What is a Declaration of Trust?
A declaration of trust is a legal document, also referred to as a deed of trust, which records the financial arrangements between everyone who has a financial interest in the property. This could be necessary if you’re buying as a joint owner or getting help from someone else, such as a family member.
What does a Declaration of Trust do?
A Declaration of Trust will confirm the ownership of a property in the proportions contributed by each party regardless of the title entries at Land Registry. The declaration of trust is a purely personal agreement and the obligations you have to your mortgage lender will always remain joint, whatever you state in this deed.
Do I need a Declaration of Trust?
If you are jointly buying a property and you are each contributing different amounts towards the deposit, fees or mortgage payments then a Declaration of Trust will clarify the percentage each owner will pay and or own.
What are the benefits from having a Declaration of Trust in place?
If you want to avoid prolonged legal disputes over finances if your relationship breaks down a Declaration of Trust can set out if and when the property should be sold and how the sale proceeds should be divided between the owners.