Matters related to property are often associated with tons of paperwork, stress and legal issues. This is true irrespective of whether one is buying, selling, renting or leasing. It is not easy for a homeowner to cope with the legal issues involved in this type of transaction. Which requires a decent knowledge of the type of documentation necessary and legal implications it can have in the future. Property lawyers have the expertise to provide legal assistance for property transactions of both commercial and residential properties. There are several legal terms used during such transactions which a layman might find confusing. For example, a dead, contract, written agreement, etc. All these terms do not mean the same and there is more to property exchanging hands than making a simple contract as explain in this article.
Important facts & statistics
- Housing prices are expected to rise sharply in 2021.
- House prices in Australia grew at a rate of 2.1% in February; this is the steepest rise in two decades.
- Housing prices are expecting to rise by 9% in 2021 and 7% in 2022.
- Housing prices surge 52.3% in the time from 2011 to 2017.
Difference between a deed and a written agreement
Both the agreements are useful for placing a contractual agreement. However; there is a subtle difference between the two. It is not uncommon for one to be aware of the need for a contract. But unsure whether they need a deed or an agreement. There is a big difference between the execution and effects of these two documents. A deed is different in many ways as explain here. It has special requirements are fulfilling and does not need a commercial exchange:
- A deed is a binding promise with the intent to do something. As per the promise. It is a document prepared, signed, sealed and delivered.
- The document of the deed can consist of the offer & acceptance, intention to be legally binding.
- An agreement will usually include an offer & acceptance and is legally binding, unlike a deed which is not legally binding.
- A deed is useful to showcase interest in a property and creates an obligation for the party to act on it.
- In the case of a deed, the consideration is not require. Unlike for a written agreement where it is necessary to have a payment of some sort.
- An agreement is generally a legally enforceable contract. On the other hand, a deed is binding on a party after being signed, sealed and delivering.
- The decision to use a deed or an agreement is base on the importance of it being binding. The nature of the contract as well as the consideration for the transition.
The subject matter of a deed can be pertaining to displaying a legal or equitable interest in a property. Creating an obligation that is binding to a person, or confirming the interest on a property.
- A big difference between a deed and an agreement is that a deed does not include a commercial exchange. Instead it only includes intent. However, a deed is signed with at least one witness present and forwarded to the other party. The other party need not be present at the time of signing and sealing.
Property lawyers have the knowledge and the expertise to provide assistance. With all legal matters concerning the transaction of a property. The fact that the legal issues for each property vary. Makes it essential for one to seek help from a professional lawyer offering the relevant services. Besides helping with legalities of a property contract. They can also help with the sale of land in dispute. Disputes between tenants and landlords as well as retail shop tenants. It is highly advisable to contact a professional lawyer. When it comes to dealing with a property to prevent legal issues in the future, irrespective of the type of property like commercial or residential.