarily extinguishing any pre-existing agreements, while a novation extinguishes any pre-existing agreements.

Q: Is a Deed of Assignment legally binding in different jurisdictions?

Asked by Tyler on October 17th 2022. A: Yes, a Deed of Assignment can be legally binding in different jurisdictions, though the exact requirements for validity may differ from jurisdiction to jurisdiction. In general, however, a Deed of Assignment needs to be signed by both parties and witnessed by an independent third party in order for it to be legally binding. Additionally, the deed should include all relevant clauses and provisions that are applicable in each jurisdiction.

Q: Are there any tax implications when drafting a Deed of Assignment?

Asked by Emma on January 15th 2022. A: Yes, there are tax implications that need to be taken into account when drafting a Deed of Assignment. Depending on the jurisdiction and specific tax laws, there may be tax implications for both parties if they are transferring rights or obligations under the deed. It is important to seek professional tax advice before entering into any agreement that involves transferring rights or obligations between parties as this could have significant financial implications for all involved.

Q: Do I need legal advice when drafting a Deed of Assignment?

Asked by Jacob on June 5th 2022. A: While it is not necessary to seek legal advice when drafting a Deed of Assignment, it is generally recommended in order to ensure that all relevant legal requirements are satisfied and that all involved parties are aware of their rights and obligations under the deed. It is also important to make sure that all language used in the deed is clear and unambiguous so that it can easily be understood by all parties involved.

Q: How can I ensure that my Deed of Assignment is valid?

Asked by Michael on August 28th 2022. A: In order for your Deed of Assignment to be valid, it must meet certain legal requirements which vary between jurisdictions. Generally speaking, your deed should include all relevant clauses and provisions applicable in your jurisdiction as well as signatures from both parties which should be witnessed by an independent third party who is not related to either party involved. Additionally, any language used within the document should be clear and unambiguous so that it can easily be understood by all involved parties.

Q: What information do I need to provide when drafting a Deed of Assignment?

Asked by Ashley on November 10th 2022. A: When drafting a Deed of Assignment, you will need to provide information about both parties involved such as their names, addresses, contact details and any other relevant information required under applicable laws in your jurisdiction. Additionally, you will need to include any relevant clauses or provisions applicable in your jurisdiction which will set out the rights and obligations of each party under the deed as well as any other information required for the document to be legally binding.

Q: What are common mistakes made when drafting a Deed of Assignment?

Asked by Joshua on February 20th 2022. A: One common mistake made when drafting a Deed of Assignment is failing to include all relevant clauses or provisions applicable in your jurisdiction which set out the rights and obligations of each party involved in the agreement. Additionally, failing to have the document signed by both parties or witnessed by an independent third party can render the document invalid or unenforceable under applicable law in some jurisdictions. Moreover, using ambiguous language within the document can also lead to misunderstandings and disputes further down the line which could be avoided if clear language was used throughout the document instead.

Example dispute

Lawsuit referencing a deed of assignment.

  • The plaintiff may raise a lawsuit if they have been wronged by the defendant in a way that is outlined in the deed of assignment.
  • For example, the deed of assignment may outline that the defendant is responsible for paying a certain amount of money to the plaintiff, and the defendant has failed to do so.
  • The plaintiff may also raise a lawsuit if the defendant has failed to adhere to any other obligations laid out in the deed of assignment.
  • The plaintiff would need to prove that the defendant has breached the deed of assignment in order to win the lawsuit.
  • If successful, the plaintiff may be able to obtain a judgment in their favor, which may require the defendant to pay the plaintiff the money they are owed.
  • In addition, the plaintiff may be able to seek other damages, such as punitive damages, if the breach of the deed of assignment was particularly egregious.
  • Depending on the severity of the breach, the plaintiff may also be able to seek an injunction to prevent the defendant from continuing to breach the deed of assignment.
  • Settlement of the dispute may also be possible, wherein the defendant agrees to pay a certain amount of money to the plaintiff, or agrees to adhere to the obligations laid out in the deed of assignment.

Templates available (free to use)

Deed Of Assignment For Rent Deposits Occupation Lease Deed Of Assignment Of Benefit Of Claim For The Freehold Or Extended Lease House Under Section 8 Or Section 14 Deed Of Assignment Of Equitable Interest In Residential Land Deed Of Assignment Of Goodwill And Intellectual Property Rights Transfer Of A General Partnership To An Llp Deed Of Assignment Of Property Sale Benefits [Section 42 Deed Of A

Helpful? Not as helpful as you were hoping? Message me on Linkedin

Links to get you started

‍ Our AI Legal Assistant (free while in beta) Contract Template Library Legal Clause Library

Try the world's most advanced AI Legal Assistant, today

The Genie AI logo, a dual-shaded purple fountain-pen nib, with the words Genie AI written in Black underneath.

logo

  • assignments basic law

Assignments: The Basic Law

The assignment of a right or obligation is a common contractual event under the law and the right to assign (or prohibition against assignments) is found in the majority of agreements, leases and business structural documents created in the United States.

As with many terms commonly used, people are familiar with the term but often are not aware or fully aware of what the terms entail. The concept of assignment of rights and obligations is one of those simple concepts with wide ranging ramifications in the contractual and business context and the law imposes severe restrictions on the validity and effect of assignment in many instances. Clear contractual provisions concerning assignments and rights should be in every document and structure created and this article will outline why such drafting is essential for the creation of appropriate and effective contracts and structures.

The reader should first read the article on Limited Liability Entities in the United States and Contracts since the information in those articles will be assumed in this article.

Basic Definitions and Concepts:

An assignment is the transfer of rights held by one party called the “assignor” to another party called the “assignee.” The legal nature of the assignment and the contractual terms of the agreement between the parties determines some additional rights and liabilities that accompany the assignment. The assignment of rights under a contract usually completely transfers the rights to the assignee to receive the benefits accruing under the contract. Ordinarily, the term assignment is limited to the transfer of rights that are intangible, like contractual rights and rights connected with property. Merchants Service Co. v. Small Claims Court , 35 Cal. 2d 109, 113-114 (Cal. 1950).

An assignment will generally be permitted under the law unless there is an express prohibition against assignment in the underlying contract or lease. Where assignments are permitted, the assignor need not consult the other party to the contract but may merely assign the rights at that time. However, an assignment cannot have any adverse effect on the duties of the other party to the contract, nor can it diminish the chance of the other party receiving complete performance. The assignor normally remains liable unless there is an agreement to the contrary by the other party to the contract.

The effect of a valid assignment is to remove privity between the assignor and the obligor and create privity between the obligor and the assignee. Privity is usually defined as a direct and immediate contractual relationship. See Merchants case above.

Further, for the assignment to be effective in most jurisdictions, it must occur in the present. One does not normally assign a future right; the assignment vests immediate rights and obligations.

No specific language is required to create an assignment so long as the assignor makes clear his/her intent to assign identified contractual rights to the assignee. Since expensive litigation can erupt from ambiguous or vague language, obtaining the correct verbiage is vital. An agreement must manifest the intent to transfer rights and can either be oral or in writing and the rights assigned must be certain.

