When buying a property do I need a Declaration of Trust?
A Declaration of Trust is also more commonly known as a trust deed, and is required where two or more people are intending to jointly own a property, whether as their home or as an investment. Such a declaration may also be required where one individual is just a contributor to a property but does not own the property.
In such case, the person might be paying for the mortgages directly or indirectly or paying for renovations to the property and would like their interest recorded on a document.
A Declaration of Trust is a statement that identifies how property is owned, by whom and in what percentage shares. The declaration should clearly state the contributions made by each party at the time of the purchase of the property. It should also clarify the position upon the sale of the property, for instance how the sale proceeds are to be divided between the parties. There should also be provision for how the property is to be dealt with in the event of the breakdown of the relationship or the death of one party.
In addition the Declaration must state the initial contribution made by the parties and the anticipated contributions such as payment of a mortgage, expenses, bills, insurance or cost of additional work and maintenance on the property.
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