If you or someone you know has been having trouble paying his financial obligations, the creditors may have arranged for an assignment of deed. The assignment does not go directly to the creditors, but rather through a trustee, perhaps assigned by bankruptcy court. Creditors use this process with debtors who owe significantly more than their assets. Developers sometimes use deeds of assignment to transfer ownership of an unfinished home.
Purpose
A deed of assignment transfers ownership of either land or non-real estate property. When the owner is financially insolvent, the bankruptcy court may order the sale of her home or other property. The deed of assignment gives authority to a trustee to sell the property and distribute the proceeds to creditors. When a potential homeowner makes a deposit on a partially constructed home, the real estate developer issues an assignment of deed to the prospective home buyer.
Stipulations
An assignment of a deed must state the date that the transfer of ownership will occur. Additionally, if a homeowner sells a piece of property before the clerk of the court has issued the title, he uses an assignment of deed to act as a temporary title for the buyer. When the transfer involves real estate or other immovable property, full rights automatically transfer.
Non-Real Estate Transfers
You can assign ownership of property other than real estate with a deed of assignment. For example, you may sell copyright to artistic works, such as a play or song you have written, using such a deed. You are not obligated to give full copyright for movable property with deeds of assignment. You may transfer first rights or some other restricted form of ownership.
State Laws
Each state has its own laws regulating the provisions that must be included in deeds of assignment. Consult a legal professional in your area to help you draft or review a potential legal transfer of ownership to protect your rights as either buyer or seller.
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