Note that an assignment of an interest is the transfer of some identifiable property, claim, or right from the assignor to the assignee. The assignment operates to transfer to the assignee all of the rights, title, or interest of the assignor in the thing assigned. A transfer of all rights, title, and interests conveys everything that the assignor owned in the thing assigned and the assignee stands in the shoes of the assignor. Knott v. McDonald’s Corp ., 985 F. Supp. 1222 (N.D. Cal. 1997)

The parties must intend to effectuate an assignment at the time of the transfer, although no particular language or procedure is necessary. As long ago as the case of National Reserve Co. v. Metropolitan Trust Co ., 17 Cal. 2d 827 (Cal. 1941), the court held that in determining what rights or interests pass under an assignment, the intention of the parties as manifested in the instrument is controlling.

The intent of the parties to an assignment is a question of fact to be derived not only from the instrument executed by the parties but also from the surrounding circumstances. When there is no writing to evidence the intention to transfer some identifiable property, claim, or right, it is necessary to scrutinize the surrounding circumstances and parties’ acts to ascertain their intentions. Strosberg v. Brauvin Realty Servs., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998)

The general rule applicable to assignments of choses in action is that an assignment, unless there is a contract to the contrary, carries with it all securities held by the assignor as collateral to the claim and all rights incidental thereto and vests in the assignee the equitable title to such collateral securities and incidental rights. An unqualified assignment of a contract or chose in action, however, with no indication of the intent of the parties, vests in the assignee the assigned contract or chose and all rights and remedies incidental thereto.

More examples: In Strosberg v. Brauvin Realty Servs ., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998), the court held that the assignee of a party to a subordination agreement is entitled to the benefits and is subject to the burdens of the agreement. In Florida E. C. R. Co. v. Eno , 99 Fla. 887 (Fla. 1930), the court held that the mere assignment of all sums due in and of itself creates no different or other liability of the owner to the assignee than that which existed from the owner to the assignor.

And note that even though an assignment vests in the assignee all rights, remedies, and contingent benefits which are incidental to the thing assigned, those which are personal to the assignor and for his sole benefit are not assigned. Rasp v. Hidden Valley Lake, Inc ., 519 N.E.2d 153, 158 (Ind. Ct. App. 1988). Thus, if the underlying agreement provides that a service can only be provided to X, X cannot assign that right to Y.

Novation Compared to Assignment:

Although the difference between a novation and an assignment may appear narrow, it is an essential one. “Novation is a act whereby one party transfers all its obligations and benefits under a contract to a third party.” In a novation, a third party successfully substitutes the original party as a party to the contract. “When a contract is novated, the other contracting party must be left in the same position he was in prior to the novation being made.”

A sublease is the transfer when a tenant retains some right of reentry onto the leased premises. However, if the tenant transfers the entire leasehold estate, retaining no right of reentry or other reversionary interest, then the transfer is an assignment. The assignor is normally also removed from liability to the landlord only if the landlord consents or allowed that right in the lease. In a sublease, the original tenant is not released from the obligations of the original lease.

Equitable Assignments:

An equitable assignment is one in which one has a future interest and is not valid at law but valid in a court of equity. In National Bank of Republic v. United Sec. Life Ins. & Trust Co. , 17 App. D.C. 112 (D.C. Cir. 1900), the court held that to constitute an equitable assignment of a chose in action, the following has to occur generally: anything said written or done, in pursuance of an agreement and for valuable consideration, or in consideration of an antecedent debt, to place a chose in action or fund out of the control of the owner, and appropriate it to or in favor of another person, amounts to an equitable assignment. Thus, an agreement, between a debtor and a creditor, that the debt shall be paid out of a specific fund going to the debtor may operate as an equitable assignment.

In Egyptian Navigation Co. v. Baker Invs. Corp. , 2008 U.S. Dist. LEXIS 30804 (S.D.N.Y. Apr. 14, 2008), the court stated that an equitable assignment occurs under English law when an assignor, with an intent to transfer his/her right to a chose in action, informs the assignee about the right so transferred.

An executory agreement or a declaration of trust are also equitable assignments if unenforceable as assignments by a court of law but enforceable by a court of equity exercising sound discretion according to the circumstances of the case. Since California combines courts of equity and courts of law, the same court would hear arguments as to whether an equitable assignment had occurred. Quite often, such relief is granted to avoid fraud or unjust enrichment.

Note that obtaining an assignment through fraudulent means invalidates the assignment. Fraud destroys the validity of everything into which it enters. It vitiates the most solemn contracts, documents, and even judgments. Walker v. Rich , 79 Cal. App. 139 (Cal. App. 1926). If an assignment is made with the fraudulent intent to delay, hinder, and defraud creditors, then it is void as fraudulent in fact. See our article on Transfers to Defraud Creditors .

But note that the motives that prompted an assignor to make the transfer will be considered as immaterial and will constitute no defense to an action by the assignee, if an assignment is considered as valid in all other respects.

Enforceability of Assignments:

Whether a right under a contract is capable of being transferred is determined by the law of the place where the contract was entered into. The validity and effect of an assignment is determined by the law of the place of assignment. The validity of an assignment of a contractual right is governed by the law of the state with the most significant relationship to the assignment and the parties.

In some jurisdictions, the traditional conflict of laws rules governing assignments has been rejected and the law of the place having the most significant contacts with the assignment applies. In Downs v. American Mut. Liability Ins. Co ., 14 N.Y.2d 266 (N.Y. 1964), a wife and her husband separated and the wife obtained a judgment of separation from the husband in New York. The judgment required the husband to pay a certain yearly sum to the wife. The husband assigned 50 percent of his future salary, wages, and earnings to the wife. The agreement authorized the employer to make such payments to the wife.

After the husband moved from New York, the wife learned that he was employed by an employer in Massachusetts. She sent the proper notice and demanded payment under the agreement. The employer refused and the wife brought an action for enforcement. The court observed that Massachusetts did not prohibit assignment of the husband’s wages. Moreover, Massachusetts law was not controlling because New York had the most significant relationship with the assignment. Therefore, the court ruled in favor of the wife.

Therefore, the validity of an assignment is determined by looking to the law of the forum with the most significant relationship to the assignment itself. To determine the applicable law of assignments, the court must look to the law of the state which is most significantly related to the principal issue before it.

Assignment of Contractual Rights:

Generally, the law allows the assignment of a contractual right unless the substitution of rights would materially change the duty of the obligor, materially increase the burden or risk imposed on the obligor by the contract, materially impair the chance of obtaining return performance, or materially reduce the value of the performance to the obligor. Restat 2d of Contracts, § 317(2)(a). This presumes that the underlying agreement is silent on the right to assign.

If the contract specifically precludes assignment, the contractual right is not assignable. Whether a contract is assignable is a matter of contractual intent and one must look to the language used by the parties to discern that intent.

