A Deed of Trust or a Declaration of Trust is a legal document that outlines a sharing of ownership of a property, as between two or more individuals. It is a necessary contract, especially when a property is bought collectively, although the sums of each party do not match.
A Declaration of Trust gives the financial interest of each owner in property. It captures the ownership percentage, the division of the proceeds in the event of a sale of the property and any particular terms that parties have agreed upon. It is common among unmarried couples, friends or family members purchasing property together to eliminate disagreements in the future.
In the absence of a Declaration of Trust, the law can impose equal ownership, though one party may have contributed a much higher amount of money towards the purchase price or mortgage. This may cause conflict in case of a breakdown of the relationship or the sale of the property. A legally binding Declaration of Trust will allow transparency and defend the financial investment of every individual.
The Declaration of Trust is usually a well-written document which addresses:
Ownership Shares: The precise percentage of ownership of each party.
Financial Contributions: The information on who contributed how much to the deposit, mortgage or renovations.
Division of Sale Proceeds: The division of sale proceeds will be split among the owners.
Mortgage Responsibilities: Understanding of mortgage repayment and other expenses, who is liable.
Future Agreement: This is any terms or agreements to sell or change ownership of the same in future.
You might want to take notice of this paper when:
A Declaration of Trust is a private agreement, although it has high legal binding forc,e provided that it is written and signed as a deed. Regarded mainly by the court as a testimony of possession goals, it is acceptable as long as it is just, understandable, and accurately reflects the parties’ inputs.
We are First Law Solicitors, and we deal with the preparation of specific and non-repudiable Declarations of Trust. Our family and property law solicitors will ensure that your intentions and investment are safeguarded by law. We offer individual consultation to adapt to your particular situation, avoid future conflicts, and protect your finances.
In case you are buying a property together or need to legalise the ownership of the property, First Law Solicitors can be contacted. Our team is going to make a professional draft of the Declaration of Trust that would outline your rights and provide your interests with the future guarantees.
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