Worried about putting in a larger deposit than your partner to buy a property? Consider a Declaration of Trust
A Declaration of Trust is a legal document used to express the agreement between joint property owners.
It can cover specific issues such as each owner’s contributions to the purchase price, the mortgage, and other outgoings.
Why do you need a Declaration of Trust?
Declaration of Trusts clarifies the amounts paid by each owner and the percentage of the property owned by each owner. It also states how the proceeds will be divided when the property is sold.
Setting out your agreement in writing at the beginning can help avoid costly disputes if the relationship between the owners unexpectedly breaks down.
If you are buying a property and a third party, such as a parent, is contributing to the deposit but will not be named on the legal title, a Declaration of Trust will help protect their contribution. This is a common scenario for first-time buyers whose parents help them climb onto the property ladder by contributing to the deposit.
As a solicitor at SAS Daniels, Jessica Shore, pictured above, says: “More couples are starting to take out Declarations of Trusts when they buy a property to ensure they have some financial protection.
“Many parents are also keen to make sure the money they are putting towards the purchase stays in the family if their children’s marriage or relationship breaks down.”
SAS Daniels Trust specialists also work alongside Steph Lyke in its residential property team to ensure Trusts are executed properly once the property purchase is completed.
They will prepare a draft document for you to approve before sending the final document to you to sign and provide secure storage of the original Declaration of Trust in their archive.
For advice on a Declaration of Trust please get in touch with Jessica Shore in the Trusts team on 01244 305 941 or email jessica.shore@sasdaniels.co.uk
The information contained within was correct at the time of publication but is subject to change
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