In the absence of an express provision to the contrary, the rights and duties under a bilateral executory contract that does not involve personal skill, trust, or confidence may be assigned without the consent of the other party. But note that an assignment is invalid if it would materially alter the other party’s duties and responsibilities. Once an assignment is effective, the assignee stands in the shoes of the assignor and assumes all of assignor’s rights. Hence, after a valid assignment, the assignor’s right to performance is extinguished, transferred to assignee, and the assignee possesses the same rights, benefits, and remedies assignor once possessed. Robert Lamb Hart Planners & Architects v. Evergreen, Ltd. , 787 F. Supp. 753 (S.D. Ohio 1992).

On the other hand, an assignee’s right against the obligor is subject to “all of the limitations of the assignor’s right, all defenses thereto, and all set-offs and counterclaims which would have been available against the assignor had there been no assignment, provided that these defenses and set-offs are based on facts existing at the time of the assignment.” See Robert Lamb , case, above.

The power of the contract to restrict assignment is broad. Usually, contractual provisions that restrict assignment of the contract without the consent of the obligor are valid and enforceable, even when there is statutory authorization for the assignment. The restriction of the power to assign is often ineffective unless the restriction is expressly and precisely stated. Anti-assignment clauses are effective only if they contain clear, unambiguous language of prohibition. Anti-assignment clauses protect only the obligor and do not affect the transaction between the assignee and assignor.

Usually, a prohibition against the assignment of a contract does not prevent an assignment of the right to receive payments due, unless circumstances indicate the contrary. Moreover, the contracting parties cannot, by a mere non-assignment provision, prevent the effectual alienation of the right to money which becomes due under the contract.

A contract provision prohibiting or restricting an assignment may be waived, or a party may so act as to be estopped from objecting to the assignment, such as by effectively ratifying the assignment. The power to void an assignment made in violation of an anti-assignment clause may be waived either before or after the assignment. See our article on Contracts.

Noncompete Clauses and Assignments:

Of critical import to most buyers of businesses is the ability to ensure that key employees of the business being purchased cannot start a competing company. Some states strictly limit such clauses, some do allow them. California does restrict noncompete clauses, only allowing them under certain circumstances. A common question in those states that do allow them is whether such rights can be assigned to a new party, such as the buyer of the buyer.

A covenant not to compete, also called a non-competitive clause, is a formal agreement prohibiting one party from performing similar work or business within a designated area for a specified amount of time. This type of clause is generally included in contracts between employer and employee and contracts between buyer and seller of a business.

Many workers sign a covenant not to compete as part of the paperwork required for employment. It may be a separate document similar to a non-disclosure agreement, or buried within a number of other clauses in a contract. A covenant not to compete is generally legal and enforceable, although there are some exceptions and restrictions.

Whenever a company recruits skilled employees, it invests a significant amount of time and training. For example, it often takes years before a research chemist or a design engineer develops a workable knowledge of a company’s product line, including trade secrets and highly sensitive information. Once an employee gains this knowledge and experience, however, all sorts of things can happen. The employee could work for the company until retirement, accept a better offer from a competing company or start up his or her own business.

A covenant not to compete may cover a number of potential issues between employers and former employees. Many companies spend years developing a local base of customers or clients. It is important that this customer base not fall into the hands of local competitors. When an employee signs a covenant not to compete, he or she usually agrees not to use insider knowledge of the company’s customer base to disadvantage the company. The covenant not to compete often defines a broad geographical area considered off-limits to former employees, possibly tens or hundreds of miles.

Another area of concern covered by a covenant not to compete is a potential ‘brain drain’. Some high-level former employees may seek to recruit others from the same company to create new competition. Retention of employees, especially those with unique skills or proprietary knowledge, is vital for most companies, so a covenant not to compete may spell out definite restrictions on the hiring or recruiting of employees.

A covenant not to compete may also define a specific amount of time before a former employee can seek employment in a similar field. Many companies offer a substantial severance package to make sure former employees are financially solvent until the terms of the covenant not to compete have been met.

Because the use of a covenant not to compete can be controversial, a handful of states, including California, have largely banned this type of contractual language. The legal enforcement of these agreements falls on individual states, and many have sided with the employee during arbitration or litigation. A covenant not to compete must be reasonable and specific, with defined time periods and coverage areas. If the agreement gives the company too much power over former employees or is ambiguous, state courts may declare it to be overbroad and therefore unenforceable. In such case, the employee would be free to pursue any employment opportunity, including working for a direct competitor or starting up a new company of his or her own.

It has been held that an employee’s covenant not to compete is assignable where one business is transferred to another, that a merger does not constitute an assignment of a covenant not to compete, and that a covenant not to compete is enforceable by a successor to the employer where the assignment does not create an added burden of employment or other disadvantage to the employee. However, in some states such as Hawaii, it has also been held that a covenant not to compete is not assignable and under various statutes for various reasons that such covenants are not enforceable against an employee by a successor to the employer. Hawaii v. Gannett Pac. Corp. , 99 F. Supp. 2d 1241 (D. Haw. 1999)

It is vital to obtain the relevant law of the applicable state before drafting or attempting to enforce assignment rights in this particular area.

Conclusion:

In the current business world of fast changing structures, agreements, employees and projects, the ability to assign rights and obligations is essential to allow flexibility and adjustment to new situations. Conversely, the ability to hold a contracting party into the deal may be essential for the future of a party. Thus, the law of assignments and the restriction on same is a critical aspect of every agreement and every structure. This basic provision is often glanced at by the contracting parties, or scribbled into the deal at the last minute but can easily become the most vital part of the transaction.

As an example, one client of ours came into the office outraged that his co venturer on a sizable exporting agreement, who had excellent connections in Brazil, had elected to pursue another venture instead and assigned the agreement to a party unknown to our client and without the business contacts our client considered vital. When we examined the handwritten agreement our client had drafted in a restaurant in Sao Paolo, we discovered there was no restriction on assignment whatsoever…our client had not even considered that right when drafting the agreement after a full day of work.

One choses who one does business with carefully…to ensure that one’s choice remains the party on the other side of the contract, one must master the ability to negotiate proper assignment provisions.

Founded in 1939, our law firm combines the ability to represent clients in domestic or international matters with the personal interaction with clients that is traditional to a long established law firm.

Read more about our firm

© 2024, Stimmel, Stimmel & Roeser, All rights reserved  | Terms of Use | Site by Bay Design

site logo

Partnership

Sole proprietorship, limited partnership, compare businesses, employee rights, osha regulations, labor hours, personal & family, child custody & support, guardianship, incarceration, civil and misdemeanors, legal separation, real estate law, tax, licenses & permits, business licenses, wills & trusts, power of attorney, last will & testament, living trust, living will.

  • Share Tweet Email Print

REAL ESTATE LAW

What is a deed of trust with assignment of rents.

By Rebecca K. McDowell, J.D.

