Make certain all formal details are in order when the legal owners of the property are not the only owners with this declaration of trust. This deed of trust is necessary where, for example, mum and dad are putting up some of the capital for the purchase price of the property. It covers numerous scenarios where the beneficiaries may or may not also live at the property as well as where the required agreement is simple and only concerns the contribution to the purchase price.
When to use
Use this deed of trust
- when the legal owners of the property, the trustees, are to be the registered owners but others have contributed to the purchase price and want their interest noted
What it covers
This deed of trust covers
- where one or two people are buying a property with or without a mortgage, but some of the funds are being provided by one or two others, the beneficiaries eg mum and dad are putting up some of the capital and need their interests protected as owners of the property as opposed to being lenders
- where the beneficiaries may or may not also live at the property
- where the required agreement is simple and only concerns the contribution to the purchase price
- the legal ownership of the property and is a legally binding agreement. It should not be used in place of a flat sharing or tenancy agreement, for example, nor if the parties are not in complete agreement
- if the beneficiary is intending to live at the property and there is a mortgage. They will not be protected if the property owner fails to pay the mortgage and the property is repossessed.
- if you need help having this deed noted on the register at the district land registry. Your conveyancer should be able to complete this for you if you give them a copy of your declaration of trust. If the trust is not noted at the registry it would not be known about by a future purchaser and the beneficiary might not be protected.
This deed of trust is governed by the law of England and Wales.