Private Deed: Definition, Use and Comprehensive Benefits
A private document is a legal document drawn up and signed by the parties, without the intervention of a notary. In this article, we are going to discuss the various aspects of this act, its definition, common uses, and benefits.
1- What is a private document
Unlike the authentic act, which must be signed before a notary, the private act does not have specific legal formalities. It can be used for smaller transactions, such as the sale of real estate between individuals, or for larger transactions, such as commercial rental contracts.
2- Common uses of private contracts
It is used in many areas, such as:
The sale of real estate
Individuals who wish to sell their property without the help of a notary can use a private contract to formalize the sale.
The rental of real estate
Owners of real estate who want to rent their property without the help of a notary have the option of using this act to form the rental contract.
Commercial contracts
To formalize commercial contracts, such as employment contracts or contracts for the provision of services, businesses are in a position to use private contracts.
Successions
Heirs can use a private act to formalize the division of the estate, without the intervention of a notary.
3- The advantages
It has several advantages for parties who want to formalize a transaction, such as:
A simplified procedure
It can be drawn up and signed by the parties themselves, without specific formalities and without the intervention of a notary.
Cost savings
This act is often less expensive than the authentic instrument, as it does not involve notary fees.
Greater flexibility
The parties have greater freedom to negotiate the terms of the agreement, as they are not subject to the strict rules of the authentic act.
Reinforced confidentiality
Unlike the authentic act, which is kept in the notary's archives and can be consulted by third parties, the private document is kept by the parties and can be kept away from prying eyes.
A speed of execution
It can be drawn up and signed quickly, allowing the parties to complete the deal more quickly.
Geographic flexibility
The parties can draw up a private document remotely, without having to go to a notary.
4- The limits of private contracts
The lack of evidentiary force
It has only limited evidentiary value. In the event of a dispute, it can be difficult to prove the authenticity of the act.
The risk of error
Parties who draft the act themselves may make legal errors, which can have a negative impact on the transaction.
The absence of legal advice
Unlike the authentic instrument, which is drawn up with the help of a notary, a private document does not benefit from legal advice, which can be prejudicial in the event of a dispute.
5- The rules to be respected to establish a private contract
To establish a private document, certain rules must be respected, such as:
- Write the act accurately in accordance with the legal rules in force.
- Have it signed by all parties involved, without exception.
- Date it to prove the precedence of the transaction.
- Have the parties sign off each page of the act, to avoid any dispute over its authenticity.
- Store it carefully in a safe and accessible place when needed.
Conclusion
A private document is a legal document used to formalize a transaction between the parties, without the intervention of a notary. While it has many advantages, it also has limitations, such as its lack of evidentiary force and the risk of error. To draw up one, certain rules must be respected, such as the precise drafting of the act, the signature of all the parties, the dating and careful preservation of the act. If you are considering using this type of act to formalize a transaction, it is recommended that you consult a legal professional for advice and avoid legal risks.
