Declaration of Trust
A Declaration of Trust is a legally binding written agreement which records the financial arrangement between joint owners of a property. Joint owners could be unmarried couples, friends, relatives, or business partners.
At Burt Brill & Cardens, we have specialist teams in both trust law and property law. Our expert legal teams provide bespoke and in-depth legal advice. If you need us to draw a Declaration of Trust up for you, or require advice about signing one, contact our friendly team today.
Creating a Declaration of Trust can provide security and clarification in case there is a breakdown of the relationship between the joint owners, or one party simply wants to sell up. Creating agreed terms with a Declaration of Trust can help you avoid prolonged and costly legal disputes over finances if your relationship breaks down.
It is also important to create a Declaration of Trust if you are contributing different amounts to the deposit, fees, or mortgage payments. A Declaration of Trust can help you protect your financial contribution in the event that you decide to sell the property or your share in the property.
A Declaration of Trust can establish:
- What happens if an owner decides to sell their share
- What proportion of the sale proceeds each owner will receive if the property is sold
- How any mortgage on the property will be paid off
- The terms upon which you transfer the property, if one wishes to buy out the other’s share in the property
- If and when the property should be sold and how the sale proceeds should be divided between the owners.
If you are contributing a different financial amounts to the property, a Declaration of Trust can clarify:
- The percentage of the deposit each person will pay
- The percentage of the property each person will own
- How much each owner will contribute towards mortgage payments
- How much each owner will contribute towards fees
- How one party will be repaid in the event that the property is sold
Maureen Edwards
Maureen is the Client Support and New Business Director of Burt Brill & Cardens.
Read More About MaureenProfessional, responsive and very patient! The total cost of the transaction was competitive and exactly as initially estimated by BBC Law. Overall a great experience and would recommend anyone to use the company.
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