Joint Ownership
Residential Property Conveyancing

Declaration of Trust

A legally binding Declaration of Trust will safeguard financial contributions made towards the purchase or improvement of a property and can also state in what circumstances the property must be sold.

A Declaration of Trust is particularly recommended if any of the following apply to you:

  • Your child is buying a property and you have contributed towards the purchase
  • You and your Partner are buying a property and one of you has contributed a greater share of money whether as capital or mortgage payments
  • You have spent money in improving someone else’s property so that the property has become more valuable
  • You have loaned money to someone else to enable them to buy a property.
  • You are buying a share of a jointly owned property
  • You anticipate the property may be let so that you derive rental income from it
  • One of the joint owners may vacate the property either on a temporary or long term basis

It's helpful to have a meeting to discuss funding arrangements and explore what might happen.

We invite you to recognise and record the underlying purpose of the investment in a declaration of trust. At the same time you can also plan for future contingencies.

Sometimes a more comprehensive declaration of trust is necessary. This will do more than simply define the shares of everyone involved (the parties). It will document any additional terms agreed by you and the co-owners before buying. It will cover things that might change or go wrong in future. We must take more time to prepare a bespoke declaration of trust and our costs to you must reflect this.

Sometimes one solicitor cannot act for both (or all) parties due to a conflict of interest. You might need separate advice. We will tell you if this is the case.


 

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