If you are considering your options regarding a Deed or Declaration of Trust, it is important to ensure that you understand its purpose and any legal implications it may have for you.
What is a Deed of Trust?
A deed of trust or a Declaration of Trust (the terms can be used interchangeably) is most commonly used when more than one party has a stake in a property without any pre-existing legal arrangements. The document is drawn up and becomes legally binding at the time of purchasing the property. It will detail the financial arrangements of every party with an interest in the property.
What exactly does a Deed of Trust do?
As it clearly sets out financial arrangements, a Declaration of Trust can be used to determine precisely what each party is entitled to and what will occur should the property be sold.
Who might need a Deed of Trust?
Couples who are not legally married or in a civil partnership should consider a Declaration of Trust. This will ensure that both parties will be treated fairly if the relationship were to break down and arrangements regarding the shared property need to be made.
Although the Guardian predicts that property prices will fall by up to 4% throughout 2024, property prices and interest rates remain high, and the global economic crisis continues to impact the cost of living. Therefore, getting onto the property ladder has become much more difficult in recent years.
This has prompted many people to think about alternative ways of purchasing a property. These include pooling resources with a group of friends to purchase a house or flat under a joint ownership agreement and accepting financial help from family members who are able to provide that support.