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Declaration of trust - is it worth it?
If you are looking to buy a property with someone and will be contributing unequal amounts you may be considering a Declaration of Trust. But what is it, and is it worth it?
A Declaration of Trust is a legal document that confirms the actual beneficial ownership in a property, whether this be 60:40 or another any other division. It sets out the financial arrangements that the parties have agreed and entered into.
These types of documents are extremely important whether you are unmarried or are simply purchasing a property with a friend and have contributed unequally. The document enables you to record that the property is held as tenants in common; it sets out the proportions you are each contributing and how the property is to be divided should the unplanned arise.
Although it can be seen as unromantic for a couple to put a document like this in place, it is always worth ensuring your interest is protected not just for yourself but ultimately for your loved ones.
Should you not have a Declaration of Trust in place, you may find yourself in a vulnerable situation. For example, imagine you have contributed more to the repayments on the property than the other party. This could leave you in a complicated situation where you need to try to establish the extent of your interest in the property and how much you are owed.
In our opinion, a Declaration of Trust is certainly worth considering. Come and talk to us about how such a document is drawn up and what it might offer you. We will be pleased to arrange a free 15-minute telephone consultation with one of our expert property lawyers.