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.
It can help prevent disputes by clearly recording each party’s financial contributions and what they are entitled to if the property is sold.
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.
If you are buying a property with someone else, or contributing funds without becoming a legal owner, our specialist conveyancing solicitors can help you protect your interests.
What is a Deed of Trust?
A Deed of Trust is used to specify:
- How ownership of a property is divided between joint owners
- Each party’s contributions towards the purchase price
- How sale proceeds will be split 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, and defining each party’s responsibilities with regard to outgoings once the purchase has been 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.
Related Residential Property Services
How We Handle Deeds of Trust
Our property solicitors can draft a bespoke Deed of Trust tailored to your situation. This can include:
- Each party’s contribution to the deposit and purchase price
- The percentage shares owned by each person
- Responsibility for ongoing costs such as mortgage repayments, maintenance, and bills
We can also prepare a Deed of Trust where there is more than one legal owner, but only one beneficial owner. This is common where two people are named on the mortgage, but only one is paying the mortgage or has provided the funds for the purchase.
Our organised and reliable Deeds of Trust solicitors will guide you through the process in plain English. Whether you’re a first-time buyer or an experienced investor, we can help protect your interests.
Why Choose TV Edwards?
- Highly ranked in legal directories – Recognised by Legal 500 and Chambers UK
- Proven success – A wealth of experience in drafting Deeds of Trusts for property buyers
- Cost-effective solutions – We prioritise fair, practical resolutions to keep costs manageable
- Client-first approach – Clear, honest legal advice from start to finish, tailored to your goals
Client Testimonials
Contact Our Deeds of Trust Solicitors Today
Deeds of Trust Frequently Asked Questions
What is the purpose of a Deed of Trust?
The purpose of a Deed of Trust is to define how a property is owned between joint owners. It records the contributions of each person involved, such as deposits and mortgage payments, and explains how money will be divided if the property is sold. This helps to protect all parties from future disputes.
Do I need a solicitor for a Deed of Trust?
While it is not a legal requirement to use a solicitor, it is strongly recommended. A solicitor can draft a Deed of Trust that accurately reflects your intentions, ensures it is legally binding, and avoids common pitfalls that could make the agreement unclear or unenforceable later on.
What are the disadvantages of a Deed of Trust?
The main disadvantages are the upfront cost and the need to update the deed if circumstances change, such as if one party invests more money or a new owner is added. However, these drawbacks are usually outweighed by the protection and clarity a Deed of Trust provides.
