A Deed of Trust, or Declaration of Trust, protects the interests of those who are purchasing properties together, or who have a shared interest.
A Deed of Trust is a pivotal legal instrument, ensuring clarity and security.
Deeds of Trust
Purchasing property can be a complex process, and more so if multiple parties are involved. It is essential that all have access to the knowledge and legal protection specific to their circumstances.
If you are purchasing a property jointly, or another party is contributing to the purchase, then a Deed of Trust should be sought to provide mutual benefits to all involved.
This may include circumstances where you are buying property with a partner, friend or family member, or where parents or family members are providing a financial contribution, to make purchasing possible.
This could include circumstances where a parent has paid the deposit for a first-time buyer.
Unmarried couples should never enter a joint house purchase without a Deed of Trust, as they are not offered the same protection under the family courts as a married couple.
A Deed of Trust provides asset protection, flexibility in estate planning and privacy.
It is a legally binding document that ensures that all parties get what they are entitled to if the property is sold. It is an essential part of ensuring that any disagreements regarding ownership can be dealt with legally and equitably in the future.
Deed of Trust Cost
A Deed of Trust can be integrated into the conveyancing process when a property is purchased, or alternatively, at a later date after completion. After completion, a specialist can register the restriction against the property, with the consent of all parties involved.
A basic Deed of Trust includes details such as the deposit amount paid, how shares in the property will be divided, either through rent or sale, and details such as how household bills and expenses will be shared. It also details how the property will be sold.
Many conveyancing specialists will be able to draft and finalise a Deed of Trust under a fixed fee structure so that you know exactly what to expect in terms of legal fees. They can be obtained for around £300, which is a small price to pay for the peace of mind and protection that they provide. For more details on Deeds of Trust, or other services offered by a specialist conveyancing service, visit https://www.samconveyancing.co.uk/news/conveyancing/deed-of-trust-4378.
A specialist conveyancing service can also advise on the suitability of a Deed of Trust, or whether alternative remedies such as a loan agreement or a Deed of Assignment would be more beneficial to the parties involved.