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Deed of Donation Template for United States

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Key Requirements PROMPT example:

Deed of Donation

"I need a deed of donation for a real estate property valued at $250,000, transferring ownership to a non-profit organization, effective January 1, 2025, with no conditions or encumbrances."

What is a Deed of Donation?

A Deed of Donation is a legal agreement that makes a gift official under Saudi law. It transfers ownership of property, money, or other assets from one party (the donor) to another (the recipient) without expecting anything in return. In the Kingdom, these deeds must be properly notarized and follow Islamic principles of charitable giving.

When drafted correctly, this deed protects both parties by clearly stating what's being given, any conditions attached, and when the transfer takes effect. It's commonly used for charitable donations to mosques and non-profits, family gifts, and educational endowments. Saudi courts recognize these deeds as binding proof of transfer, making them essential for documenting significant gifts.

When should you use a Deed of Donation?

Use a Deed of Donation when making significant gifts in Saudi Arabia, especially for high-value assets like property, vehicles, or substantial monetary contributions. This formal document becomes crucial during major family transfers, charitable giving to mosques or religious institutions, and establishing educational or charitable endowments (waqf).

The deed proves essential when transferring ownership needs official documentation, particularly for gifts above SAR 10,000 or items requiring registration with government authorities. It creates a clear record for tax purposes, prevents future ownership disputes, and ensures compliance with both Saudi civil law and Shariah principles of charitable giving. Many organizations require this deed before accepting major donations.

What are the different types of Deed of Donation?

  • Simple Property Donation: Used for transferring ownership of real estate, vehicles, or personal property, requiring notarization and registration with relevant Saudi authorities
  • Charitable (Waqf) Deed: Specifically structured for religious or charitable donations to mosques, schools, or non-profit organizations under Islamic law
  • Family Transfer Deed: Tailored for gifts between family members, often including specific conditions or future interests while maintaining Shariah compliance
  • Corporate Donation Deed: Designed for business entities making charitable contributions, with additional corporate governance requirements and documentation
  • Conditional Deed: Contains specific terms or requirements that must be met by the recipient, common in educational or institutional donations

Who should typically use a Deed of Donation?

  • Donors: Individuals, corporations, or organizations transferring assets, who must prove ownership and legal capacity to make the gift under Saudi law
  • Recipients: Charitable organizations, family members, educational institutions, or religious entities accepting the donated assets
  • Notaries (Katib al-Adl): Government-authorized officials who authenticate and register Deeds of Donation according to Ministry of Justice guidelines
  • Legal Advisors: Attorneys or Shariah consultants who draft and review the deed terms for compliance with Islamic and civil law
  • Witnesses: Two adult Muslim witnesses required to validate the deed as per Saudi legal requirements

How do you write a Deed of Donation?

  • Donor Details: Gather full legal name, ID number, contact information, and proof of ownership for the donated assets
  • Asset Documentation: Prepare detailed descriptions, valuations, and registration documents for property, vehicles, or other items being donated
  • Recipient Information: Collect legal name, registration numbers for organizations, or ID details for individual beneficiaries
  • Conditions: Document any specific terms, timing, or requirements attached to the donation
  • Witness Arrangements: Schedule two adult Muslim witnesses to attend the notarization
  • Compliance Check: Verify the donation aligns with both Shariah principles and Saudi civil law requirements

What should be included in a Deed of Donation?

  • Identification Details: Full legal names, addresses, and ID numbers of both donor and recipient(s)
  • Asset Description: Clear, detailed specification of the donated property or assets, including registration numbers and current value
  • Transfer Declaration: Explicit statement of voluntary transfer without compensation, following Islamic gift (Hiba) principles
  • Delivery Terms: Specific conditions and timing for transferring possession of the donated items
  • Witness Attestation: Space for two Muslim witnesses' signatures and their identification details
  • Governing Law: Reference to Saudi law and Shariah compliance statement
  • Notarization Block: Official space for Katib al-Adl certification and stamp

What's the difference between a Deed of Donation and a Donation Agreement?

A Deed of Donation differs significantly from a Donation Agreement in several key aspects under Saudi law. While both documents involve charitable giving, their legal structure and implications vary considerably.

  • Legal Format: A Deed of Donation is a formal legal instrument that transfers immediate ownership, requiring notarization and witness attestation. A Donation Agreement is a simpler contract that can outline future or conditional transfers
  • Enforceability: Deeds of Donation offer stronger legal protection and are directly enforceable in Saudi courts, while Donation Agreements may require additional steps to enforce
  • Transfer Timing: Deeds execute immediate transfer of ownership, whereas Agreements often structure future or conditional donations
  • Religious Compliance: Deeds must strictly follow Islamic Hiba principles and require specific Shariah-compliant elements, while Agreements have more flexibility in their terms

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