Reading a Grenada Deed of Conveyance, Clause by Clause

The deed is the document that actually moves ownership of a Grenada house from seller to buyer. Once stamped and registered at the Deeds and Land Registry it becomes the newest link in the chain of title, and the next buyer's attorney will read it the way your attorney read the deeds before it. A sloppy deed today becomes someone's title problem in twenty years.

Deeds in Grenada follow a traditional English pattern, with some phrasing that has hardly changed in a century. You do not need to draft one, but you should read yours before signing. Here is what each part does, in the order you will usually meet it, and what to check in each.

The heading, date and parties

A conveyance opens by identifying itself, often with words such as "This Deed of Conveyance" followed by the date it is made. The date matters because it sets the moment the transfer takes effect between the parties, and because stamp duty and registration deadlines may run from it.

Next come the parties: the vendor, or seller, and the purchaser, or buyer. Each is named in full with an address and usually an occupation. Check every spelling against your passport. Middle names, maiden names and initials should be consistent with other official documents, because a mismatch can cause questions years later when you sell, remortgage or when your estate is administered.

If two or more people are buying together, the deed should state how they hold the property: as joint tenants, where the survivor automatically takes the whole on the death of the other, or as tenants in common, where each owns a share that passes under their own will. Couples and business partners often have different needs here, so decide deliberately rather than accepting whatever wording appears in the draft.

The recitals: the story so far

What recitals do. Recitals are the paragraphs that usually begin with "Whereas". They explain how the vendor came to own the property, often by referring to the previous deed by its registration reference, or to a grant of probate and an assent.

Why they matter. Recitals connect this deed to the chain of title. A future attorney will use them to find the earlier documents quickly. If they are wrong or vague, that search becomes harder.

What to check. The previous deed reference should match what your attorney found in the title search. If the vendor inherited, the recital should mention the grant and the person who died, with dates.

Agreement to sell. The recitals usually end by stating that the vendor has agreed to sell and the purchaser to buy at a stated price, which leads into the operative part of the deed.

The operative words and the consideration

The operative part is the heart of the deed. In traditional wording it says that "in consideration of" a sum paid, the receipt of which the vendor acknowledges, the vendor "conveys" or "grants" the property to the purchaser. The consideration is the purchase price, stated in Eastern Caribbean dollars or another currency. It must be accurate. Understating the price to reduce taxes is an offence and also undermines your own position, since the deed becomes evidence of what you paid.

The acknowledgement of receipt is significant. Once the vendor signs a deed stating the money has been received, it is difficult to argue otherwise later. That is why the deed is normally signed and exchanged at the same time as the funds are released, usually through the attorneys' client accounts.

Some deeds also contain covenants for title, which are promises by the vendor about the right to convey. Their exact effect depends on the wording and on Grenadian law, so ask your attorney what protection, if any, they give you.

The property description and plan

The description is where most future disputes begin, so give it the most attention. A good description usually contains:

• The parish and the locality or estate name, for example a lot in a named subdivision in St George or St David.
• The area, in acres, square feet or square metres, stated consistently with the survey plan.
• The boundaries on each side, traditionally described by reference to neighbouring owners, roads, rivers or the sea, which is why old deeds often say "bounded on the north by lands of" a named person.
• A reference to a survey plan by its plan number and the surveyor who prepared it, with the plan lodged and approved through the Lands and Surveys Division.
• Any rights of way, drainage easements or shared driveways benefiting or burdening the property.
• Any exceptions, such as a strip reserved for road widening or rights retained by a developer.

The habendum, covenants and execution

The habendum is the clause beginning "To hold" or "To have and to hold". It states the estate being transferred, normally the fee simple, which is full freehold ownership, and to whom. In a leasehold sale, or a development where units are held on long leases, this clause shows the length and terms of the lease instead.

After the habendum come any restrictive covenants: rules binding the owner, such as limits on commercial use, minimum building standards, height limits or obligations to contribute to road maintenance in a private subdivision. These run with the land, so they bind you and later buyers. Read them as carefully as you would read a lease.

The execution clause is where the parties sign, usually in the presence of a witness, often an attorney or a justice of the peace, with the formal words required for a deed. If you sign abroad, your attorney will tell you whether a notary public must witness the signature and what further certification is required for the deed to be accepted for registration in Grenada.

Stamping and registration after signing

A signed deed is not finished. Before it can be registered it has to be assessed for the taxes and duties due on the transfer, which are dealt with through the Inland Revenue Division, and the payment is evidenced on the document. Only then is it lodged at the Deeds and Land Registry, where it is checked, recorded and given its registration reference. The registered deed is then returned or made available as a certified copy.

Until that process is complete, the purchaser holds a signed but unregistered deed. That is normally a short and safe interval when an attorney is attending to it, but it is the stage at which files sometimes stall, especially if a tax assessment is queried or the plan reference needs correcting. Ask your attorney when the deed was lodged, and request a copy of the registered version for your own records once it is available.

Keep that copy with your other house papers: the survey plan, planning approvals, insurance policy and receipts for major works. A tidy file makes the next sale, remortgage or estate far simpler for whoever has to deal with it.

Errors to catch before you sign

Wrong lot number or plan reference. Subdivisions often have lots with similar numbers. A single digit wrong can convey the neighbour's plot.

Area that does not match the survey. A deed showing half an acre when the plan shows 18,000 square feet needs correcting before execution, not after.

Missing right of way. If your only access is across another lot, the deed should grant that right expressly. An informal understanding with a neighbour does not bind the next owner of that lot.

Wrong form of co-ownership. Joint tenancy and tenancy in common have very different results on death. Make sure the wording reflects what you and your co-buyer actually intend.

Unregistered for months. Ask for written confirmation of the registration reference once the deed has been registered. Until then, your ownership is less secure than it should be.

Frequently asked questions