It is a legally binding agreement which should clearly outline: the deposit each person paid; what share of the property each owner owns; how much each of you will contribute towards the mortgage repayments and how much each owner will contribute to fees and so on.
A declaration of trust can also outline how you will approach one owner buying the other out - including how you get the property valued — as well as setting out if and when the property should be sold and how the sale proceeds should be divided in the event of a split.
It can also include a clause saying that neither of you can go to court to force a sale, but if yours doesn't, this could be an option if an expensive one. As a legally binding document, the declaration of trust cannot be ignored when coming to a conclusion as to how much you should receive either on being bought out or after a sale of the property.
It does not allow either of you to change your minds about how you will divide the money from the property. And it makes any threats from your ex to reduce the amount you get pretty empty. Also, unless your trust document specifically states that you ex should pay you for the furniture you bought, the furniture money should be dealt with as a separate transaction.
It would be worth your while to go back to the solicitor who drew up the declaration of trust for advice on applying the terms of the trust to your current situation. It may be that a letter from a lawyer outlining what can and can't be done might help to calm your situation down.
Anonymous Private practice. Add reply. Related Content. My client is the leasehold owner of property but previously held by him subject to a Deed of Trust signed with his former partner on basis that they would be joint beneficial owners etc. A part of a settlement relating to various property holdings this deed of trust is no longer to stand and the client will be the sole legal and beneficial owner of the property.
I have a copy of the deed but the whereabouts of the original is unknown. How would I best go about revoking the deed? The partner is not a happy bunny and unlikely to be very co-operative so we need something very simple. Instead, all beneficial interests in the property are registered. The respective shares set out in the document are the proportions used to distribute the sale proceeds. As every situation is different, a good solicitor will tailor the deed of trust to your requirements.
You can be flexible with how equitable interest would be treated. For example, consider the following situations:. These are just two examples of how you can account for different intricacies with a declaration of trust.
Some parents, for example, may be happy putting up money towards the deposit — without expecting any return. Others would like to share in any profit made on the house. For joint owners, it can seem like a difficult topic to approach.
For anyone investing in property, though, a declaration of trust should be considered. Cohabiting couples are one of the fastest growing family types in the UK, with many people choosing to live together without getting married.
In , there were 3. While a lot of these couples will buy a house together, no-one enters a relationship expecting it to end. Sadly, many do. However, you might still want to register — and protect — a beneficial interest. In other words, to record your respective contributions to the purchase price and ongoing costs.
You can still use a declaration of trust to achieve this. Ever since , the Land Registry has included a declaration of trust panel on its form and in , a voluntary joint owners form was introduced.
It gives homeowners the option to declare interests from the start — otherwise they are assumed to have equal shares in the property. When you buy a property as tenants in common, you each own a share — something which will be evidenced on title at the Land Registry.
In this case, if one of you passes away, that share will be passed on as set out in their will. Without a will, the rules of intestacy apply. For couples with children from a previous marriage, for instance, this would be beneficial as their share can be left to their kids.
A declaration of trust is still useful because precise shares — including contributions to the deposit and plans for ongoing repayments — should be set out at the start. As both joint tenants and tenants in common, a deed of trust is a way of securing the financial contribution with a legal agreement.
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