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
Professional, 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.