February 24, 2020

Reviewed by Michelle Seidel, B.Sc., LL.B., MBA

Learn About Our Review Process

Our Review Process

We write helpful content to answer your questions from our expert network. We perform original research, solicit expert feedback, and review new content to ensure it meets our quality pledge: helpful content – Trusted, Vetted, Expert-Reviewed and Edited. Our content experts ensure our topics are complete and clearly demonstrate a depth of knowledge beyond the rote. We are incredibly worried about the state of general information available on the internet and strongly believe our mission is to give voice to unsung experts leading their respective fields. Our commitment is to provide clear, original, and accurate information in accessible formats. We have reviewed our content for bias and company-wide, we routinely meet with national experts to educate ourselves on better ways to deliver accessible content. For 15 years our company has published content with clear steps to accomplish the how, with high quality sourcing to answer the why, and with original formats to make the internet a helpful place. Read more about our editorial standards .

assignment deed means

  • What Is a Corporate Assignment of Deed of Trust?

A deed of trust is a written instrument granting a lien on real property. While slightly different from a mortgage, they are functionally nearly the same. Some states use deeds of trust instead of mortgages while others allow both. Either way, a deed of trust used to secure a commercial loan may also include an assignment of rents , which gives the lender the right to collect rental income from the property in the event of default.

What Is a Deed of Trust?

A ​ deed of trust ​ is a document that a borrower may execute in favor of a lender to give the lender a lien on a parcel of real estate. Like a mortgage, a deed of trust secures the loan by allowing the lender to foreclose on the real estate if the loan isn't paid (although in some states that use deeds of trust, a foreclosure isn't necessary).

​ Read More: ​ How to Research a Deed of Trust

Deed of Trust vs. Mortgage

A deed of trust is very similar to a mortgage in that it pledges property to secure a loan. A mortgage, however, is simpler; the property owner executes a mortgage document in favor of the lender, and the lender records the mortgage and has a lien , but the property owner still holds title to the property.

A deed of trust, on the other hand, grants an actual ownership interest in the property to a trustee, who holds the property in trust for the lender until the obligation is paid.

What Is an Assignment of Rents?

An ​ assignment of rents ​ is extra security granted to a lender that provides a commercial loan. Commercial loans are loans that are not made for family or household use but for business purposes.

When a borrower grants a mortgage or deed of trust on real estate and the real estate has tenants who pay rent, the lender can demand an assignment of rents in addition to the mortgage or deed of trust.

The assignment of rents means that if the borrower defaults on the loan, the lender can step in and collect the rents directly from the tenants.

Deed of Trust With Assignment of Rents

A deed of trust may contain an assignment of rents clause for that same property. In addition to a clause in the deed of trust, the lender may also require the borrower to execute a separate document called an "Assignment of Rents" that is recorded with the register of deeds.

Whether the assignment is written in the deed of trust only or is also contained in a separate document, it is binding on the borrower as long as its language is clear and sufficient to create an assignment under state law.

Exercising an Assignment of Rents

When a lender decides to collect the rents on the borrower's property, the lender is said to be exercising the assignment of rents. The lender cannot exercise the assignment unless the borrower has defaulted on the loan. Once that happens, the lender can send a written demand to the tenant or tenants, requiring that the rents be paid directly to the lender.

Absolute Assignments of Rents

An assignment of rents most likely will contain language that the assignment is an ​ absolute assignment ​. In most states, an absolute assignment gives the lender an immediate interest in the rents. This means that the lender actually owns the rents and is simply allowing the borrower to collect them on license until an event of default. Once a default occurs, the lender can intercept the rents without taking any court action; a letter to the tenants is all that's needed.

Every state's laws are different; the law of the state where the property is located will dictate how a lender can exercise an assignment of rents.

​ Read More: ​ What Is the Difference Between a Deed and a Deed of Trust?

  • Companies Incorporated: Mortgage States and Deed of Trust States
  • American Bar Association: Commercial Real Estate FAQs
  • Schulte Roth & Zabel: Sixth Circuit Upholds Assignment of Rents to Secured Lender
  • Findlaw: California Civil Code - CIV § 2938
  • Legal Beagle: What Is the Difference Between a Deed and a Deed of Trust?
  • Legal Beagle: How to Research a Deed of Trust
  • Legal Beagle: Documents Needed to Refinance a Mortgage
  • Legal Beagle: How to File a Property Lien

Rebecca K. McDowell is a creditors' rights attorney with a special focus on bankruptcy and insolvency. She has a B.A. in English from Albion College and a J.D. from Wayne State University Law School. She has written legal articles for Nolo and the Bankruptcy Site.

Related Articles

  • Who Can Act As Trustee in a Texas Deed of Trust?
  • The Definition of a Leasehold Deed of Trust
  • How to Waive Right of Redemption After Foreclosure

Difference Between Assignment and Transfer

The difference between assignment and transfer is that assign means it's legal to transfer property or a legal right from one person to another. 3 min read updated on February 01, 2023

The difference between assignment and transfer is that assign means it's legal to transfer property or a legal right from one person to another, while transfer means it's legal to arrange for something to be controlled by or officially belong to another person.

When used as verbs, assign means to set apart or designate something for a purpose while transfer means to pass or move from one person, place, or thing to someone or someplace else. When used as nouns, assign means the assignee and transfer is the act of removing or conveying something from one person, thing, or place to another. Transfer generally refers to titles whereas assignment is used with obligations and rights.

Definitions of Assignment and Transfer

  • Assignment: Assignment is used in real estate law and contracts law. It covers the transfer of rights held by the assignor to the assignee.
  • Transfer: To remove or convey from one person or place to someone or somewhere else.

Distinction Between Assignment and Transfer

When distinguishing between assignment and transfer, take licenses, for example. Licenses are contracts that don't allow legal action for infringement. They fall under state law. Therefore, state law will decide whether the license is an obligation or right that can be transferred or assigned legally.

One way to distinguish this example is that an individual contract under an agreement cannot be assigned, like entitlement to grant back royalties . In addition, the contract cannot be transferred. You need to break it down and figure out what the actual issue is — the parties' intent. An additional distinction is when the contract holder is an entity and the business owners want to transfer a portion or all of their stock. This can be seen as an implied transfer of the whole contract. However, it would not likely be an assignment of the rights covered under this agreement.

Difference Between Assign and License

The key difference between assign and license is that with a license, the person who grants permission, known as the licensor, keeps an interest in the product being licensed . In an assignment, the assignor will transfer his or her rights to the product or property being assigned.

Another difference is that assignments must be in writing and a license can be executed without being written. Consider, for example, intellectual property such as patents. Patents can be licensed verbally in some instances, but assignments for patents must be in writing and filed with the United States Patent and Trademark Office .

Assignments grant the assignee full ownership of a product or property. Therefore, an assignment will typically cost more to acquire than a license.

Frequently Asked Questions

Are there ever situations in which a license can be transferred but is not assignable?

  • Yes, in the case of allowing an assignment to one of your affiliates, the assignor would still be liable for the performance of the agreement under general assignment law. In this situation, you would not typically permit a transfer, because in a transfer, the person transferring would not maintain any obligations related to performance. Don't rely solely on this general understanding, but still expressly detail your agreement on what a licensee can legally do.

How will transfer and assignment rights affect someone's ability to sublicense?

  • In theory, if a licensee has the authority to assign license rights to someone else, you could argue that it also provides the right to sublicense it. The issue here is that with a sublicense, the person sublicensing it keeps a license right, therefore effectively creating two licensees. With an assignment, only one right is assigned, and the assignee is the one who has possession of the license. With well-drafted licenses, the right to sublicense is not typically implied, as the licensor is the one who reserves all rights that are not expressly granted.

