Counterpart Deeds have their uses, but what is the correct procedure once they are signed?
Each Deed will usually be dated differently - is there conventions as to the best way to date this? or will each ‘deed’ have its own date, but the effectiveness kicks in when the last person signs?
and is it correct that each ‘incomplete’ deed, when put together with the others will form one ‘valid’ deed. Has anyone had any problem submitting these to any institutions due them looking incomplete?
I believe you are talking about a deed completed in parts, rather than “counterpart” deeds (which are executed copies of the relevant deed).
When a deed is completed in parts, it is important that the deed includes the statement that it will be completed in parts.
My understanding is that it is preferable for the separate parts to remain undated until the last one is executed and the separate parts bound together to form a single document. One reason for doing this is that once signed, the signatory may be bound by the terms of the deed even if other parties do not execute their copy.
I am aware that some consider it sufficient for the parties to merely return the signature page, which is then bound into the “deed”. However, I would be very wary of adopting that approach as it may then be necessary to prove that each signatory was provided with exactly the same document and understood that each would be signing the same document. If all signatories return a complete copy of the deed bearing their signature there can be no doubt.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
Thanks Paul for your comments. Yes, that is what I meant. I am sure I’ve seen that terminology in some precedents, but in essence, yes - I meant multiple versions of the same deed being circulated.
I understand that the relevant statement needs to be present.
My query was in relation to the ‘binding’ I guess. Are the separate parts bound with the non-signature pages as well as the signature pages, or just the signature pages put together to make it look like one document?
Personally, just putting the signature pages to make it look like one document makes me feel uneasy (not sure why), but at the same time, having multiple pages with recitals etc as well as the signature pages looks cumbersome.
My gut feeling tells me you’re pointing towards the latter version.
Yes, I consider that all pages should be bound together, even though they may be repetitious, so that it is clear that all parties have signed up to the same document.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals