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What is a Deed of Trust?

deed of trustA Deed of Trust (also called a Declaration of Trust) is a legal agreement between joint owners stating the division of ownership of the property.

It is always advisable for co-owners who hold property to enter into a Deed of Trust to:-

  • Confirm the extent of their respective beneficial interests, for example, 30/70.
  • Set out any express terms that co-owners want to include. This might include proposed agreements for day-to-day issues such as how the parties will arrange for maintenance or any other expenses relating to the property.

What does a Deed of Trust include?

A Deed of Trust can address a range of issues, for example:

  • the amount each owner paid towards the deposit;
  • how much each party is going to contribute towards the mortgage repayments;
  • the equity split if the property is sold or mortgage ends;
  • how much each owner is going to contribute towards home insurance, purchasing costs (e.g., stamp duty, solicitors’ fees, searches), maintenance (e.g., decorating costs, roof repairs, etc), and improvements
  • how the property will be valued if one owner wants to sell;
  • what happens if an owner dies;

Can I create a Deed of Trust myself?

We recommend that you instruct an experienced Solicitor to create your Deed of Trust. The small expense of getting a Deed of Trust from a solicitor is nothing when compared with the huge investment of a property, and it is well worth getting it done properly to protect such a large asset. You can instruct a solicitor at the time of purchase or later.

James Pearn, Partner and Head of Property at Loosemores commented:

“When buying a property, it is common that the joint owners contribute unequal shares of a deposit, particularly when they are first time buyers. In order to protect each interest in the property we would advise that the parties enter into a Deed of Trust.”

If you wish to enter into a Deed of Trust or if you’re looking to buy or sell your property please get in touch for your free, no obligation conveyancing quote.


Telephone: 029 2022 4433

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