Deed

DEFINITION of 'Deed'

A legal document that grants the bearer a right or privilege, provided that he or she meets a number of conditions. In order to receive the privilege - usually ownership, the bearer must be able to do so without causing others undue hardship. A person who poses a risk to society as a result of holding a deed may be restricted in his or her ability to use the property.

Deeds are most known for being used to transfer the ownership of automobiles or land between two parties.

BREAKING DOWN 'Deed'

For example, an individual who holds a deed for a particular section of land has a legal right to possess that land, but may not be able to build a shooting range on it because of the danger it would pose. In other cases, a holder of the title to a piece of property may be able to own the land but, for environmental reasons, not be allowed to develop it.

Some other popular examples of deeds are commissions, academic degrees, licenses to practice, patents and powers of attorney, each of which grant the holder a given right or privilege.

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RELATED FAQS
  1. What is a fiduciary deed and when is it useful?

    Understand what a fiduciary deed is and under what circumstances it should be used. Learn about the principles behind its ... Read Answer >>
  2. I want to transfer my house title to my child, what are the costs and tax consequences ...

    The costs associated with a deed transfer will vary by state and by how the transfer is accomplished. Filing a deed yourself ... Read Answer >>
  3. Do I have to claim a quitclaim deed on my taxes this year from 2000?

    Back in 2000, my mom had a quit claim deed done on the house with my husband and I being the names add... Read Answer >>
  4. How should I report my quitclaim deed?

    I live in Louisiana. My daughter and the rest of my family live in New Jersey. Two years ago, they didn't have enough credit ... Read Answer >>
  5. What real estate documents need to be recorded?

    Learn how recording documents on real estate transactions, such as deeds, mortgages, easements and taxes, help ensure proper ... Read Answer >>
  6. How can my husband inherit a house deed?

    My mother in law wants to know the best way to leave the deed to her house to her son (my husband). Should it be left in ... Read Answer >>
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