People seeking to purchase property together will often find themselves disputing their individual shares and investments, which can cause big problems when it comes to selling or letting. A deed of trust helps settle these disputes before the property is purchased, preventing the hassle and fickleness that can come with verbal agreements. Let’s look at this in more detail and discover whether you can draw up your own deed of trust.
What is a deed of trust?
A deed of trust is an agreement made during the purchase of a property that provides each investor with a legally binding record of their share. This agreement helps to clearly establish ownership and is particularly helpful when one person is contributing a bigger deposit or paying considerably more of the mortgage.
Third-party contributions can also be included in the deed of trust, such as parents providing a lump sum. This helps prevent disputes over ownership and makes selling or letting the property far simpler.
Deeds of trust are not just for couples, as any number of contributors or cohabitors can be included in the agreement.
You can discuss the intricacies of arrangements and whether your situation or concerns are applicable by enquiring with deed of trust specialists online, such as https://www.parachutelaw.co.uk/deed-of-trust. You can also read the laws yourself here:
Can you write your own deed of trust?
You don’t need a deed of trust to buy a property, but there are circumstances when it is highly advisable. You can write your own; however, it won’t be legally binding, which is where disputes begin to arise.
If, for example, you plan to purchase a property with your current partner, how would you go about dividing the property shares in the event of a breakup? If your parents contributed to the property, would you want their money to be taken by your former partner?
Deeds of trust prevent any of these nasty disputes by having clear-cut agreements established far in advance. The more parties involved in a property purchase, the more essential a deed of trust will be in preventing disagreements.
