Do I Need A Deeds Declaration of Trust?
With more and more home buyers teaming up to take that first step into home ownership or buy-to-let opportunities across much of the UK, it’s important for joint owners to carefully consider what happens in the event of a dispute further down the line.
Whether you’re buying a home with a partner, friend or family member, one of the simplest solutions is to draw up a Deed called a Declaration of Trust – a legal agreement between the joint owners of a property which outlines details such as the amount each owner contributed towards the purchase price, their respective ownership shares, and what happens if someone wants to move out, or in more serious cases, dies.
If you are purchasing the property jointly as tenants-in-common, then you should see a solicitor and get a Deed of Declaration of Trust drawn up. If, as a new couple, you are setting up your first home together, it may not be the most romantic of tasks, but a Declaration of Trust could spare you a lot of pain and frustration if something were to change.
What’s more, as joint purchasers of property you may need to be advised separately, even if you are married or cohabiting. This is because there could be a conflict of interest between what each of you as individuals want from the joint ownership arrangement. A Deed of Declaration of Trust protects you as an individual and serves as a written record of the agreement between you and the other joint owner of the property. Whilst you may be buying a property as a couple, you each need to consider your individual requirements and ensure your individual position is protected, should your relationship breakdown in the future.
If you require a Deed of Trust, or have any questions at all about joint ownership of property, then do get in touch.