What is a Deed of Trust?
A Deed of Trust, also known as a Declaration of Trust, is a legal agreement that can be used to specify how a property is held between joint owners.
If you are purchasing property in unequal shares or with a contribution from someone who will not become a legal owner of the property you may wish to consider a Deed of Trust. This document will record the contributions made towards the purchase price and how the sale proceeds of the property will be divided between the parties on sale to reduce the likelihood of a dispute arising in the future.
We draft our deeds to include specific information that you wish to have incorporated. This usually includes things like each party’s contributions towards the deposit and completion monies, their respective shares in the property as well as defining each party’s responsibilities with regard to outgoings once the purchase has completed.
We also draft deeds where only one party is to be the sole beneficial owner but there is more than one legal owner. For example in the current economic climate it is increasingly difficult for single parties to obtain mortgage finance so the mortgage may be in the name of two people when only one has contributed financially to the purchase and only that person is expected to pay the mortgage.
Do I need a Deed of Trust?
There are many circumstances in which a Deed of Trust would be advisable. Some of the most common ones are listed below. Whether you are a first-time buyer or have property experience, a Deed of Trust can provide a simple and secure way in which to protect your interests.
Joint purchase: If you are purchasing a property jointly with a spouse, partner, friend or relative and you are contributing unequally to the deposit or the mortgage a Deed of Trust could be vital
Existing Owner: If you already own a property with another party you may seek to formalise the arrangement. A Deed of Trust can provide you both with peace of mind.
Gifting deposit: If you are providing someone with a helping hand onto the property ladder and you want to protect both them and you, then a Deed of Trust can be very useful.