What is the effect of poorly drafted licenses?

  • A poorly drafted license could result in giving someone implied rights to also sublicense. An example is a software license that allows a licensee to access the software without clarifying any restrictions or clearly defining the word “use.” This means that, depending on what this software is supposed to do, someone could think the term “use” means the licensee has permission to grant a sublicense as part of their usage rights.

If you need help understanding the difference between assignment and transfer, you can post your legal need on UpCounsel's marketplace. UpCounsel only accepts 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.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

  • Assignment Law
  • Assignment and Novation Agreement: What You Need to Know
  • Legal Assignment
  • Assignment Legal Definition
  • Assignment Of Contracts
  • Assignment of Rights and Obligations Under a Contract
  • Partial Assignment of Contract
  • Assignment of Rights Example
  • What Is the Definition of Assigns
  • Transfer of Intellectual Property

Cambridge Dictionary

  • Cambridge Dictionary +Plus

Meaning of deed of assignment in English

Your browser doesn't support HTML5 audio

Examples of deed of assignment

{{randomImageQuizHook.quizId}}

Word of the Day

a game in which two, three, or four players use mallets (= long wooden hammers) to hit wooden balls through small metal hoops (= curves) fixed into the grass

Infinitive or -ing verb? Avoiding common mistakes with verb patterns (1)

Infinitive or -ing verb? Avoiding common mistakes with verb patterns (1)

assignment deed means

Learn more with +Plus

  • Recent and Recommended {{#preferredDictionaries}} {{name}} {{/preferredDictionaries}}
  • Definitions Clear explanations of natural written and spoken English English Learner’s Dictionary Essential British English Essential American English
  • Grammar and thesaurus Usage explanations of natural written and spoken English Grammar Thesaurus
  • Pronunciation British and American pronunciations with audio English Pronunciation
  • English–Chinese (Simplified) Chinese (Simplified)–English
  • English–Chinese (Traditional) Chinese (Traditional)–English
  • English–Dutch Dutch–English
  • English–French French–English
  • English–German German–English
  • English–Indonesian Indonesian–English
  • English–Italian Italian–English
  • English–Japanese Japanese–English
  • English–Norwegian Norwegian–English
  • English–Polish Polish–English
  • English–Portuguese Portuguese–English
  • English–Spanish Spanish–English
  • English–Swedish Swedish–English
  • Dictionary +Plus Word Lists
  • Business    Noun
  • All translations

Add deed of assignment to one of your lists below, or create a new one.

{{message}}

Something went wrong.

There was a problem sending your report.

Deed of Assignment

How does it work?

1. choose this template.

Start by clicking on "Fill out the template"

2. Complete the document

Answer a few questions and your document is created automatically.

3. Save - Print

Your document is ready! You will receive it in Word and PDF formats. You will be able to modify it.

Deed of Assignment

Rating: 4.5 - 19 votes

A Deed of Assignment is an instrument of transfer which is used in real estate transactions to transfer legal title or the ownership of a land or building from the title holder (called the assignor ) to another called the assignee , usually for a consideration (money or money's worth).

The title transfer is done in writing, signed, sealed and delivered by the parties to the transaction. This is a very important document that should be delivered to the purchaser after the conclusion of the sale of any real property .

Note: This document is different from the Contract of Sale because although it is a vital document in real property sale and purchase transactions, the Contract of Sale alone does not transfer ownership or interest in real estate. On the other hand, a registered Deed of Assignment not only transfers legal interest in real property but also serves as the assignee's root of title . This means that a registered Deed of Assignment is enough proof of ownership of real property .

According to the Land Use Act, all state and federal lands are vested in the governor of each state and the federal government respectively, who hold the lands as trustees for Nigerians. Consequently, a person who acquires ownership of land in Nigeria is granted a certain term of years (usually 99 years) and is not referred to as the owner but the holder of a term of years and can assign the remainder of such term to another under a Deed of Assignment.

Note that if a person gifts another a real property , a Deed of Gift should be executed for this purpose.

How to use this document

The document should outline the names and addresses of the parties, a detailed description of the property being conveyed, the origin of the property, covenants and representations of the assignor.

After completing this document, the parties should sign the document . If either of the parties is an individual , the individual should sign the document and the document must be attested by one witness who will put their name, occupation, address and signature. If either of the parties is a company , the common seal of the company should be affixed on the document and either two directors or one director and one company secretary should sign the document.

After the documents have been properly executed, either of the parties (particularly the assignee) should take steps to register the property . The parties should consult a real property agent or their lawyer to register the property .

The assignor should deliver at least 4 (four) signed copies of this document to the assignee for registration at the requisite lands registry. The assignor can also keep a signed copy of this document for their record .

Applicable law

The Land Use Act 1978 applies to this document. The Property and Conveyancing Law of 1959 , Lagos State Registration of Titles Law 2004 and the Registration of Titles laws of various states are also applicable to this document.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.

A guide to help you: How to Acquire Real Property in Nigeria

Other names for the document:

Deed of Agreement for Land, Deed of Assignment for Agreement, Deed of Assignment for Contract, Deed of Assignment for Land, Deed of Assignment of Real Property

Country: Nigeria

Commercial Real Estate - Other downloadable templates of legal documents

  • Commercial Lease Agreement
  • Request for Extension of Time for Rent Payment for Commercial Lease
  • Commercial Lease Assignment Agreement
  • Commercial Lease Amendment Agreement
  • Commercial Sublease Agreement
  • Commercial Lease Renewal Agreement
  • Other downloadable templates of legal documents

assignment deed means

  • Bankruptcy Basics
  • Chapter 11 Bankruptcy
  • Chapter 13 Bankruptcy
  • Chapter 7 Bankruptcy
  • Debt Collectors and Consumer Rights
  • Divorce and Bankruptcy
  • Going to Court
  • Property & Exemptions
  • Student Loans
  • Taxes and Bankruptcy
  • Wage Garnishment

Understanding the Assignment of Mortgages: What You Need To Know

3 minute read • Upsolve is a nonprofit tool that helps you file bankruptcy for free.  Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card.  Explore our free tool

A mortgage is a legally binding agreement between a home buyer and a lender that dictates a borrower's ability to pay off a loan. Every mortgage has an interest rate, a term length, and specific fees attached to it.

Attorney Todd Carney

Written by Attorney Todd Carney .  Updated November 26, 2021

If you’re like most people who want to purchase a home, you’ll start by going to a bank or other lender to get a mortgage loan. Though you can choose your lender, after the mortgage loan is processed, your mortgage may be transferred to a different mortgage servicer . A transfer is also called an assignment of the mortgage. 

No matter what it’s called, this change of hands may also change who you’re supposed to make your house payments to and how the foreclosure process works if you default on your loan. That’s why if you’re a homeowner, it’s important to know how this process works. This article will provide an in-depth look at what an assignment of a mortgage entails and what impact it can have on homeownership.

