Difference between a purchase agreement and a deed of delivery
A common mistake is that people think the purchase agreement is sufficient for the transfer of ownership. The purchase agreement merely records the agreements between buyer and seller. Only with the deed of delivery does the transfer become official and legally binding.
What is a deed of delivery?
A deed of delivery is a legal document that officially records the transfer of ownership of real estate, such as a house or piece of land. This document is drawn up by a notary and, once signed, is registered in the Land Registry, giving legal recognition to the new owner. The deed of delivery is also known as a conveyancing deed and is an essential part of the property buying process.
Why is a deed of delivery needed?
A deed of delivery is needed to make the transfer of ownership legally valid. Without this deed, the property remains in the seller's name even after the purchase agreement has been signed and the purchase price paid. The deed ensures that the buyer officially becomes the owner and protects him or her from any third-party claims.
What does a deed of delivery contain?
A deed of delivery contains, among other things, the following information:
- Details of the parties: name, address and other personal details of the buyer and seller.
- Description of the property: a detailed description of the house or plot, including cadastral details.
- Purchase price and payment terms: the agreed price and method of payment.
- Any encumbrances and restrictions: such as mortgage rights, easements or other agreements attached to the property.
- Statements by both parties: indicating their agreement to the contents of the deed.
The Process of the Deed of Transfer
1. Drawing up the deed: the notary draws up the deed of delivery based on the purchase agreement and does a cadastral survey to check that there are no unforeseen debts or restrictions on the property.
2. Checking and Signing: buyer and seller read the deed carefully in the presence of the notary. If both parties agree, the deed is signed.
3. Registration at the Land Registry: the notary registers the signed deed at the Land Registry. From then on, the buyer is officially the new owner.
Costs and responsibilities
The costs for the delivery deed, including notary fees and cadastral rights, are usually borne by the buyer, unless otherwise agreed. The notary is responsible for the proper completion of the deed and ensures that all legal requirements are met.
Conclusion
A deed of delivery is a crucial document when buying property. It ensures a legally valid transfer of ownership and protects both buyer and seller from legal complications. Engaging an experienced notary is essential to ensure this process is done correctly and without any problems.
Do you have questions about the delivery deed or want to know more about the home buying process? Feel free to let us know!
