Do you have assets which you want to legally transfer to another person? If so, it’s essential to do so by using a ‘deed of assignment’. This will ensure that the transfer can be completed with full peace of mind and reassurance that you are no longer liable for the assets.
If you’re keen to get started, then use this Deed Of Assignment Template UK (PDF/Word) right away. It provides a customisable agreement that lets you select the sections you need while retaining all essential, legally binding elements that you need to include.
However, if you’re unsure about deeds of assignment and their usage, you can explore what they are, what they involve and how they can be beneficial in our explainer below.
What is a deed of assignment?
A Deed of Assignment is a legal document that transfers the ownership rights and interests in personal property or assets from one party, the assignor, to another party, the assignee. It can apply to numerous asset classes, for example: properties, intellectual property rights, stocks, income streams, or contractual rights.
The Deed of Assignment form serves as evidence of the transfer of ownership and provides a clear transaction record. It outlines the terms and conditions of the assignment, including the details of the parties involved, a description of the asset being assigned, and any applicable terms or conditions.
Other names for a deed of assignment agreement include:
- Contract assignment agreement
- An assignment agreement
- Assignment form
What does a deed of assignment template include?
Key elements typically included in a Deed of Assignment are as follows:
- Parties: The document identifies the assignor (current owner) and the assignee (new owner) involved in the transaction. It is essential to provide accurate and complete information about both parties.
- Description of the property or asset: The Deed of Assignment should include a detailed description of the asset being transferred. It may include specific details such as patent numbers or stock certificates – or a property’s details and address.
- ‘Consideration’: Consideration refers to the value or payment exchanged in return for the assignment. It can be in the form of money, goods, services, or any other agreed-upon consideration. The Deed of Assignment should clearly state the consideration provided by the assignee to the assignor.
- Terms and conditions: This section outlines the specific terms and conditions of the assignment. It may include any restrictions, warranties, or obligations that the assignee must adhere to after the transfer of ownership. These terms are mutually agreed upon by both parties and are legally binding.
- Signatures and witnessing: The Deed of Assignment requires the signatures of both the assignor and the assignee to make it legally enforceable. Additionally, witnesses are often present during the document’s signing to validate its authenticity.
Once the Deed of Assignment is signed and executed, it becomes a legally binding agreement between the assignor and the assignee. It ensures that the assignee acquires the rightful ownership of the asset, and the assignor relinquishes their ownership rights.
It is important to note that the requirements and legal implications of a Deed of Assignment can vary depending on the jurisdiction. Consulting with legal professionals or experts in the relevant field is recommended to ensure compliance with local laws and regulations.
TIP: Read more about commercial lease assignments here.
Real life examples of deed of assignment usage
Because the deed of assignment covers a range of circumstances, it can sometimes be tricky to picture whether it can apply to you – or what kind of circumstances give rise to it. Here are three applications to help you:
- Assignment of Intellectual Property (IP) Rights – A freelance graphic designer or writer may want to transfer ownership of their copyright in a piece of work to a company or client through a Deed of Assignment. This ensures the new owner has full legal rights to use, reproduce, or modify the work.
- Transfer of a Life Insurance Policy – If a person holds a life insurance policy but wants to transfer ownership (for example, to a spouse, child, or trust for estate planning reasons), they might use a Deed of Assignment. This can be particularly useful when ensuring the proceeds go to a specific individual or entity upon their death.
- Assignment of Rental Income from a Property – A landlord may choose to assign the rental income from their property to another individual (such as a spouse or business partner). This can be done for tax planning purposes or to settle financial obligations. The deed formally transfers the right to receive rent payments while the landlord remains the legal owner of the property.
When Can A Contract Be Signed As A Deed?
Under certain circumstances, a contract can be signed as a deed, distinguishing it from a standard contract. This is typically the case when the parties involved agree that no consideration or payment is necessary for the agreement to be valid.