Assignment of Mortgage – The Basics

When your original lender transfers your mortgage account and their interests in it to a new lender, that’s called an assignment of mortgage. To do this, your lender must use an assignment of mortgage document. This document ensures the loan is legally transferred to the new owner. It’s common for mortgage lenders to sell the mortgages to other lenders. Most lenders assign the mortgages they originate to other lenders or mortgage buyers.

Home Loan Documents

When you get a loan for a home or real estate, there will usually be two mortgage documents. The first is a mortgage or, less commonly, a deed of trust . The other is a promissory note. The mortgage or deed of trust will state that the mortgaged property provides the security interest for the loan. This basically means that your home is serving as collateral for the loan. It also gives the loan servicer the right to foreclose if you don’t make your monthly payments. The promissory note provides proof of the debt and your promise to pay it.

When a lender assigns your mortgage, your interests as the mortgagor are given to another mortgagee or servicer. Mortgages and deeds of trust are usually recorded in the county recorder’s office. This office also keeps a record of any transfers. When a mortgage is transferred so is the promissory note. The note will be endorsed or signed over to the loan’s new owner. In some situations, a note will be endorsed in blank, which turns it into a bearer instrument. This means whoever holds the note is the presumed owner.

Using MERS To Track Transfers

Banks have collectively established the Mortgage Electronic Registration System , Inc. (MERS), which keeps track of who owns which loans. With MERS, lenders are no longer required to do a separate assignment every time a loan is transferred. That’s because MERS keeps track of the transfers. It’s crucial for MERS to maintain a record of assignments and endorsements because these land records can tell who actually owns the debt and has a legal right to start the foreclosure process.

Upsolve User Experiences

Ingrid Brown

Assignment of Mortgage Requirements and Effects

The assignment of mortgage needs to include the following:

The original information regarding the mortgage. Alternatively, it can include the county recorder office’s identification numbers. 

The borrower’s name.

The mortgage loan’s original amount.

The date of the mortgage and when it was recorded.

Usually, there will also need to be a legal description of the real property the mortgage secures, but this is determined by state law and differs by state.

Notice Requirements

The original lender doesn’t need to provide notice to or get permission from the homeowner prior to assigning the mortgage. But the new lender (sometimes called the assignee) has to send the homeowner some form of notice of the loan assignment. The document will typically provide a disclaimer about who the new lender is, the lender’s contact information, and information about how to make your mortgage payment. You should make sure you have this information so you can avoid foreclosure.

Mortgage Terms

When an assignment occurs your loan is transferred, but the initial terms of your mortgage will stay the same. This means you’ll have the same interest rate, overall loan amount, monthly payment, and payment due date. If there are changes or adjustments to the escrow account, the new lender must do them under the terms of the original escrow agreement. The new lender can make some changes if you request them and the lender approves. For example, you may request your new lender to provide more payment methods.

Taxes and Insurance

If you have an escrow account and your mortgage is transferred, you may be worried about making sure your property taxes and homeowners insurance get paid. Though you can always verify the information, the original loan servicer is responsible for giving your local tax authority the new loan servicer’s address for tax billing purposes. The original lender is required to do this after the assignment is recorded. The servicer will also reach out to your property insurance company for this reason.  

If you’ve received notice that your mortgage loan has been assigned, it’s a good idea to reach out to your loan servicer and verify this information. Verifying that all your mortgage information is correct, that you know who to contact if you have questions about your mortgage, and that you know how to make payments to the new servicer will help you avoid being scammed or making payments incorrectly.

Let's Summarize…

In a mortgage assignment, your original lender or servicer transfers your mortgage account to another loan servicer. When this occurs, the original mortgagee or lender’s interests go to the next lender. Even if your mortgage gets transferred or assigned, your mortgage’s terms should remain the same. Your interest rate, loan amount, monthly payment, and payment schedule shouldn’t change. 

Your original lender isn’t required to notify you or get your permission prior to assigning your mortgage. But you should receive correspondence from the new lender after the assignment. It’s important to verify any change in assignment with your original loan servicer before you make your next mortgage payment, so you don’t fall victim to a scam.

Attorney Todd Carney

Attorney Todd Carney is a writer and graduate of Harvard Law School. While in law school, Todd worked in a clinic that helped pro-bono clients file for bankruptcy. Todd also studied several aspects of how the law impacts consumers. Todd has written over 40 articles for sites such... read more about Attorney Todd Carney

Continue reading and learning!

Successful debtor 1

It's easy to get help

Choose one of the options below to get assistance with your bankruptcy:

Upsolve app demo

Free Web App

Take our screener to see if Upsolve is right for you.

Private Attorney

Get a free bankruptcy evaluation from an independent law firm.

Learning Center

Research and understand your options with our articles and guides.

Already an Upsolve user?

Bankruptcy Basics ➜

  • What Is Bankruptcy?
  • Every Type of Bankruptcy Explained
  • How To File Bankruptcy for Free: A 10-Step Guide
  • Can I File for Bankruptcy Online?

Chapter 7 Bankruptcy ➜

  • What Are the Pros and Cons of Filing Chapter 7 Bankruptcy?
  • What Is Chapter 7 Bankruptcy & When Should I File?
  • Chapter 7 Means Test Calculator

Wage Garnishment ➜

  • How To Stop Wage Garnishment Immediately

Property & Exemptions ➜

  • What Are Bankruptcy Exemptions?
  • Chapter 7 Bankruptcy: What Can You Keep?
  • Yes! You Can Get a Mortgage After Bankruptcy
  • How Long After Filing Bankruptcy Can I Buy a House?
  • Can I Keep My Car If I File Chapter 7 Bankruptcy?
  • Can I Buy a Car After Bankruptcy?
  • Should I File for Bankruptcy for Credit Card Debt?
  • How Much Debt Do I Need To File for Chapter 7 Bankruptcy?
  • Can I Get Rid of my Medical Bills in Bankruptcy?

Student Loans ➜

  • Can You File Bankruptcy on Student Loans?
  • Can I Discharge Private Student Loans in Bankruptcy?
  • Navigating Financial Aid During and After Bankruptcy: A Step-by-Step Guide
  • Filing Bankruptcy to Deal With Your Student Loan Debt? Here Are 3 Things You Should Know!

Debt Collectors and Consumer Rights ➜

  • 3 Steps To Take if a Debt Collector Sues You
  • How To Deal With Debt Collectors (When You Can’t Pay)

Taxes and Bankruptcy ➜

  • What Happens to My IRS Tax Debt if I File Bankruptcy?
  • What Happens to Your Tax Refund in Bankruptcy

Chapter 13 Bankruptcy ➜

  • Chapter 7 vs. Chapter 13 Bankruptcy: What’s the Difference?
  • Why is Chapter 13 Probably A Bad Idea?
  • How To File Chapter 13 Bankruptcy: A Step-by-Step Guide
  • What Happens When a Chapter 13 Case Is Dismissed?

Going to Court ➜

  • Do You Have to Go To Court to File Bankruptcy?
  • Telephonic Hearings in Bankruptcy Court

Divorce and Bankruptcy ➜

  • How to File Bankruptcy After a Divorce
  • Chapter 13 and Divorce

Chapter 11 Bankruptcy ➜

  • Chapter 7 vs. Chapter 11 Bankruptcy
  • Reorganizing Your Debt? Chapter 11 or Chapter 13 Bankruptcy Can Help!

