diff --git a/OpenSim/Region/CoreModules/World/Permissions/PermissionsModule.cs b/OpenSim/Region/CoreModules/World/Permissions/PermissionsModule.cs
index 1c8d4b8522..b4c507231b 100644
--- a/OpenSim/Region/CoreModules/World/Permissions/PermissionsModule.cs
+++ b/OpenSim/Region/CoreModules/World/Permissions/PermissionsModule.cs
@@ -71,12 +71,6 @@ namespace OpenSim.Region.CoreModules.World.Permissions
         #region Constants
         // These are here for testing.  They will be taken out
 
-        //private uint PERM_ALL = (uint)2147483647;
-        private uint PERM_COPY = (uint)32768;
-        //private uint PERM_MODIFY = (uint)16384;
-        private uint PERM_MOVE = (uint)524288;
-        private uint PERM_TRANS = (uint)8192;
-//        private uint PERM_LOCKED = (uint)540672;
         private uint PERM_LOCKED = (uint)524288; // same as move
 
         /// <value>
@@ -867,6 +861,7 @@ namespace OpenSim.Region.CoreModules.World.Permissions
             return PermissionClass.Everyone;
         }
 
+        // get effective object permissions using user UUID. User rights will be fixed
         protected uint GetObjectPermissions(UUID currentUser, SceneObjectGroup group, bool denyOnLocked)
         {
             if (group == null)
@@ -918,6 +913,7 @@ namespace OpenSim.Region.CoreModules.World.Permissions
             return group.EffectiveEveryOnePerms & lockmask;
         }
 
+        // get effective object permissions using present presence. So some may depend on requested rights (ie God)
         protected uint GetObjectPermissions(ScenePresence sp, SceneObjectGroup group, bool denyOnLocked)
         {
             if (sp == null || sp.IsDeleted || group == null || group.IsDeleted)
@@ -1178,15 +1174,40 @@ namespace OpenSim.Region.CoreModules.World.Permissions
             return GenericParcelOwnerPermission(user, parcel, (ulong)GroupPowers.LandDeed, false);
         }
 
-        private bool CanDeedObject(UUID user, UUID group, Scene scene)
+        private bool CanDeedObject(ScenePresence sp, SceneObjectGroup sog, UUID targetGroupID)
         {
             DebugPermissionInformation(MethodInfo.GetCurrentMethod().Name);
             if (m_bypassPermissions) return m_bypassPermissionsValue;
 
-            ScenePresence sp = scene.GetScenePresence(user);
-            IClientAPI client = sp.ControllingClient;
+            if(sog == null || sog.IsDeleted || sp == null || sp.IsDeleted || targetGroupID == UUID.Zero)
+                return false;
 
-            if ((client.GetGroupPowers(group) & (ulong)GroupPowers.DeedObject) == 0)
+            // object has group already?
+            if(sog.GroupID != targetGroupID)
+                return false;
+
+            // is effectivelly shared?            
+            if(sog.EffectiveGroupPerms == 0)
+                return false;
+
+            if(sp.IsGod)
+                return true;
+
+            // owned by requester?
+            if(sog.OwnerID != sp.UUID)
+                return false;
+
+            // owner can transfer?
+            if((sog.EffectiveOwnerPerms & (uint)PermissionMask.Transfer) == 0)
+                return false;
+            
+            // group member ? 
+            ulong powers = 0;
+            if(!GroupMemberPowers(targetGroupID, sp, ref powers))
+                return false;
+
+            // has group rights?
+            if ((powers & (ulong)GroupPowers.DeedObject) == 0)
                 return false;
 
             return true;
diff --git a/OpenSim/Region/Framework/Scenes/Scene.Inventory.cs b/OpenSim/Region/Framework/Scenes/Scene.Inventory.cs
index ad913f7f21..3230a2ba6f 100644
--- a/OpenSim/Region/Framework/Scenes/Scene.Inventory.cs
+++ b/OpenSim/Region/Framework/Scenes/Scene.Inventory.cs
@@ -2717,9 +2717,6 @@ namespace OpenSim.Region.Framework.Scenes
             {
                 if (ownerID != UUID.Zero)
                     return;
-
-                if (!Permissions.CanDeedObject(remoteClient.AgentId, groupID))
-                    return;
             }
 
             List<SceneObjectGroup> groups = new List<SceneObjectGroup>();
@@ -2750,15 +2747,9 @@ namespace OpenSim.Region.Framework.Scenes
                         child.TriggerScriptChangedEvent(Changed.OWNER);
                     }
                 }
-                else // The object was deeded to the group
+                else // The object deeded to the group
                 {
-                    if (!Permissions.IsGod(remoteClient.AgentId) && sog.OwnerID != remoteClient.AgentId)
-                        continue;
-
-                    if (!Permissions.CanTransferObject(sog.UUID, groupID))
-                        continue;
-
-                    if (sog.GroupID != groupID)
+                    if (!Permissions.CanDeedObject(remoteClient, sog, groupID))
                         continue;
 
                     sog.SetOwnerId(groupID);
diff --git a/OpenSim/Region/Framework/Scenes/Scene.Permissions.cs b/OpenSim/Region/Framework/Scenes/Scene.Permissions.cs
index 349179297f..a7f3dd7901 100644
--- a/OpenSim/Region/Framework/Scenes/Scene.Permissions.cs
+++ b/OpenSim/Region/Framework/Scenes/Scene.Permissions.cs
@@ -78,7 +78,7 @@ namespace OpenSim.Region.Framework.Scenes
     public delegate bool AbandonParcelHandler(UUID user, ILandObject parcel, Scene scene);
     public delegate bool ReclaimParcelHandler(UUID user, ILandObject parcel, Scene scene);
     public delegate bool DeedParcelHandler(UUID user, ILandObject parcel, Scene scene);
-    public delegate bool DeedObjectHandler(UUID user, UUID group, Scene scene);
+    public delegate bool DeedObjectHandler(ScenePresence sp, SceneObjectGroup sog, UUID targetGroupID);
     public delegate bool BuyLandHandler(UUID user, ILandObject parcel, Scene scene);
     public delegate bool LinkObjectHandler(UUID user, UUID objectID);
     public delegate bool DelinkObjectHandler(UUID user, UUID objectID);
@@ -934,15 +934,20 @@ namespace OpenSim.Region.Framework.Scenes
             return true;
         }
 
-        public bool CanDeedObject(UUID user, UUID group)
+        public bool CanDeedObject(IClientAPI client, SceneObjectGroup sog, UUID targetGroupID)
         {
             DeedObjectHandler handler = OnDeedObject;
             if (handler != null)
             {
+               if(sog == null || client == null || client.SceneAgent == null || targetGroupID == UUID.Zero)
+                    return false;
+
+                ScenePresence sp = client.SceneAgent as ScenePresence;
+
                 Delegate[] list = handler.GetInvocationList();
                 foreach (DeedObjectHandler h in list)
                 {
-                    if (h(user, group, m_scene) == false)
+                    if (h(sp, sog, targetGroupID) == false)
                         return false;
                 }
             }