Tenancy Agreement Signed as a Deed: What You Need to Know

If you’re a landlord or a tenant, you’ve likely heard of a tenancy agreement. This document lays out the terms and conditions of the rental agreement, including the rent amount, duration of the tenancy, and any other provisions that both parties agree to.

But did you know that a tenancy agreement can also be signed as a deed? In this article, we’ll discuss what a deed is, why you might choose to sign a tenancy agreement as a deed, and what implications doing so could have.

What is a deed?

A deed is a legal document that provides evidence of ownership or an agreement between parties. To create a valid deed, certain requirements must be met, including:

– It must be in writing.

– The parties must sign the document in the presence of witnesses.

– The document must be delivered to the other party.

Why sign a tenancy agreement as a deed?

There are several reasons why a landlord or tenant may choose to sign a tenancy agreement as a deed:

1. Additional legal protection: By signing a tenancy agreement as a deed, the document becomes a legally binding contract, with a higher level of legal enforceability. This can provide additional legal protection to both the landlord and the tenant.

2. Longer time frame: A tenancy agreement signed as a deed can have a longer time frame than a regular tenancy agreement. For example, a regular tenancy agreement may have a maximum duration of three years, while a tenancy agreement signed as a deed could be for up to seven years.

3. Greater flexibility: A tenancy agreement signed as a deed can include additional provisions and conditions that may not be allowed in a regular tenancy agreement. For example, the agreement could include provisions for rent reviews, sub-letting, or even options to purchase the property.

What implications does signing a tenancy agreement as a deed have?

While signing a tenancy agreement as a deed can provide additional legal protection, it also has some implications to consider:

1. Legal costs: Creating a deed can be more complex than a regular tenancy agreement, which may result in higher legal costs.

2. Witness requirements: As mentioned earlier, a valid deed requires witnesses. This means that both parties will need to arrange for witnesses to be present when signing the agreement.

3. Delivery requirements: A deed must be delivered to the other party to be valid. This can be done by physically handing over the document or by sending it by registered mail or another secure method.

Conclusion

Signing a tenancy agreement as a deed can provide additional legal protection and flexibility, but it’s important to consider the implications before doing so. Higher legal costs, witness requirements, and delivery requirements are some of the factors to keep in mind.

Ultimately, whether to sign a tenancy agreement as a deed will depend on the specific circumstances of the tenancy and the preferences of both parties involved. If you’re unsure whether signing a tenancy agreement as a deed is the right choice for you, it’s always best to consult with a legal professional.