State Guides ➜

  • Connecticut
  • District Of Columbia
  • Massachusetts
  • Mississippi
  • New Hampshire
  • North Carolina
  • North Dakota
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • West Virginia

Legal Services Corporation

Upsolve is a 501(c)(3) nonprofit that started in 2016 . Our mission is to help low-income families who cannot afford lawyers file bankruptcy for free, using an online web app. Our team includes lawyers, engineers, and judges. We have world-class funders that include the U.S. government, former Google CEO Eric Schmidt, and leading foundations. It's one of the greatest civil rights injustices of our time that low-income families can't access their basic rights when they can't afford to pay for help. Combining direct services and advocacy, we're fighting this injustice.

To learn more, read why we started Upsolve in 2016, our reviews from past users, and our press coverage from places like the New York Times and Wall Street Journal.

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

assignment deed means

9 Eymard Drive, New Manila Quezon City Owned and operated by JCArteche’s Online Documentation & Referral Services

assignment deed means

Back to Top

  • Terms of Service
  • Privacy Policy
  • Create Documents
  • Ask An Attorney
  • How It Works
  • Customer Support

Search bar.

  • Legal Queries
  • Files 
  • Online Law Courses 
  • Lawyers Search
  • Legal Dictionary
  • The Indian Penal Code
  • Juvenile Justice
  • Negotiable Instruments
  • Commercial Courts Act
  • The 3 New Criminal Laws
  • Matrimonial Laws
  • Data Privacy
  • Court Fees Act
  • Commercial Law
  • Criminal Law
  • Procedural Law
  • The Constitutional Expert
  • Matrimonial
  • Writs and PILs
  • CrPC Certification Course
  • Criminal Manual
  • Execution U/O 21
  • Transfer of Property
  • Domestic Violence
  • Muslim Laws
  • Indian Constitution
  • Arbitration
  • Matrimonial-Criminal Law
  • Indian Evidence Act
  • Live Classes
  • Writs and PIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

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.

assignment deed means

 10 Replies

Ms.Usha Kapoor

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

Kishor Mehta (CEO)     --> 13 December 2016

Kumar Doab

Kumar Doab (FIN)     --> 13 December 2016

Agreed with Mr. Kishore Mehta.

Rama chary Rachakonda

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

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

Adv. K.S.A.Narasimha Rao ([email protected] )     --> 13 December 2016

Dear Tanny,

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.

Aseem Koradia

Leave a reply

Your are not logged in . Please login to post replies Click here to Login / Register   

Recent Topics

  • Under which order and rule does one file "condonat
  • Threat of filing false case from a family member.
  • Ngo registration in karnataka
  • Rights on land ownership: cooperative housing soci
  • dynamic injunction for asking time pay the loan
  • Caste change in 10th tc
  • Who is owner?
  • Dowry complaint against husband and in-laws
  • Substitution of legal representative by hc valid??
  • Issue of 41 (A) CrPC Notice

Related Threads

law

Popular Discussion

  • Release from pwdva
  • I want to know legal rights of my mothe
  • Procedure for senior citizen to get acce
  • Urgent need kindly help law professional
  • Urgent need help in divorce case
  • Obtaining property ownership of deceased
  • transfer of property
  • 42 hrs duty seven days a week(7x6) witho
  • Developer demanding extra money for amen
  • Registration done with invalid gpa after

view more »

Browse by Category

  • Business Law
  • Constitutional Law
  • Labour & Service Law
  • Legal Documents
  • Intellectual Property Rights
  • Property Law
  • Forum Portal
  • Today's Topic
  • Popular Threads
  • Post New Topic
  • Unreplied Threads
  • Top Members
  • Share Files
  • LCI Online Learning

Member Strength 10,01,109 and growing..

Download LCI APP

LCI Android App

Our Network Sites

CAclubindia

  • We are Hiring
  • Terms of Service
  • Privacy Policy

© 2024 LAWyersclubindia.com. Let us grow stronger by mutual exchange of knowledge.

Lawyersclubindia Search

Whatsapp groups, login at lawyersclubindia.

login

Alternatively, you can log in using:

Facebook

assignment deed means

Understanding an assignment and assumption agreement

Need to assign your rights and duties under a contract? Learn more about the basics of an assignment and assumption agreement.

Find more Legal Forms and Templates

assignment deed means

by   Belle Wong, J.D.

Belle Wong, is a freelance writer specializing in small business, personal finance, banking, and tech/SAAS. She ...

Read more...

Updated on: January 22, 2024 · 3min read

The assignment and assumption agreement

The basics of assignment and assumption, filling in the assignment and assumption agreement.

While every business should try its best to meet its contractual obligations, changes in circumstance can happen that could necessitate transferring your rights and duties under a contract to another party who would be better able to meet those obligations.

Person presenting documents to another person who is signing them

If you find yourself in such a situation, and your contract provides for the possibility of assignment, an assignment and assumption agreement can be a good option for preserving your relationship with the party you initially contracted with, while at the same time enabling you to pass on your contractual rights and duties to a third party.

An assignment and assumption agreement is used after a contract is signed, in order to transfer one of the contracting party's rights and obligations to a third party who was not originally a party to the contract. The party making the assignment is called the assignor, while the third party accepting the assignment is known as the assignee.

In order for an assignment and assumption agreement to be valid, the following criteria need to be met:

  • The initial contract must provide for the possibility of assignment by one of the initial contracting parties.
  • The assignor must agree to assign their rights and duties under the contract to the assignee.
  • The assignee must agree to accept, or "assume," those contractual rights and duties.
  • The other party to the initial contract must consent to the transfer of rights and obligations to the assignee.

A standard assignment and assumption contract is often a good starting point if you need to enter into an assignment and assumption agreement. However, for more complex situations, such as an assignment and amendment agreement in which several of the initial contract terms will be modified, or where only some, but not all, rights and duties will be assigned, it's a good idea to retain the services of an attorney who can help you draft an agreement that will meet all your needs.

When you're ready to enter into an assignment and assumption agreement, it's a good idea to have a firm grasp of the basics of assignment:

  • First, carefully read and understand the assignment and assumption provision in the initial contract. Contracts vary widely in their language on this topic, and each contract will have specific criteria that must be met in order for a valid assignment of rights to take place.
  • All parties to the agreement should carefully review the document to make sure they each know what they're agreeing to, and to help ensure that all important terms and conditions have been addressed in the agreement.
  • Until the agreement is signed by all the parties involved, the assignor will still be obligated for all responsibilities stated in the initial contract. If you are the assignor, you need to ensure that you continue with business as usual until the assignment and assumption agreement has been properly executed.

