Deed of Assignment
Also known as: Transfer of Rights Contract · Deed of Assignment and Transfer of Rights
Definition
A Deed of Assignment is a legal contract through which one party (the assignor) transfers their rights, interests, titles, and obligations over a property to another party (the assignee). In Philippine real estate, a Deed of Assignment is widely used during the pre-selling phase of condominiums and subdivisions to transfer ownership rights from the original buyer to a new buyer before the actual title is issued by the developer. (Wikipedia, DHSUD)
Identities
| Source Type | Identity |
|---|---|
| Wikipedia | Assignment (law) |
| Wikidata | Q1420188 |
| DBpedia | Assignment_(law) |
| ProductOntology | N/A |
| Wiktionary | assignment |
| Library of Congress Subject Headings (LCSH) | Assignment (Law) — Philippines |
| MeSH | N/A |
| NCBI Taxonomy | N/A |
| AGROVOC | N/A |
| Google Scholar | Deed of Assignment real estate contract transfer rights Philippines |
| ConceptNet | assignment |
| OpenCyc | N/A |
Also Known As
- Transfer of Rights Contract
- Deed of Assignment and Transfer of Rights
Examples and Analogies
- Pre-Selling Condo Transfer: A buyer wants to sell their pre-selling condo unit before turnover. Since the title has not been generated yet, they execute a Deed of Assignment with a new buyer, which is signed and approved by the developer, transferring all equity obligations.
- Mortgage Assignment: A banking institution transfers a pool of housing loan mortgages to a secondary financial institution through a bulk Deed of Assignment.
Usage Scenarios
1. Formalizing Pasalo Deals
The buyer and seller of a “pasalo” property submit a signed Deed of Assignment to the developer’s office to officially update the buyer details in the developer’s records.
2. Transferring Inherited Rights
Heirs assign their rights over a pre-selling property to a single sibling to simplify the eventual title registration process.
Strategies
- Always secure the developer’s written consent and signature on the Deed of Assignment; otherwise, the developer will not recognize the transfer and will issue the title to the original owner.
- Ensure all payments and transfer fees required by the developer are settled concurrently with the execution of the Deed.
Security and Safety Measures
- Ensure the Deed of Assignment is notarized to legally bind third parties.
- Verify the account status directly with the developer to ensure there are no unpaid amortizations or penalties before signing the Deed.
Historical Context
The Deed of Assignment developed as a standard instrument under the Philippine Civil Code provisions on the assignment of credits and rights (Articles 1624 to 1635). It gained massive popularity with the growth of the pre-selling condominium market in Manila.
Challenges and Controversies
High Transfer Fees
Developers frequently charge high transfer fees (sometimes ranging from PHP 100,000 to PHP 300,000) to approve and process a Deed of Assignment, leading to dispute or informal, unrecorded transfers.
Double Assignment Fraud
Dishonest sellers sometimes assign the same pre-selling rights to multiple buyers through separate, unrecorded Deeds of Assignment.
Related Topic
- Pasalo (Real Estate)
- Contract to Sell
- Deed of Absolute Sale