A legal transfer of someone’s interest is known as an assignment; for example, it can be used to transfer a tenancy or property from one person to another. In the case of a tenancy, there is no new tenancy agreement to be signed; instead, the original passes to somebody else. If you need to complete a deed of assignment for any reason, it must be correctly executed to avoid any problems.
What you need to know
Unlike a deed of trust, which is drafted at the time something is purchased – such as a property or tenancy – a deed of assignment is used when you want to assign either all or part of your ownership of something to someone else. Typically used by married couples, it falls under family law.
A deed of assignment is commonly used for tax purposes when a husband or wife transfers their beneficial interest to the other to benefit from rental income. The transfer can be any amount between 1% and 100% and can only be done if you are a single tenant or tenants in common, as joint tenants must first sever that tenancy.
There are strict rules about who is allowed to assign tenancies, so you will need legal advice. To ensure a deed of assignment is completed correctly, you should always use a legal expert from a law firm such as Parachute Law to guide you through the process.
Once the deed of assignment has been completed, you should retain a copy. If you are a landlord, you should also keep detailed records of any correspondence with your tenants in case of a dispute in the future.
Other uses of a deed of assignment
A deed of assignment essentially transfers someone’s legal obligations and rights to another party, so it can also be used for intellectual property such as a logo or if you are selling a business and want to pass on existing supplier contracts to the buyer. Once the deed is signed, you are no longer liable or have any rights over a contract.