What is a deed of assignment?

There are many reasons why someone may wish to transfer ownership of a property to somebody else and the vehicle they should use to do so is known as a deed of assignment.

A deed of assignment is a legal document that details the transfer of ownership from one person to another, outlines both parties’ rights and responsibilities and solidifies the new legal ownership status of that property with all the respective organisations and individuals.

Why would you need a deed of assignment?

The most common reason why people would use a deed of assignment to transfer ownership is to reduce tax liabilities on a buy-to-let property by transferring beneficial ownership between spouses. It can also be used to transfer property ownership during a divorce or as part of proactive inheritance tax planning
A deed of assignment formalises the transfer of ownership and acts as a clear record of the transaction, safeguarding both parties against future disputes or claims.

How do you get a deed of assignment?

Before starting this process, you should seek the services of a solicitor who is experienced in drafting a deed of assignment. They will advise you of the risks and work with you to capture all the necessary details, thus ensuring that the deed of assignment is properly executed and legally binding.

They will consult with other professionals as required and produce a draft deed of assignment which details the names and addresses of both parties, describes the property being transferred and specifies the terms of the transfer of ownership.

They will witness the signing of the document by both parties and register it with the relevant authorities, ensuring that it is legally binding and free from misunderstanding.

In conclusion, a deed of assignment is a legally binding way of transferring the ownership of a property from one person to another, either as part of a long-term financial planning strategy or to benefit from business tax efficiencies. Getting the right legal advice at the outset is key to performing this process quickly and correctly.