A deed of trust is a document drawn up by your solicitor that confirms what the proportions in which two or more individuals own of a property. It will contain and clearly declare that the co-owners hold the property on trust for themselves as tenants in common. Unlike tenants who hold their property as 'joint tenants', tenants in common can specify their distinct share in the property. This document sets out the respective beneficial interest of each tenant in common based on their contributions to the deposit, mortgage and ongoing maintenance.
The main points of a deed of trust are listed below;-
- A legal document which confirms the exact proportions in which owners own their property.
- Confirms the actual amounts originally given towards the deposit by each party.
- To confirm the proportions to be repaid to each individual upon sale of the property.
- To details each parties contribution to the payment of the mortgage and the maintenance.
- To avoid any arguments as to who gave what at the beginning of the purchase
Declaration of Trusts are popular amongst first time buyers as any number of parties can enter into a deed of trust, further more they can only be terminated by providing four months written notice to each of the owners.
