Signing Property Contracts and Deeds
Contracts and Deeds are only valid if they are executed and signed correctly. If you have ever wondered if you are following the correct formalities to sign a contract and/or a deed, and/or whether they can be signed electronically, this subfolder contains helpful Guidance Notes on this topic. These Guidance Notes are practical guides to getting it right when it comes to the process of executing agreements.
The Land Registry has strict requirements for documents submitted for registration and it is important that these are correct.
The Guidance Note: Formalities for Signing Property Contracts and Deeds is a practical guide to getting it right when it comes to executing property deeds and contracts. A transaction will not be valid unless the documents are executed correctly and consequently could be rejected by the Land Registry.
The Guidance Note: Electronic Execution of Property Deeds explains the different methods of electronic execution of property documents which are acceptable to the Land Registry.
Signing Property Contracts and Deeds is part of Property. Just £38.50 + VAT provides unlimited downloads from Property for 1 year.
Frequently Asked Questions
How must a property contract be signed to be valid? +
A contract for the sale or grant of an interest in land must be in writing, contain all the agreed terms in one document and be signed by or for both parties, under section 2 of the Law of Property (Miscellaneous Provisions) Act 1989. Miss any of these and there is no binding contract. This sub-folder's guidance note explains the formalities.
What makes a document a valid deed? +
A deed by an individual must be in writing, make clear on its face that it is a deed, be signed in the presence of a witness who attests the signature, and be delivered as a deed, under section 1 of the Law of Property (Miscellaneous Provisions) Act 1989. Companies execute under section 44 of the Companies Act 2006. The guidance note sets out correct execution.
Can property deeds be signed electronically? +
Yes for many documents. HM Land Registry accepts electronic signatures for a wide range of dispositions if the requirements in its Practice Guide 82 are followed. The catch is witnessing: the witness must still be physically present when the signatory signs, as remote witnessing is not accepted. The electronic execution guidance note explains the accepted methods.
Why does it matter if a deed is executed incorrectly? +
Because the transaction can fail. If a transfer or lease is not executed correctly HM Land Registry can reject the application for registration, leaving the deal incomplete and the parties exposed. Getting execution right first time avoids requisitions and delay. This sub-folder's guidance helps you follow the correct formalities.
Does a witness to a deed need to be independent? +
There is no strict statutory rule that a witness be independent, but you should avoid using a party to the deed and ideally a spouse or close relative, because an independent adult witness is far harder to challenge. The witness must actually see the signature, then sign and add their name and address. The guidance note covers witnessing.
