A deed of trust is usually necessary when two people choose to live together. This may be as tenants in common or as joint tenants. It protects the financial interests of anyone who is involved in the property purchase.
A deed of trust is an essential legal document, especially when people cohabit as tenants in common. It legally outlines the terms of ownership
Deed of Trust
A deed of trust outlines the legal ownership of a property and provides both parties as well as mortgage lenders a level of protection in the event of a dispute.
It includes the percentage that each party owns and details who will be responsible for what costs and who stands to gain what amount in the event of a separation, dispute, or sale.
It states the legal division of ownership – for instance when one party contributes a higher percentage to the house deposit or contributes more to monthly mortgage repayments. It also affords protection to any third party who may have contributed to the property purchase, such as a family member providing a deposit. The document outlines the exact shares or contributions made.
Drafting a Deed of Trust
To ensure that a deed of trust is legally binding, it must be drafted by a legal professional. They will draft a copy for your perusal before signature. Solicitors experienced in drafting a deed of trust or other legal document suited to your needs can be found online.
By instructing a solicitor to draft your deed of trust, you are ensuring that you are gaining all necessary legal advice before committing to a legally binding document. You are also ensuring that the document is valid and legally binding.
It is usually possible to instruct a solicitor to draft a basic deed of trust under a fixed fee agreement. This means that the exact costs are clear to you from the point of instruction.
Whenever changes in circumstances occur, it is wise to consider a rewrite of any existing deed of trust so that it accurately reflects the new details.