As a more formal document, a deed follows a specific execution process. It requires the presence of a witness during the signing and in some cases, the use of a seal to authenticate the deed. Before deciding to ‘assign’ a contract, you need to check that there are no limitations in the contract which may govern or restrict such an arrangement.
Can a deed of assignment be revoked?
Once a deed of assignment has been executed and dated, it remains legally binding and enforceable until specific actions are taken. These actions include varying the deed using a deed of variation, surrendering it utilising a deed of surrender or selling the property involved.
If you intend to make changes to the original deed, it is more common to surrender the entire deed and then create a new deed with the desired modifications.
Which document do I require, a deed of assignment or a deed of trust?
When it comes to transferring the beneficial interest in land or property from one party to another, a deed of assignment is typically utilised. This document focuses solely on the assignment of the beneficial interest. On the other hand, a deed of trust can serve the same purpose but includes additional clauses that outline procedures for selling the property, among other things.
For example, when a residential property is owned under a ‘tenants in common’ arrangement between two partners, a deed of trust often delineates a percentage of interest between the two. For example, 60% and 40% percent ownership.
Even so, a deed of assignment is suitable for many married couples who want to assign their beneficial interest in a property.
Download a Deed of Assignment Tenancy Agreement Template
If you like a custom, completely personalised assignment agreement, use the link below. It takes about 5 min to create and you will end up with an agreement, tailored to your specific property.
Download CUSTOM Assignment Agreement
Alternatively, if you just want to download a generic deed of assignment of tenancy template, use the link below.
Download GENERIC Deed of Assignment of Tenancy Agreement
All content on this form and other forms for landlords published by Property Division are provided “as is”, with no guarantees of completeness, accuracy or timeliness, and without representations, warranties or other contractual terms of any kind, express or implied. Property Division does not represent or warrant that this letter or other material supplied by Property Division will be accurate, current, uninterrupted, error-free or omission-free.
The process for filling out your deed of assignment template
Here is an outline you can follow to assign your property or assets. It will vary according to what you intend to use the deed of assignment for.
1. Understand what you are assigning carefully
This could be obvious if you are assigning a simple item, but if not, you will need to identify any third parties that may need to be involved, an estimate of the property value, and review any contracts related to the thing being assigned. This is to ensure that all the correct people are involved and the legal processes followed.
2. Add the essential details to the assignment
This will likely include full names and addresses of the assignor, assignee, and any third parties involved in the transaction.
3. Define what you want to assign
You will need to say what you are assigning and be very specific about it. For example, you may be assigning a certain portion of your assets (not everything), or make another party only liable for a certain part of a contract. Here’s how to proceed with different asset classes:
- Property – Ensure that every detail relating to the whole or part of the property you want to assign is clearly noted, and be clear about any boundaries, shared areas, or other interests in the land.
- Contract assignment – You will need to describe what the contract is for, who it concerns, how long it will last and if you are only assigning a portion of it (so you will be liable for some of it).
- Income stream assignment – Detail what the income stream is, where it is coming from, any rules governing the receiving of that income and any restrictions on the amount of that income stream you want to transfer.
- Intellectual property rights – Again, you will need to say what the property is, what exactly you want to transfer to the other party
4. Describe any consideration owed
Consideration is an amount or obligation owed between the two parties upon the exchange of the deed of assignment. You will need to describe what this is and if it has a certain monetary value. For example, the consideration might be other assets, money, debt etc.
5. Sign the deed of assignment
Finally, you should sign and date the assignment deed. Make sure you involve independent witnesses at the signing.
Can a deed of assignment be used for a tenancy?
No, while the concept is nearly identical, it is better to use this template, which covers the specific rules regarding landlord and tenant relationships. Deeds of assignment are most commonly used for a transfer of ‘owned assets’ – like property or contractual obligations – so they require a different document instead.
Confident about contracts of assignment?
We hope you now feel more confident about transferring assets to another party using a deed of assignment. If you are, then it’s exceptionally easy to get started on your deed, using this Free Deed of Assignment Agreement Template UK.
