I made an object that I provided to a friend who wanted to deed it to his group. He reported that the "Deed" option on the prim was grayed out. To check this question I rezed a new prim on my land and sure enough the deed option is grayed out. I've tried allowing all permissions, modify, copy, transfer on a prim but still the deed is function is not there. Obviously, I'm missing something basic, but can't find it.