Unless you're dealing with a complex assignment situation, working with a template often is a good way to begin drafting an assignment and assumption agreement that will meet your needs. Generally speaking, your agreement should include the following information:

  • Identification of the existing agreement, including details such as the date it was signed and the parties involved, and the parties' rights to assign under this initial agreement
  • The effective date of the assignment and assumption agreement
  • Identification of the party making the assignment (the assignor), and a statement of their desire to assign their rights under the initial contract
  • Identification of the third party accepting the assignment (the assignee), and a statement of their acceptance of the assignment
  • Identification of the other initial party to the contract, and a statement of their consent to the assignment and assumption agreement
  • A section stating that the initial contract is continued; meaning, that, other than the change to the parties involved, all terms and conditions in the original contract stay the same

In addition to these sections that are specific to an assignment and assumption agreement, your contract should also include standard contract language, such as clauses about indemnification, future amendments, and governing law.

Sometimes circumstances change, and as a business owner you may find yourself needing to assign your rights and duties under a contract to another party. A properly drafted assignment and assumption agreement can help you make the transfer smoothly while, at the same time, preserving the cordiality of your initial business relationship under the original contract.

You may also like

assignment deed means

What does 'inc.' mean in a company name?

'Inc.' in a company name means the business is incorporated, but what does that entail, exactly? Here's everything you need to know about incorporating your business.

January 22, 2024 · 10min read

assignment deed means

How to write a will: A comprehensive guide to will writing

Writing a will is one of the most important things you can do for yourself and for your loved ones, and it can be done in just minutes. Are you ready to get started?

February 6, 2024 · 11min read

assignment deed means

How to start an LLC in 7 steps: A complete guide for 2024

It's easy to create a new LLC by filing paperwork with the state. But to set yourself up for success, you'll also need to think about your business name, finances, an operating agreement, and licenses and permits. Here's a step-by-step guide.

February 9, 2024 · 20min read

IMAGES

  1. Deed of Assignment Sample

    assignment deed means

  2. What Is A Deed Of Assignment Tenancy

    assignment deed means

  3. Deed of Assignment

    assignment deed means

  4. FREE 17+ Deed of Assignment Samples in PDF

    assignment deed means

  5. Deed of Assignment Template

    assignment deed means

  6. Deed of Assignment

    assignment deed means

COMMENTS

  1. What is an Assignment of Deed & How Does it Work

    An assignment of deed is used to show the deed of a property changing from one party to another, such as when a sale is made. It is used as the written proof to show who has rightful ownership of the property.

  2. Deed of Assignment

    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.

  3. Deed of Assignment: Everything You Need to Know

    In the realm of intellectual property, a Deed of Assignment is a formal legal document used to transfer all rights, title, and interest in intellectual property from the assignor (original owner) to the assignee (new owner). This is crucial for the correct transfer of patents, copyrights, trademarks, and other IP rights.

  4. DEED OF ASSIGNMENT

    a legal agreement to give an asset or to sell a debt to someone else: This deed of assignment enables ownership of a life-insurance policy to be transferred from the current owner to another person or organization.

  5. 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.

  6. What Is A Deed of Assignment, Anyway?

    A Deed of Assignment is a legal document that transfers or assigns the legal rights and obligations to another party. And it varies depending on your situation. For example, an assignment could work for simple things like intellectual property. When a graphic designer creates a logo for you, you might want to make sure that logo is owned by you.

  7. What is an Assignment of Trust Deed?

    "Assignment" means to convey a claim or a right to another party, known as the "assignee." This is done by creating another legal document — the assignment of trust deed — and having it signed by both buyer and seller. The trust deed, and other documents associated with the loan, become the property of the buyer. Document

  8. Drafting a Deed of Assignment

    A Deed of Assignment is a vital legal document used to transfer rights, interests or assets between parties. It is regularly used in business transactions, and often regarding real estate or intellectual property.

  9. Assignments: The Basic Law

    An assignment is the transfer of rights held by one party called the "assignor" to another party called the "assignee." The legal nature of the assignment and the contractual terms of the agreement between the parties determines some additional rights and liabilities that accompany the assignment.

  10. Assignment Deed Definition

    Examples of Assignment Deed in a sentence. The successful bidder shall arrange to take security documents including the available details of the suit-filed accounts from the concerned branches at a mutually convenient date and time, within 45 days from the date of execution of the Assignment Deed.. The other details about the execution of the assignment deed and completion of other legal ...

  11. Assignment (law)

    Assignment [1] is a legal term used in the context of the laws of contract and of property. In both instances, assignment is the process whereby a person, the assignor, transfers rights or benefits to another, the assignee. [2] An assignment may not transfer a duty, burden or detriment without the express agreement of the assignee.

  12. Deed of Assignment Definition: 154 Samples

    Deed of Assignment means the following:- (i) in relation to the Property where no individual/ strata title has been issued; and (ii) the instrument pursuant to which the Security Party assigns (by way of security) all its rights and interest in the Property to the Bank upon the terms and conditions contained therein; Directors and/or Shareholder...

  13. What Is a Deed of Trust With Assignment of Rents?

    An assignment of rents most likely will contain language that the assignment is an absolute assignment . In most states, an absolute assignment gives the lender an immediate interest in the rents. This means that the lender actually owns the rents and is simply allowing the borrower to collect them on license until an event of default.

  14. Difference Between Assignment and Transfer

    The difference between assignment and transfer is that assign means it's legal to transfer property or a legal right from one person to another, while transfer means it's legal to arrange for something to be controlled by or officially belong to another person. When used as verbs, assign means to set apart or designate something for a purpose ...

  15. DEED OF ASSIGNMENT definition

    deed of assignment meaning: a legal agreement to give an asset or to sell a debt to someone else: . Learn more.

  16. Deed of Assignment

    Size 4 to 5 pages. 4.5 - 19 votes. Fill out the template. A Deed of Assignment is an instrument of transfer which is used in real estate transactions to transfer legal title or the ownership of a land or building from the title holder (called the assignor) to another called the assignee, usually for a consideration (money or money's worth). The ...

  17. What Is A Deed of Assignment, Anyway?

    A Deed of Assignment is a legal document that transfers or assigns the legal rights and obligations to another party. And it varies depending on your situation. For example, an assignment could work for simple things like intellectual property. When a graphic designer creates a logo for you, you might want to make sure that logo is owned by you.

  18. Understanding the Assignment of Mortgages: What You Need To Know

    The assignment of mortgage needs to include the following: The original information regarding the mortgage. Alternatively, it can include the county recorder office's identification numbers. The borrower's name. The mortgage loan's original amount. The date of the mortgage and when it was recorded.

  19. Assign your property to another with a "Deed of Assignment"

    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?

  20. Sale deed versus deed of assignment

    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.

  21. Understanding an assignment and assumption agreement

    An assignment and assumption agreement is used after a contract is signed, in order to transfer one of the contracting party's rights and obligations to a third party who was not originally a party to the contract. The party making the assignment is called the assignor, while the third party accepting the assignment is known as the assignee.

  22. What is 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

  23. Security Assignment Deed Definition

    Cite. Security Assignment Deed means the English law deed of assignment governing the granting of security and declaration of trust entered into between, inter alios, Driver Master S.A. and the Security Trustee dated on or about the Signing Date 2019, as amended or amended and restated from time to time. Sample 1. Based on 1 documents.