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Declaration of Trust / Deed of Trust
What is a Deed of Trust?
In the UK, a Deed of Trust is a legal document that defines the ownership arrangement of a property when it is jointly purchased by two or more individuals, though not necessarily in equal shares. Also referred to as a Declaration of Trust or Trust Deed, it is commonly used when friends or family members buy property together.
How Does a Deed of Trust Work?
Ownership Shares
The Deed of Trust specifies the percentage of the property each party owns. For instance, if one person contributes more to the purchase price, their ownership share will likely be larger.
Financial Contributions
It outlines each party’s contributions towards the purchase price, mortgage payments, and upkeep costs.
Rights and Responsibilities
The document clarifies the rights and responsibilities of the co-owners, covering matters such as decisions to sell the property or resolving disputes.
Protecting Investments
A Deed of Trust ensures that if the property is sold, the proceeds are divided according to the agreed ownership shares, safeguarding each party’s investment.
Legal Basis
It provides a legal framework for addressing disputes related to property ownership and financial matters.
A Deed of Trust differs from a mortgage deed, which secures a loan against the property, using the property as collateral.
When Might You Need a Deed of Trust / Declaration of Trust?
In the UK, a Deed of Trust may be needed in various situations involving shared property ownership:
When multiple people buy a property together, especially if their contributions are unequal, the Deed of Trust defines each person’s ownership share.
A Deed of Trust can be used by friends or family members purchasing a property together to clearly establish ownership percentages and responsibilities.
If one person contributes more than others, the Deed of Trust ensures their larger investment is acknowledged in the ownership arrangement.
Unmarried couples living together may use a Deed of Trust to outline their respective shares, particularly if they contribute unequally.
When multiple people invest in a property, a Deed of Trust defines ownership stakes and how rental income or sale proceeds will be divided.
When multiple people invest in a property, a Deed of Trust defines ownership stakes and how rental income or sale proceeds will be divided.
If one co-owner wants to sell their share, the Deed of Trust outlines the process, protecting all parties involved.
A Deed of Trust protects each party by clearly defining ownership rights and obligations.
In all these cases, the Deed of Trust provides legal clarity and helps prevent disputes. It is essential to seek legal advice to ensure the document reflects the agreements of all parties.
How It Works
01.
Submit Online Form
Complete the online Deed of Trust Online Form to provide details about your situation. We will then arrange a Zoom Video Consultation to go over specifics of your requirements. Choose between receiving an electronic PDF or a physical bound document.
02.
We Draft Your Deed
A solicitor will draft the Deed of Trust and send it to you for approval. You can request any changes before finalising the document.
03.
Dispatch Final Deed
The final Deed will be sent to you electronically as a PDF or as a physical bound copy, along with any supporting documents.
