Declaration of Trust
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Buying a property with a partner is exciting but it is important to agree and legally record the basis of your joint property ownership with a Declaration of Trust document.
Our specialist residential property Solicitors can draw up a Declaration of Trust to record your property agreement, protect your interests and reduce the risk of litigation should you or your co-owner decide that you no longer want to own the property together.
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For no-obligation advice and information, call our specialist residential property solicitors today on 01642 252 828 or use our contact form and we will call you back.
Declaration of Trust
A Declaration of Trust can be used when a person decides to purchase a property with someone else or when a person moves into a property and the owner agrees that they will get an interest in the property.
A Declaration of Trust is recommended if you are buying a property with:
- Your unmarried partner
- Your brother or sister
- A group of friends
- Your parents
- A colleague or partner as an investment
There are many reasons why you may want to buy a property with family or friends. For example:
- To enable siblings or friends to afford their first property
- Buying a second home as a family
- Parents helping children or grandchildren take the first step on the housing ladder
Whatever the circumstances, a Declaration of Trust protects all the joint owners.
If you are buying as an engaged couple a prenuptial agreement may be more appropriate and if you are already married then a postnuptial agreement may be the recommended option.
Contents of a Declaration of Trust
A Declaration of Trust should include the following:
- Details of the joint owners, the property and the purchase price
- Specify how much each co-owner contributed to the deposit and to the costs of buying the property
- State the agreement on the percentage that each co-owner will contribute towards mortgage payments
- The percentage of the equity in the property that each co-owner owns and how the equity is calculated
- Whether the co-owners own the property together as joint tenants or as tenants in common
If co-owners fall out over whether the property should be sold or how the equity should be split an application can be made to Court to determine the property dispute. Signing a Declaration of Trust minimises those risks as the document records the agreement reached between co-owners and is binding.
A member of our residential property team will be able to prepare the Declaration of Trust for you at the time of the property purchase.
Changing a Declaration of Trust
A Declaration of Trust can only be changed by agreement. In some cases, it is important to review and change the Declaration. For example, if one co-owner wants to invest more into the property by paying for an extension or home improvements. Alternatively, one co-owner may want to be bought out of the property so the shares of the other co-owners will need reconsideration.
Joint Tenants and Tenants in Common
There are two ways that co-owners of property can jointly own a property:
- As joint tenants
- As tenants in common
A joint tenancy is where the co-owners jointly own the property and if one co-owner dies, their share in the property will be passed to the surviving co-owner. With a tenancy in common, if one co-owner dies then their share in the property passes under their Will, or under intestacy rules, if they did not make a Will.
Co-owners of property should carefully consider which type of property ownership is best for their circumstances when drawing up a Declaration of Trust.
Our specialist property Solicitors can help you with your Declaration of Trust to ensure that all the co-owners understand ownership options and have peace of mind about their property co-ownership.
How Macks Can Help
Our solicitors will thoroughly explore your case and determine the best course of action that is tailored to your specific needs.
We will provide you with efficient, practical advice and keep you updated throughout your matter. Wherever possible we will offer a fixed fee, so you will always know what the costs are from the outset.
Contact us
For more information about Declarations of Trust, you can call us on 01642 252 828; alternatively, complete our online contact form and one of our residential property team will be in touch.
Macks Solicitors provide a comprehensive residential property service across the country from our offices in Middlesbrough, Darlington and Redcar.
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We used Helen from Macks Solicitors for the sale of our property in St Albans. I cannot express what a dream it has been working with Helen! A process which is usually stressful, was instead smooth and extremely stress free! Helen’s communication, professionalism, and efficiency is incredible. We would highly recommend using Helen and Macks Solicitors anytime! Thank you!
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We’ve recently been on an 8 month journey of buying our first home. After enduring a 3 month Covid delay on our first homebuyers survey on the original house we were looking to purchase (which didn’t turn out well), we pursued a different house and managed to complete on our dream first home in York this month (October).
It’s been a long slog, but throughout the process Helen has been a dream, keeping us updated on each step and where we stood in the process as well as advising us on the outcomes of the searches and survey on the first house. The vendors on the 2nd house wanted a quick sale and we wanted a quick purchase, and Helen’s swift attention to detail ensured numerous legal points that were not identified in the previous sale on the house 3 years ago were addressed this time around, displaying comprehensive focus on all legal matters that may have been missing from the process last time, and we still managed to do this in under 3 months.
Considering the extreme circumstances we find ourselves in with Covid and the slow pace on the lenders side, we really couldn’t have asked for a better legal partner to keep us sane the past few months, with really excellent advice on where we stood if purchasing the original house.
Thanks Helen and Macks!
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Very helpful members of staff. Friendly and supportive at every stage of our professional journey together .Macks solicitors ( Helen Preston and Sophie Fisher ) Enabled the transaction of the sale of my mams property to move swiftly and efficiently without stress. Reception staff were friendly, welcoming and informative, whenever I had to call at the office. I feel that Macks solicitors had the individuals care and safety ( in these uncertain times with Covid ) as their priority. I am grateful for everything they have done and making this transition very efficient and stress free. I would highly recommend their services.
Mrs Heap
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We used Helen from Macks Solicitors for the sale of our property in St Albans. I cannot express what a dream it has been working with Helen! A process which is usually stressful, was instead smooth and extremely stress free! Helen’s communication, professionalism, and efficiency is incredible. We would highly recommend using Helen and Macks Solicitors anytime! Thank you!