{"id":207640,"date":"2021-07-06T19:12:00","date_gmt":"2021-07-06T06:12:00","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=207640"},"modified":"2022-11-09T06:17:51","modified_gmt":"2022-11-08T17:17:51","slug":"mistakes-avoid-deeds","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/commercial-contracts\/mistakes-avoid-deeds\/","title":{"rendered":"3 Mistakes to Avoid When Drafting NZ Deeds"},"content":{"rendered":"\n

In New Zealand, a deed is a different legal instrument from a contract. A deed is a legally binding promise that parties make to affirm or transfer a legal interest in something. A deed must be written and signed for it to be binding, and parties must draft it in a specific legal way. Deeds are a commonly used tool for transferring ownership, such as that of property. However, your deed must contain all the correct provisions. This article will outline the common mistakes you should avoid when drafting deeds.<\/span><\/p>\n\n\n\n

What is the Difference Between a Deed and a Contract?<\/span><\/h2>\n\n\n\n

The main difference between a deed and a contract is that a deed does not require any consideration (that is, the exchange of something for value) for it to be legally binding. However, certain processes require a deed, such as selling a house. You can also use a <\/span>deed in trusts<\/span><\/a>. For example, a trustee can retire through a deed. <\/span><\/p>\n\n\n\n

1. Incorrect Legal Descriptions<\/span><\/h2>\n\n\n\n

Of many common mistakes to avoid when drafting deeds,<\/span> you should make sure the provisions are not incorrect. Incorrect provisions could mean the wrong parties are being named or the property that the deed is for being wrong. This can lead to several legal issues down the line. For example, if you name the wrong property in the deed, someone else may lay a claim to the property. If the deed has already been signed, it can also be costly to change the provisions in the deed. This is because all the parties to the deed have to come back to sign the new deed.<\/span><\/p>\n\n\n\n

An incorrect legal description can also mean the deed is legally unenforceable. This creates issues around who actually owns the land and can lead to lengthy and costly legal battles.<\/span><\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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