If you are thinking of buying a property with someone else, you should consider creating a Deed of Trust. Here we will explain why and explore the best options available to you.
Why consider a Deed of Trust?
Purchasing a property can be stressful, and also complicated if you are buying with someone else. It will also be one of the largest purchases you are likely to make in your lifetime. Consequently, you will want to ensure that your investment is protected.
When you purchase a property as tenants in common you may have contributed different amounts to the consideration for the property. In this case, you may want to define the exact shares in the property and how they are arrived at.
A Deed of Trust not only lays these out but also explains how the proceeds are divided if the property is sold or one party wishes to sell their own share. If, for example, one party has contributed the largest part of the deposit whilst the other has paid for major renovations, the Deed of Trust will define how these sums are reflected on sale.
Why should I use a solicitor when creating a Deed of Trust?
If you write your own Deed of Trust and have it witnessed, it will not necessarily be legally binding. Therefore you should ask a solicitor to draw up the deed, ideally at the same time as they are handling your conveyance.
You will find information on Deeds of Trust online at sites such as https://www.parachutelaw.co.uk/deed-of-trust, including the costs which attach.
Conclusion
The purpose of a Deed of Trust is to protect your investment, whatever the source. It may be that you have been given funds from parents to help with your part of the deposit or to carry out work on the property which has increased its value. You may also have contributed a larger proportion of any mortgage repayments. The deed will ensure that this is reflected in the proceeds of the sale, so make sure you get the correct legal advice.
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