Name of The Deed

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The document outlines the typical structure and components of a deed document including recitals, testatum, operative part, habendum clause, covenants and more.

The main components of a deed discussed are the name, date, parties, recitals, testatum, receipt clause, operative part, description of property, exceptions and reservations, habendum clause, covenants and undertakings, testimonium and signature.

Recitals set forth a brief history of the facts and circumstances that have led to the execution of the document. They usually consist of narrative recitals that trace the title of the property and introductory recitals that state the object of executing the document.

 Name of the Deed/Document:

A deed should start with its name, if possible. For example, “Deed of Conveyance” or “Leave
and License Agreement”. This is merely for convenience. It should be noted that the
nomenclature does not finally decide whether the document is, in fact, as described by the
name and the same would depend on the entire contents of the document.

 Date and Place:

The insertion of the date of execution plays an important role from various aspects such as
limitation, priority, registration. The place of execution gains importance in the event a
dispute arises, with regards to the jurisdiction of the Court.

 Parties:

There are ordinarily at least two parties to a document, depending upon the nature of the
transaction. It is common practice to mention the name, capacity in which one is executing
the document, age, place of residence etc. for purposes of correct identification. It is
important to note that a document is only binding upon the parties thereto and thus and
therefore it is common practice to have the definition given to a particular party to mean and
include “his heirs, executors and assigns” in case of individuals and “successors and assigns”
in the case of a corporate body. The nomenclature of the parties varies in case of individual,
corporate, trust, partnership firm etc.

 Recitals:

This is synonymous with the preamble to a document and sets forth a brief history of the facts
and circumstances that have led to the execution of the document. They usually consist of
two types; (i) narrative recitals that trace the title of the property and (ii) introductory recitals
that state the object of executing the document.

 Testatum:

Recitals are usually followed by the provisions relating to the transfer which usually begin
with the words “Now This Deed Witnesseth and It is Hereby Agreed By and Between The
Parties As Follows: -“This is known as a testatum. Words that are commonly used include
“doth”, “Witnesseth” which may seem a bit archaic but there is absolutely nothing wrong
with keeping it old-school!

Receipt clause:

This is inserted in the event any money is paid before or on execution of the document. It is
not usually required if receipt has been acknowledged in the operative part, however, it is
often inserted out of abundant caution.

Operative part:

Arguably the heart and soul of your document, the operative part consists of words or
expressions of the nature of transfer intended to be made. It also includes (i) clauses relating
to consideration, (ii) a full description of the property etc. (iii) an “all estate clause” which
transfers all appurtenances to the property intended to be transferred, (iv) a Habendum clause
which defines the estate the purchaser takes such as absolute owner or otherwise; (v) clauses
regarding any exceptions or reservations such as right of way etc., (vi) terms and conditions,
(vii) covenants including for title, possession, further assurances etc.

Description of property

Registration laws in India require full description of property for example Side east, west,
north, south etc. Area, location, permitted use, survey no.

Parcels clauses

This is a technical expression. Usually starts with the words “All Those “Unless a different
intention is expressed or necessarily implied, a transfer of property passes forthwith to the
transferee all the interest which the transferor is then capable of passing in the property, and
in the legal incidents thereof.

Exceptions and reservations.

Deeds may contain exceptions and reservations. They both have in common the fact that each
diminishes the interest a grantee would have otherwise taken under the deed in which they
may appear. An exception in a deed has the purpose of eliminating or excepting out of the
grant a part of the property or thing granted which:
(a) then remains in the grantor; or 
(b) was previously granted by the grantor to another; or 
(c) was never owned by the grantor.
A reservation in a deed has the purpose to create a right for the benefit of the grantor in the
property granted which did not exist prior to the reservation as a separate and distinct right.

In a reservation, nothing is withheld or excepted from the grant, but the grantor retains in the
grantor's name a new right to the property which would otherwise pass by the grant.

Habendum

Habendum is a part of deed which states the interest, the purchaser is to take in the property.
The habendum clause starts with the words. “THE HAVE AND THE HOLDS”

Covenants and Undertakings : The term "covenant" is defined as an agreement under seal,
which stipulates for the truth of certain facts. In Whasten’s Law Lexicon, a covenant has been
explained as an agreement or consideration or promise by the parties, by deed in writing,
signed, sealed and delivered, by which either of the parties, pledged himself to the other than
something is either done or shall be done for stipulating the truth of ceratin facts.

Covenant clause includes undertakings also. Usually, covenant is stated first. In some
instances the covenants and “undertaking” are mixed, i.e. can not be separated in that case,
they are joint together, words put for this as "The Parties aforesaid hereto hereby mutually
agree with each other as follows." Such covenants may be expressed or implied.

Testimonium:

A deed generally ends with a Testimonium clause which is usually worded as “In Witness
whereof the parties hereto have put their hands/signatures on the day and year first
hereinabove written”.

Testimonium is the clause in the last part of the deed. Testimonium signifies that the parties to the
document have signed the deed.
Signature clause or execution:

Every document is required to be properly executed by the parties thereto. In certain cases,
failure to properly execute a document could render the document invalid. The correct
method of execution depends upon the nature of the document, the nature of the parties and
the relevant laws relating to attestation by witness thereof, if applicable.

Attestation is necessary in the case of some transfer like mortgage, gift, sale etc.

Endorsement & Supplemental deed

Endorsement means to write on the back or on the face of a document where in it is necessary
in relation to the contents of that document or instruments. The term endorsement is used
with reference to negotiable documents like - (a) Cheque (b) Bill of exchange (c) Hundies
etc. (d) Promissory notes. For e.g. - On the back of the cheque to sign one name as payee to
obtain cash is an endorsement on the cheque.

Supplemental deed - is a document which is entered into between the parties on the same
subject on which there is a prior/ex documents existing an operative for adding new fact to
the document on which the parties to the document have agreed which otherwise cannot be
done by way of endorsement. Thus supplemental deed is executed to give effect to the new
fact in the deed.

Schedule: Often, to ensure that a document flows correctly and is not interrupted by lengthy
descriptions and details, certain portions are referred to in a Schedule, usually appearing at
the end of the document. It may include a complete description of the property to be
conveyed, or rights to be transferred.

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