A declaration of trust is a piece of legal documentation that defines the ownership of a property if it is shared between two or more people. It is usually used when people buy a home together but they contribute different amounts to the deposit. The declaration of trust should protect the interests of everyone by specifying who owns the different shares of the property and how the sale proceeds should be split in the future.
Who can have a declaration of trust?
If you jointly own a property with someone, you are entitled to have a declaration of trust. This can include married couples, unmarried couples, friends, family members or business partners who buy a property together. It is also useful for parents who help their children to buy a house as even though they are not on the title deeds of the property, they can still be on a declaration of trust as they have financially contributed to the house purchase.
It is worth being aware though, that the status of a declaration of trust can change after a couple gets married If you’re looking for a declaration of trust, there are a range of UK-based solicitors and law firms that can offer help and advice.
What is in a declaration of trust?
A declaration of trust will usually include the precise share of the property each person holds. This could be an equal split of 50/50, for example, or another percentage, depending on how many people are buying the house. The trust can also specify how the mortgage payments, maintenance costs and other expenses will be shared and what will happen if one person wants to sell their shares or if one of the owners dies.
Furthermore, it may also include what happens if you decide to rent the property out and how the rental income should be divided, who can live in the property and what the conditions of this may be. A declaration of trust can cover any aspect of property ownership and management that the owners need to clarify and agree on.
